Indian Equity Markets Display Resilience Amid Global Uncertainties

At the close, the Nifty 50 was at 22,466.10 up by 0.28%

The NSE Nifty 50 demonstrated notable resilience today, opening with a 0.28% rise and closing at 22,466.10. This marks the second consecutive day of growth for the index, showcasing robust market performance despite mixed global cues and uncertainties surrounding the US Federal Reserve’s monetary policy decisions.

Positive Opening and Closing The Nifty 50’s positive trajectory continued, reinforcing investor confidence with a significant close at 22,466.10.

Influence of Q4 Earnings Strong Q4 earnings results, particularly from major index players, were a primary driver of this growth, surpassing market expectations and boosting sentiment.

Sectoral Contributions The consumer durables and auto sectors showed impressive earnings momentum, significantly contributing to the market’s positive trend. Additionally, midcap and small-cap stocks saw increased interest during market dips, indicating broader investor engagement across different segments.

Volatility and Stability Despite experiencing volatility and trading within a narrow range during the session, the market’s ability to recover swiftly and close positively underscores its underlying strength.

Global Market Sentiment While Indian markets exhibited growth, global markets ended slightly lower. This downturn was influenced by comments from three US Federal Reserve officials advocating for maintaining high borrowing costs until clearer signs of easing inflation emerge, suggesting no immediate interest rate cuts.

The ongoing upward movement of the NSE Nifty 50 amidst global uncertainties highlights the resilience of Indian equity markets. Investors should remain attentive to both global economic signals and domestic earnings reports. This vigilance will be crucial for navigating potential market volatility effectively. The strong earnings performance and sectoral growth provide a positive outlook, yet global monetary policies and economic conditions will continue to play a significant role in shaping market trajectories.

Bank Nifty: Up by 0.29%

Today, the Bank Nifty commenced trading on a positive note, registering a 0.29% increase, and closed in the green at 48,115.65. Likewise, the BSE Sensex surged by 0.34%, reaching a high of 73,917.03, maintaining its upward momentum throughout the trading session.

The Bank Nifty’s resilient performance underscores the strength of the banking sector, contributing to the overall positive sentiment in the market. Similarly, the BSE Sensex’s upward trajectory reflects a broader bullish trend, with key indices witnessing significant gains.

In the sectorial front, the consumer durables sector has experienced significant gains, rising by 2.78%. Leading this surge, Crompton Greaves Consumer Electricals Ltd. saw a remarkable increase of 15.13%, showcasing strong performance and investor confidence. Similarly, Dixon Technologies (India) Ltd. also reported substantial growth, with its stock climbing 8.23%.

Conversely, the information technology sector faced setbacks, emerging as the top loser with a decline of 0.85%. Mphasis Ltd. experienced a notable drop, falling by 2.32%, which contributed to the sector’s overall downturn. Additionally, Tata Consultancy Services Ltd. reported a decrease of 1.59%, further weighing down the IT industry.

Foreign Institutional Investors (FII/FPI) exhibited a net buying behavior, with a buy value of Rs. 15,820.61 crore and a sale value of Rs. 14,203.82 crore, resulting in a net value of Rs. 1,616.79 crore.

Conversely, Domestic Institutional Investors (DII) also demonstrated a positive trend, recording a buy value of Rs. 11,656.60 crore and a sale value of Rs. 10,100.35 crore, yielding a net value of Rs. 1,556.25 crore.

Bank Nifty

The Nifty Banking sector had some gainers and some losers for the day.

The gainers included Kotak Bank with a 1.36% increase, Bandhan Bank with a 0.92% increase, State Bank of India with a 0.67% increase, AU Bank with a 0.62% increase, and IndusInd Bank with a 0.44% increase.

On the other hand, the biggest losers in the sector included Bank of Baroda with a 0.38% decline, Federal Bank with a 0.24% decline, ICICI Bank with a 0.05% decline. These results suggest that most of the banking stocks performed better for the day.

Rupee Strengthens Against US Dollar on Positive Market Sentiment

The Indian rupee appreciated by 17 paise to close at 83.33 (pro) against the US dollar on Friday, bolstered by upbeat domestic market sentiments and anticipation of fresh foreign inflows. The Reserve Bank of India’s reported selling of US dollars also provided support to the rupee, according to forex traders.

At the interbank foreign exchange market, the rupee opened at 83.50, touching an intraday high of 83.32 and a low of 83.50 before settling at 83.33 (pro), marking a 17 paise increase from its previous close.

The rupee’s positive trajectory was further propelled by favorable voting counts in the Indian capital markets and expectations of the incumbent government’s continuity. Domestic Institutional Investors (DII) inflows have played a pivotal role in stabilizing the rupee, while stringent regulations by the RBI against speculation have curbed potential declines.

Looking ahead, market analysts anticipate the rupee to maintain its positive momentum, trading within a range of 83.10 to 83.55 in the upcoming sessions. Continued optimism in the domestic markets, coupled with sustained DII inflows, is expected to support the rupee against external pressures. Investors are advised to closely monitor market developments and global economic indicators for insights into the rupee’s future trajectory.

Stocks Highlights

Grasim Industries Ltd. Shows Strong Performance

Grasim Industries Ltd. share price increased by 2.42%, rising from Rs 2,372.60 to Rs 2,430.00. The company’s financial health is evident in its prudent spending, allocating 5.14% of operating revenues to interest expenses and 6.12% to employee costs for the fiscal year ending March 31, 2023. Over a three-year period, Grasim Industries delivered a robust return of 70.22%, significantly outperforming the Nifty 100 index, which returned 54.24%.

Cipla Ltd. Faces Share Price Decline

Cipla Ltd. saw its share price decrease by 1.63%, dropping from Rs 1,421.10 to Rs 1,398.00. Notably, over the past 19 years, only 0.87% of trading sessions recorded intraday gains exceeding 5%. Despite a quarterly revenue decline of 5.54%, Cipla’s Return on Equity (ROE) for the year ending March 31, 2024, was 15.43%, surpassing its five-year average of 11.98%. Additionally, a 50-day moving average crossover occurred recently, typically indicating an average price gain of 4.24% within 30 days over the last five years.

Advance Decline Ratio

Today, the advance-decline ratio was 1.84, and the market breadth was positive. The volatility index India Vix decreased by 0.98 percent to settle at 19.80 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1671
Decliners – 910
52Wk High – 132
52Wk Low – 15
High Band Hitters – 150
Low Band Hitters – 63
200d SMA – 20910
50d SMA – 22313
20d SMA – 22353

Top Gainers and Losers Stocks

The top gainers were M&M (+5.83%), Grasim (+2.42%), UltraTech Cement (+1.92%), JSW Steel (+1.70%), and BPCL (+1.62%).

The top losers were Cipla (-1.63%), TCS (-1.59%), SBI Life (-1.26%), HCL Technologies (-1.20%), and Britannia (-0.97%).

Top Gainers and Losers Sectors

The top gainers sector were Consumer Durables (+2.78%), Auto (+1.74%), Realty (+1.67%), Metal (+1.62%), and Media (+0.98%).

The top losers sector were IT (-0.85%), and Pharma (-0.08%).

SECTORS – NOTABLE ACTION
CONSUMER DURABLES +2.78%
AUTO +1.74%
REALTY +1.67%
IT -0.85%
PHARMA -0.08%

Stocks Ban List

(SEBI) F&O ban list (BANDHANBNK open at -181.00 and close at +181.15), (INDIACEM open at -209.00 and close at +211.00), (PEL open at -830.00 and close at +827.20), (ZEEL open at +133.50 and close at +134.95), (BIOCON open at -305.25 and close at +305.85), (GRANULES open at +402.80 and close at +401.95), (BALRAMCHIN open at +380.00 and close at +384.20), (IDEA open at -13.15 and close at +13.25), (BSOFT open at -618.00 and close at -610.70), (GMRINFRA open at -83.20 and close at +86.05), (SAIL open at -164.00 and close at +166.90), and (HINDCOPPER open at -378.50 and close at +383.95) are not currently on the stock exchange.

A stock enters the Ban List if its MWPL is above 95%. Implying that, Ban List shows the Futures and Options (FnO) stocks whose combined open interest in all FnO contracts for a given period crosses 95% of Market-Wide Position Limit.

PNB, IDFCFIRSTB, ABFRL, CANBK, NATIONALUM, IEX, ABCAPITAL, GNFC, PVRINOX, and TATACHEM stocks has the possibilities of entrance in the ban list.

BSOFT, GMRINFRA, SAIL, and HINDCOPPER stocks has the possibilities of exit from the ban list.

Daily Pivots

As per the above pivots data, 22300 to 22600 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Indian Markets Surge as Global Equities Rise on Strong US Inflation Data
Benchmarks Swing Between Gains and Losses, Nifty 50 Closes Marginally Lower
Nifty Continues Winning Streak with Third Consecutive Session of Gains

This article is only for educational purposes and is not an investment advice.