Indian Markets Surge as Global Equities Rise on Strong US Inflation Data

At the close, the Nifty 50 was at 22,403.85 up by 0.92%

The NSE Nifty 50 commenced the trading session on a positive note, registering a gain of 0.92% and maintaining its upward trajectory throughout the day, closing in the green zone. Notably, the Nifty surged above the 22,400 mark, reflecting investor optimism and bullish sentiment.

Thursday witnessed significant volatility in the equity benchmark indices as investors adjusted their positions amidst the weekly Futures and Options (F&O) expiry. Despite the fluctuating market conditions, Indian markets ended the day on a high note, with widespread buying activity in the closing hours driving key indices to notable gains.

The buoyancy in the Indian markets can be attributed to the positive global cues, particularly the strong US inflation data, which fueled expectations of potential Federal Reserve rate cuts. Investors are eagerly awaiting the US jobless claims data for further insights into the market direction.

While the market exhibited volatility during trading hours, the overall trend indicated a continuation of the recovery momentum. Positive global trends, including lower-than-expected US consumer inflation figures, contributed to a gap-up opening in the Nifty. Although initial gains diminished, a late surge driven by robust global indicators propelled the market upwards.

Moreover, the resilience of the domestic market is further bolstered by encouraging signs of exports growth despite prevailing global economic uncertainties. This suggests underlying strength and resilience in the Indian economy amidst a challenging global landscape.

In conclusion, Indian equity markets showcased resilience amidst volatility, driven by positive global cues and strong investor sentiment. The late surge in the market, coupled with encouraging global trends, underscores the potential for sustained growth and stability in the domestic market.

Bank Nifty: Up by 0.61%

The Bank Nifty commenced the trading session on a positive note, opening in the green and marking a 0.61 percent increase in value. The upward momentum persisted throughout the day, culminating in a closing value of 47,977.05, reflecting a bullish sentiment in the banking sector.

Likewise, the BSE Sensex also experienced gains, rising by 0.93 percent during the trading session. The index closed at a high of 73,663.72, signaling overall market optimism and investor confidence across various sectors.

In the sectorial front, the Consumer Durables sector experienced a notable surge today, with an impressive gain of 1.72%. Among the standout performers in this sector, Blue Star Ltd. showcased a remarkable increase of 7.50%, followed by Kajaria Ceramics Ltd. with a gain of 3.11%, and Titan Company Ltd. registering a notable rise of 2.12%.

Notably, there were no losers in the consumer durables sector today, underlining the overall positive trend in this segment.

Foreign Institutional Investors (FIIs)/Foreign Portfolio Investors (FPIs) recorded a buy value of Rs. 16,603.64 crore and a sale value of Rs. 17,380.13 crore. Consequently, the net value stood at a deficit of Rs. 776.49 crore.

On the other hand, Domestic Institutional Investors (DIIs) exhibited robust activity, with a buy value of Rs. 14,907.72 crore and a sale value of Rs. 12,779.91 crore. This resulted in a positive net value of Rs. 2,127.81 crore.

Bank Nifty

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

The gainers included HDFC Bank with a 1.48% increase, Axis Bank with a 1.23% increase, Kotak Bank with a 1.22% increase, Federal Bank with a 1.08% increase, and Punjab National Bank with a 0.80% increase.

On the other hand, the biggest losers in the sector included Bandhan Bank with a 5.11% decline, State Bank of India with a 0.98% decline, IndusInd Bank with a 0.50% decline, AU Bank with a 0.23% decline, and Bank of Baroda with a 0.04% decline. These results suggest that most of the banking stocks performed better for the day.

Rupee Slips Slightly Against US Dollar Amid Foreign Fund Outflows

The Indian rupee showed resilience but closed marginally lower, settling at 83.50 (pro) against the US dollar on Thursday. This slight decline was attributed to continued foreign fund outflows and cautious investor sentiment towards riskier assets.

Despite these external pressures, the rupee found support from a positive trend in domestic equities, which helped limit its losses. Analysts anticipate that the rupee’s performance may improve post-election results, as uncertainties surrounding foreign fund flows ease.

Trading within a narrow range at the interbank foreign exchange market, the rupee opened at 83.45, reaching an intraday high of 83.44 and a low of 83.50, showcasing stability amidst market fluctuations.

Closing at 83.50 (pro), the rupee experienced a minor dip of 4 paise compared to its previous close of 83.46 against the US dollar.

On the global front, the dollar index, indicating the greenback’s strength against a basket of currencies, was marginally higher at 104.40, while Brent crude futures, the global oil benchmark, declined by 0.33% to $82.48 per barrel.

Overall, while the rupee faces external pressures, its stability amidst market uncertainties reflects cautious optimism, with expectations of a potential recovery post-elections and stabilization in foreign fund flows.

Stocks Highlights

Mahindra & Mahindra Ltd.: Promising Performance Signals Bullish Trend

Mahindra & Mahindra Ltd. witnessed a significant uptick in its share price, rising by 3.98% from its previous close to reach Rs 2,393.90. This surge indicates a positive trajectory for the company, with a bullish trend forecasted following a 5-day moving crossover observed on May 14, 2024.

Analyzing its financials, the company allocated 4.81% of its operating revenues towards interest expenses and 7.98% towards employee costs in the fiscal year ending March 31, 2023. Moreover, historical data shows an average price gain of 3.11% within 7 days of such bullish signals over the past 5 years. Additionally, Mahindra & Mahindra Ltd. outperformed the Nifty 100 index, delivering a remarkable 3-year return of 210.49% compared to Nifty 100’s 55.33% return.

Maruti Suzuki India Ltd.: Mixed Performance Amidst Challenges

In contrast, Maruti Suzuki India Ltd. experienced a slight decline, with its share price decreasing by -2.15% to Rs 12,492.45. Despite this, the company demonstrated resilience, with only 1.23% of trading sessions in the last 19 years witnessing intraday declines higher than 5%.

Examining its financial metrics, Maruti Suzuki allocated less than 1% of its operating revenues towards interest expenses and 4.44% towards employee costs in the fiscal year ending March 31, 2024. Moreover, the company showcased an impressive return on equity (ROE) of 15.75%, outperforming its 5-year average of 11.7%.

Advance Decline Ratio

Today, the advance-decline ratio was 1.34, and the market breadth was positive. The volatility index India Vix decreased by 1.36 percent to settle at 20.00 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1459
Decliners – 1092
52Wk High – 115
52Wk Low – 14
High Band Hitters – 140
Low Band Hitters – 56
200d SMA – 20896
50d SMA – 22311
20d SMA – 22330

Top Gainers and Losers Stocks

The top gainers were M&M (+3.98%), Tata Consumer (+2.76%), Bharti Airtel (+2.60%), LTIM (+2.47%), and Tech Mahindra (+2.31%).

The top losers were Maruti (-2.15%), SBIN (-0.98%), Tata Motors (-0.86%), Power Grid (-0.81%), and BPCL (-0.81%).

Top Gainers and Losers Sectors

The top gainers sector were Consumer Durables (+1.72%), IT (+1.66%), Realty (+1.63%), Media (+1.22%), and Financial Services (+1.09%).

SECTORS – NOTABLE ACTION
CONSUMER DURABLES +1.72%
IT +1.66%
REALTY +1.63%

Stocks Ban List

(SEBI) F&O ban list (GRANULES open at -398.00 and close at +399.95), (BIOCON open at +315.00 and close at -305.75), (INDIACEM open at -209.10 and close at -208.55), (LICHSGFIN open at -635.50 and close at +653.15), (PEL open at -832.00 and close at -823.85), (ZEEL open at -130.95 and close at +133.05), (BSOFT open at +619.00 and close at +615.50), (BALRAMCHIN open at +379.90 and close at +378.65), (IDEA open at -13.25 and close at -13.15), (GMRINFRA open at +84.00 and close at -82.95), (HINDCOPPER open at +386.95 and close at -377.80), and (SAIL open at +168.45 and close at -163.60)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.

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

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

Daily Pivots

As per the above pivots data, 22100 to 22600 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Benchmarks Swing Between Gains and Losses, Nifty 50 Closes Marginally Lower
Nifty Continues Winning Streak with Third Consecutive Session of Gains
Nifty Bounces Back Closing Higher Despite Early Losses

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