Closing Bell: Market ends with marginal gains amid volatility; auto, PSU banks rally

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

The benchmark indices experienced range-bound activity. Although the Sensex gained 114 points, the Nifty ended 38 points higher. While intraday profit booking was observed in a few Oil and Gas and Metal stocks, the Auto and PSU Banks indices among sectors both increased by over 1%.

Technically, the Nifty is holding a bullish pattern on daily charts, and it is continuously producing a higher bottom shape on intraday charts, which is mostly favourable. The market structure is positive in our opinion, but owing to briefly overbought conditions, we could see some profit taking at higher levels.

Buying on dips and selling on rallies would be the best course of action for traders at the moment. In the near future, the index's important support and resistance levels will be 17,300–17,250 and 17,500–17,550 respectively.

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services

Domestic equities remained lacklustre ahead of RBI policy meeting outcome. Nifty opened higher but immediately gave up its initial gains to trade flat for most part of the session. It however, recovered in the last hour to finally close 38 points higher at 17398 levels.

Sectorially it was mixed bag with major buying seen in Auto and PSU Bank. Auto sector saw a renewed interest after auto majors announced better than expected monthly numbers. Power sector too remain in focus after Tata Power and Adani announced tariff rise for Mumbai region.

Upstream oil companies were also in limelight after crude oil prices rose to 1-month high post OPEC’s surprise production cut. RBI’s policy announcement would be the key event to watch out this week where in investors would gauge for indication with regards to rate hike pause. This along with shortened trading week would keep the market range-bound.

Dilip Parmar, Research Analyst, HDFC Securities

Indian rupee started the month on the back surge in crude oil prices after OPEC+ nations decided to cut the output. The higher crude oil prices will be rupee negative as India imports a major chunk of its energy demand by importing.

The importers rushed for the dollars on a holiday truncated week to start the new fiscal year requirements.

Spot USDINR is expected to trade between 82 to 82.50 ahead of the RBI monetary policy decision, scheduled on April 6.

Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas

Nifty witnessed a day of consolidation and closed with marginal gains. On the daily charts we can observe that the Nifty for the whole day consolidated in the zone of 17,310 – 17,430 where crucial Fibonacci retracement level (17,429) and the 40-day moving average (17,406) is placed.

After a sharp up move in the previous couple of trading sessions, a consolidation is a healthy sign and also provides an opportunity to enter for those who have missed out. The hourly momentum indicator has triggered a negative crossover which is a sell signal.

Considering that prices are trading around a hurdle level and the momentum indicator triggering a negative crossover can lead to a consolidation. Overall, the uptrend is intact and this consolidation should be used as an opportunity to initiate fresh longs. On the upside, the immediate short-term target is placed at 17,500.

Vinod Nair, Head of Research at Geojit Financial Services

Investors were of the view that the easing price pressure would provide the central bank with leeway to pause the rate hike. However, the surprise production cut by OPEC+ has fuelled concerns about inflationary pressure, which may prompt central banks to remain hawkish.

The downside pressure in the market was mitigated as auto stocks rallied in response to the latest sales data, indicating a surge in demand. Additionally, India's manufacturing PMI exceeded expectations, demonstrating its swiftest growth rate in three months due to increased output and new orders.

Rupee Close:

Indian rupee closed 16 paise lower at 82.33 per dollar against Friday's close of 82.17.

Market Close:

Benchmark indices ended marginally higher in the volatile session on April 3.

The Sensex was up 114.92 points or 0.19% at 59,106.44, and the Nifty was up 38.20 points or 0.22% at 17,398. About 2692 shares advanced, 846 shares declined, and 121 shares unchanged.

Hero MotoCorp, Coal India, Bajaj Auto, Maruti Suzuki and Eicher Motors were among the biggest gainers on the Nifty, while losers were BPCL, Apollo Hospitals, Adani Enterprises, ITC and Infosys.

On the sectoral front, auto and PSU Bank indices gained 1 percent each and realty index up nearly 1 percent, while selling was seen in the FMCG, metal, power, oil & gas and information technology stocks.

The BSE midcap index up 0.4 percent, while smallcap index rose 1 percent.

Coal India's shares jump nearly 3% as production in FY23 hits 17-year high

In March, production by Coal India and its subsidiaries rose by 4 percent on year, while in April-March of financial year 2023, output grew by 12.9 percent to 703.2 million tonnes.

The company said it had breached its annual production target of 700 million tonnes, the first time it had surpassed its goal since the fiscal year that ended in March 2006.

Coal offtake also rose 3.4 percent in March, and 5 percent during the financial year 2023. Offtake is simply the amount of coal supplied from the pitheads.

Morgan Stanley View On Autos:

-Retail sales growth was steady
-Pre-buying ahead of emission related cost hikes also aided volume growth
-Mix, margin & market share will be key stock drivers in FY24
-Maruti Suzuki, Bajaj Auto & Tata Motors are preferred picks

Government of Singapore offloads Rs 670 crore shares in Phoenix Mills

Foreign portfolio investor Government of Singapore has sold 51.49 lakh equity shares or 2.88% stake in Phoenix Mills via open market transactions, at an average price of Rs 1,300.15 per share. Government of Singapore held 4.28% shareholding in the company as of December 2022.

Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas

Indian Rupee depreciated on the back of strong dollar and weak domestic markets. Dollar surged as OPEC+ surprisingly cut crude oil production over the weekend. This led to sharp rise in global crude oil prices, renewing inflation concerns. Core PCE inflation showed cooling inflation in US, raising expectations that Fed may be at the end of its rate hike cycle. However, upbeat macro-economic data cushioned the downside. India’s manufacturing PMI rose to 56.4 in March 2023, topping forecast of 55 and a reading of 55.3 in the previous month.

We expect Indian Rupee to trade with a negative bias on a strong Dollar and surge in crude oil prices. This may impact global economic recovery. However, easing worries over the banking crisis in the US may support risk assets at lower levels. Traders may look out for ISM manufacturing PMI data from the US. Investors may remain cautious ahead of RBI’s monetary policy decision and US jobs market report later this week. USDINR spot price is expected to trade in a range of Rs 81.60 to Rs 82.80 in the near term.

Waaree Renewable gets Letter of Intent for 1 MW green hydrogen project execution in Maharashtra

Waaree Renewable Technologies has received Letter of Intent for executing a 1 MW green hydrogen project in Maharashtra on built-own-operate basis. The project is expected to be executed in 12 months.

Market at 3 PM

Benchmark indices were up marginally amid volatility with Nifty around 17400.

The Sensex was up 81.78 points or 0.14% at 59,073.30, and the Nifty was up 29.60 points or 0.17% at 17,389.40. About 2556 shares advanced, 825 shares declined, and 107 shares unchanged.

Jefferies View On Indraprastha Gas

-Maintain buy call, target at Rs 475 per share
-Government has kept APM gas price unchanged at USD 8.57/mmBtu provisionally
-Gas price ceiling for HPHT fields cut marginally to USD 12.12/mmBtu

Indraprastha Gas was quoting at Rs 421.50, down Rs 7.00, or 1.63 percent on the BSE.

Jefferies View On Telecom Space

-In January, sector's active subscriber base rose by 3.9 m & is at peak levels
-MNP at near peak levels indicates stiff competition
-Jio's outperformance positive after 2 quarters of underperformance
-Bharti's market share gains among 3G/4G subscribers bodes well for tariff outlook

Cyril Charly, Research Analyst at Geojit Financial Services

FY23 was not a year of smooth sailing for the banking sector. Though the year witnessed robust credit growth with improvements in asset quality, multiple headwinds kept the performance of bank stocks subdued. Central bankers worldwide were forced to battle heightened inflation, leading to a series of rate hikes. This, along with the global financial breakdown, kept banking sectors off the investor’s shopping list. While credit growth remained strong, banks struggled to balance the flow of deposits, resulting in tight liquidity in the system.

Although margins improved during FY23 with strong loan demand and improved book quality, further upward repricing of deposit rates due to growth imbalance could add pressure on margins. With expected moderation in credit growth during FY24 and pressure on margins, we maintain our neutral view on the sector, but with a stock-to-stock approach. A long-term investor can employ an accumulation strategy during the year as the sector is now trading at its long-term averages.

JSW Energy's subsidiary gets Letter of Intent from Power Company of Karnataka

JSW Energy's subsidiary JSW Neo Energy has received a Letter of Intent from Power Company of Karnataka Limited for procurement of 2,400 MWh (300 MW x 8hrs) energy storage from pumped hydro storage project.

The Letter of Intent is for providing storage capacity for a period of 40 years. The project would be located in Karnataka and designed for eight hours storage capacity per day.

Bank of India hikes lending rates by 10-40 bps across tenures

Bank of India has increased its marginal cost of fund based lending rate (MCLR) by 10-40 bps across tenures with effect from April 1.

Bank Of India was quoting at Rs 75.42, up Rs 0.57, or 0.76 percent.

Jio Financial Services valued at Rs 134-224 per share by Jefferies

Reliance Industries' (RIL) upcoming hived-off unit, Jio Financial Services (JioFS), has been valued at a range of Rs 134 to Rs 224 per share by Jefferies. The brokerage anticipates that the financial services company will be listed by September 2023. For each share held in RIL, current shareholders will receive one share of JioFS, Jefferies expect.

Bonds drop, rupee weakens as oil soars after OPEC

Following a surprise production cut from OPEC+, causing oil prices to soar, Indian bonds and their US counterparts declined, and the rupee weakened. On Monday, the Reserve Bank of India's rate-setting committee is set to commence its monetary policy meeting. At 2.25pm, Rupee was trading 82.4175 down 0.22%, and 10-year yields rose by 2 basis points to 7.33%.

RBI Releases Master Circular On Housing Finance

Sat Industries gains 20% after Aeroflex Industries files draft peper with SEBI

Sat Industries Ltd jumped as much as 20 percentafter Aeroflex Industries filed draft papers with Securities Exchange Board of India to raise around Rs 350 crore via initial public offerings.

The IPO consists of a fresh issue of Rs 160 crore and an offer for sale of upto Rs 190 crore by its existing shareholders and promoters. The OFS comprises of upto 12.3 million shares by Sat Industries Ltd and upto 5.2 million shares by Italica Global FZC.

Currently, Sat Industries hold 92.18 percent stake while Italica Global FZC has 6.52 percent stake in the company. The proceeds from the issue worth Rs 35 crore will be used to repay debt and Rs 84 crore will be used for funding working capital requirements.

Market at 2 PM

Benchmark indices were trading flat in the rangebound session.

The Sensex was down 52.40 points or 0.09 percentat 58,939.12, and the Nifty was down 12.90 points or 0.07 percentat 17,346.90. About 2,491 shares advanced, 858 shares declined, and 108 shares were unchanged.

Orient Electric appoints Rajan Gupta as Managing Director & CEO

Orient Electric has appointed Rajan Gupta as its Managing Director and CEO, for five years, effective April 4, after resignation of Rakesh Khanna as MD and CEO with effect from April 3.

Orient Electric Limited was quoting at Rs 254.50, down Rs 15.85, or 5.86 percent.

TARC rallies after north India project sold out

TARC's shares surged by as much as 7 percent, the highest since January 9, after the real estate company announced that its luxury housing project in Gurugram has been completely sold out.

The project, called TARC Maceo, achieved one of the highest prices in the local market. TARC was previously known as Anant Raj Global.

Global Health stock falls 4% on reports Gurugram reserves 20% beds for poor

Shares of Global Healthfell by as much as 4.3 percentfollowing a report from Indo Asian News Service that stated the local administration of Gurugram has reserved 20 percentof beds at multi-specialty hospitals for economically weaker sections and those below the poverty line. If the treatment cost of the patient in this category comes up to Rs 5 lakh, then treatment will be free.

If the bill amount is between Rs 5-10 lakh, then only 10 percentof the normal charges will be taken from the patient. The report cited Gurugram’s Deputy Commissioner Nishant Kumar Yadav. Max Healthcare also slipped2 percent following the news report.

Short Build-up seen in the following stocks

Long Build-up seen in the following stocks

BSE Power index shed 0.5 percent dragged by Adani Transmission, Adani Green Energy, Adani Power

SEPC gets provisional acceptance certificate for cattle feed plant at Kerala

SEPC received a provisional acceptance certificate for design engineering, supply, erection andcommissioning of 500 TPD cattle feed plant of Kerala Feeds Ltd, Thodupuzha, Kerala.

This is the third integrated cattle feed production plant for the same customer and two similar plants havealready been installed and handed over to the customer. The plant is fully automated and PLC and SCADA controlled.

US FDA issues Form - 483 with zero observations for Piramal Pharma's Digwal facility

The US Food and Drug Administration had conducted a Good Manufacturing Practices (GMP) inspection at Piramal Pharma's Digwal facility during March 27-31, 2023. The inspection was completed successfully with zero Form - 483 observations.

HG Infra Engineering receives Letter of Award for 2 projects worth Rs 1,762.4 crore from NHAI

HG Infra Engineering has received the Letter of Award for two highway projects worth Rs 1,762.4 crore from the National Highways Authority of India, in Jharkhand on hybrid annuity mode.

The order worth Rs 998.4 crore is for the construction of a six-lane greenfield Varanasi-Ranchi-Kolkata highway from Deoria village to Donoreshan village, while the other order, worth Rs 764.01 crore is for the construction of another six-lane greenfield Varanasi-Ranchi-Kolkata highway from Lepo village to Kamlapur village.

SpiceJet shares fly 3% higher after hiving off cargo and logistics wing

Shares of SpiceJet edged up 3 percent intraday on April 3 after the company hived off its cargo and logistics business into a separate entity, SpiceXpress and Logistics Private Limited.

"The demerger, aimed at boosting growth of its cargo business is effective April 1, 2023 and paves the way for SpiceXpress to raise funds independently," the low-cost carrier said in an exchange filing.

Jefferies View On Cement Stocks

-Dealer interaction suggests all-India average price down 2 percentMoM & Q4 price down 1 percentQoQ
-Prices slip across regions on volume push
-Price hikes up to Rs 50/bag announced for April, with average hike of Rs 15-20/bag
-Demand strong in multiple markets, showing up in UltraTech volumes
-Despite muted QoQ pricing, we expect QoQ growth in EBITDA/t in Q4

Dixon Technologies incorporates new subsidiary Dixtel Communications

Dixon Technologies has incorporated a wholly-owned subsidiary, Dixtel Communications, to undertake trading of electronic equipments, and other related parts thereof.

Dixon Technologies was quoting at Rs 2,874.55, up Rs 12.95, or 0.45 percent on the BSE.

Market at 1 PM

Benchmark indices were trading flat in the volatile session.

Sensex was down 66.13 points or 0.11 percentat 58,925.39, while Nifty was down 15.70 points or 0.09 percentat 17,344.10. About 2,462 shares advanced, 840 shares declined, and 111 shares were unchanged.

Mawana Sugars to sell non-agri land of 40.90 acres in Ghaziabad to Arvind Dairy for Rs 95 crore

The sale will be priced at Rs 1,725 per square metre.

Avalon Technologies public issue sees subdued investor interest on Day 1

The maiden issue of Avalon Technologies saw tepid investor interest on the first day of bidding on April 3 even as analysts stayed positive about the company.

The issue was subscribed 1 percent as of 12.30pm, BSE data showed, thanks largely to retail investors. Out of the total 1,14,63,854 shares up for grabs, investors had bid for 1,47,662 units so far.

The retail investor quota was subscribed 7 percent and quota reserved for non-institutional investors saw a few applications, while those for Qualified Institutional Buyers did not see any application yet.

Continental Petroleums wins orders worth Rs 181 crore

Continental Petroleums' turnkey projects business has received orders for supply, erection, installation, testing andcommissioning of material / equipment for the various activities of development of distribution infrastructure at Dausa circle of Jaipur DISCOM of Rajasthan.

The total contract price is Rs 180.79 crore.

CreditAccess Grameen completes 3 direct assignment transactions Rs 936.63 crore in March

CreditAccess Grameen has completed three direct assignment transactions of Rs 936.63 crore and a PTC transaction of Rs 98.77 crore in March 2023. During Q4FY23, it has raised total funds of Rs 5,840.09 crore through term loans, NCDs, MLD, ECBs, direct assignments & PTC.

CreditAccess Grameen was quoting at Rs 905.55, down Rs 9.55, or 1.04 percent.