Closing Bell: Market ends flat amid volatility; metal, realty, auto rally

Indian equity market snapped three-day winning streak and ended marginally lower. At close, the Sensex was down 110.64 points or 0.15 percent at 73,903.91, and the Nifty was down 8.70 points or 0.04 percent at 22,453.30.

We wrap up today's edition of the Moneycontrol live market blog, and will be back tomorrow morning with all the latest updates and alerts. Please visit https://www.moneycontrol.com/markets/global-indices for all the global market action.

The Nifty opened on a flat note and consolidated for the day. It closed marginally in the red down ~9 points. On the daily charts we can observe that the Nifty is in the process of cooling off after the sharp run-up in the previous couple of trading sessions. The zone of 22400 – 22350 is the crucial support zone and dips towards these zones should be used as a buying opportunity. The hourly momentum indicator has a negative crossover which is a sell signal and also suggests that there could be some more consolidation before the uptrend resumes. Overall, this dip should be used a buying opportunity.

Bank Nifty is also consolidating after breaking out of the range on the upside. It is likely to resume its up-move towards 47850 – 48000 from a short-term perspective. So the minor degree pullbacks should be used as a buying opportunity.

The Bank Nifty index maintained a narrow consolidation pattern in anticipation of the RBI policy. With downside support at 47000 and upside resistance at 48000, a breakout in either direction could trigger significant market moves. Despite the consolidation, the overall sentiment remains bullish, suggesting that dips should be seen as buying opportunities, especially with immediate support around the 47400-47350 zone.

The domestic market took a breather today after achieving a fresh record high yesterday. Factors such as a rising dollar, increasing US bond yields, and a notable uptick in crude oil prices collectively dampened investor sentiment. Moreover, better-than-expected US manufacturing data raised worries about a potential delay in interest rate cuts. Despite these factors, mid and small-cap stocks continued their recovery rally, although concerns about high valuations lingered. Investors are eagerly anticipating guidance from the upcoming RBI monetary policy announcement for insight into near-term market direction.

Markets witnessed select profit taking in banking and IT stocks as caution prevailed throughout the session ahead of the RBI monetary policy decision on Friday. Rising US bond yields have led to FIIs fleeing Indian equities in recent sessions. However, we are seeing renewed optimism in the broader market in the mid & small cap stocks after the sharp correction over past few months. There is lot of money waiting on the sidelines to be invested in medium enterprises amid easing valuations and hopes of strong economic growth going ahead.

After a tepid opening, a reversal was seen under the leadership of the metal and auto stocks, which helped the Index recover most of its losses to end the session at 22,453.30 with a loss of 8.70 points.
Media and Realty sectors extended their outperformance while pressure remained in the IT pack.

Strong outperformance continued by the Broader markets as both Mid and Smallcaps ended the session higher with gains of more than 1%.

The Index has made another DOJI candlestick pattern on the daily chart and a strong move above 22,500 will open the gate for 22,640 while on the downside 22,340 will act as a support.

Indian rupee ended flat at 83.38 per dollar versus Thursday's close of 83.40.

Indian equity market ended marginally lower in the volatile session.

At close, the Sensex was down 110.64 points or 0.15 percent at 73,903.91, and the Nifty was down 8.70 points or 0.04 percent at 22,453.30. About 2686 shares advanced, 1015 shares declined, and 111 shares unchanged.

Top losers on the Nifty were Hero MotoCorp, HCL Technologies, Kotak Mahindra Bank, ICICI Bank and SBI Life Insurance, while gainers Tata Consumers Products, M&M, BPCL, Bajaj Auto and Adani Ports.

Among sectors, realty, metal, oil & gas, media, power and auto up 1-2 percent, while Information Technology and Telecom indices down 0.5 percent each.

The BSE midcap and smallcap indices rose 1 percent each.

Global oil benchmark Brent rose above $88 a barrel for the first time since October on Tuesday as oil supplies faced fresh threats with more Ukranian attacks on Russian energy facilities and escalating conflict in the Middle East.

Brent futures for June delivery were up $1.29, or nearly 1.5%, at $88.71 a barrel. US West Texas Intermediate (WTI) crude futures for May rose $1.30, or about 1.6%, to $85.01.

Shares of Viceroy Hotels Limited listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) will resume trading on April 3, 2024.

-Underweight call, target Rs 5,241 per share
-Company expects to close FY24 with revenue of nearly Rs 18,000 crore
-Company expects to grow at 35-40% CAGR
-Key growth drivers include mobile and IT hardware
-Exports likely to increase from 10% to 20-25% of revenue in next five years

Indian Rupee appreciated marginally on Tuesday following the PMI data. India’s Manufacturing PMI rose to 59.1 in March 2024 versus 56.9 in February 2024, but trailed forecast of 59.3. However, strong US Dollar and weak domestic markets capped sharp gains. Surge in crude oil prices also weighed on Rupee at higher levels. US Dollar rose on better than expected ISM services PMI. US ISM manufacturing PMI expanded to 50.3 in Mach 2024 versus 47.8 in February 2024. This showed first expansion since September 2022 and trimmed rate cut expectations in June.

We expect Rupee to trade with a slight negative bias on strong US Dollar and weak tone in domestic markets. Rising crude oil prices may also weigh on the domestic currency. Traders may take cues from JOLTS job opening factory orders and speeches by various US Federal Reserve officials. USDINR spot price is expected to trade in a range of Rs 83.20 to Rs 83.60.

Sensex Today | BSE Smallcap index rose 1 percent supported by Best Agrolife, Sigachi Industries, Centrum Capital

-Wholesale volumes across categories were in-line
-PV OEMs posted double-digit YoY growth
-Maruti saw the strongest sequential jump in sales in Q4
-Tractors and trucks were weak as expected, but expect growth rate to improve going ahead

Sensex Today | Market at 3 PM

The Sensex was down 175.71 points or 0.24 percent at 73,838.84, and the Nifty was down 30.00 points or 0.13 percent at 22,432.00. About 2505 shares advanced, 899 shares declined, and 84 shares unchanged.

The board considered sub-division of each of the equity share capital of face value of Rs 5 each into equivalent number of equity shares having a face value of Rs 2 each.

Stock Market LIVE Updates | Jefferies On Telecom

-Sector's active subscribers base rose by 2.7 million, led by Bharti Airtel & Jio
-Wireless broadband subscribers addition remained healthy, auguring well for sector's ARPU outlook
-Vodafone Idea lost 1.7 million active subscribers in 19/22 circles and lost 3G/4G subscribers
-Expect continued market share gains in favour of Bharti/Jio as 5G becomes mainstream
-Jio's underperformance on active subscribers addition needs to be monitored
-Active subscribers addition underperformance could determine competitive intensity in sector

Sensex Today | BSE Midcap index up 1 percent led by Aditya Birla Fashion & Retail, Aditya Birla Capital, SJVN

The MPC is unlikely to act on policy rates on April 5th. Even though rate cuts can be expected this year, the time is not yet conducive for a rate cut. The growth momentum in the economy is strong and FY 24 is likely to register GDP growth of 7.6%, much ahead of the initial estimates. It is possible for India to achieve a growth rate of 7% in FY25. So, a rate cut is not warranted now.

The April 5th policy announcement is unlikely to impact the market, given the current market mood and resilience. The market is presently influenced by retail investor enthusiasm, the sustained flows into the market via mutual funds and fundamental support from good GDP growth and decent corporate earnings.

March overall disbursements up 9% YoY at Rs6,100 cr

Q4 disbursements up 11% YoY at about Rs15,300 cr

March collection efficiency at 101% vs 105% (YoY)

Q4 FY24 collection efficiency at 98% vs 99% (YoY)

March liquidity position on its balance sheet at over Rs7,650 Cr

As on March 31, 2024 stage-3 is est at 3.3% vs 4.5%

After a temporary pause of almost two months, Paytm has resumed lending activities, starting with merchant loans in partnership with existing allies—SMFG India Credit (formerly Fullerton) and Shriram Finance, according to two sources close to the development who spoke to Moneycontrol.

Meanwhile, negotiations are underway to onboard a new lending partner, Muthoot Finance, for both personal and merchant loans. Read More

-Overweight call, Target Rs 191 per share
-Company in a surprise announcement signed binding term sheet with panasonic energy
-Partnership is to manufacture lithium ion batteries in India for two & three wheeler EVs
-Feasibility study to setup manufacturing
-Related supply chain is expected to be completed this summer
-Continue to see rising capacity of green infra in India & South East Asia as supply chains de-risk

Subscriber data shows wireless data subscriber additions moderated in January 2024
Wireless data subscriber additions moderated to 6 million versus 7.4 million in December 2023
Active subscribers growth was highest in last 4 months with Bharti Airtel's net adds in

Sensex Today | Nifty Metal index up 1.2 percent supported by SAIL, Vedanta, APL Apollo

-Overweight call, target Rs 1,576 per share
-March 2024 cargo volumes +18% YoY
-Quarterly update saw strong volume growth of 24% in FY24, beats guidance
-In FY24, eight out of 10 ports reported double-digit growth; Mundra +16% YoY
-Key commodities like container, dry, and liquid recorded double-digit growth

Sensex Today | BSE Power index up 0.5 percent led by JSW Energy, Adani Power, Siemens

-Buy call, target raised to Rs 1,520 per share
-Signs Rs 2,000 crore deal with ADIA & Kotak AIF to fund residential growth
-Targets 15-20% pre-sales growth
-Needs to spend more than Rs 5,000 crore per annum on land acquisition
-Huge Scale-up in rental & hotel portfolio
-See capex of Rs 14,600 crore over next 4 years
-Deal with ADIA & Kotak AIF to aid in funding growth

Ion Exchange has been awarded a contract from Material Construction, UAE for Engineering, manufacturing, delivery to site, supervision of erection, commissioning and start-up of desalinated water unit for a project in North Africa at a contract value of Rs 250.65 crores excluding VAT and other taxes.

The project is to be completed within 7 months from the date of approval of engineering.

CSB Bank has recorded total deposits at Rs 29,719 crore for the quarter ended March FY24, growing 21.27% over year-ago period. Gross advances at Rs 24,574 crore increased by 17.91% during the same period.

Honda Motorcycle & Scooter India (HMSI) has made a global recall of its bikes on account of leakage of oil observed from the engine caused due to dislodgement of sealing plug cone out of the engine cover (recalled part).

The recalled part was supplied by UNO Minda's plant at Bawal, Haryana. Although, the value of the recalled part supplied by the company is approximately Rs 3.2 crore, but the likely amount intimated by the HMSI due to this recall is estimated to be Rs 76 crore due to various costs incurred by the HMSI for replacement of the recalled part in various countries across the globe.

The company has an adequate product recall insurance policy and accordingly, it has intimated the aforesaid matter to the insurance company.

Jubilant Pharmova has received orders for tax demand of Rs 228.75 crore for the Income Tax Department, primarily arising due to arithmetical errors & mistakes apparent from records apart from certain disallowances of expenses and deduction ignoring the contentions of the company.

The company expects to get relief from the relevant Assessing Officer and/or Appellate Authority.

Sensex Today | Nifty Media index up 1 percent led by Zee Entertainment Enterprises, Jagran Prakashan, DB Corp

Big Pharma are looking for geographical diversification and want to avoid supplier concentration risk, and India becomes obvious choice given high number of USFDA-approved units.

That said the next 2-3 quarters could remain challenging due to weak global macros and low funding in global Biotech space. Suven believes that some green shoots in the sector could emerge in H2CY24.

Sensex Today | BSE Auto index up 0.7 percent supported by Bajaj Auto, M&M, Balkrishna Industries

The board of directors of Mankind Pharma at its meeting held on April 2, 2024, has approved the slump sale of the Over the Counter (OTC) Business of the company to wholly owned subsidiary company proposed to be incorporated with the name of Mankind Consumer Products Private Limited or any other name as approved by Ministry of Corporate Affairs.

The transaction will be effective on or before October 1, 2024 or such other date as may be mutually agreed between the parties, subject to customary closing conditions.

The company will continue to have business operations with the proposed incorporated entity on arm’s length basis.

Also, approved the incorporation of a wholly owned subsidiary by the name Mankind Consumer Products Private Limited or any other name approved by Registrar of Companies, Ministry of Corporate Affairs.

Zomato has received an order for demand of service tax of Rs 92.1 crore, along with interest and penalty of Rs 92.1 crore. The said order for October 2014 to June 2017 is passed by the Commissioner, Adjudication, Central Tax, Delhi.

Atul Auto has reported total sales at 3,128 units in March FY24, down 0.8% compared to 3,154 units sold in same month last fiscal, but sales in FY24 grew 1.92% to 26,039 units compared to previous year.

Madhabi Puri Buch, SEBI Chairperson | Reits, InvITs and Muni bonds can be one time of GDP soon

Oil prices rose on Tuesday, underpinned by signs that demand may improve China and the U.S., the world's biggest oil consuming nations, and growing concerns of a widening conflict in the Middle East that could affect supply from region.

Brent futures for June delivery rose 58 cents to $88 a barrel. U.S. West Texas Intermediate (WTI) crude futures for May rose 58 cents to $84.29 a barrel, after reaching the highest close for a front month contract since Oct. 27 in the previous session.

Increasing advance tax collections and increasing GST collections is driving momentum in India

The board of directors of Aeroflex Industries at its meeting held on April 02, 2024 has approved to acquire 100% of the issued and paid up share capital of Hyd- Air Engineering Private Limited.

Very soon we will come out with corporate governance guidelines for family business as well.

The stock of Indian Renewable Energy Development Agency (IREDA) zoomed 5 percent to hit its upper circuit in trade on April 2 following healthy quarterly business updates.

IREDA recorded the highest number of loans sanctioned, coming in at Rs 37,354 crore for the financial year ended March 31, 2024. This was up 14.63 percent from Rs 32,587 crore last year. Read More

Sensex Today | Market at 12 PM

The Sensex was down 187.49 points or 0.25 percent at 73,827.06, and the Nifty was down 45.80 points or 0.20 percent at 22,416.20. About 2412 shares advanced, 879 shares declined, and 82 shares unchanged.

NMDC recorded iron ore production of 4.86 million tonnes in the month of March 2024, down 13.2% over year ago month. Iron ore sales during the same period declined 18.2% to 3.96 million tonnes.

Choice Consultancy Services Pvt Ltd (Choice), a subsidiary of Choice International announced winning of a project for the development of a solar plant for Jodhpur Vidyut Vitran Nigam Ltd in a Joint Venture partnership with Solar91 Cleantech Pvt Ltd.

South Indian Bank has recorded gross advances at Rs 80,337 crore for the quarter ended March FY24, growing 11.4% over year-ago period.

Total deposits during the same period increased 11.2% to Rs 1.02 lakh crore.

CASA grew by 8% year-on-year to Rs 32,654 crore, but CASA ratio dropped 94 bps YoY to 32.04% in Q4FY24.

Thompson Gnanam has resigned from the post of Managing Director & Global CEO of 3i Infotech. He will be relieved from his roles and responsibilities at the company from May 31, 2024.

Stock Market LIVE Updates | Morgan Stanley View On Real Estate

-Upgrade Godrej to overweight, target raised to Rs 2,500 from Rs 2,050  per share
-Downgrade DLF to equal-weight, target raised to Rs 900 from Rs 770 per share
-Prestige & Godrej should grow faster in terms of pre-sales YoY
-Expect FY25 guidance of 10-20% YoY, lower than FY24 actual growth of 30- 40% YoY
-As Pre-sales momentum slows, market will likely focus on RoE
-Macrotech & Oberoi rank better on the RoE front

Reliance Jio, the subsidiary of Reliance Industries, added 41.78 lakh mobile subscribers in January 2024, taking the total mobile users tally to 46.39 crore.

Bharti Airtel added its wireless subscriber count by 7.52 lakh, taking its mobile tally to 38.24 crore in January.

Vodafone Idea lost 15.2 lakh wireless subscribers in January and its mobile subscriber base stood at 22.15 crore.

Stock Market LIVE Updates | Nifty Realty index top sectoral performer; Nifty IT index top laggard