Closing Bell: Sensex slips 793 pts, Nifty around 22,500; all sectors in the red

Indian benchmark indices ended on a weaker note with Nifty around 22,500 amid selling across the sectors. At close, the Sensex was down 793.25 points or 1.06 percent at 74,244.90, and the Nifty was down 234.40 points or 1.03 percent at 22,519.40.

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

Indian benchmark indices ended on a weaker note with Nifty around 22,500 amid selling across the sectors. At close, the Sensex was down 793.25 points or 1.06 percent at 74,244.90, and the Nifty was down 234.40 points or 1.03 percent at 22,519.40.

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

Nifty opened gap down today and after the initial volatility it drifted lower during the course of the day and closed around the lows for the day. It closed in the red down ~234 points. On the daily charts we can observe that the Nifty has breached and closed below the lows of the previous three trading sessions which indicates weakness. We believe that the Index is in the process of retracing the rise it has witnessed from 22710 – 22776, and has been consolidating thereafter. The next crucial support level stands at 22370. On the upside 22620 – 22650 shall act as an immediate hurdle from short term perspective.

Bank Nifty also witnessed some corrections after touching high of 49000 in the previous trading session. The crucial support level stands at 48300 and below that 47820. The immediate hurdle is placed at 49000.

Markets traded under pressure and lost over a percent, tracking feeble global cues. The tone was negative from the beginning and pressure in the heavyweights across sectors pushed the index lower as the day progressed. Eventually, the Nifty index settled around the day’s low at 22,519.40 level. All sectors faced the heat wherein pharma, FMCG and banking were among the top losers. Meanwhile, the broader indices showed resilience and lost nearly half a percent each.

Nifty has been facing resistance around the 22,700-22,800 zone and pressure in the US markets is adding to the worries. Apart from the global cues, the reaction of the IT majors to TCS numbers would set the tone on Monday. We are eyeing the 22,350-22,500 zone to offer a cushion in case profit-taking extends. Meanwhile, we suggest keeping a check on leveraged positions and preferring hedged trades.

The market had been building up hope of a three-rate cut by the US Fed this fiscal year, but the recent higher inflation reading has mellowed the expectations, which would mean that the wait for rate cut would be longer than expected. Hence the sell-off in the Indian markets was a knee-jerk reaction to the rising inflation and fading hopes of a rate cut in the near future.

A sharp rise in crude oil prices and rupee's downward spiral also dampened the sentiment and contributed to the overall slump. While the Indian economy is on a firm footing, the spate of negative news, especially from the global front, would at times halt the Indian equities upward march.

Technically, bulls will heave a sigh of relief only above the 22800 mark. Till then, it seems a bear machete is likely to rule the roost. Benchmark Nifty has a strong support at 22339-22101 levels, while the index faces resistance at 22810 to 23100 level.

At the record levels, Index has formed a Shooting star (weekly chart) candlestick pattern with a possible bearish divergence in RSI which indicates a temporary pause in the strong uptrend. A zone of 22,340-22,370 will offer strong support while the immediate resistance is placed at 22,700. BankNifty replicates Nifty50 with a Gravestone DOJI candlestick pattern (ICICI Bank- anticipating a Pennant & Pole Breakout, IDFC First Bank- Flag and Pole Breakout).

With a strong rally, the Metal sector has performed as per our expectations and we continue to remain bullish. Selling in the frontline Pharma stocks dragged the sector lower to form a bearish engulfing pattern; however, there is no sign of a reversal yet.

A Shooting Star candlestick pattern in the Realty sector suggests a short-term reversal. Investors must keep an eye on the Chemical stocks as strong breakouts were witnessed and we have identified a few of them: Aarti Industries and Deepak Nitrite- Rounding Bottom Breakout, Jubilant Ingrevia- Symmetrical Triangle Breakout, Navin Fluorine- Inverted Head & Shoulder Breakout.

Frontline indices see almost no change this week, major indices end flat

23 Nifty stocks give negative returns, Sun Pharma, Titan, Cipla top losers

Eicher, Hindalco, Tata Cons, M&M, Bharti Airtel are top nifty gainers

US inflation soared by 0.4% MoM, surpassing expectations and triggering a spike in US Treasury yields. Investors are questioning the feasibility of the US Fed's anticipated 3 rate cuts this year, leading to underperformance in EMs.

Meanwhile, European markets excelled as the ECB maintained policy rates but hinted at a potential rate cut soon. Indian markets consolidated amidst worries over delayed US rate cuts, escalating Middle East tensions driving oil prices up, and subdued Q4 earnings projections.

US inflation soared by 0.4% MoM, surpassing expectations and triggering a spike in US Treasury yields. Investors are questioning the feasibility of the US Fed's anticipated 3 rate cuts this year, leading to underperformance in EMs.

Meanwhile, European markets excelled as the ECB maintained policy rates but hinted at a potential rate cut soon. Indian markets consolidated amidst worries over delayed US rate cuts, escalating Middle East tensions driving oil prices up, and subdued Q4 earnings projections.

The BankNifty index experienced significant selling pressure, marking a return of bearish momentum after a prolonged period. The index is currently facing strong resistance at the 49,000 mark, and only a decisive close above this level could revive the upward trend towards the 50,000 mark.

Immediate support for the index is established at 48,000, where the highest open interest on the put side has been observed. A breach below this level could intensify the selling pressure.

Indian rupee ended 23 paise lower at 83.42 per dollar versus Wednesday's close of 83.19.

Indian benchmark indices ended on a weaker note with Nifty around 22,500 amid selling across the sectors.

At close, the Sensex was down 793.25 points or 1.06 percent at 74,244.90, and the Nifty was down 234.40 points or 1.03 percent at 22,519.40. About 1305 shares advanced, 1988 shares declined, and 68 shares unchanged.

Biggest losers on the Nifty were Sun Pharma, Maruti Suzuki, Power Grid Corporation, Titan Company and ONGC, while gainers included Divis Labs, Tata Consumer Products, Bajaj Auto, Tata Motors and TCS.

All the sectoral indices ended in the red with bank, healthcare, FMCG, Media, realty, oil & gas down 1 percent each.

BSE Midcap and Smallcap indices fell 0.5 percent each.

The United States Food and Drug Administration (U.S. FDA) has completed a GMP Inspection of its API manufacturing facility located at Dabhasa, India. The inspection was conducted from April 8 to April 12, 2024 and concluded with no observations.

The rupee weakened by 0.19 to 83.40 as concerns over the effects of a potential Middle East conflict weighed on global currencies. The dollar index rose to 105.35, leading to weakness in all currencies, including the rupee. Despite this, the strength of the Indian economy is expected to support the rupee. As a result, the rupee is likely to experience sideways movement with increased volatility, maintaining a range between 83.15-83.55.

Indian Rupee depreciated 0.23% on Friday on strong US dollar and weak domestic markets. Domestic markets fell by ~0.8% today. However, FII inflows and some containment in geopolitical tensions in the Middle East cushioned the downside. US Dollar rose to a 5-month high over the past two days on hot inflation. Headline and core inflation topped forecast, leading to diminishing expectations of a rate cut by the US Federal Reserve in June. Hawkish FOMC meeting minutes also supported the greenback.

We expect Rupee to trade with a slight negative bias on weak global equities amid hawkish US data and surge in global crude oil prices. positive tone in the US Dollar may further pressurise the Rupee. However, FII inflows may support Rupee at lower levels.

Traders may take cues from India’s inflation and IIP data. Traders may also take cues from Michigan consumer sentiment and inflation expectations data from the US. USDINR spot price is expected to trade in a range of Rs 83.10 to Rs 83.70.

Karnataka Bank has expanded its collaboration with FISDOM to offer stock broking services, and 3-in-1 (savings, demat and trading) accounts through its mobile banking app- KBL Mobile Plus.

Sensex Today | BSE Bank index shed nearly 1 percent dragged by Federal Bank, HDFC Bank, SBI

Uno Minda has secured a strategic land parcel of 94.32 acres at IMT Kharkhoda, Haryana HSIIDC, for its ongoing and future expansions. Of which, 25 acres has been designated for its greenfield alloy wheel plant with a capacity of 120,000 wheels per month. The plant with a capital outlay of Rs 542 crore will be set up in a phased manner over the next 5 years with phase 1 commissioning in Q2 FY26.

Massachusetts Institute of Technology Basic Retirement Plan has bought 5 lakh equity shares (equivalent to 1.23% of total paid-up equity) at an average price of Rs 1,144.93 per share, via open market transactions.

However, IIFL Special Opportunities Fund Series 5 sold 5,37,210 equity shares at an average price of Rs 1,130.63 per share, 360 ONE Special Opportunities Fund - Series 4 offloaded 12,35,169 equity shares at an average price of Rs 1,116.78 per share, and 360 ONE Special Opportunities Fund - Series 5 sold 3,76,462 shares at an average price of Rs 1,115.18 per share.

Oil rose on Friday as heightened tensions in the Middle East raised the risk of supply disruptions from the oil-producing region, though the market is set for a weekly loss on expectations of fewer U.S. interest rate cuts this year.

Sensex Today | BSE Auto index shed 0.5 percent dragged by Maruti Suzuki, TVS Motor, Apollo Tyres

Gold prices surged by over Rs 1000 to reach 72700, largely driven by escalating tensions between Iran and Israel amidst the ongoing Middle East crisis.

This geopolitical uncertainty has fueled a rush into safe-haven assets, propelling gold prices up by 1.60%. Despite this sharp increase, the overall trend in gold remains bullish, with strong support seen at 70000.

Sensex Today | Market at 3 PM

The Sensex was down 754.57 points or 1.01 percent at 74,283.58, and the Nifty was down 218.20 points or 0.96 percent at 22,535.60. About 1284 shares advanced, 1990 shares declined, and 76 shares unchanged.

Larsen & Toubro has completed divestment of its entire 51% stake in L&T Infrastructure Development Projects to Epic Concesiones. Consequently, L&T IDPL & its subsidiaries have ceased to be subsidiaries of the company. L&T Infrastructure Development Projects is a joint venture between Larsen & Toubro, and Canada Pension Plan Investment Board.

As silver futures continue to climb steadily, Indian mining company Hindustan Zinc and its parent, Vedanta, see extended gains in their stock prices. Hindustan Zinc soars up to 9%, marking its 9th consecutive day of gains, while Vedanta rises by 2.2%. Vedanta holds a significant 64.9% stake in Hindustan Zinc, as per Bloomberg data. Meanwhile, MCX Silver Futures marked their longest-ever winning streak, rising for the 12th consecutive session.

Mitsubishi UFJ Financial Group Inc. is close to acquiring a 20% stake in HDFC Bank Ltd.'s consumer lending unit, HDB Financial Services Ltd., for approximately $1.7 billion, Bloomberg reported. The move aims to capitalize on India's surging demand for personal finance loans. If finalized, this deal would represent one of the largest financial sector transactions between Japan and India. While negotiations are in the final stages, terms remain subject to change, and there's a possibility that no agreement will be reached, Bloomberg report added.

Stock Market LIVE Updates | Morgan Stanley View On IT Space

-Outlook for 2024 moderated for managed services owing to weakness in America’s BFSI
-Cloud demand seeing upswing but flow via benefit on IT services yet to be seen
-GenAI an opportunity for providers but is being funded by re-prioritisation of spending

Vakrangee has entered an agreement with Global One Enterprises (Max TV) for offering subscription based OTT plans through its Vakrangee Kendra networks. Max TV specializes in providing IPTV/OTT services in India.

PVR Inox has opened its 9 screen multiplex at Forum Mall in Kochi, Kerala, and 14 screen megaplex at Phoenix Mall of Asia in Bengaluru. With these launches, the company now operates the largest multiplex network with 1,727 screens across 360 properties in 113 cities (India and Sri Lanka).

Sensex Today | Market at 2 PM

The Sensex was down 571.95 points or 0.76 percent at 74,466.20, and the Nifty was down 176.80 points or 0.78 percent at 22,577.00. About 1323 shares advanced, 1924 shares declined, and 75 shares unchanged.

Gold prices firmed on Thursday after softer-than-expected U.S. producer prices data boosted hopes for U.S. rate cuts this year, while persistent geopolitical concerns added to the metal's shine.

Spot gold rose 1.1% to $2,360.52 per ounce, as of 2:15 p.m. EDT (1815 GMT). Bullion prices hit an all-time high for an eighth straight session on Tuesday.

U.S. gold futures settled 1% higher at $2,372.7.

Shalimar Paints said the board has appointed C Venugopal as the chief operating officer of the company, with effect from April 11. In addition, Aaditya Gajendra Sharda is appointed as an additional director of the company (in the capacity of Non-Executive Non-Independent Director).

-Initiate buy, target Rs 1,510 per share
-Company is a fast-growing healthcare products distributor in a large & fragmented market
-Company’s wide reach & product offering should lead to 20 percent organic revenue CAGR for FY24-26
-Company’s strong tech platform, should lead to 20 percent organic revenue CAGR for FY24-26E
-Company should gain from industry consolidation
-Over FY24-26E, estimate 44 percent rev CAGR & 8x rise in adjusted profit as economies of scale kick in

-Initiate buy, target Rs 1,788 per share
-Company has demonstrated a good track record through the cycles
-Forecast a healthy 21 percent profit CAGR, coverage at 15 percent over FY24-FY26
-Forecast a healthy profit CAGR on strong lending CAGR of 24 percent and continued superior profitability with average RoAs of 5.6 percent
-Continued superior profitability on, diversified loan book, market share gains from geographies
-Maintaining competitive edge on Industry-leading credit costs & operating efficiency
-Stock currently trades at 2.7x P/B & 12x P/E FY25

Wipro has appointed Malay Joshi as Chief Executive Officer for Americas 1 strategic market unit, with effect from April 10. Prior to this, Malay was senior vice president and business unit head.

Sensex Today | BSE Telecom index down 0.4 percent dragged by Vodafone Idea, MTNL, Tata Teleservices (Maharashtra)

Trident has successfully commissioned the capacity of 1.1 MWp solar power project at Budhni, Madhya Pradesh. The total installed capacity of roof top solar power plant at same facility has reached 29.5 MWp. The power generated from solar power project will be consumed captively for manufacturing facilities at Budhni.

-Buy call, target Rs 1,949 per share
-Management’s comments suggest co would be consolidating its presence across markets
-Company to consolidate its presence through improved execution and cost control
-As per management, co has learned from past mistakes
Company is conservative on inorganic expansion & would not pursue a large acquisition
-Expansion in EBITDA margin & low capex to improve free cash generation over next 2 years
-An improved balance sheet, earnings could surprise on upside

-BEL and Cummins India are our preferred picks
-Target at Rs 280 per share for BEL
-Target at Rs 3,600 per share for Cummins India
-Outperform call on L&T, target Rs 4,400 per share
-Outperform call on Carborundum, target Rs 1,500 per share
-Neutral call on ABB, target Rs 6,550 per share
-Target at Rs 5,575 per share for Siemens
-Underperform call on BHEL, target Rs 200 per share
-Target at Rs 3,550 per share for Thermax
-India looks set for a multi-year capex upcycle with multiple themes at play
-Several themes are still at early/mid-cycle & often feed into each other
-Tailwinds have started to bolster order backlogs

Dr Reddy’s Laboratories has launched drug-free non-invasive migraine management wearable device Nerivio in Germany through its step-down subsidiary betapharm. Nerivio is approved by the United States Food and Drug Administration (USFDA), and is CE-mark certified in Europe. Last year, company entered into an exclusive agreement with Theranica, for the marketing and distribution of Nerivio in multiple markets.

Sensex Today | Nifty Media index shed 1 percent dragged by Dish TV, Sun TV Network, Zee Entertainment Enterprises

Bandhan Bank has received approval from the board of directors for appointment of Satish Kumar as head–wholesale banking, with effect from April 10. Before Bandhan Bank, Kumar spent over 15 years with Kotak Mahindra Bank managing corporate business as national head – credit (mid markets).

Cavite Biofuel Producers Inc (CBPI), Philippines, the step-down subsidiary of Isgec Heavy Engineering, has commenced the commercial operation at its new ethanol plant in Philippines, after obtaining all requisite approvals.

-Overweight call, target Rs 3,000 per share
-Company reported 9 percent YoY growth in same store consumption in Q4, up from 5 percent in Q3
-Same Store consumption data higher than consensus
-Consensus expressed concerns about decelerating consumption growth for mature malls
-For example, Palladium Mumbai consumption only rose 1 percent YoY partly due to closure of lifestyle section
-Same store consumption, ex-Indore decelerated from Q3FY24

Sensex Today | BSE Information Technology index down 0.6 percent dragged by Subex, eMudhra, 63 Moons Technologies

Sensex Today | Market at 1 PM

The Sensex was down 565.50 points or 0.75 percent at 74,472.65, and the Nifty was down 163.10 points or 0.72 percent at 22,590.70. About 1319 shares advanced, 1890 shares declined, and 78 shares unchanged.

Pratham EPC Projects has been successfully awarded work order exceeding the proposed work order amounting to Rs 497 crore (Excluding GST) from M/s. Sun Petro Chemicals Private Limited, which is approximately 25% higher than that stated in our prospectus.

-Upgrade to add, target cut to Rs 4,080 per share
-Company’s FY24 EPS may decline by 31 percent YoY, driven mainly by agrochem slowdown
-Future growth for EPS to be driven by less cyclical pharma products
-Company is making multiple potential intermediates for cystic fibrosis, cancer & pain treatments
Correction in its stock price based on cyclical factors is a buying opportunity

Sensex Today | Nifty Pharma index down 1 percent dragged by Sun Pharma, Zydus Life, Cipla

Godfrey Phillips India Ltd will exit its retail business division 24Seven following a detailed review of its operations, the company told exchanges on April 12.

"...after due consideration of the stakeholders’ feedback, long-term performance of the division since inception, prevailing market conditions of retail sector and long-term business strategy of the company, the Board of Directors of the company at its meeting held today has decided to exit from carrying out the business operations of its Retail Business Division," Godfrey Philips said in a statement.

The exit will be subject to completion of the necessary formalities, Godfrey Philips added. Read More

-SEBI exemption likely for some PSBs, CPSEs to meet 25% MPS (Minimum Public Shareholding) by Aug 2024
-Government owned banks, CPSEs to meet 25% MPS norm gradually
-PSBs raising capital via QIPs & government’s stake also getting diluted in the process
-No plan for direct share sale in PSU Banks currently

Khanij Bidesh India (KABIL) has signed a Memorandum of Understanding (MoU) with the Council of Scientific and Industrial Research - Institute of Minerals and Materials Technology (CSIR-IMMT) for technical & knowledge cooperation for critical minerals.

KABIL is a joint venture company of three Indian public sector undertakings - National Aluminium Company (NALCO), Hindustan Copper (HCL) and Mineral Exploration and Consultancy (MECL).

-PV sales at 3.68 lakh units
-2-wheeler sales at 14.9 lakh units versus 12.9 lakh units, YoY
-3-wheeler sales at 56,723 units versus 54,360 units, YoY
-Total vehicle exports at 4.14 lakh units versus 3.36 lakh units, YoY

Sensex Today | BSE Midcap index up 0.4 percent led by Delhivery, IRCTC, Samvardhana Motherson International

Oil prices rose on Friday as heightened tensions in the Middle East raised the risk of supply disruptions from the oil-producing region, though prices are set for weekly losses amid expectations of fewer U.S. interest rate cuts this year.

Brent crude futures climbed 75 cents, or 0.84%, to $90.49 a barrel by 0630 GMT, while U.S. West Texas Intermediate crude futures rose 87 cents, or 1.02%, to $85.89.

Despite 100% OFS, Bharti Hexacom listed above street estimates. Healthy listing is justified after receiving solid response on the last day of its issue biding wherein QIB (48.57x) and NII (10.51x) investors looked more aggressive to grab midcap telecommunication growth story followed by muted retail investors interest who bided only 2.81 times to the allotted quota. Overall it got oversubscribed by 29.87x.

Long term investors got a great opportunity to hold mid-cap telecommunications solutions providers and to play long term India’s telecom structural ARPU growth story. Furthermore, Bharti Hexacom’s anchor book showcases top global investors such as Capital Group, Fidelity, Blackrock, and ADIA participating ahead of the opening of the IPO which give all other investors more comforts to block money for long term.

On valuation at CMP Rs 821 it is matching the listed peers and even trading on premium to its parent. Hence, considering all the parameters we recommend allotted investors to “HOLD” the Bharti Hexacom Ltd for Long term perspective only while those investors who wish to add on the listing days can wait and watch the space post listing performance and accumulate on dips.

The Sensex was down 223.10 points or 0.30 percent at 74,815.05, and the Nifty was down 65.10 points or 0.29 percent at 22,688.70. About 1,558 shares advanced, 1,620 shares declined, and 76 shares unchanged.

Stock Market LIVE Updates | Nifty Pharma, Nifty FMCG indices see profit-booking, slip up to 0.8%

Stock Market LIVE Updates | Nifty Midcap 100, Nifty Midcap 150 indices hits fresh record highs