Closing Bell: Sensex gains 90 pts, Nifty ends near 22,500 on special trading session

In the domestic market, there is an extreme eagerness to know the outcome of the general elections, and this emanates from the need to know the possibility of continuity of policies. Certainty regarding this would help the markets to sail more smoothly, and it will have to wait till the first week of June.

With India VIX easing the prospects of 22,720-22,850 have improved. A pullback below 22,480 could ease the momentum, but an upside trajectory would be in play as long as 22,400 holds. The volatility gauge was up 3.4 percent today at 20.5.

A slippage below 22,400 could call for 22,350-22,227 levels. However, a collapse beyond these levels is less likely.

At close, the Sensex was up 88.91 points or 0.12 percent at 74,005.94, and the Nifty was up 40.70 points or 0.18 percent at 22,506.80. About 2359 shares advanced, 998 shares declined, and 130 shares unchanged.

All sectors ended the special trading session in the green, with capital goods, PSUs, industrials and media leading from the up. Metals, PSU banks, pharma and realty also posted decent gains.

Among Nifty 50 stocks, Nestle India was the biggest gainer, up over 2 percent, followed by Power Grid and Tata Motors. On the flipside, JSW Steel was the biggest loser, down around 2 percent.

At close, the Sensex was up 88.91 points or 0.12 percent at 74,005.94, and the Nifty was up 40.70 points or 0.18 percent at 22,506.80. About 2359 shares advanced, 998 shares declined, and 130 shares unchanged.

Shares of the Bengaluru-based realty company's fell as much as 5 percent after it reported disappointing results for the quarter ended March 2024. Its net profit fell 85 percent on-year to Rs 7 crore for the March FY24 quarter, with subdued topline as well as operating numbers. Its revenue from operations, however, grew 37 percent YoY to Rs 763 crore.

Shares of Astral fell up to 5 percent in the special trading session on May 18, a day after the company reported a 12 percent on-year drop in its net profit to Rs 181.6 crore for the January-March quarter FY24.

The building materials and equipment firm's revenue from operations, however, saw an 8 percent rise YoY to Rs 1,625 crore.The company's EBITDA margin stood at 17.9 percent in the March quarter, down from 20.5 percent in the corresponding period in FY23.

Shares of NHPC fell over 2 percent in trade on May 18 after the company reported a decline in its net profit for Q4FY24.

NHPC reported a 18 percent YoY decline in net profit to Rs 610.93 crore for Q4FY24, against Rs 745.27 crore in the same period last year. Sequentially, the net profit also saw marginal decline against Rs 628.44 crore in Q3FY24.

For the reporting period, revenue from operations fell to Rs 1,888.14 crore against Rs 2,028.77 crore in the previous fiscal. For FY2024. net profit fell around 5 percent to Rs 4,028.01 crore while revenue was reported at Rs 9,632.16 crore, against Rs 10,607.40 crore in FY23.

Abneesh Roy, Nuvama Institutional Equities on Nestle

#1 There Was A Genuine Concern On Quantum Of Royalty Hike Nestle Had Planned

#2 Need To See If Nestle Will Offer A Revised Royalty Structure

#3 India is The Most Important Market For Any MNC

#4 Don't Think Any Global Co Can Cut Down On India Investments

#5 Royalty Rejection A Positive Development; Expect Nestle Stock To Do Well Hereon

#6 Nestle Is Currently Paying 4.5% Royalty Which Is A High Enough Royalty Number

#7 Don’t Have Any Concern On Margin, Have Buy Call With Rs 3,010 Target For Nestle

Hindustan Aeronautics Limited shares surged over 4 percent to hit a record high of Rs 4,742 after Jefferies reaffirmed its bullishness on the stock and hiked the target price on positive growth prospects.

The international brokerage maintains a 'buy' call on the stock and raised the target price to Rs 5,725, implying an upside potential of over 26 percent from the current market levels. The previous price target was Rs 3,900.

Jefferies says the company is 'flying high' and there is clear visibility. It also added that higher margin service income and aircraft deliveries should see double-digit revenue growth for 4-6 years. Furthermore, the company is expected to maintain its current margin as it focuses on cost optimisation. Export visibility is also improving, Jefferies said. Read More

Balrampur Chini Mills' share price dropped 2 percent to Rs 377 in morning trade on May 18 after the company's fiscal fourth quarter net profit declined.

The sugar producer announced a net profit of Rs 203.4 crore for the fourth quarter ending March 31, 2024, marking a 20 percent year-on-year (YoY) decline. The company's revenue from operations also witnessed a drop, decreasing 3.8 percent to Rs 1,434.3 crore compared to Rs 1,491.5 crore in the same period of the previous fiscal year.

The Sensex was up 88.94 points or 0.12 percent at 74,005.97, and the Nifty was up 29.20 points or 0.13 percent at 22,495.30. About 2243 shares advanced, 837 shares declined, and 120 shares unchanged.

The Sensex was trading at 74,091.92, and the Nifty was at 22,467.70 in the second pre-open of the special trading session.

Shares of Rail Vikas Nigam Ltd (RVNL) extended gains for the fifth straight session, jumping nearly 4 percent on May 18, a day after the company reported a positive set of numbers for the quarter ended March 2024.

The state-run railway company's net profit rose 33.2 percent on-year to Rs 478.6 crore, with healthy topline as well as operating numbers. Its revenue from operations during the quarter under review grew 17.4 percent YoY to Rs 6,714 crore.

Nestle India's shares gained 1.25 percent after the majority of shareholders voted against an increase in royalty payout to Nestle S.A. On May 17, 57.18 percent of the company's shareholding voted against the said resolution, as per an exchange filing by the company.

The ordinary resolution stated that Nestle India will pay royalty to Nestle S.A. The royalty payment rate will start at 4.5 percent of the net sales of the company's products and will increase by 0.15 percent each year, reaching a maximum of 5.25 percent over five years. These payments will begin on July 1, 2024.

In April, Nestle India's board had approved the hike in royalty payout to the Swiss-based parent company. Nestle India in 2019 had said that it would seek approval of its shareholders every five years for royalty payments to its parent company, after receiving investor and proxy firm feedback on the issue.

Shares of Balkrishna Industries Limited surged 5 percent on May 18 and were locked in the upper circuit after the company's fiscal fourth quarter impressed Street. Balkrishna Industries, a prominent tyre manufacturer for agricultural and construction industries, reported a massive 87.4 percent increase in net profit to Rs 486.8 crore, higher than Rs 260 crore reported in the year-ago period.

Revenue growth for the fourth quarter was also strong, higher by 15.7 percent, reaching Rs 2,682 crore compared to Rs 2,317 crore from the corresponding quarter of the previous fiscal.

Nifty can find support at 22,400 followed by 22,350. On the higher side, 22,550 can be an immediate resistance, followed by 22,600.
The charts of Bank Nifty indicate that it may get support at 48,000, followed by 47,800. If the index advances, 48,300 would be the initial key resistance, followed by 48,500.
Today, Indian markets will be open for a half-day, with trading hours from 9.15 AM to 10 AM and 11.30 AM to 12.30 PM. This trading session could have minimal volumes. Traders should evaluate the above-mentioned support and resistance levels and trade with a strict stop loss.

Shares of Bandhan Bank rose 2 percent on May 18 special trading session after the company reported mixed January-March quarter (Q4FY24) performance.

The lender's net profit declined sharply by 93 percent year-on-year (YoY) to Rs 54.63 crore in Q4FY24 due to increased provisions and higher write-offs. Its provisions and contingencies jumped to Rs 1,774 crore in Q4FY24 from Rs 735 crore in the year-ago period. The bank wrote off bad loans worth Rs 3,850 crore in the March-ended quarter, compared to none in the past four quarters.

Shares of Zee Entertainment surged up to 5 percent to Rs 141 per share on May 18 special trading session after the company's profit returned to black in the January-March quarter (Q4FY24).

Zee Entertainment posted a net profit of Rs 13.3 crore in Q4FY24 as against a consolidated net loss of Rs 196 crore in the year-ago period. The company's consolidated total income 2.7 percent year-on-year (YoY) to Rs 2,185 crore in Q4FY24.

At close, the Sensex was up 42.60 points or 0.06 percent at 73,959.63, and the Nifty was up 15.80 points or 0.07 percent at 22,481.90. About 2,239 shares rose, 836 shares fell, while 110 were unchanged.

All sectors ended in the green, with capital goods and media leading from the up, each up over 1 percent. Metals, PSU banks, pharma and realty also posted decent gains.

Zydus Lifesciences shares soared nearly 10 percent after the company's consolidated net profit surged fourfold on year to Rs 1,182 crore for the March quarter, up from Rs 296 crore in the same period a year ago.

Revenue came in at Rs 5,533 crore, 10 percent higher from the previous year, the pharma company said in an exchange filing.

Stock Market LIVE Updates | Tata Motors, JSW Steel among top active stocks at this hour

Stock Market LIVE Updates | Nifty Media index top sectoral gainer, led by Zee Entertainment

Stock Market LIVE Updates | Broader indices outperform benchmark Nifty 50 index

The Sensex was up 4.43 points or 0.01 percent at 73,921.46, and the Nifty was up 46.70 points or 0.21 percent at 22,512.80.

“We expect the Nifty index to trade in a broader range of 200-300 points. On the upside, the index may rally to 22,600 and later hover around 22,500, taking support in the range of 22,450-22,460. We anticipate normal trading sentiment with mild volatility, maintaining a positive status quo,” said Avdhut Bagkar, derivatives and technical analyst at Stoxbox.

“In such an environment, traders are unlikely to take major positions or carry forward new trades. Most will prefer to stay on the sidelines, betting on intraday gains. As we approach the end of the last phase of elections, the overall trend may exhibit a sideways or consolidation pattern to reduce prevailing anxiety among the trading community,” Bagkar said.

Bagkar recommends maintaining light trading positions to help avoid anxiety and over-leverage. Sizeable positions with affordable hedges could help traders survive the current uncertainty.

The Sensex was up 139.49 points or 0.19 percent at 74,056.52, and the Nifty was up 68.10 points or 0.30 percent at 22,534.20.

The Sensex was up 139.49 points or 0.19 percent at 74,056.52, and the Nifty was up 68.10 points or 0.30 percent at 22,534.20.

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Gold prices clocked their second straight weekly gain on May 17, supported by China's stimulus measures and renewed hopes for US interest rate cuts. Spot gold rose by 1.6% or 38.36 cents to $2,415. Silver surged 6.5% to $31.49 per troy ounce. (change from previous close, MTD, YTD):

Golds 1.61%; 5.65%; 17.08%
Silver 6.48%; 19.77%; 32.34%

The US 10-year Treasury yields increased by four basis points to 4.42% on May 17 as investors digested the week's economic data. The US 2-year bond yield was up 3 bps to 4.4.82%. (current close, month ago, year to date)

US 10-Year Treasury: 4.42%; 4.68%; 3.88%
US 2-Year Treasury: 4.82%; 4.96%; 4.25%

Indian stock markets will remain open on Saturday, May 18, 2024, as both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) have scheduled a special trading session. This session, focused on the equity and equity derivatives segments, aims to evaluate the exchanges' disaster preparedness in the event of major disruptions. Earlier, a special trading session was held on March 2, 2024.

Markets may see a less volatile session with low volumes in today's special trading, similar to the last few special sessions. Broader markets may see stock-specific action today, with traders having to brace for some restrictions. Read More

Overnight, the US markets closed mixed, with Dow Jones gaining 0.3 percent and the S&P 500 up 0.1 percent. However, tech-heavy NASDAQ Composite index ended marginally in red. Stocks finished the week strong, with the Dow up 1.2% to notch its fifth weekly gain. The S&P 500 and Nasdaq climbed 1.5% and 2.1% week to date, respectively, marking their longest winning streak since February. (change from previous close, MTD, YTD):

S&P500: 0.12%; 5.31%; 11.18%
Dow Jones: 0.34%; 5.80%; 6.14%
Nasdaq: -0.07%; 6.57%; 11.16%

Indian markets rose for the second consecutive session, with Nifty closing above 22450 and border markets also gaining. BSE MidCap hit a new record high while BSE SmallCap was just 100 points away from its all-time peak.

At close, Sensex reached 73916 points, up by 0.34 percent, while Nifty closed at 22464 points, a 0.27 percent increase. BSE MidCap surged 1.2 percent, and SmallCap ended 1.4 percent higher.

In sectoral indices, Nifty Consumer Durables led with a 2.8 percent increase, followed by Nifty Realty, Metal, and Auto, each up by 1.7 percent. However, the Nifty IT index was the top loser, dropping 0.9 percent.

Globally, markets ended marginally lower as investors monitored comments from Federal Reserve officials, with three suggesting keeping borrowing costs high until there's more evidence of easing inflation, signaling no rush to cut interest rates. Fed speakers including Cleveland Fed President Loretta Mester, New York Fed President John Williams, and Richmond Fed President Thomas Barkin argued for patience in reaching the 2 percent inflation target.

-Dow closes at record high above 40,000 to clinch a five-week winning streak
-Chinese markets up after sweeping measures to boost housing sector, property shares pop
-Dollar mostly flat as market mulls inflation outlook
-US 10-year yield rises as investors weigh state of the economy
-Oil posts weekly gain on hopes of firmer demand
-China stimulus, US rate cut bets lift precious metals, silver soars above $30 mark
-GIFT Nifty signals positive start