Closing Bell: Nifty below 22,000, Sensex down 455 pts; bank, FMCG, oil & gas major drag

In the highly volatile session, the Indian equity indices failed to hold on the opening gains and ended lower for the fourth straight session on April 18 with Nifty below 22,000. At close, the Sensex was down 454.69 points or 0.62 percent at 72,488.99, and the Nifty was down 152.10 points or 0.69 percent at 21,995.80.

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 www.moneycontrol.com/markets/global-indices for all the global market action.

A relief from the global bourses led to a positive start for our markets post the mid-week holiday, which decently was driven by short covering, leading the benchmark above 22300. However, the elevation was short-lived as in the latter half, an intense bout of sell-off was triggered, which aggravated during the penultimate hour and plummeted Nifty below the 22000 mark. Eventually the index concluded the weekly expiry session below the 22000 zone, eroding nearly seven-tenths of a percent.

It has been a devastating week for the bulls, as being a truncated week with one more session to go, and the benchmark index has shredded over 500 points to sneak below the 22000 mark. From a technical standpoint, the index has plunged below its 50 DEMA with a strong bearish candle formation, depicting an inherent weakness in the markets. The previous closure around 21800 is likely to be seen as the pitstop for the bears, and if bulls could not barge on there, then we may test the 100 DEMA placed around 21600 on an immediate basis.

On the flipside, a series of resistance could be seen from 22150, followed by the 20 DEMA at 22300 zone. The undertone certainly favors the bears now and any rise should be seen as an opportunity to either exit longs or to look for bearish bets in the index.

Any relief from the global markets could only provide some aid to the ongoing carnage; hence, a strong watch is required over any developments. Meanwhile, it is advisable to refrain from aggressive bets until the uncertainty subsides.

Nifty continued to weaken as the index remained below the critical moving average of 21EMA. However, on the hourly chart, the index has formed a bullish harami pattern, suggesting a potential bullish reversal in the near term. Additionally, a bullish divergence is evident on the hourly chart. Looking ahead, the index might advance towards 22,200/22,300; sustained trading above 22,300 could further strengthen the market. Support is situated at 21,900.

Domestic benchmarks extended losses amid mixed sentiments, emerged from escalating geopolitical tensions in the Middle East, and as hopes of US rate cuts waned. Investors are adapting to prolonged higher US interest rates due to strength in the labour market and progress in inflation so far. The broader market has also witnessed profit booking, led by the weakness in heavy weight sectors like banking and FMCG. Meanwhile, investors will closely monitor the Q4 outcomes for further directions.

The rupee saw minor gains, reaching 83.54 with an increase of 0.05. This uptick was supported by weakness in crude oil prices, which helped the rupee maintain its strength against the dollar, trading below 105.75. However, ongoing geopolitical tensions in the Middle East may limit rupee gains, as the dollar could find support in case the situation worsens. The rupee's range is expected to remain between 83.30-83.65.

Nifty opened gap up however during the second half a sharp selloff occurred and the Nifty closed in the red down ~152 points. On the daily charts we can observe that the Nifty faced resistance at the 22300 – 22320 zone where the key hourly moving averages were placed.

On the downside the Nifty is now approaching the lower end of the rising channel and the 78.6% Fibonacci retracement level 22000 – 21938. It shall be a crucial level to watch out for during the next few trading sessions. Divergence on the hourly time frame charts suggests that there could be a pullback over the next few trading sessions, however we shall await price confirmation.

Bank Nifty also witnessed a sharp decline and tested the 61.82% Fibonacci retracement level (47061) of the previous rise. Considering that prices have reached a crucial Fibonacci support we shall expect the correction to halt around the zone of 47100 – 47000 zone and provide a pullback during the next few trading sessions.

Markets witnessed frenzied selling towards the closing stages in a highly volatile trading session, as concerns over fading rate cut hopes and persisting FII fund exodus from local stocks dampened investors' sentiment. Even as the Indian economy has been resilient and managed to dodge global worries, worries of stubborn inflation, rising instances of geo-political tensions and delay in interest rate cut has fuelled profit-taking over the past few weeks.

The Bank Nifty Index remains under bearish control, with any upward movements facing aggressive selling, highlighting a prevailing "sell on rise" sentiment among traders. The major resistance for the index is positioned at 48,000, where significant call writing activity has been observed, indicating strong resistance at this level. The overall market tone continues to be bearish, and if the selling pressure persists, the index could test its next major support level at 46,500, where the 100-day exponential moving average (EMA) is located.

Extreme volatility swings were seen on the weekly expiry day with the morning trade dominated by bulls followed by a steep decline in the mid-session. Follow-up selling dragged the Index further lower to trade below the psychological support of 22,000. With a loss of 152.05 points, Nifty50 ended the day at 21,995.85. Except for Media, all the other sectors ended the day in red with FMCG and Pharma being the major laggards. Mid and Smallcaps also witnessed a round of correction but managed to outperform Nifty50.

With a bearish engulfing candlestick pattern, the Index has broken its 50DMA and long trendline support but currently, it is placed at the lower end of the rising channel. The activity of the upcoming day will decide the continuation or reversal of the trend.

Indian rupee ended flat at 83.54 per dollar on Thursday versus Tuesday's close of 83.53.

Indian benchmark indices ended lower for the fourth consecutive session on April 18 with Nifty below 22,000.

At close, the Sensex was down 454.69 points or 0.62 percent at 72,488.99, and the Nifty was down 152.10 points or 0.69 percent at 21,995.80. About 2506 shares advanced, 1146 shares declined, and 129 shares unchanged.

Biggest losers on the Nifty included Apollo Hospitals, Nestle India, ONGC, Adani Enterprises and Titan Company, while gainers were Bharti Airtel, Power Grid Corporation, Hindalco Industries, Bajaj Auto and LTIMindtree.

Except telecom and media, all other sectoral indices are trading in the red.

The BSE midcap index shed 0.4 percent, while the smallcap index ended on a flat note.

-Company’s outperformance likely to continue with improved capital allocation
-Slow ramp-up in domestic production by end 2024 is well flagged

Sensex Today | Nifty Midcap 100 index shed 0.5 percent; Max Healthcare Institute, Indraprastha Gas, ABB India among major losers

-Q4 profit was 2% below estimate and 4-5% below consensus
-Management improved its guidance on FY25 exit combined ratio by 50 bps to 101.5%
-Trim forecasts while consensus' could rise marginally
-Stock has done well year to date & should stay rangebound with a positive bias near-term

Sensex Today | Market at 3 PM

The Sensex was down 379.67 points or 0.52 percent at 72,564.01, and the Nifty was down 126.40 points or 0.57 percent at 22,021.50. About 2359 shares advanced, 908 shares declined, and 91 shares unchanged.

Indian Hotels Company has charted a strong growth plan to be achieved by FY2025-26 with a strong improvement in cash flows and strengthening balance sheet with a focus on becoming debt-free.

EBITDA margins will consistently improve in coming years.

With strong room inventory, the stock is the best pick to capture strong growth momentum in domestic tourism in the coming years.

Sensex Today | BSE oil & Gas index shed 740 points from the day's high; Indraprastha Gas, Petronet LNG, ONGC among major losers

National Faceless Assessment Centre, Income Tax Department, has issued orders upon the Company for FY 2015-16 and FY 2016-17 levying penalty of Rs.87.59 Crores and Rs.172.76 Crores respectively in respect of disallowance of claim of depreciation on goodwill, disallowance u/s.14A and disallowance u/s.36(1)(va).

This is to update that the Company’s Writ petitions against the said penalty orders were heard and admitted by the Honourable Gujarat High Court vide its order dated 15th April 2024, a copy of which was received by the Company through its lawyers on 18th April 2024, wherein the Honourable Gujarat High Court has granted an ad interim stay against the operation and implementation of the penalty orders.

Sensex Today | Nifty Bank index fell more than 700 points from day's high

- HDFC Life's net profit rises 14.8% YoY to Rs 411 crore in Q4FY24 vs Rs 358 crore in Q4FY23
- Net premium income climbs 5.4% YoY to Rs 19,426 crore in Q4FY24 vs Rs 19,426 crore in Q4FY23

Sensex Today | Market at 2 PM

The Sensex was down 58.27 points or 0.08 percent at 72,885.41, and the Nifty was down 10.80 points or 0.05 percent at 22,137.10. About 2303 shares advanced, 939 shares declined, and 100 shares unchanged.

Gujarat, Maharashtra, West Bengal & Odisha could see above normal temp for next 4 days. North India may escape the heatwave for now, says GP Sharma of Skymet.

-Revenue down 2.5% at Rs 351 crore versus Rs 360 crore, YoY
-Board recommends dividend of Rs 95 per share for FY24

-Core Q4 in-line with estimates
-Q4 net premium up 17% YoY & combined ratio down to 102%
-Q4 profit of Rs 500 crore, up 19%, missed estimates slightly
-Health & commercial lines should lead premium CAGR of 17% over FY24-27
-Easing competitive intensity should help lower combined ratio to 101% by FY26
-Catastrophe claims are key risks
-Improving trends & profit lift from IFRS are triggers

Sensex Today | Nifty Media index up 1.5 percent; PVR Inox, Network 18 Media & Investments, TV18 Broadcast top gainers

Commercial vehicle maker Ashok Leyland Ltd on Thursday said it has partnered with South Indian Bank for financing dealers.

The company has signed a Memorandum of Understanding (MoU) to provide financing to dealers under the bank's dealer finance programme, Ashok Leyland said in a statement.

Under this partnership, the bank will provide competitive dealer finance options to the dealers, it added.

Infosys announced collaboration with Proximus, Belgium’s leading digital services and communications solutions provider, on the ServiceNow platform. Infosys helped Proximus to standardize its existing processes on the ServiceNow platform and transform its customer service management (CSM) operations.

Sensex Today | Nifty FMCG index down 0.3 percent; Nestle, Colgate Palmolive, Britannia Industries top losers

HDFC Bank said the board of directors on April 20 may consider annual renewal of issuance of long-term bonds (financing of infrastructure and affordable housing), perpetual debt instruments (part of Additional Tier I capital) and Tier II Capital Bonds over the period of next 12 months through private placement mode.

Tata Communications has reported consolidated net profit at Rs 321.2 crore for the quarter ended March FY24, declining 1.5% compared to year-ago period, impacted by weak operating margin performance. Revenue from operations grew by 24.6% YoY to Rs 5,691.7 crore for the quarter.

Sensex Today | BSE Bank index down 0.5 percent; Axis Bank, ICICI Bank, HDFC Bank major laggards

ICICI Lombard General Insurance Company has recorded net profit at Rs 520 crore for the quarter ended March FY24, growing 19% over a year-ago period. Gross direct premium income grew by 22% on-year to Rs 6,073 crore during the quarter, while combined ratio improved to 102.2% in Q4FY24, from 104.2% in Q4FY23. Return on average equity (ROAE) was 17.8% in Q4 FY2024 compared to 17.2% in Q4 FY2023.

One 97 Communications has received go ahead from the National Payment Corporation of India (NPCI) to start the user migration to new Payment System Provider (PSP) bank handles immediately.

Accordingly, it started transitioning ‘@paytm’ handles users to Axis Bank, HDFC Bank, SBI, and YES Bank, ensuring seamless UPI payments.

All four banks are now operational on the TPAP (third-party application provider), streamlining the process for Paytm to shift user accounts to these PSP (payment system provider) banks.

Biocon has signed an exclusive licensing and supply agreement with Biomm S A, a specialty pharmaceutical company in Brazil, for the commercialization of its vertically integrated drug product, Semaglutide (gOzempic). The drug is used to improve glycemic control in adults with type-2 diabetes.

-Q4 showed strong premium growth & market share gains
-Sharp improvement in combined ratio was also key positive in Q4 results
-Management remained optimistic on growth
-Optimism in combined ratio guidance on the back of growth in pricing discipline in market

The US Food and Drug Administration (US FDA) has issued an Establishment Inspection Report for Piramal Pharma's Riverview manufacturing facility, USA after successfully closing the inspection of the said manufacturing facility.

Crompton Greaves Consumer Electricals has received a patent for an invention - Ceiling Fan Blade Mounting with Extended Lift Angle Causing Broadening of Resultant Air Delivery Cone. This patent has been officially granted patent number on April 15, 2024 for the term of 20 years effective from April 5, 2018.

Sensex Today | Nifty Auto, PSU Bank, Metal, Realty indices gain 1-2 percent

Sensex Today | Nifty50 index up 0.5 percent, while Nifty Bank up 0.3 percent

Ind-Barath Energy (Utkal), the subsidiary of JSW Energy, had initiated arbitration against Tamil Nadu Generation and Distribution Corporation (TANGEDCO) regarding disputes arising out of the Power Purchase Agreement dated August 8, 2013.

The Arbitral Tribunal issued an Award, allowing Ind-Barath Energy’s claim for recovery of Rs 120 crore from TANGEDCO along with 9% interest from the date of wrongful encashment of performance bank guarantee by TANGEDCO till payment of the entire amount.

The Arbitral Tribunal rejected TANGEDCO’s counterclaim for recovery of Rs 118 crore as penalty and Rs 200 crore towards termination charges.

Sensex Today | Market at 1 PM

The Sensex was up 431.94 points or 0.59 percent at 73,375.62, and the Nifty was up 151.80 points or 0.69 percent at 22,299.70. About 2342 shares advanced, 889 shares declined, and 86 shares unchanged.

Tikri Investments, the personal fund owned by JSW veteran Prashant Jain, has bought 40 lakh equity shares (equivalent to 1.89% of paid-up equity) in Coffee Day Enterprises at an average price of Rs 70.94 per share, via open market transactions, which amounted to Rs 28.37 crore.

Prashant Jain is the former MD and CEO of JSW Energy.

SPANV Medisearch Lifesciences, a subsidiary of Krishna Institute of Medical Sciences, has received a notice for tax demand of Rs 306.97 crore from the Income Tax Department, for the assessment year 2022-2023.

PC Jeweller has received board approval for raising of funds up to Rs 1,500 crore via rights issue to the eligible equity shareholders. The board also approved preferential issue of fully convertible warrants up to Rs 500 crore.

Sensex Today | Nifty Information Technology index rose 1 percent; Mphasis, Persistent Systems, LTIMindtree top gainers

Indian Overseas Bank said that the board of directors of the company will meet on April 22 to consider the fund raising for FY25, through follow-on public offer (FPO)/rights issue/ qualified institutional placement (QIP) / preferential issue. The fund raising will take place in one or more tranches within 12 months from the date of approval.

Sensex Today | Just Dial, Indus Towers, Bharti Airtel among other BSE 500 stocks which touched 52-week high today

Shares of Dynacons Systems & Solutions shares surged 16 percent on the BSE in Thursday's intraday trade. In the past two trading days, the stock price of the IT enabled services company has zoomed 39 percent after securing a contract worth Rs 233 crore from the National Bank for Agriculture and Rural Development (Nabard).

-Strong rally in Q4 leaves little room for upside
-Overall, FY24 was a strong year with 18% YoY growth in premiums
-Expect premium growth to slow down by 15% in FY25
-Management guidance on the motor segment remains tepid

Star Housing Finance has received Rs 25 crore term loan from LIC Housing to strengthen retail rural housing finance operations

Sensex Today | BSE Realty index rose 1 percent; Brigade Enterprises, Prestige Estate, Phoenix Mills major gainers

Wardwizard Innvations and Mobility dispatched 3,801 units of electric two-wheeler and 16 three-wheeler in March 2024. Further, it sold over 26,996 units of electric vehicles, including two-wheeler and three-wheeler, in FY24.

Sensex Today | Nifty Bank index up 0.3 percent; Bank of Baroda, PNB, AU Small Finance Bank top gainers

Veranda Learning Solutions has informed that its subsidiary Veranda XL Learning Solutions Private Limited entered into a business transfer agreement with Logic Management Training Institutes Private Limited for the acquisition of the business undertaking of Logic Management on the transfer date to purchase assume and acquire, as a going concern, all of the transferor’s rights, title and interest in and to the business as defined in the BTA.

Project from Microtech Developers Ltd. (Lodha Group) for their luxury residential project in Worli, Mumbai for a total contract value of Rs 256 crore (Excl. GST)

Project from Raymond Limited (Realty Division) for additional building in Thane and scope enhancement for existing building aggregating to Rs 293 crore (Excl. GST)

Vodafone Idea Ltd's Follow on Public Offer (FPO) opened for subscription on April 18, and got bids for 1 percent subscription within one hour of opening. The issue received bids for 8.31 crore shares out of 1,260 crore shares on offer.

Retail investors, employees, high net-worth individuals (HNIs) and qualified institutional buyers (QIBs) have started putting in bids for the offer.

Both retail investors and HNIs (non-institutional investors) have bought 1 percent each of their allotted quota. The HNIs have bid for 2.86 crore shares against the reserved portion of 270 crore shares. No bids have been received for the QIB portion so far.

There is a minimum bid limit of 1,298 equity shares, and beyond that, bids may be placed in multiples of 1,298 equity shares. Read More

Sensex Today | Here are the top NSE losers in the last hour

Sensex Today | Here are the top NSE gainers in the last hour

The dollar softened on Thursday as traders assessed the U.S. interest rates outlook in the wake of comments from Federal Reserve officials that cemented expectation of monetary settings remaining restrictive for a while longer.

The yen, meanwhile, briefly strengthened as Japan's top currency diplomat Masato Kanda said finance leaders of the G7 reaffirmed their stance that excessive currency volatility was undesirable.

Sensex Today | Biden calls for higher tariffs on Chinese steel; BSE Metals index up 1.2%

President Joe Biden on Wednesday called for sharply higher U.S. tariffs on Chinese metal products as part of a package of policies aimed at pleasing steelworkers in the swing state of Pennsylvania, at the risk of angering Beijing.

As he campaigned for reelection in the "Steel City" of Pittsburgh, Biden aides said the U.S. president was proposing raising to 25% the tariffs imposed by his predecessor Donald Trump on certain Chinese steel and aluminum products.

Sensex Today | Nifty PSU Bank index rose 1.2 percent; Bank of Baroda, PNB, Central Bank of India top gainers

Mumbai Travel Retail, a step-down subsidiary of Adani Enterprises, has completed the incorporation process of a joint venture company namely King Power Ospree Pte (KPO) in Singapore, with KING Power international Pte, Singapore, for retail and wholesale business. Mumbai Travel Retail will hold 50% share capital of KPO.

Tata Consumer Products has completed the acquisition of 8,26,07,277 equity shares (equivalent to 99.99% of paid-up equity) of Organic India from Fabindia. In January 2024, the board had approved to acquire 100% stake in Organic India, from Fabindia.

The company has a market share of ~75 percent of the growing Zinc market in India with its headquarters at Zinc City, Udaipur along with Zinc-Lead mines and smelting complexes spread across the state of Rajasthan.

- According to an investigation by Public Eye, Nestle's brands in India contain high levels of sugar, contrary to other countries like UK, Germany & Switzerland
- The finding raises concern about Nestle's adherence to international guidelines aimed at curbing obesity and chronic diseases
- Experts warn that adding sugar to baby products can lead to harmful consequences

Sensex Today | Market at 11 AM

The Sensex was up 82.22 points or 0.11 percent at 73,025.90, and the Nifty was up 48.40 points or 0.22 percent at 22,196.30. About 2242 shares advanced, 881 shares declined, and 97 shares unchanged.

World's largest consumer goods and manufacturer of baby formula, Nestle, reportedly adds sugar to infant milk sold in India, other Asian, African countries.

According to a staggering report from Public Eye, a Swiss investigative organisation, Nestle added sugar in the form of sucrose or honey in samples of Nido, a follow-up milk formula brand intended for use for infants aged one and above, and Cerelac, a cereal aimed at children aged between six months and two years. Read More

Power Grid Corporation of India: Power Grid has been declared as the successful bidder to establish inter-state transmission system for evacuation of power from Rajasthan REZ Phase IV, from potential renewable energy zone in Khavda area of Gujarat under Phase-IV, and from Rajasthan REZ Phase IV. These projects are on build, own operate and transfer (BOOT) basis in Gujarat and Rajasthan.

- Strength in average room rates (ARRs) improves visibility for FY25E, implying up to 2-5% upward revision in ARRs across hotel companies
- India saw 9.5k keys getting added in 11MFY24, implying that the new supply would come at a measured pace
- Analysts constructive on hospitality space in India, owing to favourable demand-supply dynamics

Sensex Today | BSE Smallcap index gained 1 percent; Solara Active Pharma Sciences, Moschip Technologies, Suryoday Small Finance Bank, major contibutiors