Closing Bell: Sensex, Nifty end flat amid volatility; realty, banks gain

Indian equity indices ended on a flat note in the volatile session on May 27 after hitting record highs in the early part of the session.

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.

Today, Bank Nifty opened above the 49,000 resistance level but encountered selling pressure around the 49,600-49,800 range, setting 49,600 as a new resistance level. Significant put writing at the 49,000 strike price indicates strong support at this level. Closing above 49,600 could drive Bank Nifty towards 50,000. Overall sentiment is bullish, recommending a buy-on-dip strategy with a stop loss at 48,900.

The bulls are facing stiff resistance at 23,000 levels as investors start booking profit at higher levels to avoid any knee jerk reaction in the market ahead of the election result. Better earnings growth, the expectation of a revival in private capex, and a moderation in FIIs selling intensity are the key positive triggers in the market. The release of India's Q4 GDP and US inflation figures this week will also influence investors to get a direction in the near term.

The rupee traded weak by 0.02, closing at 83.13. The sideways movement was influenced by the dollar index staying flat near 104.53 and minor positive movements in crude prices due to recent buying. The trend in the rupee is expected to be volatile due to the ongoing election. The anticipated range for the rupee is between 83 and 83.30 amidst the current volatility.

Indian bourses commenced the week at a fresh high of 23,039 and banking counters-led rally provided an impetus for the Index to compound its gains but in the last session, profit-booking pressure dragged the Index lower to trade in red. With a loss of 24.65 points, Nifty50 settled the session at 22,932.45.

Apart from Banking, the Realty sector performed well while Media and Energy were the major laggards.

At record levels, Nifty50 has made a bearish candle and we believe that the Index is likely to retest its strong support of 22,780 while a level of 23,110 will be considered as immediate resistance.

Indian rupee ended marginally lower at 83.13 per dollar o Monday against Friday' close of 83.09.

Indian equity indices ended on a flat note in the volatile session on May 27 after hitting record highs in the early part of the session.

At close, the Sensex was down 19.89 points or 0.03 percent at 75,390.50, and the Nifty was down 24.60 points or 0.11 percent at 22,932.50. About 1599 shares advanced, 1868 shares declined, and 116 shares unchanged.

Top gainers on the Nifty included Divis Labs, IndusInd Bank, Axis Bank, LTIMindtree and Adani Ports, while losers were Adani Enterprises, Wipro, Grasim Industries, ONGC and SBI Life Insurance.

On the sectoral front, bank, realty and Information Technology indices gained 0.5 percent each, while oil & gas, power and media were down 0.5-1 percent.

The BSE midcap index was up 0.6 percent while the smallcap index ended flat.

Awfis Space Solutions' IPO subscription witnessed upbeat investor interest on May 27, the final day of bidding, as the issue was subscribed 76.43 times. Investors showed keen interest, with bids pouring in for 65.95 crore shares as against the 86.29 lakh shares on offer.

The IPO, valued at Rs 599 crore, comprises a fresh issuance of shares worth Rs 128 crore and an offer-for-sale (OFS) of 1,22,95,699 equity shares by existing shareholders. The price band of the offer was fixed at Rs 364-383 per share.

Non-institutional investors, including high net worth individuals, led the pack, purchasing a whopping 110.37 times of the reserved portion, while retail investors had a subscription rate of 46.27 times. Qualified institutional buyers (QIBs) also showed significant interest, subscribing 70.19 times the reserved portion, while the employee segment was oversubscribed 20.93 times.

#1 FY24- a year of market share gains
#2 Capex beat estimates, capitalisation missed but good FY25 guidance
#3 PAT up 4 percent YoY led by dividend from subsidiaries; dividend grew despite capex beat

Indian Rupee gained by 0.05% today on positive domestic markets and FPI inflows. However, a positive US Dollar and a rise in crude oil prices capped sharp gains. US Dollar strengthened amid hawkish US Data and hawkish FOMC meeting minutes last week.

We expect Rupee to trade with a positive bias on positive domestic equities and expectations of fresh foreign inflows. However, a strong US Dollar and a recovery in crude oil prices may cap sharp upside. US markets will remain closed today on Memorial Day holiday. Investors may remain cautious ahead of core PCE price index data later this week. USDINR spot price is expected to trade in a range of Rs 82.80 to Rs 83.30.

Markets@3 | Sensex, Nifty off day's high

The Sensex was down 42.02 points or 0.06 percent at 75,368.37, and the Nifty was down 33.40 points or 0.15 percent at 22,923.70. About 1579 shares advanced, 1876 shares declined, and 127 shares unchanged.

Among sectors, FMCG, metal, oil & gas power were trading in the red, while buying seen in the bank, IT and realty.

BSE Midcap index up 0.7 percent, while smallcap index trade flat.

Sensex Today | DCM Shriram Q4 profit up 22%; shares flat

#1 Net profit up 22.5% at Rs 38.6 crore Vs Rs 31.5 crore, YoY

#2 Revenue down 5.5% at Rs 511.7 crore Vs Rs 541.6 crore, YoY

#1 Net profit down 57% at Rs 199.8 crore Vs RS 278 crore, YoY

#2 Revenue down 21% at Rs 1,071 crore Vs Rs 1,357 crore, YoY

#1 Net profit up 42% at Rs 62.5 crore Vs Rs 44 crore, YoY

#2 Revenue up 9.8% at Rs 1,728.6 crore Vs Rs 1,574.2 crore, YoY

Indian banks, both from the public as well as private sectors, will have to make an incremental provisioning of 10 to 20 basis points because of the central bank’s draft rules for project finance, said a Care Edge report on May 27. “For public sector banks, the impact of incremental provisioning would be up to 20 bps for each of the next three years, whereas for private sector banks, it would be up to 10 bps for each of the years from FY25 to FY27,” the report said. READ MORE

The Sensex surged past 76,000 in early May 27 trading, taking 31 sessions to climb 1,000 points from 75,000 on April 9. This rally from 74,000 to 75,000 took just 21 sessions, while the climb from 73,000 to 74,000 took 37 sessions. The move from 72,000 to 73,000 happened in just 13 sessions. READ MORE

JPMorgan Asset Management increased its holdings of Indian local-currency sovereign bonds, viewing them as the best bet among peers in Asia. The firm added bonds in April when the yield on the benchmark 10-year bond rose above 7.15%, Julio Callegari, chief investment officer of Asia fixed income, said in an interview. It took some profits off Chinese government notes in the month, he added. READ MORE

Shares of Affle India shares gained 6 percent to Rs 1,304 in the afternoon on May 27 after the company reported a record quarterly revenue run-rate, EBITDA, and net profit in the fourth quarter. The company reported a 40 percent year-on-year increase in consolidated net profit for the March quarter (Q4FY24) at Rs 87.5 crore, up from Rs 62 crore in the same period last year. Sequentially, the net profit rose 14 percent from Rs 76.8 crore in the December quarter. READ MORE

#1 Net profit up 12.2% at Rs 40.5 crore Vs Rs 36.1 crore, YoY

#2 Revenue up 15% at Rs 1,524.2 crore Vs Rs 1,327.8 crore, YoY

Sensex Today | BSE Metal index up 0.5%; Jindal Stainless, Tata Steel top gainers

Shares of battery maker Exide Industries Ltd were trading over 5 percent higher at Rs 498 apiece in the afternoon trade on May 27 after JPMorgan raised the price target to Rs 520 as it sees further upside in the counter.

With an 'overweight' call on Exide, the new target price implies an upside potential of 10 percent from the current market levels. The previous target price was Rs 480. Read More

Markets@2 | Sensex, Nifty trade higher; midcaps gain

The Sensex was up 456.20 points or 0.60 percent at 75,866.59, and the Nifty was up 116.90 points or 0.51 percent at 23,074.00. About 1589 shares advanced, 1860 shares declined, and 119 shares unchanged.

Top Sectoral Gainers: Auto, Bank, Capital Goods, IT, Pharma, Realty
Top Sectoral Losers: Oil & Gas, Power

BSE Midcap index up 0.5%, BSE Smallcap index trade flat

#1 Net loss at Rs 15.08 crore Vs profit of Rs 31.06 crore
#2 Revenue surges 40.7 percent to Rs 164 crore Vs Rs 116.6 crore

#1 Q4 revenue/EBITDA were in-line
#2 India's revenue grew 10 percent YoY while Brazil/Germany witnessed further recovery
#3 Sustained margin improvement in India & international operations should drive 14 percent EBITDA CAGR over FY24-26
#4 Company’s consistent strong operating performance should allow further re-rating

#1 Company is evolving from utility to a retail consumption play
#2 Company is slated to benefit from strong air traffic growth outlook, travel retail opportunity, upward reset in aero tariffs
#3 Simplification of corporate structure, improvement in leverage ratios will support re-rating
#4 Expect company’s EBITDA CAGR of 32 percent over FY24-FY27

The company announced that the board has appointed Paresh Jain as Chief Financial Officer with effect from May 24. Furthermore, the board has redesignated Sanjay Shah from the post of Chief Strategy Officer & Chief Financial Officer to Chief Strategy Officer.

#1 Profit increases 9 percent to Rs 414.7 crore Vs Rs 380.2 crore
#2 Revenue jumps 14.4 percent to Rs 961.3 crore Vs Rs 840.4 crore

#1 Profit jumps 29.6 percent to Rs 46.9 crore Vs Rs 36.2 crore
#2 Revenue rises 20 percent to Rs 403.7 crore Vs Rs 336.5 crore
#3 EBITDA grows 22.6 percent to Rs 75.9 crore Vs Rs 61.9 crore
#4 EBITDA margin expands 40 bps to 18.8 percent Vs 18.4 percent

#1 Profit stands at Rs 77.4 crore Vs loss of Rs 426.7 crore
#2 Revenue declines 33 percent to Rs 897.7 crore Vs Rs 1,338.9 crore

#1 Q4 ahead of estimates as custom synthesis sales surged by 47 percent YoY
#2 Q4 EBITDA margin rises to a multi-quarter high in consequence
#3 Custom synthesis benefited from Q4 seasonality and two commercial contracts
#4 Company looks like it is set to spring back to its growth path
#5 See company’s growth patch factored into stock, which trades at 41x FY26 PE valuation

#1 Company’s parent earnings missed estimates due to fixed cost under recoveries
#2 Consolidated PAT was a miss driven by lower profit contributions from subsidiaries
#3 Company has a strong RE portfolio of 23.2 GW; RE IPO possible by Oct/Nov-24

3.1 million shares of NTPC traded in a bunch: Bloomberg

#1 Q4 Profit slips 1 percent to Rs 100.2 crore Vs Rs 101.2 crore
#2 Q4 Revenue declines 1.9 percent to Rs 958.6 crore Vs Rs 976.9 crore

Markets@1 | Sensex up 450 pts, Nifty above 23,050

The Sensex was up 445.42 points or 0.59 percent at 75,855.81, and the Nifty was up 109.20 points or 0.48 percent at 23,066.30.

Divis Labs, IndusInd Bank, Axis Bank, L&T, Bajaj Finance were among major gainers on the Nifty, while losers were Wipro, ONGC, Grasim Industries, Adani Enterprises, Eicher Motors

Except, oil & gas and power, all other indices were trading in the green. 

BSE Midcap index was up 0.6 percent, while smallcap index trade flat.

#1 Profit falls 18.9 percent to Rs 9.6 crore Vs Rs 11.84 crore
#2 Revenue jumps 22.4 percent to Rs 79.7 crore Vs Rs 65.1 crore

Sensex Today | BSE Midcap index gained 0.5%; IOB, Glenmark, UCO Bank top contributors

Veranda Learning Solutions has commenced its work as a Training Partner as per terms of the MoU with the KSDC (Karnataka Skill Development Corporation) to assist in the implementation of Wealth Management Course which is part of the Kalike Jothege Kaushalya, a state government initiative to provide skill development and career guidance to students in government colleges.

The program will be delivered in Government colleges as a pilot project at Raichur and Gulbarga.

EKI Energy Services announced a ground breaking collaboration with FARI Solutions, an industry leader in blockchain research and development firm operating across North America, Europe, and Eurasia, including Azerbaijan.

This Memorandum of Understanding (MoU) marks a significant milestone in EKI's commitment to spearheading carbon credit initiatives and bolstering sustainable development efforts in the region.

#1 Profit grows 21.6 percent to Rs 319.4 crore Vs Rs 262.6 crore
#2 Net interest income falls 19.9 percent to Rs 281 crore Vs Rs 350.8 crore

Sensex Today | Tera Software, Ahlada Engineers, among others locked at upper circuit

BGR Energy received intimation of termination of contract from Thermax with respect to supply of air cooled heat exchanger (ACHE) for Numaligarh Refinery Limited.

#1 IPL revenue up 130 percent YoY but core business ad revenue declines 3 percent YoY
#2 Despite IPL boost, shave CL25/FY26 forecast by 1-3 percent
#3 Expect a 10 percent earnings CAGR in CL24-27

Sensex Today | BSE Realty outperforms other sectoral indices 

#1 Q4 ahead of estimates as custom synthesis sales surged by 47 percent YoY
#2 Q4 EBITDA margin rises to a multi-quarter high in consequence
#3 Custom synthesis benefited from Q4 seasonality and two commercial contracts
#4 Company looks like it is set to spring back to its growth path
#5 See company’s growth patch factored into stock, which trades at 41x FY26 PE valuation

Sensex Today | Divis Lab, Adani Ports hit 52-week high

#1 Profit zooms 79.6 percent to Rs 909 crore Vs Rs 506 crore
#2 Revenue rises 17.1 percent to Rs 7,580 crore Vs Rs 6,473 crore
#3 EBITDA spikes 68.3 percent to Rs 1,687 crore Vs Rs 1,002 crore
#4 EBITDA margin jumps 677 bps to 22.3 percent Vs 15.5 percent

Life Insurance Corporation of India, Astrazeneca Pharma, Borosil Renewables, Flair Writing Industries, Jubilant Industries, Natco Pharma, National Aluminium Company, NMDC, Peninsula Land, Sumitomo Chemical India, TVS Supply Chain Solutions, and West Coast Paper Mills will announce theri earning today.

| Adani Ports hits 52-week on replacing Wipro; Adani Enterprises down 2%

NSE has declared a reduction in tick size to 1 paisa for securities priced below Rs 250 in the cash segment, down from the current 5 paise. This adjustment aims to bolster price discovery and market efficiency, rendering trading more appealing for both retail investors and traders.

Moreover, the tick size in the stock futures segment will align with that of the underlying security in the cash market. This alteration will empower investors to devise novel strategies tailored to the smaller tick sizes, particularly for lower-priced securities.

To sum up, NSE's decision to reduce the tick size for stocks below Rs 250 is anticipated to enhance liquidity, foster better price discovery, and encourage innovative trading strategies. however, it may also escalate system load due to the large number of orders.

Sensex Today | Nifty PSU Bank index up 0.4%; IOB, UCO Bank gain 2-4%

#1 Profit spikes 40.2 percent to Rs 87.5 crore Vs Rs 62.4 crore
#2 Revenue increases 42.3 percent to Rs 506.2 crore Vs Rs 355.8 crore

Markets@11 | Sensex, Nifty trade higher; Banks shine

The Sensex was up 237.86 points or 0.32 percent at 75,648.25, and the Nifty was up 47.40 points or 0.21 percent at 23,004.50.

HDFC Bank, TCS, HUL, IndusInd Bank and Tata Steel were among major gainers on the Sensex, while losers were Wipro, NTPC, Power Grid Corp, M&M and Maruti Suzuki.

Top Sectoral Gainers: IT, Pharma, Realty, Bank
Top Sectoral Losers Oil & Gas, Power, Media

BSE Midcap index up 0.5%, and Smallcap index trade flat.

The High Court of Calcutta has dismissed the writ petition filed by the company, with a liberty to the company, to approach the Joint Plant Committee. It will seek further legal remedies in the matter. On April 2, 2024, it had filed writ petition in the court in the matter of rejection of a representation made by the company in respect of waiver of loans availed from the Steel Development Fund (SDF). The loan outstanding (principal and interest) as of the last annual audited financial statements is Rs 2,751.17 crore. The entire amount of Rs 2,751.17 crore has already been accounted for as borrowings in the last audited financial statements.

Sensex Today | BSE Healthcare index rose 0.5%; Glenmark Pharma, AstraZeneca Pharma, AMI Organics up5-6%

BSE Limited has approved execution of a Share Purchase Agreement with SPDJ Singapore Pte Limited (SPDJS) for acquiring 50% stake of AIPL from SPDJS. Post acquisition of this stake, AIPL will become a wholly owned subsidiary of BSE.

#1 Profit surges 302.3 percent to Rs 54.4 crore Vs Rs 13.5 crore
#2 Revenue jumps 37 percent to Rs 354 crore Vs Rs 258.4 crore
#3 EBITDA zooms 135.5 percent to Rs 80.7 crore Vs Rs 34.3 crore
#4 EBITDA margin expands 950 bps to 22.8 percent Vs 13.3 percent

The United States Food and Drug Administration (US FDA) conducted an inspection at Unit III, a formulation manufacturing facility of the company's subsidiary, Eugia Pharma Specialities, at Pashamylaram, Telangana, from January 22 to February 2 this year. Subsequently, the US FDA has determined the inspection classification status of this facility as Official Action Indicated (OAI).

Sensex Today | Nifty Midcap 100 hits fresh record high

#1 Profit surges 67.6 percent to Rs 538 crore Vs Rs 321 crore
#2 Revenue increases 18 percent to Rs 2,303 crore Vs Rs 1,951 crore
#3 EBITDA spikes 50.1 percent to Rs 731 crore Vs Rs 487 crore
#4 EBITDA margin expands 670 bps to 31.7 percent Vs 25 percent

#1 Q4 Net loss widens to Rs 1,238.6 crore Vs loss of Rs 549.4 crore
#2 Q4 Revenue grows 2.1 percent to Rs 3,063 crore Vs Rs 3,000.5 crore

The hugely popular GIFT Nifty derivative contracts, traded on the NSE International Exchange at GIFT City, Gandhinagar, have seen their volume plunge in the current month.

The turnover has fallen by almost 46 percent in May from the record turnover of $82 billion registered in April. In May till date, the turnover has been pegged at $44.24 billion.

Market experts attribute this trend to foreign investors as the volume in the International Financial Services Centre (IFSC) is solely driven by overseas investors. The experts highlight the huge selling by FPIs in the domestic cash market as well. Read More

Sensex Today | Nifty IT index up 0.6%; Persistent Systems, Coforge, MphasiS top gainers

Transformers and Rectifiers India has successfully tested and supplied 220 MVA, Electric Arc Furnace Transformer, World’s Third Largest. This transformer is supplied to one of the world’s leading company engaged in production of steel plants.

AXISCADES Technologies' subsidiary Mistral Solutions has secured a large order from Bharat Electronics Limited (BEL). The order entails design, development, and supply of eight Radar Processing Systems for the Arudhra Medium Powered Radar (MPR). With a gross order value of Rs 90 crore, the systems will be delivered over a span of four years.

Sensex Today | BSE Power index down 1%; BHEL, Suzlon Energy, ABB India top losers

India's GDP in the fourth quarter of the financial year 2023-24 is anticipated to have grown between 6.1% and 6.7%, a decline from the over 8% growth rate observed in the previous three quarters, PTI reported citing projections by various economists.

The government is set to release the GDP figures for the fourth quarter (January-March 2024) and the provisional estimates for the 2023-24 fiscal year on May 31.

India's GDP grew 8.4 percent in the December quarter, the highest in six quarters. Last time India's economy grew at a faster clip was in the first quarter of 2022-23, when it clocked a growth of 13.1 percent, which was later revised down to 12.8 percent. Read More

Sensex Today | BSE Oil & Gas index shed 1%; ONGC, Linde India, HPCL down 2% each

The company has emerged as the lowest bidder (L1) for a project worth Rs 187.34 crore from Maharashtra Metro Rail Corporation (Nagpur Metro). The project involves the construction of six elevated metro stations in Phase 2.

Sensex Today | Nifty Media down nearly 1 %; DB Corp, Dish TV fall 2-4%

Gold prices on Monday drifted higher from a two-week low hit in the previous session as traders gauged fading hopes of U.S. interest rate cuts ahead of a key inflation report due later this week.

Spot gold was up 0.5% at $2,346.31 per ounce, having touched its lowest since May 9 at $2,325.19 on Friday. U.S. gold futures rose 0.6% to $2,347.60.

Bullion hit a record high of $2,449.89 earlier last week, but has shed more than $100 since then.

#1 Q4 EBITDA/PAT grew 25-36 percent YoY & 9-14 percent above estimate
#2 India's truck industry growth has moderated from 45 percent CAGR over FY21-23 to flat in FY24
#3 Expect a capex-led economic cycle to fuel demand growth ahead
#4 Like company’s improving margin trajectory
#5 Believe stock will be rangebound until demand visibility improves
#6 Stock is already at 5.2x FY25 PB on consensus versus last cycle peak of 5.8x

#1 Profit tanks 22.5 percent to Rs 274.2 crore Vs Rs 353.8 crore
#2 Net interest income declines 3 percent to Rs 834 crore Vs Rs 860 crore
#3 Pre-Provision Operating Profit drops 27.1 percent to Rs 499.8 crore Vs Rs 685.8 crore
#4 Provisions down 27 percent at Rs 184.7 crore Vs Rs 253.3 crore
#5 Net NPA rises to 1.58 percent Vs 1.55 percent (QoQ)
#6 Gross NPA drops to 3.53 percent Vs 3.64 percent (QoQ)

Sensex Today | Tera Software, MM Forgings, among others witness huge volume surge

#1 Profit grows 41.5 percent to Rs 564.4 crore Vs Rs 398.9 crore
#2 Revenue increases 4.2 percent to Rs 4,233.4 crore Vs Rs 4,063.4 crore
#3 Board recommends a final dividend of Rs 170 per share

#1 Profit falls 2 percent to Rs 5,556.4 crore Vs Rs 5,672.3 crore
#2 Revenue rises 2.9 percent to Rs 42,532.2 crore Vs Rs 41,317.9 crore

Q4 (Consolidated YoY)

#1 Profit surges 33 percent to Rs 6,490 crore Vs Rs 4,871.6 crore
#2 Revenue increases 7.6 percent to Rs 47,622 crore Vs Rs 44,253.2 crore
#3 Other income more than doubled to Rs 1,194.5 crore Vs Rs 491.8 crore
#4 Board recommends the final dividend at Rs 3.25 per share

Sensex Today | Nifty Bank index up 0.4%; IndusInd Bank, PNB, HDFC Bank among major gainers

#1 Q4v Profit surges 56.4 percent to Rs 449 crore Vs Rs 287 crore
#2 Q4 Revenue grows 10.2 percent to Rs 2,745 crore Vs Rs 2,491 crore

Founder Mitter Infotech sold 6.38 percent stake via block to existing investor, Plutus

#1 Profit spikes 558.1 percent to Rs 258.88 crore Vs Rs 39.3 crore
#2 Revenue jumps 114.3 percent to Rs 1,286 crore Vs Rs 600 crore

#1 Profit jumps 136.3 percent to Rs 241 crore Vs Rs 102 crore
#2 Revenue (excluding excise duty) climbs 11.2 percent to Rs 2,783 crore Vs Rs 2,503 crore
#3 EBITDA rises 42.1 percent to Rs 334 crore Vs Rs 235 crore
#4 EBITDA margin expands 260 bps to 12 percent Vs 9.4 percent

The Indian benchmark indices opened higher with Nifty above 23,00 on May 27.

The Sensex was up 214.20 points or 0.28 percent at 75,624.59, and the Nifty was up 57.40 points or 0.25 percent at 23,014.50. About 1806 shares advanced, 746 shares declined, and 165 shares unchanged.

Divis Labs, Adani Ports, Hindalco, NTPC and Tata Steel were among major gainers on the Nifty, while losers were Adani Enterprises, Wipro, Eicher Motors, Hero MotoCorp and Dr Reddy's Labs.