Closing Bell: Sensex, Nifty end flat; telecom, media stocks rally

Indian benchmark indices ended flat in the volatile session on May 24. The Sensex was down 7.65 points or 0.01 percent at 75,410.39, and the Nifty was down 10.60 points or 0.05 percent at 22,957.10.

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.

Global market sentiments remained subdued as the recent US FOMC minutes suggest a continued hawkish stance on policy rates. US jobless claims fell more than expected, corporate profits remained healthy, and stubborn inflation persists, giving the Fed no reason to cut rates. Meanwhile, the domestic market is reaching new highs, with large caps playing second fiddle to the broader market rally, indicating sustained momentum in the short term. The BSE PSU index has experienced significant rerating due to strong performance and improved visibility, driven by PSU banks and defense stocks.

#1 Market gains for 2nd straight week, Nifty & Sensex up 4% in 2 weeks
#2 Sensex & Nifty record biggest 2-week gains in last 5 months
#3 Midcap index relatively underperforms, up 1% this week
#4 Nifty Bank moves 2% higher this week, HDFC Bank top contributor

Markets traded quietly after Thursday’s surge and ended nearly unchanged. Following a flat start, the Nifty oscillated within a narrow range throughout the session but managed to briefly reach the new milestone of 23,000. Meanwhile, a mixed trend across sectors kept traders engaged, with auto, banking, and financial sectors performing well, while FMCG and realty experienced profit-taking. The broader indices also had a muted session, closing almost flat.

It's common to see a pause after a strong upward move, and traders should view any dip around 22,750-22,850 in Nifty as a buying opportunity. While key sectors are contributing to the upward movement, we are now seeing more selective participation. Therefore, it is advisable to focus on stock selection, with a preference for large-cap and large mid-cap stocks.

Indian rupee ended 19 paise higher at 83.09 per dollar on Friday versus Wednesday's close of 83.28.

Indian benchmark indices ended on flat note in the volatile session on May 24.

The Sensex was down 7.65 points or 0.01 percent at 75,410.39, and the Nifty was down 10.60 points or 0.05 percent at 22,957.10. About 1467 shares advanced, 1875 shares declined, and 89 shares unchanged.

HDFC Bank, L&T, Bharti Airtel, BPCL and Axis Bank were among the top gainers on the Nifty, while losers were Adani Ports, Tata Consumer, Tech Mahindra, Titan and M&M.

Among sectors, Oi & gas, Capital Goods, Telecom and Media up 0.5-2%, while FMCG, Healthcare, IT, Metal and Realty down 0.5% each.

BSE Midcap index was ip 0.2%, while Smallcap index shed 0.2%.

#1 Q4 below estimates; near-term headwinds to cigarette EBIT
#2 Will monitor any change in taxation in union budget post elections
#3 Any change in taxation could impact volumes and/or ability to mitigate cost pressures

Sensex Today | Nifty Bank crosses 49,000 mark

#1 Company’s call cited good traction in new molecules launched in the last three years
#2 Healthy pipeline of agchem & nonagchem molecules in its custom synthesis segment
#3 For FY25, company sees 15 percent consolidated revenue growth led by custom synthesis manufacturing

#1 Net profit down 34.9% at Rs 11.4 crore Vs Rs 17.5 crore, YoY
#2 Revenue down 11.8% at Rs 403.4 crore Vs Rs 457.5 crore, YoY

Indian Rupee gained by 0.25% today on positive domestic markets and suspected intervention by RBI. RBI’s Rs. 2.11 lakh crore dividend to the Government also boosted market sentiments. Fresh FII inflows and a decline in crude oil prices also supported the Rupee. US Dollar strengthened as markets trimmed rate cut bets amid hawkish US Data and hawkish FOMC meeting minutes.

We expect Rupee to trade with a positive bias on positive domestic equities and overall weakness in crude oil prices. However, weak global markets and strong Dollar on hawkish US data may cap sharp gains. Traders may take cues from durable goods orders and revised consumer sentiment data from the US. USDINR spot price is expected to trade in a range of Rs 82.80 to Rs 83.30.

Markets@3 | Sensex, Nifty trade flat amid volatility

The Sensex was down 2.77 points or 0.00 percent at 75,415.27, and the Nifty was down 4.90 points or 0.02 percent at 22,962.80. 

HDFC Bank, L&T, Bharti Airtel, NTPC and Axis Bank were among major gainers on the Sensex, while losers were TCS, Asian Paints, ITC, Tech Mahindra and Titan Company.

Among sectors, Capital Goods, Telecom and Media up 1-2%, while FMCG, Healthcare, IT, Metal and Realty down 0.2-0.7%.

BSE Midcap index up 0.3%, while Smallcap index trading flat.

Sun Pharmaceutical Industries has its sights on one of the largest and fastest-growing markets in medicine, as India’s generic drug giant refines its push into innovative treatments that cater to patients globally.

Sun completed the first phase of study for its obesity and diabetes drug GL0034 and will begin the second phase of clinical trials before the end of the year, it said on Wednesday.

#1 Net profit Rs 506 crore, up 60% YoY

#2 Revenue Rs 1570 crore, up 50% YoY

#3 Total costs Rs 1100 crore, up 57% YoY

#4 Dividend Rs 16 a share

#1 Net profit down 30.6% at Rs79.5 cr vs Rs114.6 cr (YoY)

#2 Revenue up 10% at Rs1,060.7 cr vs Rs965.4 cr (YoY)

#3 EBITDA down 16.2% at Rs137.3 cr vs Rs163.8 cr (YoY)

#4 Margin at 13% vs 17% (YoY)

Ashok Leyland Limited's (ALL) net profit jumped 20 percent to Rs 900 crore during the fourth quarter of financial year 2023-24 due to strong demand for its products, both in the medium and light commercial vehicle (M&LCV) segments. The Chennai-based automaker’s Profit After Tax (PAT) during Q4FY23 stood at Rs 751 crore.

The flagship company of the Hinduja Group posted 3 percent decline in Q4 revenue from operations at Rs 11,267 crore. The company’s topline during the same period last year was Rs 11,626 crore.

#1 Net profit at Rs 8,174 crore Vs Rs 2,411 crore, YoY
#2 Revenue up 0.2% at Rs 55,994 crore Vs Rs 55,857 crore, YoY

#1 Loss narrows to Rs 1 crore Vs loss of Rs 11.8 crore
#2 Revenue increases 6.4% to Rs 298 crore Vs Rs 280 crore

Sensex Today | BSE PSU Index rose 1.5%; Bharat Dynamics, RCF, Power Finance up 6-12%

#1 Profit rises 41.1% to Rs 162 crore Vs Rs 114.8 crore
#2 Revenue falls 4.4% to Rs 1,780.9 crore Vs Rs 1,862.1 crore

#1 Net profit up 9.5% at Rs 15 crore Vs Rs 13.7 crore, YoY

#2 Revenue down 9% at Rs 122.8 crore Vs 134.8 crore, YoY

#1 Profit drops 6.7% to Rs 415 crore Vs Rs 445 crore
#2 Revenue grows 9.2% to Rs 3,387 crore Vs Rs 3,102 crore

Sensex Today | Nifty Metal index up 0.5%; NALCO, SAIL, NMDC top gainers

#1 Profit grows 28.4% to Rs 24.2 crore Vs Rs 18.9 crore
#2 Revenue falls 1.6% to Rs 400.5 crore Vs Rs 406.8 crore

#1 Profit increases 21.8% to Rs 47 crore Vs Rs 38.6 crore
#2 Revenue rises 13.6% to Rs 124 crore Vs Rs 109.1 crore
#3 Board announces dividend of Rs 100 per share

#1 Profit at Rs 11.4 crore Vs loss of Rs 9.4 crore, YoY
#2 Revenue at Rs 74.3 crore Vs Rs 60 crore, YoY

#1 Q4 missed estimates on topline and margin
#2 Management expects a gradual demand improvement during FY25
#3 Revenue rose 3 percent, on a weak base of -13 percent
#4 Discounting and inventory levels have reduced
#5 Company’s distributor inventory fell by three days in Q4 & six days in FY24

#1 Net profit down 66% at Rs 15.5 crore Vs Rs 46 crore, YoY
#2 Revenue down 8.5% at Rs 667.8 crore Vs Rs 729.6 crore, YoY

Bayer CropScience shares sank six percent in trade on May 24 after the chemical manufacturing player's net profit declined 40 percent for the quarter ended March.

The firm reported a 39.4 percent fall in net profit at Rs 96 crore in Q4FY24 as compared to Rs 158.5 crore in Q4FY23.

The revenue sank 19.4 percent year-on-year to Rs 791.5 crore as against Rs 982.5 crore in the March quarter of 2023. Read More

#1 Loss narrows to Rs 5.5 crore Vs loss at Rs 48.2 crore
#2 Revenue slips 7% to Rs 423.6 crore Vs Rs 455.8 crore

#1 Profit grows 44.5% to Rs 94.3 crore Vs Rs 65.2 crore
#2 Revenue jumps 17% to Rs 1,394.3 crore Vs Rs 1,192.4 crore

#1 Net profit rose 23.1% at Rs 220.3 crore Vs Rs 179 crore, YoY

#2 Revenue down 13% at Rs 5,557 crore Vs Rs 6,860.3 crore, YoY

Markets@1 | Sensex, Nifty marginally higher; oil & gas up 1%

The Sensex was up 94.24 points or 0.12 percent at 75,512.28, and the Nifty was up 34.60 points or 0.15 percent at 23,002.30. About 1684 shares advanced, 1599 shares declined, and 90 shares unchanged.

On the sectoral front, the auto, PSU Bank, capital goods, oil &gas up 0.5-1%, while FMCG, realty down 0.5% each. 

BSE Midcap and Smallcap index up 0.5

Sensex Today | Nifty Auto index up 0.5%; Bharat Forge, TVS Motor, Sona BLW among major gainers

Shares of Johnson Controls - Hitachi Air Conditioning India were locked in 20 percent upper circuit to hit fresh 52-week high of Rs 1,486 per share on May 24 after it exhibited strong January-March quarter (Q4FY24) performance.

So far this year, shares of Johnson Controls soared over 33 percent, outperforming 5 percent rise in the benchmark Nifty 50 index.

Currently, shares of Johnson Controls trade at lowest price-to-book (PB) ratio of 5.11x as against peers Voltas at 7.33x PB ratio, Bluestar at 12x PB ratio, and Amber Enterprises 6x PB ratio, showed data. Read More

United States Food and Drug Administration (US FDA) conducted an inspection at the Gland Pharma'’s API facility at JNPC, Visakhapatnam from May 20, 2024 to May 24, 2024 and has been completed with Zero 483 observations.

#1 Profit tanks 93% to Rs 4.8 crore Vs Rs 67.9 crore
#2 Revenue falls 32.4% to Rs 786.4 crore Vs Rs 1,163.6 crore

Sensex Today | BSE Midcap index gained 0.5%; Vodafone Idea, Power Finance, Exide Industries up 4-8%

#1 Profit sinks 70% to Rs 3.35 crore Vs Rs 11.1 crore
#2 Revenue declines 8% to Rs 256.2 crore Vs Rs 278.6 crore

Sensex Today | Nifty PSU Bank index up 0.5%; Union Bank of India, Bank of Maharashtra among major gainers

#1 Q4 saw higher-than-expected results on strong volumes
#2 Volume outlook for FY25 also remains strong
#3 Raise FY25F/ FY26 EBITDA by 7 percent/ 4 percent, on higher volumes in FY25 & lower opex over FY25-26

Hindalco Industries Ltd is expected to report a decline in revenue in the fourth quarter of 2024, with improved operating profit margins and bottom line.

Analysts attribute the revenue drop to lower realisation and volume growth, while reduced input costs are expected to boost operating profit and net profit. Read More

Sensex Today | Nifty FMCG index sheds 0.5%; Jubilant Food, Tata Consumer, Marico top drag

#1 Profit zooms 56.1% to Rs 52.7 crore Vs Rs 33.8 crore
#2 Revenue grows 16.5% to Rs 858.6 crore Vs Rs 737 crore

NTPC, Hindalco Industries, Bosch, Ashok Leyland, Hindustan Copper, Glenmark Pharmaceuticals, Aegis Logistics, Bajaj Healthcare, Cochin Shipyard, Coffee Day Enterprises, DOMS Industries, Easy Trip Planners, Indiabulls Housing Finance, Karnataka Bank, Manappuram Finance, Nazara Technologies, Narayana Hrudayalaya, Suzlon Energy, Torrent Pharmaceuticals, and United Spirits will announce their March quarter earnings on May 24.

Sensex Today | Defence stocks in focus

#1 Profit grows 3.9% to Rs 95 crore Vs Rs 91.5 crore
#2 Revenue jumps 17% to Rs 319 crore Vs Rs 272.6 crore

Sensex Today | BSE Oil & Gas index up 0.6%; Adani Total Gas, GAIL, BPCL up 1-4%

The dollar headed for its largest weekly rise in a month and a half on Friday as surprisingly strong U.S. economic data has left markets on edge about the outlook for U.S. inflation and interest rates.

#1 Cigarette business surprised positively, especially on volumes
#2 Cigarette business’ positive surprise drove beat on segmental EBIT
#3 EBIT decline was consequent to a base issue; LFL margin continued to expand
#4 Acute pressures in agri & paperboards caused an earning miss in Q4
#5 Continue to see upcoming budget as most important event for share price performance

#1 Profit spikes 45.1% to Rs 35.9 crore Vs Rs 24.72 crore
#2 Revenue grows 20% to Rs 917.8 crore Vs Rs 765 crore
#3 Board appoints Jayant Davar as Chairman & CEO
#4 Dharmendar Nath Davar resigns as Chairman & Director

#1 Loss at Rs 6.71 crore Vs profit of Rs 26.8 crore
#2 Revenue spikes 136.5% to Rs 920 crore Vs Rs 389 crore

Awfis Space Solutions' IPO subscription commenced with a promising start on the final day on May 24 with 5.46 times bidding. The offer garnered bids for 4.7 crore shares as against the 86.29 lakh shares on offer. The Rs 599-crore IPO 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, with a price band set at Rs 364-383 per share. READ MORE

Caplin Steriles, a subsidiary of Caplin Point Labs has been granted final approval from the USFDA for its ANDA application of phenylephrine hydrochloride ophthalmic solution, a drug used to dilate pupils before eye examinations.

Markets@11 | Sensex, Nifty trade flat; Capital Goods index up 1%

The Sensex was up 26.54 points or 0.04 percent at 75,444.58, and the Nifty was up 8.60 points or 0.04 percent at 22,976.30. BSE Midcap and Smallcap indices up 0.3 percent each.

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

Fime and Aurionpro Transit have announced a strategic collaboration to explore opportunities in the field of transit ticketing, payments, and fare collection projects worldwide.

#1 Company announced acquisition of assets carved out by HPE in telecoms & ER&D services
#2 Believe transaction is relatively large, considering company’s focus on organic growth
#3 Financial impact of the transaction is not significant
#4 Company’s revenue growth guidance of 3-5 percent YoY was largely organic
#5 The acquisition will add over & above guidance

#1 US FDA issued untitled letter to co, dated May 16, 2024

#2 US FDA letter deals with drug manufacturing facility Laurus Synthesis located in Andra Pradesh

#3 US FDA untitled letter summarises deviations of current good manufacturing practices for APIs

Shares of Hariom Atta & Spices or HOAC Foods made a rock solid start on its market debut on May 24 after listing at Rs 147, commanding a premium of 206 percent over the issue price of Rs 48 on the NSE SME platform.

The Rs 5.54 crore public offer which is a fresh issue of 11.55 lakh shares received staggering investor interest as the issue was subscribed over 2,000 times. Retail individual investors were at the forefront, buying 2,556 times their allotted quota, while non-institutional investors bought 1,433 times their portion reserved for them.

Shares of Rulka Electricals Limited made a stellar market debut on the exchanges on May 24 after listing at Rs 525. That's a premium of over 123 percent over the issue price of Rs 235 on the NSE SME platform.

The Rs 26.40 crore public offer which is a fresh issue of 8.42 lakh shares received staggering investor interest as the issue was subscribed over 676 times. Retail individual investors bought 658 times their allotted quota, while non-institutional investors bought 1,350 times their portion reserved for them. QIBs mopped up 204 times their portion.

Knowledge Marine & Engineering Works received a Letter of Award (LOA) from the Myanmar Port Authority for the maintenance dredging of the Yangon River. The contract is valued at USD 4.85 million for a period of one year.

#1 Steady Q4 for cigarettes; paper & agri remain subdued
#2 Profitability in other FMCG segment was impacted
#3 Profitability was impacted by a one-time gain in base quarter
#4 Segment maintaining an upward margin trajectory on a full-year basis
#5 Cut near-term earnings by 2-3 percent factoring in miss in other segments

Sensex Today | BSE Realty index down 0.5%; Prestige Estate, Godrej Properties among major losers

#1 Q4 EBITDA 10 percent ahead of estimate
#2 Guidance of flat revenue per available seat kilometre YoY
#3 Inflationary pressure likely to rise
#4 Company is set to change over next few years, with loyalty programs, business class, and long-haul international planned
#5 Change may involve near-term cost pressures
#6 Believe company has the right strategy, as consumer is also evolving

Sensex Today | BSE Telecom index up 1%; Vodafone India up 6%, Indus Towers up 3%

#1 Profit stands at Rs 24.5 crore Vs loss of Rs 8.04 crore
#2 Revenue rises 10.7% to Rs 291.7 crore Vs Rs 263.6 crore

#1 Profit tanks 49.2% to Rs 33.5 crore Vs Rs 65.9 crore
#2 Revenue grows 3.4% to Rs 217.1 crore Vs Rs 209.9 crore

DroneAcharya Aerial Innovations Limited and Airbots Aerospace Technologies Private Limited announced the formalization of a strategic partnership through a Memorandum of Understanding (MOU).

Under the MOU, DroneAcharya will serve as a non-exclusive partner, acquiring the selling rights for Airbots' agricultural drones and distributing them within designated territories.

Vodafone Idea (Vi) shares surged around 5 percent on May 24 after UBS upgraded the stock to a 'Buy' rating from 'Neutral', with a revised target price of Rs 18 from Rs 13.10 earlier.

The international brokerage, which sees scope for a 70-80 percent rally in the stock ahead, said that relief in the form of AGR reduction by the Supreme Court or equity conversion, along with government moratoriums, is highly likely, especially given the government's stated objective of ensuring three viable private telcos. Read More

#1 Profit surges 153.4% to Rs 19.2 crore Vs Rs 7.6 crore
#2 Revenue rises 46.3% to Rs 273.4 crore Vs Rs 186.9 crore

#1 Profit plunges 55% to Rs 10.97 crore Vs Rs 24.3 crore
#2 Revenue rises 1.2% to Rs 864 crore Vs Rs 853.8 crore

#1 Profit jumps 46.88% to Rs 203.1 crore Vs Rs 138.3 crore
#2 Revenue increases 8.7% to Rs 1,785.9 crore Vs Rs 1,642.7 crore

The trading in equity shares of the flour and spices maker will commence on the NSE Emerge from May 24. The issue price is Rs 48 per share. Its equity shares will be available for trading in the Trade-for-Trade Surveillance Segment.

The electrical and fire-fighting solutions company will list its equity shares on the NSE Emerge on May 24. The issue price has been fixed at Rs 235 per share. Its equity shares will be available for trading in the Trade-for-Trade Surveillance Segment.