Sensex climbs 560 pts, Nifty ends above 22,300, VIX slumps below 13 mark

Domestic stocks advanced on Monday, clawing their way back after last week`s selloff. The Nifty climbed above 22,300, with all sectors on the rise. PSU banks, consumer durables, and healthcare led the charge. Relief from Middle East tensions helped fuel the rally. Investors also piled back into smaller companies, broadening the market recovery. However, worries about persistently high inflation and a hawkish US Federal Reserve are keeping a lid on investor enthusiasm.

The barometer index, the S&P BSE Sensex jumped 560.29 points or 0.77% to 73,648.62. The Nifty 50 index gained 189.40 points or 0.86% to 22,336.40.

Larsen & Toubro (up 2.67%), Bajaj Finance (up 2.3%) and ICICI Bank (up 1.94%) boosted the indices.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.93% and the S&P BSE Small-Cap index gained 1.26%.

The market breadth was strong. On the BSE, 2599 shares rose and 1310 shares fell. A total of 148 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, tumbled 5.62% to 12.70.

Economy:

The provisional figures for India`s Direct Tax collections in the Financial Year (FY) 2023-24 reveal that Net collections stand at Rs 19.58 lakh crore, marking a considerable rise from the Rs 16.64 lakh crore recorded in the preceding Financial Year (FY) 2022-23, representing an increase of 17.70%.

The Budget Estimates (BE) for Direct Tax revenue in the Union Budget for FY 2023-24 were initially set at Rs 18.23 lakh crore. These figures were subsequently revised, and the Revised Estimates (RE) were fixed at Rs 19.45 lakh crore. The provisional Direct Tax collections (net of refunds) have not only surpassed the BE by 7.40% but also exceeded the RE by 0.67%.

India�s foreign exchange (forex) reserves decreased by $5.401 billion to $643.162 billion during the week ended April 12th, as per the latest RBI data. In the preceding reporting week, overall reserves had surged by $2.88 billion to reach a new high of $648.562 billion.

For the week ended April 12th, the foreign currency assets, a major component of the reserves, decreased by $6.513 billion to $564.653 billion, according to the data released on April 19.

Conversely, Gold reserves continued their ascent, increasing by $1.241 billion to $55.798 billion during the week. However, the special drawing rights (SDRs) witnessed a decline of $93 million to $18.077 billion, as reported by the RBI.

Furthermore, India�s reserve position with the IMF experienced a decrease, falling by $35 million to $4.634 billion in the reporting week, according to data from the central bank.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper declined 0.47% to 7.191 as compared with previous close 7.225.

In the foreign exchange market, the rupee is edged higher against the dollar. The partially convertible rupee was hovering at 83.3600, compared with its close of 83.4400 during the previous trading session.

MCX Gold futures for 5 June 2024 settlement slipped 1.01% to Rs 72,156.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.02% to 106.14.

The United States 10-year bond yield rose 0.89% to 4.655.

In the commodities market, Brent crude for June 2024 settlement declined 61 cents or 0.70% to $86.68 a barrel.

Global Markets:

The US Dow Jones index futures were currently up by 194 points, signaling a positive opening for US stocks today.

European shares advanced while Asian stocks ended mixed on Monday as the focus shifted from Middle East tensions to company earnings and economic data for insight into the direction of central bank policy.

Investors look to fresh data points out of China, Japan and South Korea this week.

China�s central bank left its one- and five-year loan prime rates unchanged at 3.45% and 3.95%, respectively on Monday. The one-year LPR is seen as the peg for most household and corporate loans, while the five-year LPR is the benchmark for most property mortgages.

In US, the Nasdaq and the S&P 500 closed sharply lower on Friday as investors juggled lackluster earnings, uncertainties surrounding central bank policy and geopolitical strife.

Stocks in Spotlight:

ICICI Bank rose 1.94%. The bank`s board will meet on 27 April 2024 to consider raising funds through issuance of debt securities.

HDFC Bank slipped 1.24%. The bank said that its net profit jumped 37.06% to Rs 16,511.85 crore in Q4 FY24 as compared with Rs 12,047.45 crore posted in Q4 FY23. Total income jumped 66.46% YoY to Rs 89,6939 crore as compared with Rs 53,850.54 crore posted in corresponding quarter last year.

Gujarat State Petronet (GSPL) slumped 19.6% to Rs 303.80 following a decision by the Petroleum and Natural Gas Regulatory Board (PNGRB) to significantly reduce the natural gas pipeline tariff for the company`s Gujarat pipeline network. The new tariff, set at Rs 18.1/mmbtu and effective from 1 May 2024, represents a 47% decrease from the existing rate (Rs 34/mmbtu) and falls far short of GSPL`s requested range of Rs 51-54/mmbtu.

Wipro advanced 2.01% after the IT major`s consolidated net profit grew 5.21% to Rs 2,834.6 crore in Q4 FY24 as against Rs 2,694.2 crore recorded in Q3 FY24. Revenue from operations rose marginally to Rs 22,208.3 crore in the March quarter as against Rs 22,205.1 crore reported in the preceding quarter same year.

Jio Financial Services rallied 3.45% after the company reported a net profit of Rs 310.63 crore in Q4 FY24 as against a net profit of Rs 293.82 crore posted in Q3 FY24. Total income rose to Rs 418.10 crore from Rs 414.33 crore.

KP Energy hit an upper circuit of 5% after the power generation company reported 60.85% jump in consolidated net profit to Rs 24.90 crore in Q4 FY24 as against Rs 15.48 crore in Q4 FY23. Revenue from operations stood at Rs 207.26 crore in fourth quarter of FY24, up 39.62% from Rs 148.45 crore as of 31 March 2024.

Voltas rose 6.34% to Rs 1382.90 after a foreign broker upgraded its rating on the stock from `Neutral` to `Buy` and raised the target price to Rs 1,800 from Rs 885.

Epigral rallied 6.39% after the company�s net profit jumped 57.44% to Rs 77.27 crore on 11.26% increase in revenue from operations to Rs 524.63 crore in Q4 FY24 over Q3 FY24.

HDFC Asset Management Company (HDFC AMC) fell 1.59%. The asset management company�s standalone net profit jumped 43.83% to Rs 541.09 crore on 33.4% rise in total income to Rs 850.89 crore in Q4 FY24 over Q4 FY23.

Indian Renewable Energy Development Agency (IREDA) jumped 6% after the company�s net profit jumped 33% to Rs 337.38 crore in Q4 FY24 as compared with Rs 253.62 crore in Q4 FY23. Revenue from operations increased 33.6% to Rs 1,339.77 crore in Q4 FY24 as compared with Rs 1,002.67 crore posted in corresponding quarter last year.

Persistent Systems tumbled 9.70%. The company said that its consolidated net profit increased 10.2% to Rs 315.31 crore in Q4 FY24 as compared with Rs 286.13 crore posted in Q3 FY24. Revenue from operations rose 3.7% QoQ to Rs 2,590.52 crore in Q4 FY24. During the quarter, EBIT margin remained flat at 14.5% as compared with Q3 FY24.

Sterling and Wilson Renewable Energy was locked in 10% upper circuit after the company has reported a net profit of Rs 1 crore in Q4 FY24 as against a net loss of Rs 421 crore posted in Q4 FY23. Revenue from operations in the fourth quarter surged to Rs 1,178 crore. The company�s revenue for the same period last year was Rs 88 crore.

Oberoi Realty added 2.12% after the company reported booking value of Rs 1,775 crore during the quarter. In Q4 FY24, in terms of volume, the Mumbai based realty developer company booked 4,48,844 square foot (Sq.ft) area while 228 units were booked.

Pavna Industries was locked in 5% upper circuit after the company announced that it has inked an agreement with OLA Electric to supply ignition switches and latches.

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