Stock market rallies on last day of fiscal year; Bajaj twins climb over 3%

Domestic stock market closed strong on Thursday, the last day of the fiscal year, with both the benchmark indices recording solid gains. The Nifty 50 index closed above the 22,300 level. The rally was driven by banking and IT stocks, despite some volatility due to monthly derivatives expiry.

The ongoing market surge can be attributed to a significant inflow of liquidity. Domestic Institutional Investors (DIIs) have injected about Rs 25,000 crore into the market over the past week, providing stability.

Analysts suggest that the upcoming Lok Sabha elections no longer pose a major uncertainty, and global cues are anticipated to improve further. The expectation of a global cooling down of interest rates in the near future is seen as a potential catalyst for an even stronger market performance.

In the barometer index, the barometer index, the S&P BSE Sensex jumped 655.04 points or 0.90% to 73,651.35. The Nifty 50 index gained 203.25 points or 0.92% to 22,326.90.

In the broader market, the S&P BSE Mid-Cap index rose 0.62% and the S&P BSE Small-Cap index added 0.33%.

The market breadth was negative. On the BSE, 1,807 shares rose and 2,017 shares fell. A total of 114 shares were unchanged.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, rose 1.02% to 12.83.

The domestic stock market will remain shut on Friday, 29 March 2024, on account of Good Friday.

Economy:

The RBI announced its Monetary Policy Committee (MPC) meeting schedule for the coming financial year. The first meeting will be held over three days, from April 3rd to 5th, 2024. Subsequent meetings are scheduled for June 5-7 and August 6-8, 2024.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper shed 0.38% to 7.045 as compared with previous close 7.072.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.3950, compared with its close of 83.3550 during the previous trading session.

MCX Gold futures for 5 April 2024 settlement was up 0.25% to Rs 66,536.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies rose 0.31% to 104.67.

The United States 10-year bond yield was up 0.57% to 4.220.

In the commodities market, Brent crude for May 2024 settlement added 64 cents or 0.85% to $86.73 a barrel.

Global Markets:

European stocks advanced on Thursday, contrasting with most Asian markets that declined. Investor sentiment remained cautious due to the impending release of key US inflation data and upcoming speeches by Federal Reserve officials.

Wall Street indexes surged on Wednesday, reversing a three-day losing streak. A decline in bond yields fueled a strong rally in utility stocks, pushing the S&P 500 to a record high at closing.

Federal Reserve Governor Christopher Waller emphasized during a speech at the Economic Club in New York that there`s no immediate plan to cut interest rates. He reportedly stated that current inflation levels necessitate maintaining current rates for an extended period to achieve the Fed`s 2% inflation target.

Financial markets now eagerly await further inflation data from the Personal Consumption Expenditures (PCE) price index, the Fed`s preferred inflation gauge. This data releases on Friday, coinciding with a market closure. However, it`s expected to significantly impact the outlook for US interest rates. Additionally, markets anticipate crucial insights from Fed Chair Jerome Powell`s address, also scheduled for Friday.

Stocks in Spotlight:

Bajaj Finserv and Bajaj Finance rose 3.95% and 3.09%, respectively, due to news of a potential IPO for Bajaj Housing Finance. The housing arm is reportedly in talks with investment banks for an IPO by year-end, targeting a valuation of $9-10 billion.

Dr Reddy`s Laboratories gained 1.78% after the company said that it has entered into an exclusive partnership with Sanofi Healthcare India (SHIPL) to promote and distribute SHIPL vaccine brands across private markets in India.

Biocon added 2.92% after the company announced that it has received approval from the Medicines and Healthcare Products Regulatory Agency (MHRA), U.K., for its complex formulation Liraglutide.

Larsen and Toubro (L&T) gained 1.83% after the EPC major announced that its wholly owned subsidiary, L&T GeoStructure has secured �significant� multiple orders from across India.

Zydus Lifesciences rose 0.57% after the company said that US Food and Drug Administration (USFDA) conducted an inspection at the SEZ Onco Injectable manufacturing plant at Ahmedabad, Gujarat.

JSW Energy gained 2.34% after the company`s board will meet on Tuesday, 2 April 2024 to consider raising funds through various modes.

Adani Power rallied 3.32% the company`s wholly owned subsidiary, Mahan Energen (MEL) has entered into a significant 20 year power purchase agreement (PPA) with Reliance Industries (RIL) under the electricity rules, 2005.

Bharat Heavy Electricals (BHEL) rose 1.77% after the company has received letter of award (LoA) from Adani Power for setting up the 2x800 MW Raigarh Phase-II Thermal Power Plant at Raigarh, Chhattisgarh.

Mukka Proteins tumbled 8.11% after the company�s net profit declined 55.79% to Rs 10.47 crore in Q3 FY24 as against Rs 22.64 in Q3 FY23. Revenue from operations jumped 28.11% YoY to Rs 501.65 crore in Q3 FY24.

NHPC added 1.21%. The company`s board approved the proposal for raising of debt upto Rs 6,100 crore during financial year 2024-25.

Kalpataru Projects International (KPIL) rose 0.14%. The company, along with its joint ventures (JVs) and international subsidiaries has secured new orders/notification of awards of Rs 2,071 crore.

IPO Update:

The initial public offer (IPO) of SRM Contractors received 37,57,09,530 bids for shares as against 43,40,100 shares on offer, according to stock exchange data at 17:00 IST on Thursday (28 March 2024). The issue was subscribed 86.57 times.

The issue opened for bidding on Tuesday (26 March 2024) and it will close on Thursday (28 March 2024). The price band of the IPO is fixed at Rs 200 to 210 per share. An investor can bid for a minimum of 70 equity shares and in multiples thereof.

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