BAROMETERS INCH UP AMIDST VOLATILITY; SNAP 3-DAY LOSING STREAK

The domestic equity benchmarks scraped together slight profits on Thursday. Despite an initial burst, the indices were unable to generate momentum and instead remained within a tight range close to the horizontal axis. The Nifty managed to close above the 17,620 level after hitting the low of 17,584.35 in mid-afternoon trade. NSE`s weekly index options expiry caused volatility. Banks and consumer durables shares saw an uptick in demand, while pharma, healthcare, and realty shares declined.

Snapping a three day losing streak, the S&P BSE Sensex gained 64.55 points or 0.11% to 59,632.35. The Nifty 50 index added 5.70 points or 0.03% to 17,624.45. In the previous three sessions, the Sensex fell 1.43% while the Nifty slipped 1.17%.

Bharti Airtel (up 0.99%), Larsen & Toubro (up 0.67%) and HDFC Bank (up 0.36%) supported the indices.

In the broader market, the S&P BSE Mid-Cap index shed 0.03% while the S&P BSE Small-Cap index gained 0.10%.

The market breadth was positive. On the BSE, 1,833 shares rose and 1,670 shares fell. A total of 128 shares were unchanged.

Investors grew increasingly cautious following the release of stubbornly high inflation figures from the UK and Euro Zone, which solidified predictions of ongoing interest rate hikes by the Bank of England and the European Central Bank.

Numbers to Watch:

The yield on India`s 10-year benchmark federal paper fell 0.10% to 7.220 from its previous closing of 7.227 recorded yesterday.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 82.1550, compared with its close of 82.25 during the previous trading session.

MCX Gold futures for 5 June 2023 settlement rose 0.30% to Rs 60,470.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.07% to 101.89.

The United States 10-year bond yield declined 1.26% to 3.556.

In the commodities market, Brent crude for June 2023 settlement fell $1.23or 1.48% to $81.89 a barrel.

Global Markets:

The Does Jones index futures were down 160 points, indicating a weak opening in the US stocks today.

European markets declined while Asian stocks ended mixed on Thursday as investors continued to digest more corporate earnings.

Japan posted a trade deficit for a 20th consecutive month in March. The country`s trade deficit reached a record high of 21.7 trillion yen ($161.14 billion) for the twelve months ending March, a sharp spike from the 5.59 trillion yen recorded in the same period a month ago.

US stocks closed mostly flat on Wednesday after earnings reports from Netflix and Morgan Stanley as investors worried about the Federal Reserve`s next move on interest rates.

The banking crisis in March took its toll on financial activity, particularly in the New York and San Francisco regions, according to the Federal Reserve`s periodic economic review released Wednesday.

Stocks in Spotlight:

Tata Motors rose 1.67%. Jaguar Land Rover (JLR), the luxury vehicle maker and a wholly owned subsidiary of Tata Motors, has announced plans to invest 15 billion pounds over the next five years.

Tata Communications advanced 3.15%. The company reported consolidated net profit of Rs 326.64 crore in Q4 March 2023 as compared to net profit of Rs 368.67 crore in Q4 March 2022. Total income rose to Rs 4,630.45 crore in Q4 March 2023 from Rs 4,526.55 crore in Q4 March 2022.

Mastek zoomed 12.61%. The IT company`s consolidated net profit jumped 8.2% to Rs 72.6 crore on 7.7% increase in net sales to Rs 709.2 crore in Q4 FY23 over Q3 FY23.

Emkay Global Financial Services hit an upper limit of 20%. The company has received in-principle approval from Securities and Exchange Board of India, investment management department for sponsoring a mutual fund under the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996.

Adani Ports and Special Economic Zone gained 1.18%. The firm said its board is scheduled to meet on Saturday, 22 April 2023, to consider first and partial buyback of certain of its debt securities, either denominated in INR or USD.

UltraTech Cement shed 0.58%. The company announced an increase in the capacity of its grinding unit at Patliputra, Bihar to 4.7 mtpa with the successful commissioning of its 2.2 mtpa brownfield expansion. The company`s total grey cement manufacturing capacity in India now stands at 129.15 mtpa.

ICICI Securities tumbled 4.58%. The company`s consolidated net profit declined to Rs 262.7 crore in Q4 March 2023 as compared to net profit of Rs 340.3 crore in Q4 March 2022. Total income shed marginally to Rs 885.2 crore in Q4 March 2023 from Rs 892.3 crore in Q4 March 2022.

NBCC (India) gained 2.44%. The company has received work orders for providing comprehensive design, engineering and Project Management Consultancy (PMC) services from Public Works Department, Puducherry. The project is worth Rs 207.92 crore.

Ion Exchange (India) rose 1.24% to Rs 3,410 after the company announced that its board has approved a 10-for-1 stock split. The company`s board approved acquisition of Portugal`s MAPRIL - Produtos Qu�micos e Maquinas Para a Industria, Lda, with proposed investment of Rs 24 crore to buy 100% equity capital.

Fortis Healthcare fell 0.71%. The company said that it has signed definitive agreement with VPS group for the acquisition of its Medeor Hospital in Manesar, Gurugram, Haryana for lump sum consideration of Rs 225 crore.

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