BENCHMARKS END ALMOST FLAT, NIFTY HOLDS 22,950; VIX AT 21.71

The domestic equity benchmarks ended flat today after a volatile session. The Nifty reached a new high of 23,026.40 during the day but gave up all its gains to close almost unchanged. Oil & gas and financial sectors did well, while FMCG and realty stocks witnessed profit booking. The broader markets also mirrored the flat performance of the benchmark indices. Overall, it was a quiet day after yesterday`s strong move.

The S&P BSE Sensex was, down 7.65 points or 0.01% to 75,410.39. The Nifty 50 index shed 10.55 points or 0.05% to 22,957.10.

Adani Ports & Special Economic Zone (down 1.89%), ITC (down 1.16%) and TCS (down 1.14%) were major drags.

The Sensex and Nifty clocked an all-time high of 75,636.50 and 23,026.40 in mid-afternoon trade.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index added 0.23% and the S&P BSE Small-Cap index shed 0.20%.

The market breadth was weak. On the BSE, 1,689 shares rose and 2,158 shares fell. A total of 98 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, rose 1.54% to 21.71.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper shed 0.01% to 6.996 as compared with previous close 6.998.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.1175, compared with its close of 83.2975 during the previous trading session.

MCX Gold futures for 5 June 2024 settlement was down 0.31% to Rs 72,089.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, shed 0.10% to 104.04.

The United States 10-year bond yield remains flat to 4.477.

In the commodities market, Brent crude for June 2024 settlement fell 62 cents or 0.76% to $80.74 a barrel.

Global Markets:

European and Asian stocks declined on Friday, as positive U.S. economic data increased expectations of sustained higher interest rates and a delayed rate cut by the Federal Reserve, dampening investor appetite for riskier assets.

Data released Thursday showed a decline in U.S. jobless claims, and S&P Global`s Flash PMI survey indicated faster-than-anticipated business activity expansion in May. This robust economic data, coupled with hawkish minutes from the Fed`s most recent meeting earlier this week, has prompted traders to reduce their bets on rate cuts this year. Markets are now fully expecting a rate cut in December, with a September cut remaining uncertain, according to the CME FedWatch tool.

In Japan, inflation moderated for the second consecutive month, as investors continued to assess the Bank of Japan`s capacity for further interest rate hikes this year. Core CPI, which excludes volatile fresh food prices, rose 2.2% year-on-year in April, according to data released by the Statistics Bureau on Friday. This represents a decrease from the 2.6% increase observed in the previous month.

In the United States, the Dow Jones Industrial Average (DJIA) plunged on Thursday, dropping over 600 points and retreating back to the 39,000 level as investors reacted to diminishing hopes for a September interest rate cut by the Federal Reserve.

Initial jobless claims for the week ending May 18th came in at a higher-than-expected 2.15 lakh, while May�s S&P Global Services Purchasing Managers Index (PMI) rose to a 12-month high of 50.9 on Thursday.

Stocks in Spotlight:

Hindalco Industries shed 0.51%. The Aditya Birla Group company�s consolidated net profit surged 31.65% to Rs 3,174 crore in Q4 FY24 as against Rs 2,411 crore posted in Q4 FY23. Revenue from operations rose marginally to Rs 55,994 crore in Q4 FY24 as against Rs 55,857 reported in the same period a year ago.

Godrej Properties slipped 2.69% after media reports suggested that the Ministry of Defence raised objection against the company`s ongoing residential project in Kandivali, Mumbai. The estimated income for the company from this project reportedly is Rs 7,000 crore.

InterGlobe Aviation�s (IndiGo) slipped 3.29%. The company�s consolidated net profit surged 106.14% to Rs 1,894.82 crore in Q4 FY24 from Rs 919.20 crore posted in Q4 FY23. Revenue from operations increased 25.88% year on year (YoY) to Rs 17,825.27 crore in the quarter ended 31 March 2024.

Honasa Consumer (Mamaearth) advanced 3% after the company reported a consolidated net profit of Rs 30.47 crore in Q4 FY24 as against with net loss of Rs 159.97 crore recorded in Q4 FY23. Revenue from operations jumped 21.46% to Rs 471.09 crore in Q4 FY24 as against Rs 387.86 crore recorded in corresponding quarter last year.

Ashok Leyland fell 0.87%. The company reported 19.82% jump in standalone net profit to Rs 900.41 crore in Q4 FY24 as compared with Rs 751.41 crore in Q4 FY23. Revenue from operations fell 3.08% to Rs 11,266.69 crore in Q4 FY24 as compared with Rs 11,625.67 crore posted in corresponding quarter last year.

Schneider Electric Infrastructure hit a lower circuit of 5% after the company`s net profit slumped 92.69% to Rs 3.28 crore in Q4 FY24 from Rs 44.84 crore in Q4 FY23. However, revenue from operations grew by 14.92% to Rs 471.75 crore in the quarter ended 31 March 2024.

Johnson Controls-Hitachi Air Conditioning India hit an upper circuit of 20% after the company reported a net profit of Rs 50.14 crore in Q4 FY24 as compared with a net loss of Rs 1.88 crore posted in Q4 FY23. Net sales increased by 40.9% year-over-year (YoY) to Rs 771.81 crore during the period under review.

Finolex Cables rallied 12% after the company`s consolidated net profit increased 6.34% to Rs 186.10 crore on 14.43% rise in revenue from operations to Rs 1,401.02 crore in Q4 FY24 over Q4 FY23.

Coral Laboratories surged 16% after the company reported consolidated net profit of Rs 5.78 crore in Q4 FY24 as compared with net loss of Rs 0.89 crore in corresponding quarter last year. Revenue from operations soared to Rs 28.88 crore in Q4 FY24 as against 11.43 crore in Q4 FY23.

Bikaji Foods International rallied 4.22% after the company reported a consolidated net profit of Rs 116.24 crore in Q4 FY24, steeply higher than Rs 38.10 crore posted in Q4 FY23. Revenue from operations grew by 12.81% year on year to Rs 520.83 crore during the quarter.

Orchid Pharma dropped 6.42% after the pharma company�s consolidated net profit tumbled 49.19% to Rs 33.50 crore in Q4 FY24 as compared with Rs 65.93 crore in Q4 FY23. However, income from operations rose 3.43% YoY to Rs 217.10 crore in the quarter ended 31 March 2024.

IPO Update:

The initial public offer (IPO) of Awfis Space Solutions received 9,83,73,951 bids for shares as against 86,29,670 shares on offer, according to stock exchange data at 17:00 IST on Friday (24 May 2024). The issue was subscribed 11.40 times.

The issue opened for bidding on Wednesday (22 May 2024) and it will close on Monday (27 May 2024). The price band of the IPO is fixed between Rs 364 to Rs 383 per share. An investor can bid for a minimum of 39 equity shares and in multiples thereof.

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