Benchmarks flat amid global worries, eyes on Fed chair

Domestic equity benchmarks ended almost flat today, despite some global jitters. The Nifty50 ended near 22,450, supported by PSU banks and IT stocks. This subtle optimism stems from strong domestic manufacturing data and hopes for positive upcoming earnings. However, strong US economic data dampens expectations of a June Fed rate cut. All eyes are now on the Fed Chair`s speech later today for hints on future monetary policy. A dovish tone could potentially calm global markets.

The barometer index, the S&P BSE Sensex declined 27.09 points or 0.04% to 73,876.82. The Nifty 50 index added 18.65 points or 0.08% to 22,434.65.

TCS (up 1.67%), Axis Bank (up 1.51%) and Bajaj Finance (up 1.40%) supported the indices.

The broader market outperformed benchmarks, with the Mid-Cap and Small-Cap indices gaining 0.61% and 1.18% respectively.

The market breadth was strong. On the BSE, 2,777 shares rose and 1,083 shares fell. A total of 105 shares were unchanged.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, slipped 2.40% to 11.37.

The Reserve Bank of India`s policy committee began its 3-day meeting today to decide on interest rates. Governor Das will announce the outcome on Friday, April 5th. This will be the first monetary policy decision for the new financial year.

Economy:

The World Bank upgraded India`s growth forecast for the coming year (FY25) to 6.6%, a 20 bps increase from their previous estimate. This is a bit more cautious than the projected 7.5% growth for the current year (FY24). However, they expect the economy to gain momentum in the following years thanks to a decade of strong government investments.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose 0.01% to 7.109 as compared with previous close 7.108.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.4450, compared with its close of 83.4200 during the previous trading session.

MCX Gold futures for 5 April 2024 settlement rose 0.48% to Rs 69,317.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.01% to 104.81.

The United States 10-year bond yield rose 0.05% to 4.367.

In the commodities market, Brent crude for May 2024 settlement rose 38 cents or 0.43% to $89.30 a barrel.

Global Markets:

Shares in Europe and Asia declined on Wednesday, as U.S. yields held near four-month highs.

China`s service sector expanded at its fastest pace since December, according to surveys from Caixin. The services purchasing managers index in China rose to 52.7 in March, up from 52.5 in February.

Earthquake in Taiwan: A powerful earthquake with a magnitude of 7.2 rocked Taipei, the capital, sparking a tsunami warning for the islands of southern Japan and the Philippines.

US stocks fell on Tuesday as investors weigh the possibility of a delayed Fed rate cut. Tesla deliveries disappoint, dragging down the stock.

New Listing:

Shares of SRM Contractors hit an upper circuit of 5% at Rs 236.20 on the BSE, representing a premium of 12.48% as compared with the issue price of Rs 210.

The scrip was listed at Rs 225, exhibiting a premium of 7.14% to the issue price.

The stock has hit a high of 236.20 and a low of 213.75. On the BSE, over 3.49 lakh shares of the company were traded in the counter.

IPO Update:

The initial public offer (IPO) of Bharti Hexacom received 1,41,08,328 bids for shares as against 4,12,50,000 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (3 April 2024). The issue was subscribed 34%.

The issue opened for bidding on Wednesday (3 April 2024) and it will close on Friday (5 April 2024). The price band of the IPO is fixed at Rs 542 to 570 per share. An investor can bid for a minimum of 26 equity shares and in multiples thereof.

Stocks in Spotlight:

Yes Bank rallied 3.17% after the bank reported 14.1% rise in loans & advances to Rs 228,465 crore as against Rs 200,201 crore as on 31 March 2023. The bank has recorded 5% growth in loans as compared with the figure of Rs 217,523 crore recorded as on 31 March 2023.

Gensol Engineering hit an upper circuit of 5% after the company recorded its highest ever revenue, surpassing Rs 960 crore in the financial year ended on 31 March 2024.

JSW Energy surged 7.21% after the company�s board approved to raise Rs 5,000 crore through qualified institutional placement (QIP) of equity shares with floor price of Rs 510.09 per share.

UltraTech Cement shed 0.40%. The cement major informed about the commissioning of two greenfield capacities - 2.70 mtpa cement grinding unit at Karur, Tamil Nadu and 2.70 mtpa integrated cement plant at Kukurdih, Chhattisgarh, taking the company�s total cement capacity to 151.6 mtpa.

Hindustan Zinc advanced 3.91% after the company announced that its mined metal production stood at 299,000 tonne in Q4 FY24, registering a growth of 11% QoQ.

Granules India rose 1.82%. The drug maker has announced that it has received a communication from the United States Food and Drug Administration (USFDA) indicating the inspection classification as �Voluntary Action Indicated� (VAI). The inspection was conducted at company�s wholly-owned foreign subsidiary, Granules Pharmaceuticals, Inc. (GPI), located in Chantilly, Virginia, USA.

Adani Green Energy (AGEL) lost 0.73%. The company announced that it has surpassed 10,000 megawatt (MW) of operational portfolio, delivering reliable, affordable and clean power to the national grid. AGEL�s operational portfolio consists of 7,393 MW solar, 1,401 MW wind and 2,140 MW wind-solar hybrid capacity.

Anupam Rasayan India gained 1.61% after the company has signed letter of intent worth revenue of about $90 million (Rs 743 crore) over next 7 years with one of the leading Japanese company to supply two advance intermediates using fluorination chemistry.

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