Benchmarks rise for 4th day; Nifty ends above 17,550; HDFC twins climb

Key equity benchmarks extrended their rising streak for a fourth straight session on Wednesday, 5 April 2023. After opening at 17,422.30, the Nifty 50 index marched higher as the session progressed to settle above the 17,550 mark. The rally was led by firmness in IT, FMCG and financial shares.

The barometer index, the S&P BSE Sensex jumped 582.87 points or 0.99% to 59,689.31. The Nifty 50 index rose 159 points or 0.91% to 17,557.05. Both the indices have climbed 3.6% in four sessions.

In the broader market, the S&P BSE Mid-Cap index added 0.11% while the S&P BSE Small-Cap index gained 0.95%.

The market breadth was strong. On the BSE, 2,582 shares rose and 956 shares fell. A total of 116 shares were unchanged.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, fell 1.37% to 12.41.

The Reserve Bank of India (RBI) kicked off its monetary policy meeting on 3 April 2023. The outcome of the meeting will be announced on Thursday, 6 April 2023. The RBI`s monetary policy committee (MPC) is widely expected to hike the repo rate by 25 basis points (bps) in order to combat rising inflation.

Economy:

India`s gross domestic product (GDP) growth will likely soften to 6.3% in FY2024, as against earlier estimate of 6.6%, the World Bank stated in its India Development Update.

The bank stated that growth is set to be constrained by slower consumption growth and challenging external conditions. Rising borrowing costs and slower income growth will weigh on private consumption growth and government consumption is projected to grow at a slower pace due to the withdrawal of pandemic-related fiscal support measures.

Numbers to Watch:

The yield on India`s 10-year benchmark federal paper declined to 7.272 from 7.315 in previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 82.03, compared with its close of 82.32 during the previous trading session.

MCX Gold futures for 5 April 2023 settlement shed 0.01% to Rs 60,948.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.08% to 101.67.

The United States 10-year bond yield advanced 0.88% to 3.365.

In the commodities market, Brent crude for June 2023 settlement was down 20 cents or 0.24% to $84.74 a barrel.

Global Markets:

Shares in Europe and Asia were mixed on Wednesday. Investors digested a key U.S. labor report that showed job openings dropped to their lowest level in nearly two years in February, increasing the likelihood of a pause in rate hikes by the Federal Reserve.

Meanwhile, data released today showed that German industrial orders soared 4.8% in February.

Additionally, French industrial production rose 1.2% on the month in February, ahead of the 0.5% growth expected, and a significant improvement from the revised drop of 1.4% the prior month.

Risk sentiments, however, continued to remain fragile with investors wary about the possibility of recessions on both sides of the Atlantic.

US stocks snapped four day winning streak in the last trading session as investors look towards OPEC+ production cuts and inflation impact of the same with uncertainty still looming for the global economy.

Stocks in Spotlight:

Larsen & Toubro (L&T) jumped 3.96% after the company announced that its hydrocarbon business, L&T Energy Hydrocarbon (LTEH) has secured mega orders from a prestigious client in the Middle East. As per L&T classification the value of the orders is more than Rs 7,000 crore

Housing Development Finance Corporation (HDFC) advanced 2.98% after the corporation announced that it had assigned individual loans amounting to Rs 9,340 crore during the quarter ended 31 March 2023, thereby recording a growth of 12% on YoY basis.

HDFC Bank gained 2.72%. The private lender said that its advances aggregated to approximately Rs 16,00,500 crore as of 31 March 2023, a growth of around 16.9 % over Rs 13,68,800 crore as of 31 March 2022. The bank`s advances are higher by 6.2 % over Rs 15,06,800 crore as of 31 December 2022.

Bajaj Finance rose 0.92%. On a consolidated basis, customer franchise stood at 69.1 million as of 31 March 2023 as compared to 57.6 million as of 31 March 2022. In Q4 FY23, the customer franchise increased by 3.1 million. The company recorded highest ever increase in its customer franchise of 11.5 million in FY23.

Federal Bank slipped 3.56%. The private lender said that its total deposits aggregated to Rs 2,13,384 crore as of 31 March 2023, registering a growth of 17.4% as compared with Rs 1,81,701 crore as of 31 March 2022.

IndusInd Bank fell 1.26%. The private lender`s net advances improved to Rs 2,89,965 crore as of 31 March 2023, registering a growth of 21% as compared to Rs 2,39,052 crore as of 31 March 2022.

Mahindra & Mahindra Financial Services rose 0.84%. The company said that overall disbursements in March 2023 were approximately Rs 5,600 crore, recording a growth of 42% on Y-o-Y basis.

Yes Bank shed 0.46%. The private lender`s loans & advances improved to Rs 201,523 crore as on 31 March 2023, registering a growth of 11.3% as compared to Rs 181,052 crore as on 31 March 2022. Sequentially, loans & advances grew by 5.2% as against Rs 191,542 crore posted on 31 December 2022. The bank`s deposits increased by 10.6% year on year (YoY) and 2.1% quarter on quarter (QoQ) to Rs 218,018 crore as on 31 March 2023.

Tata Motors added 0.51%. The auto major announced its partnership with Inchcape plc, a leading global automotive distributor, as their distributor for their commercial vehicles in Thailand. Through this partnership, Tata Motors will commence the sales and service of its commercial vehicles (CVs) across Thailand.

Vedanta rose 1.40%. The miner announced that its total aluminum production rose 0.35% to 5,74,000 tonnes in Q4 FY23 compared with 5,72,000 tonnes in Q4 FY22.

Grasim Industries gained 1.89%. The cement major announced that it has entered into three term loan agreements to avail the rupee term loan facility aggregating to Rs 5,000 crore from Axis Bank in terms of the approval by the finance committee of the company.

Hindustan Zinc advanced 2.45%. The company announced that its mined metal production grew by 2% to 301,000 tonnes in Q4 FY23 as against 295,000 tonnes registered in Q4 FY22.

Adani Ports and Special Economic Zone (APSEZ) rose 1.39% after the company said it handled about 32 MMT of total cargo in March 2023, implying a year-on-year growth of about 9.5%. For the first time since July 2022, the company`s volumes crossed the 30-MMT mark.

Bajaj Auto added 0.57%. The two wheeler maker`s total sales declined 2% to 2,91,567 units in March 2023 compared with 2,97,188 units sold in March 2022. The domestic sales surged 47% to 1,86,522 units, while exports slumped 38% to 1,05,045 units in March 2023 over March 2022.

Indian Energy Exchange (IEX) rallied 2.02%. IEX announced that it has recorded 9,212 MU overall volume in March 2023, registering a 4% decline on year on year basis. On a sequential basis, the company`s total volume grew 12% month on month (MoM) in March 2023.

IPO Update:

The initial public offer (IPO) of Avalon Technologies received bids for 10,77,052 shares as against 1,14,63,854 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (5 April 2023). The issue was subscribed 0.09 times.

The issue opened for bidding on Monday (3 April 2023) and it will close on Thursday (6 April 2023). The price band of the IPO is fixed at Rs 415-436 per share. An investor can bid for a minimum of 34 equity shares and in multiples thereof.

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