INDICES DROP FOR 4TH DAY, NIFTY HOLDS 22,700; PRIVATE BANKS DRAG

Rough seas continue for Indian markets. The Nifty 50 dropped for a fourth straight day, pressured by selling in banks and financials. Pharma and healthcare offered a glimmer of hope, but the overall sentiment remained cautious. Investors are on edge ahead of election results, with retail and HNIs taking a wait-and-see approach. A bright spot is the sustained buying by domestic institutions (DIIs), hinting at their confidence in a post-election rebound. While global cues are mixed, the Nasdaq`s record high injected some optimism.

The barometer index, the S&P BSE Sensex slipped 667.55 points or 0.89% to 74,502.90. The Nifty 50 index declined 183.45 points or 0.80% to 22,704.40. The 50-unit index is down 1.15% in four consecutive days.

ICICI Bank (down 2.19%), HDFC Bank (down 1.48%) and Reliance Industries (down 1.02%) were major drags.

In the broader market, the S&P BSE Mid-Cap index shed 0.38% and the S&P BSE Small-Cap index rose 0.23%.

The market breadth was negative. On the BSE, 1623 shares rose and 2207 shares fell. A total of 99 shares were unchanged.

Economy:

S&P Global Ratings on Wednesday revised outlook for the Indian economy to `positive` from `stable` and has affirmed the overall rating at `BBB-` citing robust growth and improved quality of government expenditure.

`BBB-` is the lowest investment grade rating offered. The last time the agency upgraded the rating outlook was in 2010 when it shifted from negative to stable.

S&P stated, "India`s robust economy growth positive impacts credit metrics. India`s fiscal deficit elevated, but consolidation efforts are on. We expect India`s fundamentals to aid growth momentum in 2-3 years."

Numbers to Track:

The yield on India`s 10-year benchmark federal rose 0.17% to 7.007 as compared with previous close 6.995.

In the foreign exchange market, the rupee is edged lower against the dollar. The partially convertible rupee was hovering at 83.3875, compared with its close of 83.1850 during the previous trading session.

MCX Gold futures for 5 June 2024 settlement shed 0.12% to Rs 72,090.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.12% to 104.74.

The United States 10-year bond yield added 0.51% to 4.562.

In the commodities market, Brent crude for July 2024 settlement gained 62 cents or 0.74% to $ 84.56 a barrel.

Global Markets:

The Dow Jones index futures were down 258 points, indicating a weak opening in the US stocks today.

Shares in Europe and Asia declined on Wednesday, pressured by inflation worries. However, Chinese market bucked the trend, edging higher on government support for the property sector.

In the US, the Nasdaq crossed 17,000 for the first time ever on Tuesday, driven by gains in Nvidia. However, the S&P 500 closed barely higher and the Dow ended lower as Treasury yields rose. Investors awaited US inflation data that could impact expectations for Federal Reserve rate cuts.

Stocks in Spotlight:

Mazagon Dock Shipbuilders soared 11% after the company� consolidated net profit soared 103% to Rs 663 crore while revenue from operations climbed 49.32% to Rs 3,103.65 crore in Q4 March 2024 over Q4 March 2023. The company`s total order book as on 31 March 2024 was Rs 38,561 crore. The board recommended final dividend of Rs 12.11 per equity share for FY 2023-24.

Campus Activewear surged 18.59% after the company reported 42.76% jump in consolidated net profit to Rs 32.75 crore in Q4 FY24 as compared with Rs 22.94 crore in Q4 FY23. Revenue from operations increased 4.63% year on year (YoY) to Rs 363.86 crore in the fourth quarter of FY24.

NBCC (India) rallied 2.5% after the company�s consolidated net profit jumped 24.52% to Rs 141.49 crore in Q4 FY24 as compared with Rs 113 crore in Q4 FY23. Revenue from operations increased 42.86% to Rs 3,936.98 crore in Q4 FY24 as compared with Rs 2,755.81 crore in Q4 FY23.

Indian Railway Catering and Tourism Corporation (IRCTC) dropped 3.67%. The company�s net profit fell 5.21% to Rs 284.36 crore in Q4 FY24 as compared with Rs 300 crore posted in Q3 FY24. However, revenue from operations grew by 3.26% quarter on quarter to Rs 1,154.77 crore in Q4 FY24.

Emami slipped 3%. The company reported 3.09% jump in consolidated net profit to Rs 148.90 crore in Q4 FY24 as compare with Rs 144.43 crore in Q4 FY23. Revenue from operations increased 6.61% to Rs 891.24 crore during the quarter as compared with Rs 835.95 crore posted in the corresponding quarter last year.

Bal Pharma hit an upper circuit of 20% after the company�s consolidated net profit stood at Rs 5.53 crore in Q4 FY24, steeply higher than Rs 1.61 crore in Q4 FY23. Revenue from operations jumped 14.76% YoY to Rs 94.62 crore in Q4 FY24.

Amines & Plasticizers jumped 7% after the company reported 51.34% jump in consolidated profit to Rs 12.94 crore on 6.26% rise in revenue from operations to Rs 177.33 core in Q4 FY24 over Q4 FY23.

Vasundhara Rasayans zoomed 13% after the company�s net profit stood at Rs 2.13 crore in Q4 FY24, steeply higher than Rs 0.42 crore in Q4 FY23. Revenue from operations jumped 12.31% YoY to Rs 11.13 crore in the quarter ended 31 March 2024.

Prestige Estates Projects declined 2.77% after the company reported 70.1% drop in consolidated net profit to Rs 140 crore in Q4 FY24 from Rs 468.40 crore recorded in Q4 FY23. Net sales declined by 17.8% year-over-year to Rs 2,164 crore during the period under review.

Aditya Birla Fashion and Retail (ABFRL) jumped 4.8% after the company reported consolidated net loss of Rs 229.57 crore in Q4 FY24 as against a net loss of Rs 186.94 crore recorded in Q4 FY23. Revenue from operations jumped 18.3% year on year (YoY) to Rs 3,406.65 crore in the March 2024 quarter, in a muted market marred by prolonged sluggish consumption in the discretionary space.

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