Indices rebound after early wobble, banks and IT lead gains

Domestic stocks advanced on Thursday, with the Nifty closing above 22,500 despite morning jitters. Weekly options expiry kept things volatile, but bank and IT stocks provided a lift. Investors are now on watch for the RBI`s policy decision tomorrow, hoping for clues on future interest rates. The broader market seems to be finding support in sectors like banks, anticipating healthy Q4 results, and exporters, buoyed by strong business activity signals from the PMI data.

The S&P BSE Sensex gained 350.81 points or 0.47% to 74,227.63. The Nifty 50 index added 80 points or 0.36% to 22,514.65.

The Sensex and Nifty touched record high of 74,501.73 and 22,619, respectively, in early trade.

In the broader market, the S&P BSE Mid-Cap index shed 0.11% and the S&P BSE Small-Cap index rose 0.54%.

The market breadth was strong. On the BSE, 2382 shares rose and 1465 shares fell. A total of 100 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, shed 1.34% to 11.22.

The RBI Monetary Policy Committee (MPC) kicked off its 3-day meeting deliberating interest rates and analysing the state of the economy on April 3 and will end on April 5. While the RBI is widely expected to keep rates on hold, any signals on inflation and economic growth will be closely watched.

Economy:

India`s service sector saw a strong surge in March, according to the HSBC India Services PMI. The index jumped to 61.2, indicating one of the fastest growth rates in over 13 years. This positive trend is attributed to factors like healthy demand, improved efficiency, and strong sales.

The HSBC India Composite PMI Output Index increased to 61.8 in March from 60.6 in February, highlighting the second-strongest upturn in over 13-and-a-half years (behind July 2023).

Numbers to Track:

The yield on India`s 10-year benchmark federal paper shed 0.06% to 7.100 as compared with the previous close of 7.104.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.4325, compared with its close of 83.5300 during the previous trading session.

MCX Gold futures for 5 April 2024 settlement rose 0.06% to Rs 69,821.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.15% to 104.09.

The United States 10-year bond yield rose 0.21% to 4.363.

In the commodities market, Brent crude for May 2024 settlement rose 60 cents or 0.67% to $89.52 a barrel.

Global Markets:

Dow Jones futures rose 109 points, signaling optimism after a mixed close on Wall Street.

European stocks advanced while most Asian stocks rose on Thursday. Markets in Hong Kong, mainland China and Taiwan were closed for a public holiday. Investors await further clarity on potential Fed interest rate cuts.

U.S. Federal Reserve Chairman Jerome Powell said it would take a while for policymakers to evaluate the current state of inflation, keeping the timing of potential interest rate cuts uncertain.

IPO Update:

The initial public offer (IPO) of Bharti Hexacom received 4,62,41,546 bids for shares as against 4,12,50,000 shares on offer, according to stock exchange data at 17:00 IST on Thursday (4 April 2024). The issue was subscribed 1.12 times.

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:

HDFC Bank advanced 3% after the lender`s gross advances jumped 55.4% to Rs 25,08,000 crore as of 31 March 2024 as compared with Rs 16,14,200 crore as of 31 March 2023. Gross advances registered a growth of around 1.6% in quarter ended 31 March 2024 from Rs 24,69,300 crore as of 31 December 2023.

Dabur India slipped 4.77%. The company said that its demand trends will remained sluggish during the quarter. Its consolidated revenue is expected to register mid-single digit growth during Q4 FY24. The inorganic revenue growth which was to the extent of around 2.3% till YTD Dec 2023 on account of Badshah acquisition is now factored in the base.

G M Breweries tumbled 5.11%. The company reported a standalone net profit of Rs 86.44 crore in Q4 FY24, steeply higher than Rs 35.10 crore recorded in Q4 FY23. Revenue from operations (excluding excise duty) grew by 2.49% year on year to Rs 159.85 crore in the quarter ended 31 March 2024. Meanwhile, the board also proposed a dividend of Rs 7 per share and a 1:4 bonus share issue.

Suryoday Small Finance Bank zoomed 10.04% after the bank reported 50% jump in total deposits to Rs 7,775 crore as on 31 March 2024 as against Rs 5,167 crore as on 31 March 2023.

L&T Finance Holdings added 1.15% after the company recorded retail disbursements for Q4 FY24 is estimated at approximately Rs 15,030 crore, i.e., a growth of nearly 33% on a YoY basis.

Angel One dropped 4.73%. The brokerage company announced that it its client base jumped 61.5% to 22.24 million in March 2024 as against 13.78 million recorded in March 2023. On sequential basis, the company`s client base rose by 3.8% month on month (MoM) from 21.43 million recorded in February 2024.

Avenue Supermarts (DMart) rallied 4.20% after the company reported standalone revenue of Rs 12,393.46 crore in quarter ended 31 March 2024, recording a growth of 19.89% from Rs 10,337.12 crore posted in the same period a year ago.

Vedanta advanced 3.92% after the miner company informed that its total aluminum production jumped 4% to 5,98,000 tonnes in Q4 FY24 as compared with 5,74,000 tonnes in Q4 FY23.

Meanwhile, the company�s board has approved to raise 2,50,000 non-convertible debentures (NCDs) of face value Rs 1 lakh each aggregating upto Rs 2,500 crore in one or more tranches on private placement basis.

AU Small Finance Bank gained 2.64% after the bank reported 26% increase in total deposits to Rs 87,182 crore as on 31 March 2024 as against Rs 69,365 crore as on 31 March 2023.

RBL Bank rose 0.83%. The bank�s total deposits jumped 22% to Rs 103,454 crore as on 31 March 2024 from Rs 84,887 crore recorded in 31 March 2023.

Poonawalla Fincorp shed 0.51%. The company announced that it has recorded highest ever total disbursements at Rs 9,680 crore, up 52% YoY as compared Rs 6,371 crore posted in Q4 FY23.

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