Sensex rallies 874 pts, Nifty ends near 17,400; auto shares climb

Domestic headline indices ended with robust gains on Thursday, rising for the second trading session. Positive global cues boosted sentiment. After opening at 17,234.60 mark, the Nifty marched ahead as the session progressed and settled near 17400 mark. Barring the Nifty Media index, all the sectoral indices on the NSE ended in the green. Auto shares advanced for the second straight session.

The barometer index, S&P BSE Sensex rallied 874.18 points or 1.53% at 57,911.68. The Nifty 50 index advanced 256.05 points or 1.49% at 17,392.60.

In broader market, the S&P BSE Mid-Cap index gained 1.28% while the S&P BSE Small-Cap index added 1.33%.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 2,303 shares rose while 1,115 shares fell. A total of 103 shares were unchanged.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, dropped 4.39% to 17.85.

COVID-19 Update:

India reported 2,380 COVID-19 cases and 56 deaths as of Thursday. The active cases in the country were above 13,000. Meanwhile, the World Health Organisation (WHO) said that the number of reported new COVID-19 cases worldwide decreased by nearly a quarter last week, continuing a decline since the end of March. The Geneva-based UN health agency said in a weekly report that nearly 5.59 million cases were reported between 11 April 2022 and 17 April 2022, recording a 24% fall over the previous week.

Global Markets:

The Dow Jones Futures were trading 228 points higher, indicating a positive start in the US market.

European shares rose across the board while Asian stock ended mixed on Thursday. Investors continued to monitor the developments in the war between Russia and Ukraine. Investors also watched China`s Covid situation along with moves in the Japanese yen.

US stocks ended mixed on Wednesday as the tech-heavy Nasdaq was dragged down by bleak Netflix earnings, while bond yields dipped after a recent strong run. The Dow Jones Industrial Average rose on the back of strong earnings from Procter & Gamble.

Netflix tanked 35% after its quarterly results showed a loss of 2,00,000 subscribers in the first quarter, its first reported subscriber loss in more than 10 years.

Numbers to Watch:

The yield on the 10-year benchmark federal paper rose to 7.145% from its previous close of 7.105%.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee closed at 76.15, compared with its close of 76.30 during the previous trading session.

MCX Gold futures for 3 June 2022 settlement lost 0.64% to Rs 52,293.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, fell 0.4% to 100.2.

In the commodities market, Brent crude for June 2022 settlement rose $1.28 or 1.2% at $108.08 a barrel. Oil prices traded higher but in a narrow range on Thursday, after being rocked earlier in the week by supply losses from Libya and a worrying outlook for demand as the International Monetary Fund cut its global growth forecasts.

Buzzing Segment:

The Nifty Auto index rose 2.23% to 11,090.55. The index has risen 4.48% in two sessions.

Eicher Motors (up 4.36%), Escorts (up 4.02%), Balkrishna Industries (up 3.28%), Mahindra & Mahindra (up 3.15%), MRF (up 3.02%), Maruti Suzuki India (up 2.77%), Tube Investments of India (up 2.43%), Hero MotoCorp (up 1.88%), Bosch (up 1.85%) and Tata Motors (up 1.7%) advanced.

Stocks in Spotlight:

Index heavyweight Reliance Industries (RIL) rose 2.35% to Rs 2,782.15. The stock hit a record high of Rs 2,788.80 today. RIL`s current market capitalization stood at Rs 18,82,104.45 crore.

RIL shares were in demand amid expectations of strong Q4 numbers backed by firm crude oil prices. Investors are expecting a big improvement in GRM (gross refining margin) in the recently ended March 2022 quarter.

In a regulatory filing today, RIL said that Reliance Brands has signed a definitive agreement to invest in Abu Jani Sandeep Khosla (AJSK) for a 51% majority stake. The strategic partnership is aimed at accelerating the 35-year-old couture house`s growth plans in India and across the globe.

Jindal Steel & Power (JSPL) fell 2.89% to Rs 540.60 after the media reported that the Enforcement Directorate (ED) has conducted searches on JSPL premises in Delhi and Gurgaon over allegations of FEMA violations.

ITC rose 0.35%. The company said that it will acquire 10% stake in Blupin Technologies, the company behind brand Mylo. Founded in 2017, Mylo, is a full stack community eco-system focused on the parenting journey of young families. With this investment, lTC will further expand its presence in the D2C mother and baby care segment.

Tata Elxsi gained 1.23%. The design led technology service provider reported 38.95% rise in net profit to Rs 160.01 crore on 31.51% increase in revenues from operations to Rs 681.73 crore in Q4 March 2022 over Q4 March 2021. The company`s revenue from operations grew 7.3% over previous quarter (QoQ). Profit before tax (PBT) stood at Rs 220.26 crore, registering a growth of 10% QoQ and 36.2% YoY. EBITDA margin stood at 32.5% in Q4 FY22. The company`s growth was powered by Embedded Product Design (EPD) growing at 7.5% QoQ, while Industrial Design and Visualization (IDV) grew 8% QoQ. The board recommended a final dividend of Rs 42.50 per equity share for the financial year ended March 2022.

Angel One surged 18.07%. The company`s consolidated net profit doubled to Rs 204.7 crore in Q4 FY22 from Rs 101.9 crore in Q4 FY21. Total Revenue from operations increased by 64.3% YoY to Rs 671.3 crore during the quarter. Total expenses rose by 48.6% to Rs 411 crore in Q4 FY22 over Q4 FY21. Profit before tax in Q4 FY22 stood at Rs 205.4 crore, up by 94.6% from Rs 105.6 crore in Q4 FY21. Earnings before depreciation, amortization, & taxes (EBDAT) improved by 23.9% to Rs 279.5 crore in Q4 FY22 from Rs 225.6 crore in Q3 FY22. EBDAT margin expanded to 54.9% in Q4 FY22 from 50.7% in Q3 FY22. The company witnessed strong gross addition in client base by 1.5 million clients in Q4 FY22 as compared to 1.3 million clients in Q3 FY22. Total client base was 9.2 million in Q4 FY22 as against 7.8 million in Q3 FY22.

ICICI Securities dropped 5.09%. The brokerage house reported a 3.3% increase in consolidated net profit to Rs 340.2 crore on a 20.6% rise in total revenue from operations to Rs 891.6 crore in Q4 FY22 over Q4 FY21. The company said it added 6.18 lakh clients during the quarter ended March 2022. Despite of client addition, brokerage income declined 5.5% to Rs 372.8 crore in Q4 FY22 from Rs 394.5 crore in Q4 FY21. ICICI Sec said that decline in brokerage income was primarily due to fall in retail equity volumes. ICICI Sec`s Private Wealth Management (PWM) business reported Rs 251.8 crore of revenue in Q4 FY22, up by 59% year on year.

Nestle India fell 0.60%. The FMCG company`s net profit fell 1.25% to Rs 594.7 crore in quarter ended March 2022 as compared to quarter ended March 2021. Net sales jumped 9.7% to Rs 3,950 crore in quarter ended March 2022 from Rs 3,600 crore posted in quarter ended March 2021. Total sales and domestic sales for the quarter ended March 2022 increased by 9.7% and 10.2% respectively. Domestic sales growth was broad based and largely driven by volume & mix. Export sales were lower by 1% largely due to change in product mix. Nestle said profitability was impacted as cost of materials consumed increased due to higher commodity prices, particularly edible oil, milk and its derivatives and packaging materials.

Ajanta Soya hit an upper circuit of 5% at Rs 259 after the company said its board approved 5-for-1 sock split. The board of Ajanta Soya on 20 April 2022 approved splitting each share of face value Rs 10 each into five shares of face value Rs 2 each.

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