Sensex soars 1241 pts, Nifty ends above 21,700; RIL soars 6%

The domestic stock market had a strong closing on Monday, with the Nifty settling above the 21,700 level. Positive movement was seen in index heavyweights, particularly with Reliance Industries (RIL) reaching a record high and propelling the indices upwards. Banking giants such as HDFC Bank, Axis Bank, Kotak Mahindra Bank, and ICICI Bank experienced gains ranging from 1-3%, accompanied by a notable increase of over 3% for construction major Larsen and Toubro. The market`s upward momentum was widespread, with all sectors displaying gains except for FMCG. The upcoming India`s Interim Budget and the US Federal Reserve`s monetary policy meeting are expected to bring continued volatility to the market throughout the week.

The barometer index, the S&P BSE Sensex jumped 1,240.90 points or 1.76% to 71,941.57. The Nifty 50 index surged 385 points or 1.80% to 21,737.60.

RIL (up 6.86%), L&T (up 3.25%) and HDFC Bank (up 1.42%) boosting the indices.

In the broader market, The S&P BSE Mid-Cap index rose 1.68% and the S&P BSE Small-Cap index added 1.03%.

The market breadth was positive. On the BSE, 2,252 shares rose and 1,671 shares fell. A total of 141 shares were unchanged.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, jumped 13.09% to 15.68.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper shed 0.06% to 7.167 as compared with previous close 7.171.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.1450, compared with its close of 83.1175 during the previous trading session.

MCX Gold futures for 5 February 2024 settlement gained 0.33% to Rs 62,170.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, rose 0.20% to 103.64.

The United States 10-year bond yield slipped 1.50% to 4.101.

In the commodities market, Brent crude for March 2024 settlement shed 07 cent or 08% to $83.48 a barrel.

Global Markets:

Most shares in Europe and Asia were advanced on Monday as investors monitored upcoming risk events such as the US Federal Reserve policy meeting and significant employment data.

The two-day Federal Reserve policy meeting ends on Wednesday, and traders are also awaiting a range of economic data throughout the week, with particular focus on the influential monthly payrolls report due on Friday. Additionally, the Bank of England`s policy meeting is slated for later this week, adding to the market`s anticipation.

US stocks saw a mixed finish on Friday as drops for technology stocks dragged on the market.

Stocks in Spotlight:

SJVN surged 10.87% after the power generation company announced that it has secured full quoted capacity of 100 megawatt (MW) solar power project through e-Reverse Auction conducted by Gujarat Urja Vikas Nigam (GUVNL).

GAIL (India) rallied 3.81% after the company reported a consolidated net profit of Rs 3,194.62 crore in Q3 FY24, steeply higher than Rs 413.76 crore posted in Q3 FY23. However, net sales (excluding excise duty) declined 3.31% year on year (YoY) to Rs 34,697.82 crore in the quarter ended 31 December 2023.

HDFC Bank rose 1.42% after the Reserve Bank of India (RBI) accorded its approval to Life Insurance Corporation of India (LIC) for acquiring aggregate holding up to 9.99% of the paid-up share capital or voting rights of HDFC Bank. LIC has been advised by RBI to acquire the aforesaid major shareholding in the bank within a period of one year i.e. by 24 January 2025.

Vedanta rose 1.59%. On consolidated basis, the company reported 18.3% decline in net profit to Rs 2,013 crore in Q3 FY24 as against Rs 2,464 crore in Q3 FY23. The company reported highest ever third quarter revenue of Rs 34,968 crore, registering a growth of 4% YoY, driven by higher sales volume, premia and favorable movement in exchange rate which was partially offset by decrease in commodity prices.

Tata Technologies shed 0.49%. The company reported 6.1% increase in consolidated net profit to Rs 170.2 crore in Q3 FY24 as compared with Rs 160.4 crore posted in Q2 FY24. Total revenue from operations rose 1.6% QoQ to Rs 1,289.5 crore in Q3 FY24.

Voltamp Transformers soared 9.82% after the company`s net profit surged 86.39% to Rs 94.61 crore on 14.27% rise in net sales to Rs 408.48 crore in Q3 December 2023 over Q3 December 2022.

Punjab National Bank (PNB) advanced 2.78% after the bank reported standalone net profit of Rs 2,222.81 crore in Q3 FY24 steeply higher than 628.88 crore reported in Q3 FY23. Total income grew by 16.5% to Rs 29,961.65 crore in Q3 FY24 as against 25,722.40 crore recorded in Q3 FY23.

AU Small Finance Bank (SFB) dropped 11.48% after the bank reported 4.47% decline in net profit to Rs 375.24 crore on 32% increase in total income to Rs 3,185.51 crore in Q3 FY24 over Q3 FY23.

Yes Bank declined 2.13%. The private bank reported standalone net profit of Rs 231.46 crore in Q3 FY24, steeply higher than Rs 51.52 crore posted in Q3 FY23. The bank�s total income jumped 17.89% year on year to Rs 8,179.15 crore during the quarter.

Adani Power hit an upper circuit of 5% after the company reported consolidated net profit of Rs 2,737.96 crore in Q3 FY24, steeply higher than Rs 8.77 crore in Q3 FY23. Revenue from operations jumped 67.32% to Rs 12,991.44 crore in Q3 FY24 as compared with Rs 7,764.41 crore in Q3 FY23.

KFin Technologies rallied 3.52% after the company�s consolidated net profit jumped 25.19% to Rs 66.82 crore in Q3 FY24 as against 53.37 crore recorded in Q3 FY23. Revenue from operation increased 16.26% to Rs 218.71 crore in Q3 FY24 compared with Rs 188.12 crore recorded in Q3 FY23.

Macpower CNC Machines hit an upper limit of 5% after the company`s net profit surged 100.86% to Rs 7.03 crore on 24.77% increase in net sales to Rs 66.14 crore in Q3 December 2023 over Q3 December 2022.

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