Closing Bell: Sensex, Nifty end flat amid volatility; realty top drag, IT, power gain

SJVN, formerly known as Satluj Jal Vidyut Nigam, has signed a Memorandum of Understanding (MoU) with the Indian Institute of Technology Patna (IIT Patna) to use advanced geological models in SJVN's tunnelling projects, thus significantly reducing time and cost overruns.

Weak Asian and US market cues coupled with caution ahead of the RBI's monetary policy announcement on Friday saw domestic equities end flattish with a negative bias. Surging crude oil prices and uptick in US bond yields are making investors nervous with FIIs offloading local shares further dampening the sentiment.

By moving in tandem with the weak global peers, Indian equities commenced the day on a tepid note but a quick recovery was seen from the lower levels, and a follow-through rally helped the Index trim all its losses; however, towards the end of the day, the Index came off from highs and finally settled at 22,434.65 with a loss of 18.65 points.

Among the sectors, PSU Banking was the top performer followed by IT and Media while profit booking pressure was observed in the Realty stocks. Buying traction remained in the Broader markets as Mid and Smallcaps gained further by 0.52% & 1.16% respectively. The Index is oscillating in the range of 22,350-22,500, breakout on either side will provide proper direction.

Indian rupee ended marginally lower at 83.43 per dollar versus Tuesday's close of 83.38.

In the highly volatile session, the Indian equity indices ended on a flat note on April 3.

At close, the Sensex was down 27.09 points or 0.04 percent at 73,876.82, and the Nifty was down 18.60 points or 0.08 percent at 22,434.70. About 2623 shares advanced, 914 shares declined, and 82 shares unchanged.

Shriram Finance, NTPC, TCS, Axis Bank and Tech Mahindra were among major gainers on the Nifty, while losers were Nestle India, Bajaj Auto, Kotak Mahindra Bank, Britannia Industries and Dr Reddy's Laboratories.

On the sectoral front, the Realty index was down 2.5 percent and the Auto index slipped 0.4 percent. On the other hand, Power, PSU Bank indices up 1 percent each, and Information Technology, Media index up 0.5 percent each.

BSE midcap index rose 0.6 percent and smallcap index gained 1 percent.

The RBI is likely to continue with a rate pause at its first MPC meeting for FY25. Even though core and the wholesale inflation has significantly eased but the volatility in food prices continue to impinge consumer sentiment. Thus, keeping the headline inflation above the RBI target level of 4%. The economic growth as well has continued to remain strong as witnessed in the above expectation GDP growth during Q3 FY’24.

Strong growth would continue to provide adequate support for the RBI to keep policy rates unchanged for the next few months. The focus for the RBI is likely to be on the liquidity management with continuation of withdrawal of accommodation to keep inflation well anchored and bring it under 4%.Stable rates will continue to support the housing market which has continued to remain upbeat.

India’s housing market is currently witnessing an upcycle. Consumers have already factored in elevated interest rates and are still actively engaging in home purchases. However, the affordable housing segment is experiencing sluggish residential sales; a well-timed rate cut could be supportive of this segment.

-Downgrade to neutral, target raised to Rs 1,785 per share
-Focus on profitable business; motor segment drove recent re-rating
-Combined ratio guidance review may occur post Q4FY24
-Believe recent rise in share price reflects positives
-Company trading 5.7 percent above 3-year average, 12-month forward P/BV

Lupin announced the appointment of Dr. Ranjana Pathak as chief quality officer, succeeding Johnny Mikell who will be retiring from the services of the company.

-Buy call, target raised to Rs 1,950 per share
-Interaction with CEO & participation at digital day indicate that company is well poised to benefit from investment in health insurance, new hirings
-These can help deliver 16 percent CAGR in premium over FY24-27 & lower CoR towards 101 percent
-Lift estimates by 2-4 percent
-Transition to IFRS can lift normalised earnings by 25 percent

Indian Rupee depreciated on Wednesday on weak Asian markets and FII outflows. Rising crude oil prices also dragged the Rupee lower. However, positive tone in domestic markets cushioned the downside. US Dollar softened from higher levels on dovish comments from US Federal Reserve officials. Fed’s Loretta Mester was dovish as she said that a strong economy should not interfere with the disinflation process.

We expect Rupee to trade with a negative bias on expectations of a recovery in the US Dollar and risk aversion in global markets. Renewed geopolitical tensions in the Middle East and rising crude oil prices may also pressurise Rupee. However, strength in the domestic markets may support Rupee at lower levels. Any intervention by RBI may also support the domestic currency. Traders may take cues from ADP non-farm employment and ISM services PMI data from US and Fed Chair, Jerome Powell’s speech. USDINR spot price is expected to trade in a range of Rs 83.20 to Rs 83.70.

-Buy call, target cut to Rs 3,750 per share from Rs 4,020 per share
-Possible imminent pricing disruption in paints sector
-Prospects of margin erosion weigh on stock price
-Company’s pricing strategy seems sensible to us and fears likely overstated

Sensex Today | Market at 3 PM

The Sensex was up 33.28 points or 0.05 percent at 73,937.19, and the Nifty was down 1.60 points or 0.01 percent at 22,451.70. About 2554 shares advanced, 871 shares declined, and 72 shares unchanged.

Hold call, target Rs 300 per share
For Q4, company’s AUM grew by 24 percent YoY & 6 percent QoQ to Rs 1,020 crore, in-line with our estimate
Disbursements grew 11 percent YoY in Q4
Collection efficiency was 101 percent versus 105 percent (YoY)
Company indicated GS3 fell to 3.3 percent, down 67 bps QoQ in Q4
Company indicated GS2 fell to 5.1 percent, down 89 bps QoQ in Q4
Fall indication in GS3 & GS2 is encouraging
Collections are seasonally strongest in Q4
Company trades at 1.9x FY25 BV

Oil prices were stable on Wednesday, as investors mulled supply risks stemming from ongoing Ukrainian attacks on Russian refineries and the potential for a widening of the Middle East conflict.

Brent crude futures for June rose 16 cents, or 0.18%, to $89.08 per barrel at 0902 GMT, while U.S. West Texas Intermediate crude futures for May gained 11 cents, or 0.13%, to $85.26 a barrel.

Both Brent and WTI climbed 1.7% during the previous session to their highest since October.

An OPEC+ ministerial panel is unlikely to recommend any oil output policy changes at a meeting later on Wednesday, three OPEC+ sources told Reuters, following the producers' earlier decision to extend voluntary oil output cuts until June.

Sensex Today | BSE Midcap index at record high

Sensex Today | BSE Power index up 1 percent supported by JSW Energy, Adani Power, Suzlon Energy

-Reduce call, target Rs 240 per share
-Disbursement growth moderates further, business asset growth remained healthy
-GS3/ GS2 improves by 70bp/90 QoQ despite moderation in collection efficiency
-Estimate 17 percent/13 percent AUM/EPS CAGRs over FY24-26 & average RoA/RoE of 1.7 percent/11 percent in FY24-26

Sensex Today | BSE Midcap index up 0.6 percent supported by Laurus Labs, JSW Energy, Petronet LNG

Sunteck Realty has entered into a long-term agreement for its commercial building in Mumbai, with Bennett, Coleman & Co. This will generate a revenue of close to Rs 2,000 crore over the tenure of 29 years.

The board of directors of Mold-Tek Packaging at its meeting held April 3, 2024, declared an interim equity dividend for the financial year 2023-24 at 40% i.e. Rs 2 per equity share on face value of Rs 5 per equity share.

-Equal-weight call, target Rs 310 per share
-GS3 was at 3.3 percent, down 70 bps QoQ versus estimate of 3 percent, GS2 at 5.1 percent, down 90 bps QoQ
-Disbursements, up 9 percent YoY were nearly 3 percent below estimate
-Profit estimate for Q4 is 20-25 percent above consensus due to credit costs
-Credit costs at 1.9 percent for F24, versus estimate at 1.6 percent & guidance of 1.5- 1.7 percent
-Credit costs & guidance implies near-term upside risk for stock into results

Anupam Rasayan India has signed letter of intent with Japanese multinational company worth revenue of $90 million (Rs 743 crore) over next 7 years, to supply two advance intermediates using fluorination chemistry.

UltraTech Cement has commissioned two greenfield capacities - 2.70 mtpa cement grinding unit at Karur, Tamil Nadu and 2.70 mtpa integrated cement plant at Kukurdih, Chhattisgarh. With this, its total domestic grey cement manufacturing capacity increased to 146.2 mtpa, while along with its existing capacity of 5.4 mtpa in the UAE, the company now has a total of 151.6 mtpa.

Sensex Today | BSE Oil & Gas index rose nearly 1 percent led by Petronet LNG, Linde India, Gail India

The Accounting and Corporate Regulatory Authority (ACRA), Singapore has approved the merger of Foolproof Singapore Pte Ltd, Singapore (step down subsidiary) with Zensar Technologies (Singapore) Pte Ltd, Singapore (wholly owned subsidiary).

Accordingly, Foolproof Singapore Pte, Singapore has merged into Zensar Technologies (Singapore) Pte, Singapore and ceased to exist as a separate legal entity from April 1.

Sensex Today | Market at 1 PM

The Sensex was up 192.42 points or 0.26 percent at 74,096.33, and the Nifty was up 50.20 points or 0.22 percent at 22,503.50. About 2549 shares advanced, 817 shares declined, and 69 shares unchanged.

PNC Infratech has executed settlement agreement with National Highways Authority of lndia and subsidiary PNC Raebareli Highways, for Rs 117.15 crore, under the Vivad Se Vishwas II (Contractual Disputes) Scheme of Government of India.

Sensex Today | BSE Metal index up nearly 1 percent led by SAIL, Jindal Steel, NMDC

Ashiana Housing has sold entire 224 units in Phase 3 of ‘Ashiana Amarah’ (Gurugram) by March 30, 2024, for Rs 440.32 crore. The said Phase 3 has total saleable area of 3.77 lakhs square feet.

Oil prices extended gains on Wednesday as investors eyed concerns around crude and fuel supplies, following Ukrainian attacks on Russian refineries and the potential for a widening of the Israel-Hamas war to more directly include Iran.

Brent crude futures for June rose 17 cents, or 0.19%, to $89.09 per barrel, while U.S. West Texas Intermediate crude futures for May climbed 7 cents, or 0.08%, to $85.22 a barrel.

Both Brent and WTI climbed 1.7% during the previous session to their highest since October.

Sensex Today | Nifty Media index rose 1 percent supported by Dish TV, DB Corp, Zee Entertainment

The board of directors of Mercury Trade Links in their meeting held April 1, 2024 appointed Mr. Chaprajbhai Vikrambhai Algotar as Chief Financial Officer (CFO)-KMP of the company w.e.f. April 3, 2024 and accepted the resignation of Ms. Divya Bairwa from post of Executive Director cum Chief financial officer (CFO).

Infosys Finacle, part of EdgeVerve Systems, a wholly-owned subsidiary of Infosys and Zand Bank, UAE’s first digital-only bank, today announced the bank’s decision to subscribe to the Infosys Finacle Solutions suite to power its corporate banking services.

Sensex Today | BSE Auto index slipped 0.3 percent dragged by Bajaj Auto, Tube Investment, TVS Motor

Government Pension Fund Global sold 3,47,198 equity shares (equivalent to 0.55% of paid-up equity) of Gokaldas Exports via open market transactions. These shares were sold at an average price of Rs 777.05 per share, amounting to Rs 26.98 crore.

HCLTech announced an expanded alliance with Google Cloud to create industry solutions and drive business value with Gemini, its multimodal large language AI model.

Granules Pharmaceuticals, Inc. (GPI), a wholly-owned foreign subsidiary of Granules India, has received a communication from the USFDA indicating the inspection classification as “Voluntary Action Indicated” (VAI).

The VAI inspection classification indicates that the US FDA will not take or recommend regulatory or enforcement action because the observations do not meet the threshold for action at this time.

Overweight call, target Rs 12,000 per share
Company crosses 150 mt capacity
Company continues to be focused on capacity market share gains
Size, Pan-India presence & balance-sheet strength, makes co best positioned

Asian shares tracked Wall Street lower on Wednesday as U.S. yields stood near four-month highs, while a powerful earthquake in the region raised concerns about possible disruptions to the vital chip-making industry.

Sensex Today | Ship Bulding stocks in focus

GE T&D India has received letter from General Electric Company (GEC), saying it intends to split GEC into GE Aerospace & GE Vernova. With this, the energy business of GEC will be spun off under GE Vernova Inc. with effect from April 2. General Electric Company is the ultimate holding company of GE T&D India.

The spin-off of the energy business would result in transfer by GEC of 75% of its ultimate and indirect shareholding in GE T&D India to GE Vernova Inc. Thus, GE Vernova Inc will substitute GEC and become the ultimate holding company of GE T&D.

Sensex Today | Nifty Realty index shed 2 perccent

-Downgrade to neutral, target raised to Rs 1,785 per share
-Focus on profitable business; motor segment drove recent re-rating
-Combined ratio guidance review may occur post Q4FY24
-Believe recent rise in share price reflects positives
-Company trading 5.7 percent above 3-year average, 12-month forward P/BV

Sensex Today | Vincent KA of Geojit FInancial Services

The cement prices on a pan-India basis have been on a declining trend since last October. This decline is primarily due to weak demand, influenced by various factors including the extreme weather conditions, and state elections in certain regions. 

Currently, the expectation of pick up in construction activity before the monsoon season explains the current price hike. Additionally, the positive outlook on the real estate sector will support, as the major demand contribution comes from the housing sector. 

There may be a short-term pause around the election period and on account of monsoon, we anticipate the current prices to moderate in the near-term.

Ramco Cements has commissioned the Line II and commenced commercial production on March 31, 2024. The cement manufacturing capacity of the Line II is 0.90 million tonnes per annum (MTPA). With the commissioning of Line II, the aggregate capacity of Odisha grinding unit has increased to 1.8 MTPA.

Shriram Properties has received tax penalty order amounting to Rs 446.79 crore for assessment year 2018-19, from Deputy Commissioner of Income Tax, Chennai, in respect of income tax proceedings for matters related to sale of shares in one of the subsidiary Shriram Properties and Infrastructure.

This penalty order related to the tax demand, which was already challenged before the Madras High Court and the High Court has given an interim order directing the department to maintain the ‘status quo’.

The company is in the process of challenging before relevant judicial forums and is confident of defending the penalty order in view of the facts and merits of the case.

Stock Market LIVE Updates | Nifty IT index top sectoral performer led by gains in TCS, Infosys

Sensex Today | Market at 11 AM

The Sensex was up 8.44 points or 0.01 percent at 73,912.35, and the Nifty was down 7.60 points or 0.03 percent at 22,445.70. About 2348 shares advanced, 888 shares declined, and 101 shares unchanged.

Dhanlaxmi Bank has recorded total business at Rs 24,668 crore for the quarter ended March FY24, growing 6.3% over same period last year, with total deposits rising 6.8% to Rs 14,259 crore and gross advances increasing 5.6% to Rs 10,409 crore during the same period.

CASA increased 2.8% to Rs 4,381 crore in Q4FY24 compared to the corresponding period last fiscal, while gold loans at Rs 2,839 crore rose by 24.85% during the quarter.

Jammu & Kashmir Bank has signed corporate agency agreement with New India Assurance Company for servicing and soliciting their insurance products through the bank's branch network.

Sensex Today | BSE Smallcap index up nearly 1 percent supported by Artemis Medicare Services, GE Power India, HLV

Shares of Vruddhi Engineering Works made a quite start on the BSE SME platform on April 3, listing at Rs 71, a premium of 1.4 percent over the issue price of Rs 70.

Soon after the listing, the stock price surged 6.5 percent to trade at Rs 74.55.

The Vruddhi Engineering Works IPO was subscribed 12.67 times. The issue's retail component was booked 20.10 times, while the non-institutional investors portion was subscribed 28.14 times. The buyers category for qualified institutions was reserved 1.05 times.

Shares of Aspire & Innovative Advertising made debut on April 3 at Rs 56.50, commanding a premium of 4.63 percent over the issue price of Rs 54 on the NSE SME. The opening price is in line with the grey market premium, where the scrip was trading with marginal gains of Rs 4.

The public offer of Rs 21.97 crore was entirely a fresh issue of 40.68 lakh shares. The company operates in the consumer durables trading sector, offering a diverse range of products such as kitchen appliances, home appliances, mobile phones, and solar products from major brands like Bajaj, Prestige, Vivo, and Samsung.

Shares of interior design and environmental branding solutions provider Blue Pebble listed at a premium of 18.5 percent on the NSE SME platform on April 3. The stock listed at Rs 199 compared to its issue price of Rs 168 .

The small and medium enterprise's listing was a tad lower compared to the strong response to its initial public offering (IPO), which was subscribed more than 52 times, with the maximum participation coming in from non-institutional buyers.

The portion set aside for non-institutional buyers was subscribed 97.31 times and that for retail investors 58.40 times. Qualified institutions buyers (QIBs) bid 21.77 times their allotted quota of shares.