Closing Bell: Nifty above 22,650, Sensex up 494 pts; auto, metal, realty gain

Indian benchmark indices ended on a strong note at the start of the week with Nifty above 22,650. At close, the Sensex was up 494.28 points or 0.67 percent at 74,742.50, and the Nifty was up 152.60 points or 0.68 percent at 22,666.30.

We wrap up today's edition of the Moneycontrol live market blog, and will be back tomorrow morning with all the latest updates and alerts. Please visit https://www.moneycontrol.com/markets/global-indices/https://www.moneycontrol.com/markets/global-indices for all the global market action.

Markets started the week on a firm note and gained over half a percent, tracking favorable cues. After the initial uptick, Nifty inched gradually higher however profit taking in select heavyweights capped the upside in the second half. Eventually, it closed at 22,666.30 levels; up by 0.7%. Most sectors contributed to the move wherein auto, energy and realty were among the top gainers. After days of outperformance, the broader indices took a breather and closed almost unchanged.

Nifty has finally ended a week-long consolidation phase and the banking index has also finally made a new record high however the momentum is still missing. Amid all positivity, mixed global cues may continue to result in intermediate dips and traders should utilize the same for adding quality names.

Markets maintained optimism throughout the trading session as robust global cues boosted key benchmark indices to fresh record highs on broad-based buying support. Domestic fund flows have been strong, which is giving local equity markets a major fillip in spite of choppy foreign fund inflows. Despite expensive valuations, investors are willing to bet big on Indian stocks on expectations of a strong growth momentum going ahead, which would augur well for equity markets.

The Nifty opened gap up and has continued to inch higher throughout the day to close with gains of ~153 points. More importantly it has closed above the previous swing high of 22619 which is a bullish sign. The daily and hourly momentum indicator has a positive crossover which is a buy signal. The daily Bollinger bands are expanding indicating range expansion and with prices moving along the upper band suggests that there could be trending moves in the coming trading sessions. On the upside immediate hurdle is placed at 22740 and beyond that it is likely to stretch towards 23000. On the downside support is placed at 22460 – 22420.

Bank Nifty recorded a fresh All time high after three months and is now poised for a further upside till 49000 – 49300. The zone of 48270 - 48200 shall act as a crucial support zone from short term perspective. Minor degree pullbacks should be used as a buying opportunity.

The Indian rupee traded within a narrow range of 83.24-83.33, experiencing a gap-up opening but later surrendering gains due to a slight recovery in the dollar index. However, despite this, the rupee initially benefited from weak crude oil prices. The recovery of crude oil prices by 2% later in the day caused the rupee to relinquish its gains. Looking ahead, the rupee is expected to continue its sideways trend within the range of 83.15-83.55.

Nifty maintained its strength by staying above 22500 throughout the day. Additionally, it exceeded the previous all-time high of 22619. However, the index has reached near the upper band of the rising wedge, which might act as resistance in the short term. Over the short term, the index might consolidate within a range. On the lower end, support is placed at 22500, below which the index might fall back into consolidation.

Nifty50 began the week on a strong note and compounded its gains throughout the day to breach its previous high and to end the session at a fresh high of 22,666.30 with gains of 152.60 points. On a sectoral front, Auto was the star performer followed by the Realty and Energy sectors (gas stocks) while the PSU Banking sector witnessed a profit booking correction. With a bullish candle, the Index has given a breakout from a Rounding Bottom formation indicating an extension of the current up-move. As per the pattern, the approximate target is 23,340 while immediate strong support is placed at 22,340.

The buoyancy in sentiment continued, led by sectorial tailwinds and Q4 earnings growth expectations. The up-move was largely broad-based, with outperformance by auto, reality, oil & gas, and consumer discretionary, while IT was tepid owing to insipid Q4 growth expectations due to a slowdown in spending. On the global front, after the release of robust US job data, investors are awaiting the release of US CPI data, ECB policy, and UK GDP data this week.

Indian rupee ended flat at 83.31 per dollar on Monday versus Friday's close of 83.29.

Indian benchmark indices ended on a strong note at the start of the week with Nifty above 22,650.

At close, the Sensex was up 494.28 points or 0.67 percent at 74,742.50, and the Nifty was up 152.60 points or 0.68 percent at 22,666.30. About 1695 shares advanced, 1733 shares declined, and 108 shares unchanged.

Biggest gainers on the Nifty included Eicher Motors, Maruti Suzuki, M&M, SBI Life Insurance and NTPC, while losers were Adani Ports, Nestle India, Apollo Hospitals, Wipro and Sun Pharma.

On the sectoral front, except Information Technology and PSU Bank, all other indices ended in the green with auto, metal, oil & gas and realty up 1 percent each.

BSE Midcap index was up 0.26 percent, while Smallcap index ended on a flat note.

-Underweight call, target Rs 125 per share
-Gross loan growth remains healthy at 3.7% QoQ, up 13.6% YoY
-Domestic loans grew by 3.7%, up 14% YoY
-Overseas book grew by 3.4% QoQ, nearly 11% YoY
-Deposit growth picked up, up 4% QoQ versus 1% last quarter led by domestic deposits
-Domestic LDR moderated by 1% QoQ, to 78%

-Reduce call, target Rs 410 per share
-CEO quits abruptly; a veteran insider is new CEO
-Resignation timing is sudden & surprising
-Srini will be based out of new jersey, US & would be first insider CEO since 2016
-Believe investors will play a close attention to the new CEO’s strategy
-New strategy may come in next 1-2 quarters
-Recovery to be slow; expect company to lag industry growth in FY25

Sensex Today | BSE Information Technology index down 0.5 percent dragged by Cressanda Solution, 3i Infotech, Cyient

Equal-weight call, target Rs 3,290 per share
Company reported better topline growth in Q4 update, led by 19% growth in India jewellery business
Both buyer & same store-sales growth for jewellery division grew double-digits
Watches – sales rose 6% YoY, after 21% growth in Q3
Eyecare revenue declined 1% YoY versus 4% decline in Q3, up 5% 5 years CAGR, similar to Q3
Emerging businesses grew 24% YoY & Caratlane sales were up 30% YoY

-Initiate buy, target Rs 100 per share
-Company has built a well-rounded platform, arguably among most improved deposit franchises
-Operational efficiencies will play out from H2FY25
-Over FY24-27 strong deposit growth will aid loan growth
-Strong deposit growth should aid 28% EPS CAGR even as credit costs rise
-Improving RoA, to 1.5% & RoE to 14% will aid rerating
-A fall in rates should help it more than peers
-Ability to raise capital will be key

Vuenow Infratech has acquired the data center of 2 megawatt capacity from NGBPS Limited having area of 850 square meter located at F-19, RIICO, Industrial area, Phase -1, Bhiwadi, District Alwar (Rajasthan) for consideration amounting to Rs 9.25 crore.

-Underweight call, target Rs 450 per share
-CEO announcement a surprise to market
-Incumbent's tenure was expected to last until July 2025
-Transition could create uncertainty in near-term before boosting hopes of potential turnaround
-Company appointed Srinivas Pallia as next CEO & MD w.e.f April 7, 2024 for 5 years
-Believe we could see a mixed reaction to this news from street in near term

Area sold for quarter stood at 1,50,126 sq. fts, resulting for the whole year at 7,27,480 sq.ft as compared to 5,21,258 sq. ft an increase of 40% YoY over last year.

Sales value for quarter stood at Rs 229 crore, resulting for the year of Rs 1,193 crore as compared to Rs 753 crore an increase of 58% YoY over last year.

Collections for the quarter stood at Rs 251 crore, resulting for the year of Rs 944 crore as compared to Rs 716 crore an increase of 32% YoY over last year.

Indian Rupee appreciated on Monday as domestic markets touched fresh record highs and overnight decline in crude oil prices. However, a positive tone in the US Dollar capped sharp gains. US Dollar gained on declining expectations of a rate cut by the US Federal Reserve following a strong jobs report and hawkish comments from Fed officials last week.

We expect Rupee to trade with a slight positive bias on rise in risk appetite in global markets on reports that Israel has withdrawn its soldiers from Southern Gaza. FII inflows and strength in the domestic markets may also support Rupee. However, a positive tone in the greenback may cap sharp gains. Investors may remain cautious ahead of inflation data form US and India later this week. USDINR spot price is expected to trade in a range of Rs 83.10 to Rs 83.50.

Sensex Today | Nifty Media index down 0.4 percent Dish TV, Sun TV Network, Jagran Prakashan

-Equal-weight call, target Rs 1,089 per share
-Company’s Q4 performance was ahead of estimate on the topline
-Company’s Q4 performance was led by better performance in the Indian & Indonesian business
-Goodknight Agarbatti launch has been well received by consumers, which is a key positive
-Devaluation in Nigeria continues to affect overall growth

Aadhar Housing Finance, backed by private equity major Blackstone, has received the approval from market regulator Sebi for its proposed initial public offering to raise upto Rs 5,000 crore, three sources in the know told Moneycontrol on the condition of anonymity. Read More

Adani Wilmar witnessed double-digit growth in both edible oils and foods businesses during the quarter ended March FY24, driven by increased retail penetration, particularly focusing on under indexed markets. The company also achieved its highest ever volume during the quarter and it continued to gain market share.

Godrej Consumer Products's operating conditions in India continued to remain subdued in the quarter ended March FY24. India organic business continued to deliver strong underlying volume growth at high-single digit with growth being broad-based across both home care and personal care.

While demand in household insecticides has been subdued due to an extended winter in the North and East, while Park Avenue and KamaSutra brands delivered in-line with category seasonality.

Underlying volume growth continued to be in double-digit. At a consolidated level (organic), company expects to deliver underlying volume growth of high single digit and sales growth of mid-single digit driven largely by currency volatility.

-Downgrade to underperform, target Rs 170 per share
-In a surprise move, bank's founder CEO resigned
-Board had approved a 3-eayr reappointment & application was awaiting RBI's approval
-Regulator doesn't clarify on such aspects, but per management there isn't any word from RBI
-Smooth succession is key, as most senior management are new at bank
-Uncertainty may lead to slower growth & higher credit cost

Sensex Today | BSE Bank index rose 0.5 percent led by IDFC First Bank, Axis Bank, IndusInd Bank

Greaves Retail, the retail unit of Greaves Cotton, has entered into a strategic technology transfer and supply agreement with Tsuyo Manufacturing, the Indian company specialising in electric vehicle components. The partnership will strengthen Greaves Cotton's innovation capabilities and enhance production efficiency in the electric L3 vehicle segment.

South Indian Bank board has appointed Vinod Francis as Chief Financial Officer (CFO) and key managerial personnel of the bank, with effect from April 8.

Vinod Francis is currently working as General Manager at the bank. The present CFO, Chithra H will take charge as Chief Compliance Officer (CCO) of the bank.

-Equal-weight call, target Rs 533 per share
-Company’s Q4 performance was broadly in-line with estimate
-Company met its earlier stated target of positive revenue growth in Q4, margin for FY24 & targets for new businesses
-Management expects revenue growth momentum to improve going ahead

-Reduce call, target Rs 1,000 per share
-Q4 update shows growth trending below expectations
-Growth/profitability to moderate further
-AUM grew 35%/7% YoY/QoQ in Q4, lower versus estimate of 36%/9% YoY/QoQ
-Overall disbursements grew only 17%/10% YoY/QoQ in Q4, 5% lower than estimate
-There is moderation in industry volume growth

The United States Food and Drug Administration (US FDA) has inspected the new injectable facility of Eugia Steriles, the step-down subsidiary of Aurobindo, in Andhra Pradesh, during March 28 to April 5, 2024. It closed the inspection with the observations which are procedural in nature. Meanwhile, Aurobindo has appointed T Vijaya Kumar as President, R & D (specialty drug delivery) with effect from April 5.

Zee Entertainment Enterprises' MD & CEO, Punit Goenka has proposed the implementation of a lean and streamlined management structure to the board, to achieve the targeted goals of the company.
The MD & CEO has initiated the process of rationalisation of the workforce by 15% across the company.

The proposed structure is aimed towards arriving at a cost-effective operational model and will further enable the company to chart higher growth by maintaining performance and profitability.

Union Bank of India has reported total business at Rs 21.26 lakh crore for the quarter ended March FY24, rising 10.31% over a year-ago period, with advances rising 11.72% YoY to Rs 9.04 lakh crore and deposits increasing by 9.29% YoY to Rs 12.21 lakh crore. Total domestic RAM (retail, agriculture & MSME) advances of the bank grew by 13.82% YoY to Rs 4.97 lakh crore in Q4FY24.

According to CNBC-TV18 sources, the government is considering a policy mandate to procure domestically manufactured chips. There are discussions regarding policy support to boost the production of semiconductor chips within the country. Additionally, incentives for consuming locally made chips are being considered through policy measures. These potential policies aim to meet domestic demand primarily through local production. However, CNBC-TV18 notes that there are no current plans to impose restrictions on importing chips to meet domestic demand, indicating a balanced approach to addressing chip supply and demand dynamics.

Sell Call, Target Rs 451 per share
Q4 Update Stated Consolidated Revenue Growth Would Be In The Low-single digits
Our Expectation For Cons Rev Growth Is 2.8% Topline Growth
Consolidated Revenue Est Is A Slight Decline To What Consensus Expects
Co Expects Strong Gross Margin Improvement On YoY Basis
Co Expects Low, Double-figit Growth In Gross Margin In Operating Profit
Domestic Business Posted A Slight Uptick In Volume Growth
Co Expects Consolidated Revenue Growth To Trend Upwards Over Coming Quarters

Prestige Estates' business update for FY24 showcases impressive growth metrics, with sales soaring by 63 percent to reach Rs 21,040 crore compared to Rs 12,931 crore in the previous year. In the fourth quarter alone, sales increased by 21 percent year-on-year, totaling Rs 4,707 crore. Collections for the fiscal year also experienced a substantial uptick, rising by 22 percent to Rs 11,954 crore compared to Rs 9,805 crore in the previous year, with fourth-quarter collections up by 26 percent year-on-year at Rs 3,474 crore. The company's average realisations for FY24 stood at Rs 10,410 per square foot, reflecting a robust performance across key financial indicators.

Pratik D Punjabi has resigned as Chief Financial Officer of Jammu & Kashmir Bank, with effect from April 5, to explore professional opportunities outside the bank.

Tin Q4 company's advances rose 12.7% YoY at Rs 97072.47 crore and deposits jumped 10.4% YoY at Rs 134776.73 crore.

Info Edge India's standalone billings during the quarter ended March FY24 stood at Rs 826.9 crore, increasing 10.5% over Rs 748.6 crore recorded in year-ago period, with recruitment business increasing 7.2% YoY to Rs 625.4 crore and 99acres for real estate segment rising 26.4% YoY to Rs 131.1 crore in Q4.

Bank of India has reported global business at Rs 13.23 lakh crore for the quarter ended March FY24, growing 11.66% over corresponding period of last fiscal. Global deposits increased by 10.2% YoY to Rs 7.38 lakh crore and global gross advances jumped 13.56% YoY to Rs 5.86 lakh crore during the quarter.

-Underperform call, target Rs 470 per share
-Resignation of MD & CEO, a year ahead of the completion of his term
-Several other senior-level exits, reflects continued execution issues
-Any improvements in performance under the new CEO is likely to be gradual
-See appointment of an internal candidate potentially limiting turnaround hopes & rich valuations

Cochin Shipyard has signed the Master Shipyard Repair Agreement (MSRA) with United States Navy. The MSRA is a non-financial agreement and is effective from April 5. This will facilitate repair of US Naval vessels under Military Sealift Command in Cochin Shipyard.

Gland Pharma has received approval from the United States Food and Drug Administration (USFDA) for Eribulin Mesylate injection. The expects to launch this product in the near term through its marketing partner. Eribulin Injection is used in the treatment of breast cancer spread to other parts of the body.

Sensex Today | BSE Midcap index rose 0.5 percent led by Exide Industries, Voltas, Gland Pharma

-Buy call, target Rs 1,400 per share
-For Q4, company’s disbursement grew 17% YoY, 4% ahead of our estimate
-Auto loan disbursement growth slowed to 6% YoY/ 4% QoQ on high 4Q base
-Tad below our estimate, but growth in non-auto segment was better than estimate
-Disbursement in LAP/HL grew 52%/ 21% YoY
-New business disbursement grew 24% YoY
-Company has not disclosed business AUM, we est 34% YoY)
-Total AUM grew 35% YoY, 36% Q3
-Billing collection efficiency was 130% in Q4

Sensex Today | Market at 1 PM

The Sensex was up 555.61 points or 0.75 percent at 74,803.83, and the Nifty was up 167.20 points or 0.74 percent at 22,680.90. About 1823 shares advanced, 1546 shares declined, and 98 shares unchanged.

Utkarsh Small Finance Bank's gross loan portfolio for the quarter ended March FY24 grew by 31.1% YoY to Rs 18,299 crore, while total deposits increased by 27.4% to Rs 17,473 crore and CASA deposits rose 25.1% to Rs 3,582 crore during the same period.

The bank recorded retail term deposits at Rs 7,968 crore, growing 42.9% over a year-ago period, and bulk term deposits at Rs 5,922 crore for the quarter, increasing 12.3% YoY.

Reliance Jio added 35.98 lakh users versus 41.78 lakh users, MoM
Bharti Airtel adds 15.30 lakh users versus 7.52 lakh lakh users, MoM
Voda Idea loses 10.23 lakh users vs loss of 15.22 lakh, MoM

Sensex Today | BSE Metal index up 1 percent led by APL Apollo, JSW Steel, NMDC

Bank of Baroda has recorded global business at Rs 24.16 lakh crore for the quarter ended March FY24, rising 11.20% YoY, with global advances growing 12.41% YoY to Rs 10.89 lakh crore, and global deposits rising 10.24% YoY to Rs 13.26 lakh crore. Domestic deposits jumped 7.75% to Rs 11.28 lakh crore and domestic advances increased 12.8% to Rs 8.97 lakh crore during the same period.

Sensex Today | Nifty Midcap 100 index rose 0.5 percent led by Voltas, Godrej Properties, Linde India

ALERT | Nifty Bank hits fresh record high

RITES has signed an MoU with Indian Institute of Technology, Madras (IIT-Madras) to collaborate for green energy projects in the field of transport and mobility. The partnership aims at finding novel infrastructure solutions for the transportation and storage of green hydrogen and green ammonia.

-Buy call, target Rs 4,574 per share
-Standalone revenue would grow by 17% YoY versus estimate of 11.2% growth
-Consensus expectations of 14% growth in standalone revenue
-Jewellery segment is expected to grow 18% YoY, slightly above our estimate
-Watches and wearables to grow 6% YoY while eye care is expected to contract by 1% YoY
-Emerging business is expected to grow 24% YoY
-Caratlane is expected to report strong 30% growth
-Company added 76 new stores in the standalone business and 10 stores for caratlane during quarter

Capri Global Capital achieved a remarkable 75% year-on-year (y-o-y) growth in new car loans and disbursed over Rs 10,000 crore to around 94,000 customers. This represents approximately 2.5%of India's total passenger vehicle market.

Adani TotalEnergies E-Mobility Limited (ATEL), a wholly owned subsidiary of Adani Total Gas and MG Motor India signed a Memorandum of Understanding (MoU) to strengthen the EV charging infrastructure in India. The joint collaboration to develop the charging solutions for electric vehicle (EV) and value-added services to MG's EV customers nationwide and will underpin India's rapidly evolving EV ecosystem by helping build a robust and efficient charging infrastructure.

United Breweries has received an order for tax demand (along with interest and penalty) of Rs 263.72 crore for FY20 from the Maharashtra State Goods & Service Tax Department.

Market at 12 PM

At noon, the Sensex was up 455.17 points or 0.61 percent at 74,703.39, and the Nifty was up 133.00 points or 0.59 percent at 22,646.70. About 1,806 shares rose, 1,500 shares fell, and 111 wereunchanged.

South Korean auto majors Hyundai Motor Company (HMC) and Kia Corporation on April 8 announced a partnership with homegrown battery maker Exide Energy Solutions Ltd for electric vehicle battery localisation in India.

Exide Industries stock surged 10 percent after the announcement to hit a 52-week high of Rs 354. "HMC and group firm Kia Corporation have signed a Memorandum of Understanding (MOU) with Exide Energy Solutions Ltd, a leading Indian battery company, as part of their electric vehicle (EV) expansion plans," Hyundai Motor Group said in a statement.

Exide Energy Solutions (EES) is a wholly-owned subsidiary of Kolkata-based Exide Industries Ltd, a leading lead-acid battery supplier in India with over 75 years of experience and market leadership in lead-acid batteries.

Indian IT services companies are set to announce their fourth quarter earnings from this week onwards, kickstarting with the country’s largest software exporter Tata Consultancy Services’ (TCS) numbers on April 12. The January-March quarter went by with continued macroeconomic uncertainties, hiring slowdown, extended furloughs.

Accenture’s recent tepid earnings and weak guidance got the analysts further worried about the fate of the Indian IT companies in the year 2024-2025 amid continued pressure on discretionary spending.

Here are the five key themes to watch out for in the company management's narratives, as they set themselves up for the upcoming fiscal. Read More

Stock Market LIVE Updates | Auto stocks lead rally on strong FADA sales numbers

Shares of Eicher Motors, Maruti Suzuki and M&M were the top gainers on the list of Nifty 50 stocks, surging 3-5 percent.

Shares of Nykaa parent FSN E-commerce surged as much as 5 percent in early trade on April 8 after the company painted expectations of a strong growth outlook in Q4.

In its latest business update, the company stated that it anticipates a "high twenties" on-year growth in revenue during the January-March quarter. Nykaa also clocked in a "early thirties" growth in Gross Merchandise Value (GMV), which represents the total value of goods sold through its e-commerce platforms before any deductions.

The company projected net sales value growth exceeding 25 percent year-on-year, mirroring its robust revenue growth.

Edelweiss Financial Services has announced the opening of the public issue of secured redeemable non-convertible debentures (NCDs) of the face value of Rs 1,000 each for an amount up to Rs 1,000 million, with a green shoe option of up to Rs 1,000 million, cumulatively aggregating up to Rs 2,000 million.

Eicher Motors (CMP 4031) presenting a compelling buy opportunity with a stop at 3823 and targets at 4101/4201, driven by momentum play.