Closing Bell: Sensex, Nifty end higher amid volatility; auto, pharma, realty gain, IT drags

Indian benchmark indices ended on positive note for the third consecutive session on March 22. At close, the Sensex was up 190.75 points or 0.26 percent at 72,831.94, and the Nifty was up 84.80 points or 0.39 percent at 22,096.80.

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

Domestic equities joined the global rally after the US and UK central banks kept the rate unchanged. Nifty after a subdued start edged higher to close with gains of 85 points (+0.4%) at 22097 levels. Broader market too ended in the green. Barring IT, all sectors ended in green with Auto, Pharma, and Realty being top gainers. IT sector saw some selling after US technology major Accenture lowered its revenue forecast for FY24. Accenture revised its full-year revenue growth projection at 1 % to 3 % from 2 % to 5 %.

Markets opened weak but soon gained momentum including broader space amid positive cues. Next week being a truncated week and the derivatives' monthly expiry, we might see some volatility while Nifty is likely to consolidate at higher levels. Also, US GDP data and other key economic data would keep investors busy.

Markets traded volatile but managed to end higher, tracking favorable global cues. After the initial downtick, Nifty inched gradually higher for most of the session however profit taking in the final hour trimmed the gains. Eventually, it settled at 22096.75; up by 0.39%. Meanwhile, a majority of sectors ended higher wherein realty, auto and pharma were among the top performers. The broader indices also extended rebound and gained over half a percent each.

Participants are taking comfort from the favorable global cues however Nifty is still facing a hurdle around the short term moving average i.e. 20 DEMA. We reiterate our view to focus on stock selection and trade management until we get some clarity over the next directional move.

Nifty witnessed two days of recovery following a doji formation on the daily chart, indicating a bullish reversal. Moreover, the Nifty has reclaimed the critical 55-day exponential moving average.

However, Nifty needs to cross over 22,100 to witness a clear rally towards the all-time high of 22,525.

The domestic market swiftly rebounded from an initial downturn and maintained a positive trajectory throughout the day, buoyed by favourable global cues driven by dovish comments from the BoE and buying activity at lower levels in the wake of a recent sell-off. Additionally, the retreat of crude oil prices from recent highs contributed to the positive sentiment. While most sectors experienced gains, the IT remained in the red due to subdued guidance from Accenture, a major global IT player.

Markets displayed volatility but managed to end higher amid gains in realty, telecom and auto stocks whereas IT stocks faltered sharply after Accenture slashed its full-year revenue guidance which renewed concerns of the sector in an uncertain global environment. FIIs offloading shares of domestic equities coupled with a sharp fall in the currency level has been indicating that the road ahead for equity markets could be bumpy.

The Nifty opened at a gap down today. However, it recovered and closed with gains. On the daily charts we can observe that the index is in the process of retracing the fall it has witnessed from 22526 – 21710. The key retracement levels are placed at 22118 – 22214. The dip found buying interest at 21900 – 21880 where the 20-hour moving average was placed. The retracement process is still not complete and hence the rally can continue.

The daily and hourly momentum indicator is providing a divergent signal which can lead to consolidation. The range is likely to be 22200 – 21900. Stock specific action is likely to continue during this period.

Bank Nifty also consolidated within a narrow range around the key daily moving averages. On the upside the key retracement level can continue till 47000 – 47200 over the next few trading sessions. The crucial support zone is placed at 46500 – 46400.

The rupee traded weak, dropping by more than 0.25 to below 83.37, as the dollar index rallied above 104.08. This added pressure on the rupee following a positive gap up opening witnessed yesterday at 83.05. The rupee has fallen sharply by more than 0.30rs from its high of 83.05 over the last two days. Despite the dovish view on interest rates in the US, specific data-driven interest rate cuts are still distant. The rupee's range can be expected to be between 82.85-83.55, with volatility likely to persist.

Gold prices experienced a correction over the last two days, influenced by a rise in the dollar index and profit booking following a strong bullish rally in March, which saw prices climb from 63000 to 66900. Despite this correction, the overall outlook for gold remains positive. However, some volatility and further correction may be expected in the near term. Gold is anticipated to trade within a range of 65250-66500.

Indian rupee ended 27 paise lower at 83.42 per dollar versus previous close of 83.15.

: Indian benchmark indices ended on positive note for the third consecutive session on March 22.

At close, the Sensex was up 190.75 points or 0.26 percent at 72,831.94, and the Nifty was up 84.80 points or 0.39 percent at 22,096.80. About 2434 shares advanced, 1209 shares declined, and 119 shares unchanged.

Top gainers on the Nifty included UPL, Maruti Suzuki, Hero MotoCorp, Bajaj Auto and Sun Pharma, while losers were Wipro, Infosys, LTIMindtree, HCL Technologies and TCS.

Metal, auto, realty, FMCG, capital goods, healthcare and power up 0.5-1 percent, while Information Technology index down 2 percent.

BSE midcap index up 0.3 percent and smallcap index up 1 percent.

Ace investor Vijay Kedia-backed Tac Security’s Rs 29.99-crore public issue is set to open for bids on March 27. If successful, it will be the first pure-play cyber security company to be listed on Indian stock exchanges.

After the IPO, founder Trishneet Arora will hold a 54.02 percent stake in the company, followed by Kedia with 10.95 percent and his son Ankit with 3.65 percent. Charanjit Singh and Subinder Jeet Singh Khurana will hold 2.92 percent and 1.46 percent stakes. Read More

The Hon’ble Securities Appellate Tribunal (SAT), upon an appeal being preferred against the SEBI Order, passed an order granting stay to the effect and operation of the SEBI order with immediate effect pending appeal and directed the company to deposit 50% of the interest amount in an interest bearing account maintained with SEBI within a period of two weeks.

 Stock Market LIVE Updates | DAM Capital View On IT space:

-Accenture guidance cut to weigh on Indian IT
-Flavour for industry remains towards larger deals & longer durations
-Book to bill should be looked at critically for growth expectations
-Performance in healthcare/public services still better than heavy weights like BFSI/CMT
-See better propositions likely for companies like Birlasoft
-IT industry is likely to experience persistently lower growth
 

The Board of Directors of Century Textiles at its meeting held March 22, 2024 reviewed the operations of Textile Business operations at Birla Century, Bharuch and after consideration approved the proposal for discontinuation of operations at the said Unit except some minor manufacturing operations and other allied activities relating to supplying Yarn to Birla Advanced Knits Private Limited a Joint Venture of the Company and Grasim Industries Limited.

Sensex Today | Market at 3 PM

The Sensex was up 205.11 points or 0.28 percent at 72,846.30, and the Nifty was up 104.60 points or 0.48 percent at 22,116.60. About 2274 shares advanced, 1042 shares declined, and 100 shares unchanged.

-Upgrade HPCL to buy call, target raised to Rs 570 per share
-Upgrade IOC to buy call, target raised to Rs 195 per share
-Reiterate buy on BPCL, target price raised to Rs 735 per share
-Marketing overhang complete, refining outlook remains healthy
-Build in refining margins of USD 9/bbl for FY25F/26

Nifty opened on a strong note moving past the significant 50EMA zone of 21870 levels and breached above the 22000 zone during the intraday session to improve the bias with the broader markets also actively participating to support the indices. The index needs to move past the 22300 zone to further strengthen the bias and thereafter anticipate to retest the previous peak levels of 22525 zone. The support for the day is seen at 21900 level while the resistance would be seen at 22200.

Banknifty also has indicated a trend reversal on the daily chart to move past the significant 50EMA level of 46600 zone to improve the bias and further rise can be anticipated with support maintained near 46000 levels. Banknifty would have the daily range of 46300-47200 levels

-Buy call on Tech Mahindra in large-caps
-Buy call on Coforge, Birlasoft & eClerx in midcaps
-Reduce call on TCS, Wipro, LTIMindtree, L&T Tech & Mphasis
-Accenture cuts FY24 revenue growth guidance cut to +1-3 percent Y-Y
-Guidance cut on delayed decision-making & weak discretionary spends
-Retain cautious stance as discretionary revival still away, remain selective

Indian Rupee depreciated by 0.26% on Friday on strong US Dollar and weak Asian currencies. FII outflows also put downside pressure. However, weak crude oil prices and positive domestic markets cushioned the downside. The US Dollar strengthened on the weak Euro and Pound. Euro declined as the Swiss National Bank (SNB) surprised the markets by cutting interest rates by 25 bps to 1.5%, raising the odds of a rate cut by the ECB in June 2024. SNB is the first major central bank to cut interest rates. The pound also fell after the Bank of England kept interest rates unchanged at 5.25%. Two hawkish committee members who voted for a rate hike in the previous meeting also voted for a no rate hike. Robust economic data from the US also favoured the US Dollar.

We expect the Rupee to trade with a negative bias on the strong US Dollar and expectations of a bounce back in crude oil prices. However, a positive tone in the domestic markets may support Rupee at lower levels. Any selling of Dollars by the RBI may also support Rupee. USDINR spot price is expected to trade in a range of Rs 83.10 to Rs 83.60.

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Hero MotoCorp has launched the VIDA Advantage package for its VIDA V1 Pro-electric scooter. The VIDA Advantage package offers peace of mind to customers by making EV ownership hassle-free.

Star Housing Finance has entered into a co-lending partnership with Tata Capital Housing Finance. The partnership aims to leverage domain of Star Housing Finance in low ticket affordable housing finance space and the mutual synergies arising out of operations.

Larsen & Toubro's board of directors will be meeting on March 27 to seek approval for fund raising including via debt issue.

-Upgrade to buy call, target price raised to Rs 4,300 per share
-Recent share price correction (-14 percent in 1 month) provides an attractive entry point
-Weakness, likely driven by softness in broader market/modest near-term earnings, is overdone
-Medium-term thesis of strong growth in non-RAC segments remains intact
-Assuming RAC market share will fall (19 percent/10 percent by FY30/40)
-Other segments likely to contribute 50 percent revenue in the next five years

-Accenture's cut to its FY Guide, & cautious commentary has raised concerns
-Concerns raised on pace of revenue recovery for India IT
-View of industry bottoming out on YoY growth remains
-Pace of recovery assumed over coming quarters could be slower than expected
-FY25 consensus revenue forecasts at risk

The United States Food and Drug Administration (USFDA) has inspected Neuland Laboratories' Unit 1 manufacturing facility at Bonthapally, Hyderabad from 18th to 22nd of March 2024.

The inspection at Unit 1 by the USFDA has been successfully completed, with no observations under Form 483.

Sensex Today | Market at 1 PM

The Sensex was up 212.94 points or 0.29 percent at 72,854.13, and the Nifty was up 85.20 points or 0.39 percent at 22,097.20. About 2234 shares advanced, 1020 shares declined, and 92 shares unchanged.

Bank of India's board of directors will be meeting on March 27 to consider the proposal of fund raising by issue of long term (infra) bonds.

Sensex Today | BSE Smallcap index added 1 percent supported by Manoj Vaibhav Gems N Jewellers, Permanent Magnets, Sarda Energy

Karnataka Bank has launched qualified institutions placement (QIP) issue on March 21, to raise funds. The floor price has been fixed at Rs 231.43 per share.

Shree Cement Limited announced the launch of Bangur Concrete with the commissioning of its first Greenfield Ready Mix Concrete (RMC) plant in Hyderabad.

Sensex Today | BSE Auto index gained 1 percent led by Hero MotoCorp, Bajaj Auto, Maruti Suzuki

The Board of Directors of the Dhanlaxmi Bank at its meeting held on March 22, 2024, has considered and approved an increase in the amount of proposed Rights Issue of the Bank upto Rs. 300 Crore (including premium) to the eligible Shareholders of the Bank.

Stock Market LIVE Updates | HSBC View on Cement Sapce

-Cement prices have fallen sharply in Q4
-Most price declines recorded in the South, North and West markets
-Cement spreads have turned downwards
-Cement spreads now imply 10-12 percent sequential decline in industry unitary EBITDA
-Cut estimates and targets, reflecting weakness in cement prices
-Prefer buy-rated UltraTech, target price cut to Rs 10,900 per share
-Prefer buy-rated Dalmia Bharat target price cut to Rs 2,500 per share
 

Vikasa India EIF I Fund has picked 59,210 equity shares in JSW Holdings at an average price of Rs 6,253.26 per share, via open market transactions, amounting to Rs 37.02 crore.

-Overweight call, target price at Rs 7,450 per share
-Coforge issued further details on purpose of fundraising & type of acquisition being pursued
-Areas of interest for potential acquisition include horizontal capability such as cyber security, existing verticals such as banking & travel

The share price of Prestige Estates Projects rallied 4 percent on March 22 after the company acquired 62.5 acres of land in Indirapuram Extension, NCR.

The acquired land will be developed primarily as residential and will be branded under the ‘The Prestige City’ format.

The cost of acquisition amounts to Rs 468 crore, along with a revenue share. Read More

The Lemon Tree Hotels share price trading flat on March 22 after the company signed a new property in Jharkhand's Ranchi.

The property, which will be franchised by Lemon Tree Hotels Limited, is expected to open in FY25. The hotels will have 45 rooms, a restaurant, a bar, banquet facilities, meeting rooms, a swimming pool, a fitness centre and other public areas.

This will be the third upcoming property of the company in the state of Jharkhand. Read More

Shares of Amber Enterprises surged 3 percent on March 22 after global brokerage firm CLSA shared a “buy” rating on the counter amid attractive valuations, raising target price to Rs 4,300, implying an upside of over 19 percent from the current level.

After sliding 14 percent in the past month, analysts at CLSA said the recent correction offers an attractive entry point. "The weakness likely driven by softness in broader markets is overdone. The medium-term thesis of strong growth in non-RAC (refrigeration and air conditioning) segment remains intact," they said. Read More

Muthoot Capital Services has completed a securitization transaction, raising Rs 61.4 crore by assignment of loan receivables aggregating to Rs 66.07 crore. This is the second securitization / direct assignment transaction carried out by the company during FY24.

Stock Market LIVE Updates | CLSA View On IT

-Reiterate sell call on Wipro, HCL, TCS & LTIMindtree
-Sharp downward revision in Accenture guidance implies no major pick-up in H2
-This is in-line with our channel checks, Indian IT company commentary
-Indian IT company's commentary & outlooks for banking & telecom sector still weak
-Maintain cautious stance on IT sector as it remains in an earnings downgrade cycle
-Earnings downgrade cycle not reflected in current valuations

Sensex Today | BSE Bank index up 0.5 percent supported by IDFC First Bank, Bank of Baroda, ICICI Bank

The U.S. dollar was set for a second week of broad gains on Friday, with even a rate hike in Japan unable to halt its march, and a surprise cut in Switzerland highlighting the gap between the Federal Reserve and global peers in interest rate settings.

Sensex Today | Market at 11 AM

The Sensex was up 48.85 points or 0.07 percent at 72,690.04, and the Nifty was up 23.90 points or 0.11 percent at 22,035.90. About 2114 shares advanced, 1006 shares declined, and 108 shares unchanged.

NLC India's board of directors will be meeting on March 27 to consider raising foreign currency loan through external commercial borrowings (ECB) upto $600 million through direct route. The board will also seek external assistance from Multilateral Development Bank (MDBs) through Department of Economic Affairs (DEA) for upcoming renewable power projects.

Indian Renewable Energy Development Agency said the board meeting will be held on March 28 to consider the borrowing programme up to Rs 24,200 crore for FY 2024-25. The borrowing includes fund raising through issuance of bonds, term loans, commercial paper etc. from domestic & international markets.

Lemon Tree Hotels: The company has signed franchise agreement for a new hotel property in Ranchi, Jharkhand. The said hotel property is expected to open in FY25.

Stock Market LIVE Updates | Nomura View on IT

-Buy call on Tech Mahindra in large-caps
-Buy call on Coforge, Birlasoft & eClerx in midcaps
-Reduce call on TCS, Wipro, LTIMindtree, L&T Tech & Mphasis
-Accenture cuts FY24 revenue growth guidance cut to +1-3 percent Y-Y 
-Guidance cut on delayed decision-making & weak discretionary spends
-Retain cautious stance as discretionary revival still away, remain selective

Stock Market LIVE Updates | CLSA View On OMCs

-Brent breakout at USD 88/bbl breakeven point for marketing margins
-Any further move in the crude price could leave investors worried
-Investors worry if marketing margins will turn negative for IOC/BPCL/HPCL
-Given upcoming national elections, a retail price hike is unlikely
-Lack of pricing power of IOC, BPCL, HPCL at high crude prices likely to be exposed
-Reiterate sell call on IOC, BPCL, HPCL
 

Stock Market LIVE Updates | CLSA View On IT sector

-Reiterate sell call on Wipro, HCL, TCS & LTIMindtree
-Sharp downward revision in Accenture guidance implies no major pick-up in H2
-This is in-line with our channel checks, Indian IT company commentary
-Indian IT company's commentary & outlooks for banking & telecom sector still weak
-Maintain cautious stance on IT sector as it remains in an earnings downgrade cycle
-Earnings downgrade cycle not reflected in current valuations

Sensex Today | Nifty Bank index up 0.3 percent supported by Axis Bank, ICICI Bank, IDFC First Bank

Castrol has teamed up with KTM, as Castrol POWER1, the company’s performance lubricant will be powering the upcoming second season of its much-awaited KTM Cup 2024 as the official Performance Partner.

Tata Communications has received approval from the board of directors to enter into a business transfer agreement for the hive-off of its identified new edged digital services business to its wholly owned subsidiary, Novamesh as a going concern on slump sale basis, for Rs 458 crore.

Sensex Today | Nifty Realty index gained 1 percent led by Brigade Enterprises, Prestige Estate, Soha

Crompton Greaves Consumer Electricals has received notice for tax demand of Rs 68.67 crore (comprising tax of Rs 57.13 crore and interest of Rs 11.54 crore) from the Assessment Unit of Income Tax Department for the Assessment Year 2022-23. The impact of the same on financials is Rs 54 crore.

The trading in equity shares of Enser Communications will commence on the NSE Emerge with effect from March 22. The issue price is Rs 70 per share. Its equity shares will be available in trade-for-trade surveillance segment.

Enfuse Solutions will make its debut on the NSE Emerge on March 22. The final issue price has been fixed at Rs 96 per share. Its equity shares will be available in trade-for-trade surveillance segment.

Sensex Today | BSE Smallcap index up 0.5 percent led by Sarda Energy, Orient Bell, eMudhra

In the near-term the market is likely to consolidate around the present levels without sharp up moves or down moves. In view of the truncated next week with only three trading days, volumes have dipped significantly in recent days. This is likely to continue. However, big intraday dips are likely to be bought since DIIs are sitting on big cash and there is value in pockets of largecaps like banking. IT is likely to remain under pressure in view of the poor guidance from Accenture. Any sharp intraday up moves may face selling from FIIs since the US bond yields continue to remain high.

Global market construct continues to be supportive with the US and Japanese markets posting new record highs. A significant takeaway from the Fed chief’s message yesterday is the upward revision in the expected US GDP growth in 2024 to 2.1% from 1.4%. This augurs well for the global economy.

KP Green Engineering will list its equity shares on the BSE SME on March 22. The final issue price has been fixed at Rs 144 per share. The stock will be in trade-for-trade segment for 10 trading days.

Mahindra Lifespace Developers has launched a residential project Mahindra Zen in Bengaluru South. The said project is registered with Karnataka Real Estate Regulatory Authority.

The Mumbai Port Authority (MbPA) has alloted land and building (workshop land and clark basin), measuring 14.55 acres, which is adjacent to MDL Mumbai Yard, on long term lease basis to Mazagon Dock Shipbuilders for 29 years, with effect from April 1, 2024 to March 31, 2053. The total allotment cost is Rs 354 crore.