Post Session: Quick Review

Indian equity benchmarks ended first trading session of FY25 with gains of around half a percent amid value buying. Markets scaled up new high levels during the day. Till the end of the session, markets remained in green terrain. Traders reacted to core industries data. The broader indices, the BSE Mid cap index ended with gains of over one and half percent, Small cap index ended with gains of above three percent. Healthy buying was witnessed in Realty and Metal sectors’ stocks.

Markets made optimistic start and added more points, as traders got encouragement with the government data showing output of the eight key infrastructure sectors - known as the core sector - rose to a three-month high of 6.7 per cent year-on-year (Y-o-Y) in February from 4.1 per cent in January. Traders took note of Finance Minister Nirmala Sitharaman’s statement that India's gross domestic product (GDP) is on track to grow by 8 percent or more in the quarter ended March 31. Indices continued to trade higher in afternoon session, traders took support with domestic rating agency Care Ratings’ report that the gross non-performing assets (GNPAs) of the Indian banking system are set to improve further to up to 2.1 per cent by the end of FY25. It mentioned GNPAs are likely to come at 2.5-2.7 per cent in FY24 and will improve further to 2.1-2.4 per cent by the end of FY25. Furthermore, Reserve Bank said India's forex reserves increased by $140 million to touch its all-time high of $642.631 billion during the week ended March 22. This is the fifth consecutive week of a jump in the overall reserves. The kitty had increased by $6.396 billion to $642.492 billion in the previous reporting week. In late afternoon session, investors continued to hunt for fundamentally strong stocks. Some optimism also came as Crisil Ratings said the credit quality outlook for Indian corporates remains positive for the April-September period of the 2024-25 fiscal year with upgrades continuing to outpace downgrades. 

On the global front, European markets were closed on Monday on the account of Easter holiday. Asian markets ended mixed as traders reacted to US inflation data released on Friday that increased by slightly less than expected in February. Back home, Government e Marketplace (GeM) has closed the financial year FY24 with Rs 4 lakh crore in Gross Merchandise value (GMV). This testifies to the portal’s unique digital capabilities and functionalities that have facilitated greater efficiency, transparency, and seamlessness in public procurement.

The BSE Sensex ended at 74,014.55, up by 363.20 points or 0.49% after trading in a range of 73,909.39 and 74,254.62. There were 19 stocks advancing against 11 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 1.64%, while Small cap index was up by 2.98%. (Provisional)

The top gaining sectoral indices on the BSE were Realty up by 4.18%, Telecom up by 3.44%, Metal up by 3.39%, Basic Materials up by 2.91% and Utilities was up by 2.62%, while Auto down by 0.25% and Consumer Durables down by 0.05% was the only losing indices on BSE. (Provisional)

The top gainers on the Sensex were JSW Steel up by 4.88%, Tata Steel up by 4.62%, Ultratech Cement up by 2.38%, NTPC up by 1.82% and Larsen & Toubro up by 1.66%. On the flip side, Titan Company down by 1.76%, Nestle down by 1.22%, Bharti Airtel down by 0.82%, Indusind Bank down by 0.77% and Tech Mahindra down by 0.45% were the top losers. (Provisional)

Meanwhile, the output of eight core industries posted a growth of 6.7 per cent in February 2024 as compared to 4.1 per cent in January 2024, led by double-digit upticks in coal, natural gas and cement. The output of core sectors was 7.4 per cent in February 2023. The Eight Core Industries - coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity - comprise 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP).

Cement production, having 5.37 per cent weight increased by 10.2 per cent in February, 2024 over February, 2023 and its cumulative index increased by 9.1 per cent during April to February, 2023-24 over corresponding period of the previous year. Coal production, having 10.33 per cent weight increased by 11.6 per cent in February, 2024 over February, 2023 and its cumulative index increased by 12.1 per cent during April to February, 2023-24 over corresponding period of the previous year. Crude oil production, having 8.98 per cent increased by 7.9 per cent in February, 2024 over February, 2023 and its cumulative index increased by 0.5 per cent during April to February, 2023-24 over corresponding period of the previous year.

Electricity generation, having 19.85 per cent weight increased by 6.3 per cent in February, 2024 over February, 2023 and its cumulative index increased by 6.8 per cent during April to February, 2023-24 over corresponding period of the previous year.  Natural Gas production, having 6.88 per cent increased by 11.3 per cent in February, 2024 over February, 2023 and its cumulative index increased by 6.0 per cent during April to February, 2023-24 over corresponding period of the previous year.  Petroleum Refinery production, having 28.04 per cent weight increased by 2.6 per cent in February, 2024 over February, 2023 and its cumulative index increased by 3.8 per cent during April to February, 2023-24 over corresponding period of the previous year. 

Steel production, having 17.92 per cent weight increased by 8.4 per cent in February, 2024 over February, 2023 and its cumulative index increased by 12.9 per cent during April to February, 2023-24 over corresponding period of the previous year. However, Fertilizers production, having 2.63 per cent weight declined by 9.5 per cent in February 2024 over February, 2023, while its cumulative index increased by 4.1 per cent during April to February, 2023-24 over corresponding period of the previous year.

The CNX Nifty ended at 22,462.00, up by 135.10 points or 0.61% after trading in a range of 22,427.75 and 22,529.95. There were 31 stocks advancing against 19 stocks declining on the index. (Provisional)

The top gainers on Nifty were JSW Steel up by 5.03%, Tata Steel up by 4.68%, Divi's Lab up by 3.56%, Shriram Finance up by 3.05% and Adani Ports up by 2.54%. On the flip side, Eicher Motors down by 1.81%, Titan Company down by 1.67%, Nestle down by 1.40%, Bajaj Auto down by 1.16% and LTIMindtree down by 1.13% were the top losers. (Provisional)

Asian markets settled mixed on Monday. Market in Hong Kong closed for Easter holiday. South Korea's Kospi average ended almost flat with gains as soft US inflation data boosted bets that the US central bank could cut interest rates in June. US prices moderated in February, with the personal consumption expenditures (PCE) price index rising 0.3%, data showed. Chinese shares gained after an official survey showed Chinese manufacturing activity expanded in March, with the official purchasing managers' index coming in at 50.8, up from 49.1 a month earlier. Also, China's factory activity expanded at its fastest rate in 13 months, the private sector Caixin PMI showed. The Caixin/S&P Global manufacturing PMI inched up to 51.1 in March from 50.9 the previous month, above forecasts of 51 and marking an expansion for the fifth consecutive month. Japanese shares declined sharply as the Japanese currency yen pinned near intervention zone. Meanwhile, Japan’s Nikkei share average dropping below the key 40,000 mark due to profit booking on the first day of the country’s financial year.