Sensex, Nifty end flat amid volatility

Indian equity benchmarks ended flat in a volatile session on Friday amid a negative trend in global markets. Markets made a cautious start and traded range bound throughout the session as six-member rate-setting panel of the Reserve Bank of India (RBI) kept the benchmark interest rates unchanged at 6.5 per cent for the seventh time in a row. It also expressed concerns over food inflation given IMD's prediction of above-normal maximum temperatures during April-June. The RBI also retained GDP growth forecast of 7% for 2024-25 financial year, with June quarter growth at 7%, and September quarter at 6.9%. In the third and fourth quarter the growth is expected to be 7% each. This is lower than the 7.6% expansion estimated for FY24. 

Markets continued their lackluster trade in late afternoon deals, as provisional data from the NSE showed foreign institutional investors (FIIs) net sold shares worth Rs 1,136.47 crore on April 4, 2024. Some cautiousness also came with ICRA’s report that growth of the Indian Securitisation market is set to slow this fiscal year keeping the trend witnessed in the last quarter of fiscal 2024 as non-banking finance companies and banks get into co-lending reducing the demand for such papers. However, markets managed to erase all the losses to end flat as traders found support with the United Nations stating that India has become the world’s fastest-growing major economy and a bright spot for the Asia-Pacific in 2023 amid strong household consumption and public investment in infrastructure. Some support also came with the Reserve Bank of India (RBI) Governor Shaktikanta Das’ statement that the consumption is likely to support economic growth in 2024-25, adding that urban consumption stayed buoyant. He said the resilience in cement production, together with strong growth in steel consumption and production and import of capital goods, augur well for the investment cycle to gain further traction.

On the global front, European markets were trading lower after Fed officials warned that interest rate cuts may not be imminent. Escalating geopolitical tensions also weighed on sentiment. Asian markets settled mostly down on Friday, as hawkish comments from a trio of Fed policymakers as well as rising oil prices spurred more uncertainty about the outlook for U.S. interest rates

Finally, the BSE Sensex rose 20.59 points or 0.03% to 74,248.22 and the CNX Nifty was down by 0.95 points to 22,513.70. 

The BSE Sensex touched high and low of 74,361.11 and 73,946.92 respectively. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices ended in green; the BSE Mid cap index rose 0.50%, while Small cap index was up by 0.50%.

The top gaining sectoral indices on the BSE were Realty up by 1.49%, Bankex up by 0.83%, FMCG up by 0.51%, PSU up by 0.45% and Telecom up by 0.24%, while TECK down by 0.51%, IT down by 0.44%, Capital Goods down by 0.22%, Auto down by 0.17% and Oil & Gas down by 0.15% were the top losing indices on BSE.

The top gainers on the Sensex were Kotak Mahindra Bank up by 2.09%, Bajaj Finserv up by 1.56%, HDFC Bank up by 1.41%, ITC up by 1.21% and SBI up by 0.67%. On the flip side, Ultratech Cement down by 1.82%, Larsen & Toubro down by 1.54%, Bharti Airtel down by 1.28%, Bajaj Finance down by 1.25% and Maruti Suzuki down by 1.21% were the top losers.

Meanwhile, amid rising rural demand, the Reserve Bank of India (RBI) Governor Shaktikanta Das has said that the consumption is likely to support economic growth in 2024-25, adding that urban consumption stayed buoyant. He said the resilience in cement production, together with strong growth in steel consumption and production and import of capital goods, augur well for the investment cycle to gain further traction.

Das further noted that the total flow of resources to the commercial sector from banks and other sources at Rs 31.2 lakh crore during 2023-24 is significantly higher than that of last year at Rs 26.4 lakh crore. Besides, he said external demand improved in February with exports registering double digit expansion. Trade deficit, however, widened in February as imports also accelerated.

According to RBI Governor, the outlook for agriculture and rural activity appears bright, with good rabi wheat crop and improved prospects of kharif crops, due to expected normal south-west monsoon. Strengthening of rural demand, improving employment conditions and informal sector activity, moderating inflationary pressures and sustained momentum in manufacturing and services sector should boost private consumption.

The CNX Nifty traded in a range of 22,537.60 and 22,427.60. There were 20 stocks advancing against 28 stocks declining, 2 stocks remained unchanged on the index. 

The top gainers on Nifty were Kotak Mahindra Bank up by 1.99%, SBI Life Insurance up by 1.56%, HDFC Bank up by 1.47%, Bajaj Finserv up by 1.46% and HDFC Life Insurance up by 1.14%. On the flip side, Grasim Industries down by 1.95%, Ultratech Cement down by 1.74%, Larsen & Toubro down by 1.42%, Bajaj Auto down by 1.41% and Bharti Airtel down by 1.28% down by 1.40% were the top losers.

European markets were trading lower; UK’s FTSE 100 decreased 78.17 points or 0.99% to 7,897.72, France’s CAC fell 112.89 points or 1.4% to 8,038.66 and Germany’s DAX lost 258.08 points or 1.42% to 18,145.05.

Asian markets settled mostly down on Friday, tracking overnight declines on Wall Street and ahead of key jobs data due later in the day to gauge the health of the US economy and see what the Federal Reserve might do on interest rates. Meanwhile, hawkish comments from Fed officials and rising oil prices also spurred more uncertainty about the outlook for US interest rates. Japanese shares slumped as a firmer yen against the US dollar dented exporter issues. Markets in China and Taiwan were closed for Ching Ming Festival and Tomb Sweeping Day holiday respectively.