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End Session Commentary

Nifty holds 22K despite modest losses, banks & IT dip

(17:26, 26 Mar 2024)

Domestic indices shed some points today, ending their three-day rally. Light trading due to the truncated week kept things subdued. The benchmark Nifty held the 22,000 mark. While realty stocks surged, banks and IT took a hit. Interestingly, broader indices outperformed the benchmark indices.

The barometer index, the S&P BSE Sensex slipped 361.64 points or 0.50% to 72,470.30. The Nifty 50 index lost 92.05 points or 0.42% to 22,004.70. The 50-unit index rose 1.28% in the previous three sessions.

HDFC Bank (down 1.11%), Infosys (down 1.09%) and Reliance Industries (down 0.88%) were major drags.

In the broader market, the S&P BSE Mid-Cap index rose 0.71% and the S&P BSE Small-Cap shed 0.11%.

The market breadth was weak. On the BSE, 1,369 shares rose and 2,603 shares fell. A total of 118 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 4.90% to 12.82.

Economy:

India's foreign exchange (forex) reserves increased $6.396 billion to $642.492 billion for the week ended March 15, according to the latest RBI data. In the previous reporting week, the overall reserves had risen by $10.47 billion to $636.095 billion.

Gold reserves increased by $425 million to $51.14 billion during the week, the RBI said. The special drawing rights (SDRs) were up by $65 million to $18.276 billion.

India's reserve position with the IMF was down by $129 million to $4.689 billion in the reporting week, the apex bank data showed.

Numbers to track:

The yield on India's 10-year benchmark federal paper declined 0.01% to 7.086 as compared with previous close 7.087.

In the foreign exchange market, the rupee is edged higher against the dollar. The partially convertible rupee was hovering at 83.2825, compared with its close of 83.6150 during the previous trading session.

MCX Gold futures for 5 April 2024 settlement rose 0.43% to Rs 66,305.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, fell 0.43% to 104.03.

The United States 10-year bond yield declined 0.50% to 4.230.

In the commodities market, Brent crude for May 2024 settlement lost 34 cents or 0.39% to $ 86.75 a barrel.

Global Markets:

Dow futures jump 74 points, indicating a potential uptick for US stocks at today's opening bell.

Most of the European and Asian stocks advanced on Tuesday, as anticipation of more key economic readings this week kept sentiment on edge.

US stocks slipped on Monday, as investors remained nervous ahead of more cues on inflation and the Federal Reserve. Regulatory action against some of the biggest technology companies also weighed on sentiment.

Stocks in Spotlight:

Adani Ports and Special Economic Zone rose 1.80% after the company has entered into a definitive agreement to acquire 95% stake of Gopalpur Ports Limited (GPL) from the existing shareholders [about 56% stake from SP Port Maintenance Private Limited (SP Group) and about 39% stake from Orissa Stevedores Limited (OSL)] of GPL. The equity consideration for 95% stake is Rs. 1,349 crore, with an enterprise value of Rs. 3,080 crore.

Bharti Airtel fell 1.60%. Bharti Hexacom, a subsidiary of the company, is launching an initial public offering (IPO) to allow existing shareholder TCIL to sell a portion of its holdings. Telecommunications Consultants India (TCIL) will offload 15% stake through offer for sale.

Ultratech Cement declined 0.89%. The company said that it has commissioned 1 million ton per annum (MTPA) brownfield cement capacity at Roorkee, Uttarakhand taking the unit?s capacity to 2.1 MTPA.

Hindustan Aeronautics added 4.10% after the company has signed a contract with Guyana Defence Force, Government of Guyana for supply of aircraft and other equipment for a value of MUSD 23.37(approximately Rs 194 crore).

UNO Minda added 3.91% after the company announced the signing of a technical license agreement (TLA) with Starcharge Energy for manufacturing and selling electric vehicle supply equipments (EVSE) in India.

Rail Vikas Nigam (RVNL) jumped 4.28% after the company announced that it has entered into a Memorandum of Understanding (MoU) with the Airports Authority of India (AAI) for the construction of a subway/underpass in Kolkata.

JSW Energy fell 0.48%. The company said that its step-down subsidiary, JSW Renewable Energy (Coated) has signed a business transfer agreement with Reliance Power to acquire a 45 MW wind project in Maharashtra for Rs 132 crore.

Zydus Lifesciences advanced 1.86% after the company announced that it has received tentative approval from the United States Food and Drug Administration (USFDA) to market Letermovir tablets. The drug had annual sales of $289.5 million in the United States.

IPO Update:

The initial public offer (IPO) of SRM Contractors received 1,54,35,840 bids for shares as against 43,40,100 shares on offer, according to stock exchange data at 17:00 IST on Tuesday (26 March 2024). The issue was subscribed 3.56 times.

The issue opened for bidding on Tuesday (26 March 2024) and it will close on Thursday (28 March 2024). The price band of the IPO is fixed at Rs 200 to 210 per share. An investor can bid for a minimum of 70 equity shares and in multiples thereof.