Sensex starts FY22 with a 521-pt gain, ends above 50K; Metals, PSBs shine

Stock market updates: A tug of war between bulls and bears was ultimately won by the bulls on Thursday, the day of the expiry of the weekly F&O contracts. That apart, buoyancy in the global markets on the back of a $2 trillion US government spending plan, and record GST collection for the month of March back home gave the requisite armour to investors.

Among the frontline indices, the benchmark S&P BSE Sensex reclaimed the 50,000-mark on a closing basis and closed at 50,030, after advancing 521 points or 1.05 per cent. Earlier in the day, the index had briefly slipped in the red to touch a low of 49,478.5. On the NSE, the Nifty50 index closed at 14,867 levels, up 177 points or 1.2 per cent.

The index breadth remained firmly in the favour of the bulls as 25 of the 30 constituents on the Sensex and 41 of the 50 constituents on the Nifty settled the session in the green. IndusInd Bank, Kotak Mahindra Bank, ICICI Bank, Bajaj Finance, Sun Pharma, Axis Bank, and UltraTech Cement outperformed the Sensex today, up between 2 per cent and 4 per cent. JSW Steel, Hindalco, Adani Ports, Tata Steel, and Hero MotoCorp were the additional gainers on the Nifty, rallying up to 8 per cent.

On the downside, HUL, Nestle India, TCS, Divis Labs, HDFC Life, TCS, and Titan ended lower between 0.32 per cent and 1.3 per cent.

Taking into consideration the BSE MidCap and SmallCap indices' 1.66 per cent and 2 per cent gains, respectively, the overall market breadth was in the ratio of 1:3 in the favour of advances.

As regards sectoral performance, the Nifty Metal index settled over 5 per cent higher on the NSE today, followed by the Nifty PSU bank index, up 2.6 per cent. The Nifty Bank, Auto, Financial Services, Private Bank, and Pharma indices, meanwhile, gained up to 2 per cent. The Nifty IT and Realty indices closed with less than a per cent gain.

Global markets

Stocks crept higher on Thursday following their weakest quarter in a year, while higher Treasury yields supported the dollar. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.6 per cent, while Japan's Nikkei rose 1.3 per cent as a survey showed big manufacturers' mood bouncing back to pre-pandemic levels.

In Europe, the pan-European STOXX 600 index rose 0.5 per cent, the German DAX climbed 0.6 per cent to hit a record high, while the UK's FTSE 100 also gained 0.6 per cent.

Nasdaq Futures, meanwhile, were last up 0.9 per cent and S&P 500 futures added 0.4 per cent.

Note: Domestic markets shall remain shut on April 2 on account of Good Friday holiday.

(With inputs from Reuters)

4:28 PM

MARKET CLOSING COMMENT :: Ajit Mishra, VP - Research, Religare Broking

Markets started the new financial year on a robust note led by optimism in the global markets. Announcement by US President Joe Biden to invest USD 2.3 trillion in infrastructure boosted sentiments. Initially the benchmark opened gap up but gains fizzled out gradually as the day progressed. However in the second half healthy buying amongst the sectors such as metals, banks, auto supported markets to steadily inch higher. Consequently, the Nifty ended near day’s high at 14,867 levels, with gains of 1.2%. The broader markets outperformed and ended higher in range of 1.6-2%. Barring FMCG, all the sectoral indices closed in positive.

 

Markets are likely to take cues from global peers as stimulus package announcement in the US last night led to renewed buying interest in the global markets. In the near term, positive bias is expected to continue however, rising COVID cases in India would remain a key concern. As Q4 earning season is approaching, Investors focus will shift to earnings announcements and management commentary.

4:19 PM

MARKET OUTLOOK :: Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak Securities

Indian markets pulled back swiftly this week even though it was a short trading week. The Nifty-50 is higher by 2.5% this week while the Nifty Mid Cap 100 Index and the BSE Small Cap Index both are up by 3.8% each. Metal stocks have been the biggest gainers this week with BSE Metal Index climbing by 8.5%. Apart from metals there has been a clear shift towards high quality stocks as it is visible in the gains of Nifty-50 stock basket. Select FMCG IT and pharma stocks also saw gains of more than 4% this week. Amongst the metal stocks JSW Steel is up ~15% this week followed by Tata Steel (up ~13%) and Hindalco (up 7%).

The rally this week has been broad based with nearly 49 stocks from Nifty-50 are showing positive gains. US markets have remained flattish this week because of further rise in bond yields. However, jobs data in the US is likely to be better than expected which could lead to improved sentiment. The US President announced a massive USU$ 2.25 trillion infrastructure package on this Wednesday which will be funded through higher corporate taxes. The record GST collection in March (Rs.1.23 lakh cr) points to the sustained economic recovery even though the number of Covid-19 cases are on the rise.

After the fiscal year end investors are back into the market with more action seen in the mid and small cap space. The Nifty-50 has once again bounced above the 50 DMA which is a good sign. There is a golden crossover in the Nifty Mid Cap 100 Index wherein the 50 WMA has gone above the 200 WMA which signals long term bullish trend. Going forward the RBI policy and earnings season could be the next trigger for the market. The start of FY22 has been very good and April month could likely see more action with the start of the earnings season.

4:15 PM

TECH VIEW :: Rohit Singre, Senior Technical Analyst at LKP Securities

Index closed a week at 14867 with gains of two and half percent and formed a bullish candle after two consecutive bearish candles.  Index has formed a broader consolidation zone of 14300 on the downside and 15400 on the higher side very soon we may see fresh breakout above 14900 zone which can be consider as immediate small consolidation breakout and then we may see next leg of rally towards 15400 odd levels in near term, good support is still at 14700 zone.

4:06 PM

MARKET CLOSING COMMENT :: Vinod Nair, Head of Research at Geojit Financial Services

Markets across the globe were boosted by Biden’s $2.3tn spending plan. The rally in the domestic market was led by positive cues from global peers, strong buying in metal stocks and recovery in banking sector. Metal stocks outshined other sectorial indices on reports of possible price hike. PSU banks were also in focus today as the government announced capital infusion of Rs.14500Cr in 4 PSBs

3:58 PM

MARKET RECAP :: S Ranganathan, Head of Research at LKP Securities

Markets were buoyant today on the back of the American Jobs Plan and the huge federal spend ignited Metal stocks today. Afternoon Trade saw strong investor interest in Banks, Metals & Tyres as GST record collections of a 27% yoy growth for March perked up sentiments despite a long weekend as India rolled out a larger vaccine program today

3:55 PM

Sector of the day :: PSU Banks rally on report of recapitalisation

3:54 PM

Sector of the day :: Nifty Metal index soars 5%

3:49 PM

Stocks that lifted the Sensex today

3:47 PM

Broader market :: S&P BSE SmallCap adds 2%; MidCap index up 1.6%

3:45 PM

Sectoral trends on the NSE :: Nifty FMCG index ends lower in a weak market

3:42 PM

Sensex Heatmap at Close

3:36 PM

CLOSING BELL

Among the frontline indices, the benchmark S&P BSE Sensex reclaimed the 50,000-mark on a closing basis and closed at 50,030, after advancing 521 points or 1.05 per cent. Earlier in the day, the index had breifly slipped in the red to touch a low of 49,478.5. On the NSE, the Nifty50 index closed at 14,867 levels, up 177 points or 1.2 per cent.

3:27 PM

Revenue growth of brokerages likely to moderate in next fiscal: Crisil

The revenue growth of the domestic broking industry is likely to moderate in 2021-22, says Crisil. The rating agency says market volatility and phased implementation of new margin regulations could be a drag on incremental volume growth next fiscal.

 

"After record-high active client additions and average daily turnover (ADTO) in a pandemic-marred fiscal, brokerages will continue to see positive revenue growth in fiscal 2022. Nevertheless, the growth will be muted," Crisil said in a release. READ MORE

3:18 PM

Mishra Dhatu Nigam shares soar 10% on record sales in FY21

Shares of Mishra Dhatu Nigam (MIDHANI) rose 10 per cent to Rs 193.70 on the BSE in intra-day trade on Thursday after the company said it has recorded the highest ever provisional sales of Rs 810 crore for the financial year 2020-21 (FY21). The state-owned mining company had posted sales worth Rs 712.88 crore for FY 2019-20 (FY20). READ MORE

3:08 PM

MARKET UPDATE:: Sensex reclaims 50k