 "5 reasons why Sensex rallied 941 pts, Nifty reclaimed 22,600 on April 29")
Stock market updates, April 29, 2024: Indian equity markets shrugged off Monday blues with the benchmark S&P BSE Sensex and the Nifty50 indices advancing over 1 per cent each.
While the 30-stock Sensex jumped 991 points intraday, hitting a high of 74,721, the Nifty50 surpassed 22,650 in the intraday trade.
The BSE Sensex, eventually, closed 1.28 per cent or 941.12 points higher at 74,671.28 levels, while NSE Nifty50 closed 1 per cent or 223.44 points higher at 22,643.40 levels.
In the broader markets, Nifty MidCap and SmallCap ended with gains of over 0.40 per cent and 0.20 per cent, respectively.
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Volatility index, India VIX, however, jumped 11.9 per cent to 12.24 levels.
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Here's what's pulling the markets higher:
ICICI Bank, SBI stocks: Shares of ICICI bank jumped 5 per cent intraday on the BSE on Monday, claiming a fresh record high of Rs 1,163 apiece along the way.
The rally in ICICI Bank stock price came after the private lender posted steady results for the March quarter (Q4FY24) over the weekend, giving analysts confidence in its robust growth profile. They, now, see up to 31 per cent upside in the stock. READ MORE
That apart, shares of State Bank of India (SBI) zoomed nearly 4 per cent to a record high of Rs 831 per share in intraday trade as a rub-off effect of healthy financial results by other banks prompted investors to buy the stock ahead of its results.
While ICICI Bank has a weight of around 21 per cent in the Sensex index, SBI has a weight of 19 per cent.
Rally in other bank stocks: Apart from ICICI Bank, and SBI, shares of Axis Bank, IndusInd Bank, and Kotak Mahindra Bank were ruling up to 3 per cent higher on the BSE.
That apart, PSU banks like Indian Bank, Bank of Maharashtra, Central Bank of India, Union Bank of India, and Punjab and Sind Bank gained between 3 per cent and 4.4 per cent.
According to a Business Standard analysis, the revenue growth of early birds or companies that have, so far, declared their Q4FY24 (March quarter) numbers is the highest in the last four quarters.
The 178 companies (excluding their listed subsidiaries) that declared their results till Saturday have reported a sales growth rate of 13.2 per cent year-on-year (Y-o-Y), taking aggregate revenue to Rs 9.1 trillion. Including other income, growth is at 16 per cent, the highest in the last four quarters. Profit growth for these companies came in at 12.7 per cent.
About 70 per cent of incremental profit came from the banking, financial services and insurance (BFSI) sector alone. READ MORE
Easing bond yields: Yields on 10-year government bonds fell to a low of 7.176 per cent in the intraday trade on Monday as against last Friday's close of 7.199 per cent.
Easing bond yields make riskier investments, such as equities, attractive for investors.
"The latest US core PCE inflation numbers, with 2.8 per cent Y-o-Y growth, came on expected lines in the US last Friday. Consequently, bond yields marginally drifted down and the US equity markets surged last Friday. FII selling will continue, but is likely to be lower," said V K Vijayakumar, chief investment strategist, Geojit Financial Services.
Global markets upbeat: European markets opened higher on Monday as investors look ahead to more central bank decisions, including the US Federal Reserve, this week. That apart, hopes of an early Israel-Hamas truce eased fears of a wider conflict in the Middle East, boosting sentiment.
The FTSE added 0.4 per cent in early deals, followed by the CAC40 (up 0.24 per cent).
Near home, in Asia, Kospi closed with gains of 1.2 per cent, ASX200 0.8 per cent, and Hang Seng 0.5 per cent.
Futures of Dow Jones, S&P500, and Nasdaq, too, were ruling up to -.3 per cent higher, suggesting a positive open on Wall Street later today.
Technical levels: According to Vaishali Parekh, vice-president - technical research at Prabhudas Lilladher, Nifty and Sensex indices are expected to trade in the range of 22,000 – 22,800, and 72,500 – 75,000, respectively, this week.
The bias, she said, may remain positive as long as the Nifty sustains above its 50-DEMA level of 22,150.