Stock Market Overview: Indian Markets Begin Lower, Finish Strong
Table of Contents
Opening Dip and Steady Rise:
The Indian stock markets started the day on a slightly lower note compared to the closing point two days ago. However, as the day progressed, the markets witnessed a steady rise, ending up around 1% by the closing bell.
Global Market Highlights:
In contrast to Indian markets, most Asian and all European markets closed in the green. Hong Kong and China emerged as top performers, with China’s central bank announcing a 0.50% cut in the reserve requirement ratio (RRR) for all banks, contributing to the positive sentiment.
Top Performers and Underperformers
Winners of the Day:
The NIFTY 50 index showcased notable gainers, with Hindalco leading the pack with a 4.39% surge, followed by Dr Reddy’s, Tata Steel, Power Grid, and HCL Tech.
Losers of the Day:
However, not all stocks experienced gains. The top losers in the NIFTY 50 included ICICI Bank, Axis Bank, Asian Paints, Adani Ports, and HDFC Life.
Quarterly Results: Mixed Bag for Corporate Earnings
TVS Motor:
TVS Motor reported a robust performance with a 68% YoY increase in net profit to Rs 593 cr. The company’s revenue also saw a significant uptick, rising 26% to Rs 8,245 cr.
Indian Oil:
Indian Oil reported a net profit of Rs 9,224.85 cr, a substantial increase from Rs 890.28 cr last year. However, the revenue fell 2.6% YoY to Rs 2.26 lakh cr.
Bajaj Auto:
Bajaj Auto recorded a stellar 36.9% increase in standalone net profit to Rs 2,041.9 cr, with revenue rising by 30% to Rs 12,113.5 cr.
Tech Mahindra:
On the other hand, Tech Mahindra witnessed a decline in consolidated net profit, falling 61% to Rs 510 cr. The revenue also decreased by nearly 5% to Rs 13,101 cr.
Noteworthy News and Updates
Realme’s Milestone:
Chinese smartphone company Realme achieved a significant milestone, crossing 10 crore smartphone shipments in India within just five years.
DGCA Enforcement Actions:
The Directorate General of Civil Aviation (DGCA) took 542 enforcement actions in 2023, marking a 77% increase from the previous year. These actions targeted airlines and employees, and a total of 5,745 surveillance activities were conducted.
Government’s Announcement on PLI:
The Indian government announced the re-bidding of Production Linked Incentives (PLI) for 10 GWh Advanced Chemistry Cell (ACC) manufacturing. This opens up opportunities for applicants to bid for setting up domestic ACC factories.
Stocks in the Spotlight
JSW Group:
The Competition Commission of India (CCI) approved JSW Group’s proposed acquisition of up to 38% shareholding in MG Motor India.
Paytm:
SoftBank has sold a 2% shareholding in Paytm’s parent company, One97 Communications.
Religare Enterprises:
CCI approved the acquisition of a 5.27% stake in Religare Enterprises by entities linked to the Burman family, owners of Dabur India.
Airtel:
Airtel prepaid Rs 8,325 cr towards deferred liabilities related to spectrum acquired in 2015.
AU Small Finance Bank:
CCI approved the merger between AU Small Finance Bank and Fincare Small Finance Bank.
REC:
The board of REC approved a line of credit of about Rs 1.20 lakh cr for public sector power companies planning to implement rooftop solar projects.
IPO Corner:
Nova Agritech: Subscribed 33.87 times; retail subscription at 36.28 times.
EPACK Durable: Subscribed 16.37 times; retail subscription at 6.29 times.
Market Trends at a Glance
1 Day Change:
- Gold: ₹62,180 ▲ 0.33%
- Silver: ₹71,735 ▲ 1.21%
- USD-INR: ₹83.08/USD ▼ 0.03%
- Dow Jones: 37,905.45 ▼ 0.25%
- Nasdaq: 15,425.94 ▲ 0.43%
Long-Term Returns (Past 20 Years):
- Sensex: ▲ 13.55% p.a.
- Nifty: ▲ 12.87% p.a.
- Dow Jones: ▲ 6.59% p.a.
- Nasdaq: ▲ 10.42% p.a.
Conclusion:
Despite a lower opening, the Indian stock markets demonstrated resilience, closing on a positive note. Corporate earnings presented a mixed picture, with some companies reporting robust growth while others faced challenges. Global market trends, IPO activities, and regulatory approvals also played a crucial role in shaping the day’s developments. Investors are advised to stay vigilant and adapt to the dynamic market conditions.