MARKET AT DAY`S HIGH; SENSEX UP 411 PTS

The key equity indices extended gains and hit a fresh intraday high in early-afternoon trade. The Nifty scaled above the 17,500 level. IT, FMCG and financial services stocks advanced while PSU bank, auto and oil and gas shares declined.

At 12:25 IST, the barometer index, the S&P BSE Sensex, was up 411.23 points or 0.70% to 59,517.67. The Nifty 50 index gained 108.75 points or 0.63% to 17,506.80.

In the broader market, the S&P BSE Mid-Cap index rose 0.08% while the S&P BSE Small-Cap index gained 0.82%.

The market breadth was strong. On the BSE, 2,412 shares rose and 964 shares fell. A total of 138 shares were unchanged.

Economy:

India`s gross domestic product (GDP) growth will likely soften to 6.3% in FY2024, as against earlier estimate of 6.6%, the World Bank stated in its India Development Update. The bank stated that growth is set to be constrained by slower consumption growth and challenging external conditions. Rising borrowing costs and slower income growth will weigh on private consumption growth and government consumption is projected to grow at a slower pace due to the withdrawal of pandemic-related fiscal support measures.

Derivatives:

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, rose 0.95% to 12.71. The Nifty 27 April 2023 futures were trading at 17,581.40, at a premium of 74.6 points as compared with the spot at 17,506.80.

The Nifty option chain for the 27 April 2023 expiry showed maximum Call OI of 34.1 lakh contracts at the 18,000 strike price. Maximum Put OI of 65.8 lakh contracts were seen at 17,000 strike price.

Buzzing Index:

The Nifty FMCG index rose 0.93% to 46,165.25. The index was down 0.36% in past trading session.

Varun Beverages (up 3.47%), ITC (up 1.81%), Radico Khaitan (up 1.36%), Marico (up 0.93%) and Tata Consumer Products (up 0.89%), Hindustan Unilever (up 0.62%), Colgate-Palmolive (India) (up 0.56%), Britannia Industries (up 0.49%), Procter & Gamble Hygiene and Health Care (up 0.16%) and Nestle India (up 0.14%) advanced.

On the other hand, Emami (down 0.68%), Godrej Consumer Products (down 0.37%) and United Breweries (down 0.21%)declined.

Stocks in Spotlight:

Housing Development Finance Corporation rose 2.36% after the corporation announced that it had assigned individual loans amounting to Rs 9,340 crore during the quarter ended 31 March 2023, thereby recording a growth of 12% on YoY basis.

Poonawalla Fincorp advanced 0.33%. The company`s total disbursements on standalone basis zoomed 151% to approximately Rs 6,370 crore in Q4 FY23 as against Rs 2,539 crore recorded in Q4 FY22. Assets under management (AUM) stood at Rs 16,120 crore as of 31 March 2023, recording a growth of 37% YoY and 16% QoQ.

Som Distilleries and Breweries jumped 3.40% after the company said its wholly owned subsidiary, Woodpecker Distilleries and Breweries, has started trial production of enhanced beer capacity in Karnataka. Further it announced that start of trial production for its enhanced beer capacity at Hassan plant in Karnataka. The company expects the commercial production to start within the next fortnight.

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