The domestic equity indices concluded a turbulent session, hovering around the neutral position with a slightly negative tilt on Monday. The Nifty settled below 22,450 mark. PSU bank, consumer durables and media stocks declined while realty, IT and FMCG shares advanced.

As per provisional closing data, the barometer index, the S&P BSE Sensex, was up 17.39 points or 0.02% to 73,895.54. The Nifty 50 index lost 33.15 points or 0.15% to 22,442.70.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index fell 0.95% and the S&P BSE Small-Cap index declined 1.06%.

The market breadth was weak. On the BSE, 1,297 shares rose and 2,626 shares fell. A total of 171 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, surged 13.56% to 16.60.

Economy:

Despite falling from 61.2 at the end of the previous fiscal quarter to 60.8 in April, the seasonally adjusted HSBC India Services Business Activity Index highlighted one of the strongest growth rates seen in just under 14 years. Survey members attributed the latest upturn in output to favorable economic conditions, demand strength and rising intakes of new work.

Despite coming in below the Flash estimate (62.2), the final HSBC India Composite PMI Output Index still signaled a substantial rate of expansion across the private sector. At 61.5 in April (March: 61.8), the latest reading was one of the highest seen in close to 14 years.

As was the case for output, manufacturers continued to note a stronger increase in new business intakes than service providers. Aggregate sales rose sharply, and at one of the fastest rates since mid-2010. Goods producers also led April's rise in payroll numbers, with softer growth in the service economy curbing job creation at the composite level.

Meanwhile, in the third consecutive weekly decline, India’s forex reserves dropped $2.412 billion to $637.922 billion during the seven days ended April 26, according to the RBI data.

For the week ended April 26, the foreign currency assets — a major component of the reserves — decreased $1.159 billion to $559.701 billion, the data released on Friday showed.

Gold reserves decreased $1.275 billion to $55.533 billion during the week. The special drawing rights (SDRs) were up $15 million to $18.048 billion, said the RBI.

India’s reserve position with the IMF was also up $8 million to $4.639 billion in the reporting week, the apex bank data showed.

IPO Update:

The initial public offer (IPO) of Indegene received 3,52,13,871 bids for shares as against 2,88,66,677 shares on offer, according to stock exchange data at 15:40 IST on Monday (06 May 2024). The issue was subscribed 1.22 times.

The issue opened for bidding on Monday (6 May 2024) and it will close on Wednesday (8 May 2024). The price band of the IPO is fixed at Rs 430 to Rs 452 per share. An investor can bid for a minimum of 33 equity shares and in multiples thereof.

Buzzing Index:

The Nifty PSU Bank index slipped 3.66% to 7,252.85. The index fell 4.63% in three consecutive trading sessions.

Punjab National Bank (down 6.41%), Canara Bank (down 5.41%), Bank of Baroda (down 3.64%), Union Bank of India (down 3.15%), State Bank of India (down 2.84%), Bank of India (down 2.47%), Central Bank of India (down 2.46%), Bank of Maharashtra (down 2.34%), Indian Overseas Bank (down 2.26%) and Indian Bank (down 2.24%) declined.

The lending companies and PSU banks stocks declined after Reserve Bank of India (RBI)’s circular proposing stricter guidelines on project financing. RBI guidelines on project finance includes that 5% general provisions should be made on all existing and fresh project loans which are in the 'construction phase', meaning before commercial operations commence.

Stocks in Spotlight:

Titan Company dropped 7.18% after the company’s standalone net profit tumbled 24.42% to Rs 786 crore on 22.18% decrease in revenue from operations to Rs 10,047 crore for Q4 FY24 over Q3 FY24. For year on year basis, The Tata Group company reported 7.08% rise in standalone net profit and 17.47% jumped in Revenue from operations for Q4 FY24 over Q4 FY23.

Kotak Mahindra Bank jumped 5.01% after the bank reported 18% rise in standalone net profit to Rs 4,133 crore in Q4 FY24 from Rs 3,496 crore in Q4 FY23. Total income of the bank increased by 27% YoY to Rs 15,285.35 crore during the period under review.

Avenue Supermarts (Dmart) shed 0.07%. Dmart said that its consolidated net profit jumped 22.41% to Rs 563.25 crore in Q4 FY24 as compared with Rs 460.13 crore in Q4 FY23. Revenue from operations increased 20.13% to Rs 12,726.55 crore in the quarter ended 31 March 2024.

Britannia Industries rallied 6.65%. The company said that its consolidated net profit declined 3.76% to Rs 536.61 crore in Q4 FY24 as compared with Rs 557.60 crore in Q4 FY23. Revenue from operations increased 5.45% to Rs 4,104.07 crore in the quarter ended 31 March 2024 as compared with Rs 3892.02 crore posted in the quarter ended 31 March 2023.

Mangalore Refinery & Petrochemicals (MRPL) dropped 8.75% after the company reported 40.41% decline in standalone net profit to Rs 1,136.84 crore in Q4 FY24 from Rs 1,907.98 crore recorded in Q4 FY23. Revenue from operations (excluding excise duty) fell marginally to Rs 25,328.67 crore in Q4 FY24 as compared to Rs 25,365.43 crore recorded in Q4 FY23.

Tata Technologies fell 3.77% after the IT firm reported 7.63% decline in consolidated net profit to Rs 157.24 crore in Q4 FY24 as compared with Rs 170.22 crore in Q3 FY24. Revenue from operations rose marginally to Rs 1,301.05 crore in Q4 FY24 as compared with Rs 1,289.45 crore in Q3 FY24.

Kansai Nerolac Paints shed 0.23%. The paint major reported 8% rise in standalone net profit to Rs 102 crore on a 4% increase in net revenue to Rs 1,662 crore in Q4 FY24 as compared with Q4 FY23.

Inox Wind slipped 1.40%. The wind energy service provider reported a consolidated net profit (from continuing operations) of Rs 37.67 crore in Q4 FY24 as against a net loss of Rs 115.51 crore posted in Q4 FY23. Revenue from operations stood at Rs 527.73 crore in Q4 FY24, steeply higher than Rs 190.75 crore recorded in the corresponding quarter previous year.

Ujjivan Small Finance Bank shed 1.03%. The bank said that Reserve bank of India (RBI) has approved the appointment of Sanjeev Nautiyal as the managing director (MD) & chief executive officer (CEO) of the bank for the period of 3 years with effect from 1 July 2024.

One 97 Communications (Paytm) locked in 5% lower circuit after the company announced the resignation of Bhavesh Gupta, president and chief operating officer (COO) of the company effective from 31 May 2024,citing personal reasons.

Global Markets:

European stocks advanced while most of the Asian stocks ended higher on Monday as a softer-than-expected U.S. jobs report fueled hopes that the Federal Reserve could start cutting rates soon.

Investors, meanwhile, awaited the Reserve Bank of Australia’s rate decision on Tuesday and China’s April trade data on Thursday. Japan and South Korea’s markets are closed for a public holiday.

U.S. stocks closed sharply higher Friday, as Treasury yields fell after a softer-than-anticipated April jobs report.

The Berkshire Annual Meeting 2024 on Saturday proceeded in Omaha with Warren Buffett, Greg Abel, and Ajit Jain fielding shareholder queries. Buffett spoke on a variety of issues, including the India opportunity, stock market outlook, US dollar, AI, Apple stake cuts, global investments and more.

The U.S. economy added fewer jobs than expected in April while the unemployment rate rose. Nonfarm payrolls increased by 175,000 on the month. The unemployment rate ticked higher to 3.9%, compared to 3.8% in the prior month, according to the Bureau of Labor Statistics.