Indian markets end higher after a choppy session – PSU banks, IT, FMCG gain

• The Sensex closed 463 points or 0.76% higher at 61,112 while the Nifty50 ended 149.9 points or 0.84% higher at 18,065.
• Investors are currently monitoring corporate earnings along with the latest pattern of foreign investments in Indian stocks.
• Besides, FIIs have been buying aggressively since the last few sessions, acquiring ₹1,652 crore worth equities on April 27 and ₹1,257 crore on April 26.
• On the Nifty50, Adani Enterprises, Adani Ports & SEZ, Nestle India, Wipro and Britannia Industries were the top five gainers.

Indian markets ended higher after a choppy session on Friday led by gains in public-sector banks, information technology and fast-moving consumer goods (FMCG) companies

Investors are currently monitoring corporate earnings along with the latest pattern of foreign institutional investments (FII) in Indian stocks. Besides, the market is awaiting the US Fed monetary policy outcome next week. Analysts say a 25-basis-point (bps) rate hike has already been factored in.

The Sensex closed 463 points or 0.76% higher at 61,112 while the Nifty50 ended 149.9 points or 0.84% higher at 18,065. In April, Sensex and Nifty ran up nearly 4% each amid release of March quarter corporate earnings.

“The Nifty opened lacklustre but started gaining strength during mid-market. It witnessed a sharp jump in the last 30 minutes to cross the 18k mark…Domestic equities are continuously gaining strength for the last five days supported by healthy Q4 earnings, declining VIX and FIIs turning positive,” said Siddhartha Khemka, head - retail research at Motilal Oswal Financial Services.

The volatility index India VIX closed 4.29% lower at 10.94 points. It’s a measure of market volatility expected in the near term.

Strong buying was also seen in the broader market with Midcap 100 up 1.24% and Smallcap 100 up 0.83%. All sectors ended in the green with PSU Bank (2.45%) and IT (1.29%) being top gainers.

Besides, FIIs have been buying aggressively since the past few sessions – scooping up ₹1,652 crore worth equities on April 27 and ₹1,257 crore on April 26.

Analysts expect the positive market momentum to continue going ahead. On Monday, May 1, the stock market will remain closed on account of Maharashtra Day.

“Nifty showed resilience despite global headwinds gaining over 4% in April - the best in 5 months and managing to close above the crucial 18,000 mark. We expect this momentum to continue and expect Nifty to head towards 18,200 zones. Next week will be crucial as US Fed and ECB (European Central Bank) policy meetings are lined – up, “ said Khemka.

Apart from this, PMI (purchasing managers' index) data from US, China and India would also be keenly watched. On the domestic front, investors would continue to track Q4 results along with global cues and auto monthly sales data, added Khemka.

On the Nifty50, Adani Enterprises, Adani Ports & SEZ, Nestle India, Wipro and Britannia Industries were the top five gainers.

Wipro ended 2.8% higher as the company announced a share buyback programme worth ₹12,000 crore on Thursday.

The Indian IT major also posted a 0.6% sequential decline in constant currency revenues for the March quarter. However, the next quarter could be worse as it guided for a 1-3% sequential decline in its IT services revenues to $2.75-$2.81 billion.

Meanwhile, Axis Bank, Titan, Oil and Natural Gas Corporation (ONGC), JSW Steel and Cipla were among the top losers on the exchange.

Shares of Axis Bank slipped more than 2% as the lender reported a net loss of ₹5,728 crore for the March quarter against a net profit of ₹4,417 crore a year ago due to a payout of ₹12,490 crore towards its acquisition of Citigroup’s India consumer business.

Movement on Nifty500 index
Source: NSE

The share price of Raymond fell steeply on Friday, a day after hitting an all-time high,as Godrej Consumer Products acquired the FMCG business of Raymond Consumer Care for ₹2,825 crore. With this, Raymond will primarily become a real estate company with investments in engineering and denim business.

Meanwhile, global markets were trading higher on strong earnings posted by tech companies with Nasdaq up 2.43%, Dow Jones up 1.57% and S&P 500 up 1.96%.

Asian markets were on the rise too – Nikkei 225 rose 1.40%, Shanghai Composite gained 1.14%, Taiwan Weighted rose 1.09% and Hang Seng went up by 0.27%.

SEE ALSO: Wipro says IT services revenue could decline 1-3% in Q1FY24, announces buyback
Over a million jobs await techies & it’s not tech cos that are hiring them