Market rose with sharp move; Short-term trend continues to upward

Indian equity indices showed sharp swing on Thursday. Nifty opened at 22319.20, a gap down of 118.65 points from yesterday’s close and made an intraday high of 22432.25 and closed at 22403.85 up 203.30 points or 0.92%. Heavy-weight stocks like HDFC Bank, Infosys, Bharti Airtel, Mahindra & Mahindra, and Reliance Industries contributed to the gains in the Nifty 50. While Maruti Suzuki, State Bank of India, Tata Motors, Power Grid Corp. of India, and Bharat Petroleum Corp. weighed on the index.

The broader market outperformed the benchmark index; The S&P BSE Mid-Cap index rose 1.07% and the S&P BSE Small-Cap index rose by 0.85%. On BSE, 2,140 stocks advanced, 1,689 stocks declined and 123 remained unchanged.

Among the sectoral indices, the Nifty consumer durables index (up 1.72%), the Nifty IT index (up 1.66%) and the Nifty Realty index (up 1.63%) outperformed the Nifty 50 index. Meanwhile, the Nifty PSU bank index (down 0.88%), the Nifty Oil & Gas index (up 0.22%) and the Nifty Metal index (up 0.30%) underperformed the Nifty 50 index.

The index breached the resistance of the 22250-22300 zone, and is looking to further move upward to 22500-22600 range.

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NEWS UPDATES

• Sensex and Nifty 50 ended nearly 1% higher on May 16 after a choppy session, recovering firmly from the day’s lows. Nifty showed a sharp surge in the last half an hour of the weekly expiry session. While banking and IT stocks led gains, power stocks lagged. Regardless, concerns over FII selling and uncertainty over election results persist. At close, the Sensex was up 677 points or 0.9% at 73,663 and the Nifty 50 was up 203 points or 0.9% at 22,403.

• Leading defense public sector utility Hindustan Aeronautics Ltd (HAL) on May 16 reported a 52 percent year-on-year growth in net profit at Rs 4,308 crore for the quarter ended March 31. 2024. The company’s revenue from operations jumped 18 percent year-on-year to Rs 14,768.70 crore in Q4. The same stood at Rs 12,494 crore in the corresponding period a year ago.

• The board of mining conglomerate Vedanta Ltd has approved raising up to Rs 8,500 crore in a meeting held on May 16, the company said in a regulatory filing adding that the type of issuance is yet to be finalised. The board also gave a green signal to dividend payment of Rs 11 for each share the shareholders own for the financial year 2024-25, amounting to a total payout of around Rs 4,089 crore.

Source: Economic Times,  Indian Express, Business Today, Livemint, Business Standard, Bloomberg Quint

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