Domestic Indices Surf the High Tide

The gains from index heavyweights Bajaj Finance, Tata Motors and Asian Paints spiralled the market upwards.

The BSE Sensex rose 673 points or 1.10 per cent to a five-month high of 62,027.90 at closing deals on Friday and continued to outperform other major Asian bourses, buoyed by advances from automotive and realty stocks. Nifty also attained stellar returns of 167 points or 0.92 per cent and closed at the 18,314.80 mark. In the last two weeks, the BSE Mid-Cap and Small-Cap indices have increased by 1.98 and 1.74 per cent, respectively. Investors welcomed data showing the annual inflation rate in India easing to an 18-month low of 4.7 per cent in April, amid moderating food prices. 

The India 10-year government bond yield decreased to a 13-month low of 6.991 per cent with lower oil prices strengthening expectations that the RBI would maintain its dovish monetary stance. Meantime, fresh data indicated that passenger car sales in the country climbed by 13.4 per cent month-onmonth last month with all segments showing growth. Tata Motors surged 3.1 per cent after posting a 35 per cent YoY jump in its net profit for Q4FY22. A commission appointed by the power ministry has proposed a plan outlining measures for the growth of the electrical market in the short, medium and long term.

Russia remained India’s top oil supplier in April, boosting its market share to 36 per cent, up from 33.8 per cent in March. Mining output in India climbed 6.79 per cent in March 2023 compared to the same month the previous year. Cognizant will increase its product offerings, provide extensive training tools for technology talent development on Google Cloud and open innovation hubs in important technology centres across the world. While tiny businesses or local retail grocery stores are doing well, industry leaders say that many markets in urban and semi-urban India are witnessing a balance between conventional trade and new channels. 

FMCG companies said they will continue to prioritise direct distribution in both urban and rural locations. The oil and gas index increased by 6.04 per cent and finished at 19,247.05 points. The Indian Council of Medical Research (ICMR) and the Ministry of AYUSH have inked a collaboration and cooperation agreement for research in the field of integrated medicine. As part of a treatment strategy, integrated medicine incorporates alternative medicine systems such as ayurveda, yoga, naturopathy, unani, siddha and homoeopathy. 

According to Harsha Bangari, Managing Director, Exim Bank, the bank plans to raise USD 3.5 billion to USD 4 billion this year to fund its government-backed business. The bank’s net profit increased by 110 per cent to ₹1,556 crore (USD 209 million) in FY23. It raised ₹52,156 crore in resources and USD 3.47 billion in foreign currencies. After six consecutive rises, the RBI unexpectedly maintained its benchmark policy repo rate at 6.5 per cent during its April 2023 meeting. In the last 15 days on the Indian stock market, foreign portfolio investors (FPIs) were net purchasers of shares worth ₹13,278.11 crore while domestic institutional investors (DIIs) were net sellers of securities worth ₹3,997.23 crore.