Sensex Today Ends 21 Points Higher; Banking Stocks Gain

After opening the day low, Indian share markets turned positive as the session progressed and ended the day higher.

Benchmark indices stayed in the negative zone on Friday after the Reserve Bank of India's Monetary Policy Committee (MPC) kept the repo rate unchanged at 6.5% in FY25's first monetary policy. The decision was taken with a majority of 5:1.

At the closing bell, the BSE Sensex stood higher by 21 points.

Meanwhile, the NSE Nifty closed higher by 10 points.

HDFC Bank, Bajaj Finserv, and Kotak Mahindra were among the top gainers today.

Bajaj Auto, Bharti Airtel, and BPCL on the other hand, were among the top losers today.

The GIFT Nifty ended at 22,607 down by 40 points or 0.2% lower.

Broader markets ended the day mixed. The BSE Mid Cap and the BSE Small Cap index ended 0.5% higher.

Sector indices are trading on mixed, with stocks in the realty sector, banking sector, and finance sector witnessing buying. Meanwhile, stocks in the IT sector, auto sector, and media sector witnessed selling pressure.

Bosch, ABB India, and Sun Pharma hit their respective 52-week highs today.

The rupee is trading at 83.3 against the US$.

Gold prices for the latest contract on MCX are trading marginally higher at Rs 69,758 per 10 grams.

Meanwhile, silver prices are trading 0.6% lower at Rs 79,527 per 1 kg.
 

Why Small Finance Bank Stocks are Rising

In news from the banking sector, shares of small finance banks rose up to 2.5% on 5 April after the Reserve Bank of India (RBI) Governor Shaktikanta Das said the central bank has allowed SFBs to use rupee derivative products to hedge interest risks.

At present, SFBs are permitted to use only interest rate futures (IRFs) for proprietary hedging.

Shares of Ujjivan Small Finance Bank, Suryoday Small Finance Bank, Equitas Small Finance Bank, ESAF Small Finance Bank, and Capital Small Finance Bank rose up to 2.6% in morning deals.

Further, Ujjivan Small Finance Bank shares rallied more than 7% on 4 April 2024 after the lender reported healthy business highlights for the quarter and the financial year ending on 31 March 2024.

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Recently, chief executives of various SFBs reportedly met RBI and urged for a glide path to become universal banks, as most of them are eligible for such a conversion, having completed five years of operations.
 

Marico Gains 3%. Here's Why

Moving on to news from the FMCG sector, shares of Marico rose 3% on 5 April 2024 as investors rejoiced in the company's positive business updates for the fourth quarter ended March.

The company, in its Q4 update, stated that its international business has reverted to clocking double-digit constant currency growth. As for the Q4 consolidated revenue, the company expects it to trend upwards, albeit delivering a low single-digit growth, and jump back into positive territory after three quarters.

In addition, Marico also expects domestic revenue growth to outpace volume growth in the coming quarters, along with a strong gross margin expansion on a year-on-year basis.

Meanwhile, the company also hinted towards gradual growth in its core categories in the times ahead.

As for key products, parachute coconut oil recorded low single-digit volume growth in Q4, while saffola oils' volumes grew in mid-single-digit. On the other hand, value-added hair oils had an optically weak quarter, declining on a high base.

The company is one of the leading global consumer goods companies operating in several categories, including hair care, skin care, edible oils, healthy foods, male grooming, and fabric care.

Some of its popular brands are Parachute, Saffola, Nihar, Livon, Set Wet, Beardo, Pure Sense, and Coco Soul.
 

Globus Spirit Forms JV with Caribbean Bear

Globus Spirits shares rose 4% to Rs 815 on 5 April 2024 after the company announced a joint venture with ANSA McAL, a Trinidad and Tobago headquartered brand for beer production and distribution in India, focusing on the Carib beer brand.

Globus also added that the JV aims to leverage the diverse expertise and resources of both companies to deliver high-quality products and expand market presence within India.

On 1 April, the company informed that it has commenced commercial production of additional capacity at two of its existing units at Singhbhum in Jharkhand and Burdwan in West Bengal.

With this expansion, the capacity of the units increased from 140KLPD (kilo litres per day) to 200KLPD at Jharkhand and from 240KLPD to 300KLPD at West Bengal. The additional capacity will be used for various products, including ENA and ethanol.

Globus Spirits is engaged in the manufacturing and distribution of various alcoholic beverages, sanitizers, animal feed, CO2, bioethanol, and bulk alcohol. Its product range includes whisky, brandy, vodka, rum, and gin, with distilleries located across Rajasthan, Haryana, West Bengal, and Bihar.


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Disclosure: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity ...

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