Sensex Today Ends 409 Points Higher, Crosses 74,000 Mark

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

Equity benchmark indices rebounded smartly and scaled fresh lifetime highs in intra-day deals on Wednesday led by strong gains in private banking shares.

At the closing bell, the BSE Sensex stood higher by 409 points (up 0.6%).

Meanwhile, the NSE Nifty closed higher by 126 points (up 0.6%).

Bajaj Auto, Axis Bank, and M&M were among the top gainers today.

Adani Enterprises, NTPC, and ONG on the other hand, were among the top losers today.

The GIFT Nifty ended at 22,609 up by 170 points.

Broader markets ended the day lower. The BSE Mid Cap ended 0.6% lower and the BSE Small Cap index ended 1.9% lower.

Sectoral indices are trading positive, with socks in the FMCG sector, the Media sector, and the consumer durables sector witnessing buying. Meanwhile, stocks in the power sector and the realty sector witnessed selling pressure.

Shares of Bosch, TVS Motors, and Sun Pharma hit their respective 52-week highs today.

The rupee is trading at 82.84 against the US$.

Gold prices for the latest contract on MCX are trading 0.2% lower at Rs 64,725 per 10 grams.

Meanwhile, silver prices are trading flat at Rs 73,361 per 1 kg.
 

Why Suzlon Energy Shares Hit Lower Circuit

In news from the energy sector, Suzlon Energy hits a lower circuit, extending the losses for the fifth straight day.

This decline was propelled by reports indicating that the Ministry of New and Renewable Energy (MNRE) is considering reintroducing "reverse auctions" for the auctioning of wind power capacity to energy firms.

According to reports, the ministry has issued a directive to companies such as NTPC, NHPC, SJVN, and other Public Sector Undertakings (PSUs) through a formal letter. The directive cites reasons including undersubscription and elevated tariff discovery observed in recent wind bids.

As per the report, the MNRE has reinstated the earlier approach of reverse auctions, limited the size to 600 MW for plain vanilla wind tenders, and mandated the issue of bids on a pan-India basis by renewable energy implementing agencies.

NTPC, NHPC, and SJVN are Renewable Energy Implementing Agencies for developers like Suzlon and Inox Wind with state agencies.

This is concerning street as tariffs coming down would impact returns for developers like ReNew and NTPC and may also lead to margin pressure for equipment suppliers.

The BSE and NSE have implemented the long-term Additional Surveillance Measure (ASM) framework for Suzlon's securities. Such measures are applied by exchanges like BSE and NSE to alert investors to significant volatility in share prices, whether on a short-term or long-term basis.

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Ajmera Realty shares fall 4%

Moving on to news from the realty sector, Ajmera Realty shares fell 4% in trade on March 6 after the real estate major bagged credit facilities of Rs 5 bn.

A sum of Rs 2 bn has been used towards the partial prepayment of the GCP loan availed from HDFC Bank.

The Ajmera Manhattan project sold 60% of its inventory as of December 2023.

The demand for the project remains strong, driven by the exponential growth in housing demand along the Sewri-Wadala belt, largely attributed to the recent launch of the Mumbai Trans-Harbour Link.

The cost of completion is already covered by the pre-sales balance receivables.

Ajmera Realty also secured this deal at a lower cost of funds compared to prevailing rates with the existing lender.
 

Marico Shares fall 2%

Moving on to the news from the FMCG sector, shares of FMCG player Marico fell over 2% on 6 March as the stock traded ex-dividend. Marico had announced an interim dividend of Rs 6.5 a share for FY24 in February and fixed 6 March as the record date for the dividend, which will be paid on or before 28 March.

The ex-dividend date determines which shareholders are eligible for the payout on that date. It is the day when the stock of the company goes ex-dividend, meaning the stock from that day does not carry the value associated with its next dividend payment.

For the quarter ended December 2023, Marico reported a consolidated net profit of Rs 3.9 bn, a growth of 16% on-year. Revenue stood at Rs 24.2 bn, down 2% from Rs 24.7 bn in the year-ago quarter.

Marico anticipates a positive turn in consolidated revenue growth in the last quarter of the year, benefiting from a catching-up base. Gross margin is projected to expand by 4.5-5% points for the full year, surpassing previous expectations on favorable input costs and portfolio mix.

Aggressive investments in brand-building for both core and new franchises are going to bolster equity and stimulate growth.


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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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