After opening the day on a strong note, Indian share markets continued their momentum throughout the trading session and ended higher.

Benchmark indices traded on a firm note amid continuous foreign fund inflows and a rally in the US equities. Investor sentiment was lifted by a recovery in financials, strong domestic earnings, and an improved outlook following robust economic data from the US.

At the closing bell on Friday, the BSE Sensex stood higher by 709 points (up 1.2%).

Meanwhile, the NSE Nifty closed up by 195 points (up 1.1%).

IndusInd Bank and ONGC were among the top gainers today.

Coal India and Sun Pharma, on the other hand, were among the top losers today.

Check out the NSE Nifty heatmap to get the complete list of gainers and losers.

The SGX Nifty was trading at 18,332 up by 208 points, at the time of writing.

Broader markets ended on a positive note with the BSE Midcap index ending 0.9% higher and the BSE SmallCap index ending 0.6% higher.

Barring the consumer durable sector, all sectoral indices ended on a positive note with stocks in the realty sector, auto sector, and finance sector witnessing most of the buying.

Shares of Bajaj Auto and Nestle hit their 52-week highs today.

Asian stock markets ended on a firm note. The Nikkei fell 0.7%, while the Hang Seng was up 1.2%. The Shanghai Composite ended 1.8% higher.

The rupee is trading at 81.8 against the US$.

Gold prices for the latest contract on MCX are trading higher by 0.5% at Rs 60,920 per 10 grams.

Meanwhile, silver prices for the latest contract on MCX are trading marginally higher at Rs 77,097 per kg.
 

5 reasons why the Indian share market is rising

#1 Upbeat global cues

A stronger-than-expected April employment report bolstered US markets which snapped their four-day losing streak on Friday, as it tempered fears of recession. Dow Jones, Nasdaq Composite, and the S&P 500 indices surged in the range of 1-2%.

According to the Bureau of Labor Statistics, total non-farm payroll employment rose by 2,53,000 in April, ahead of economists' forecast of 1,85,000 new job additions.

Asia-Pacific markets, too, largely rose this morning, with Kospi, Hang Seng, and Shanghai Composite indices rising up to 1%.

#2 Strong Q4 results

A slew of solid Q4FY23 results supplemented strength in overall markets. Shares of Britannia, Marico, Paytm, Union Bank, and Adani Power surged in the range of 1% to 9% in Monday's trade, after these companies reported strong March 2023 results.

#3 Dollar takes a back seat

The rupee has been falling for quite some time now and this falling trend reversed today as it appreciated. The domestic currency appreciated 8 paise to 81.7 against the US dollar in Monday's trade, tracking weakness in the dollar index.

The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.07% to 101.14 as investors cling to hopes for a dovish US Federal Reserve.

The rupee's appreciation often attracts FIIs as it adds to the return for foreign investors.

#4 Turnaround in FII flows

With the US Fed believed to be nearing the end of its mega rate hike cycle, FII dollars have started pouring into Indian markets once again.

FIIs have been net buyers in India during the last 7 trading sessions, cumulatively buying equity worth Rs 117 billion (bn). Since the beginning of the financial year 2023, the net FII buying has been worth around Rs 225 bn.

#5 Recovery in financial stocks

A session after the HDFC duo tumbled dragging the markets lower, banking and finance stocks witnessed heavy buying in today's session.

Merger-bound HDFC twins that had ended 5% lower on Friday ahead of the MSCI tweak recovered 1% each. IndusInd Bank was the top gainer in Nifty Bank while Bajaj twins - Bajaj Finance and Bajaj Finserv - were up around 4-5% each.
 

Why Zen Tech's share price is rising

In news from the IT sector, shares of Zen Tech traded 8% higher today on the back of robust quarterly earnings.

For the March 2023 quarter, the company reported a 215% YoY jump in revenue to Rs 300 million (m). Net profit for the quarter jumped 510% YoY to Rs 200 m.

While for the financial year 2023, the company which designs, develops, and manufactures defense training solutions reported a multi-fold growth in profit after tax (PAT) at Rs 500 m from Rs 260 m in the financial year 2022.

Revenue for the year rose 214% YoY to Rs 2.2 bn against Rs 700 m a year back.

Ebitda margin expanded to 35.6% from 29.5% in December 2022 quarter and 13.5% in the same quarter last year.

The Board of Directors has also approved a final dividend on equity shares at the rate of 20% i.e. Re 0.20 per equity share of Re 1 each for the financial year 2023.

During the quarter, the company secured multiple new orders worth Rs 1.4 bn, increasing its order book to Rs 4.7 bn.

To capitalize on these potential opportunities, the company is taking steps to enhance the bandwidth of our key functions, including supply chain, procurement, and production planning. Zen Technologies is the sole manufacturer of simulation training equipment and anti-drone systems in India.

In 2023 so far (between 1 January 2023 and 2 March 2023), the stock has rallied 57%, making it the top-performing small-cap stock of 2023.

With the company's continuous expansion in drone space, it stands among the top Indian drone companies to watch out for in 2023.
 

UPL Q4 net profit plunges 43%

Moving on to news from the agrochemical sector, UPL today reported a 4% YoY growth in the March 2023 revenue at Rs 165.7 bn from Rs 158.7 bn a year back.

Net profit for the quarter plunged 43% YoY to Rs 7.9 bn from Rs 13.8 bn in the same quarter of the previous year.

The March quarter was impacted by a rapid decline in product prices and delays in the planting season that resulted in headwinds for product placements.

The company's EBITDA fell 16% YoY to Rs 30.3 bn.

During the financial year 2022-2023, the company generated strong cash flows and utilized them towards deleveraging the balance sheet and returning cash to shareholders. The gross debt was reduced by US$ 617 m and net debt by US$ 440 m.

The board has recommended a dividend of Rs 10 per equity share, which is 500% on the face value of Rs 2 each.

UPL is a global generic crop protection chemicals and seeds company. In February 2023,  shares of UPL plunged over 8% in two days. 
 

Pennar Industries Rs 6.8 billion order win

Moving on to news from the steel sector, shares of Pennar Industries jumped over 7% on Monday after the company received orders worth Rs 6.8 bn across various business verticals.

Pennar Industries has received orders from leading players across industries, including Tata Steel, Ashok Leyland, Hindalco, Tata Power and Kirloskar Toyota, among others.

The company has won orders for its business verticals of Inland Container Depot (ICD), Pre-Engineered Buildings (PEB), Railways, Steel, Tubes, and Ascent Buildings, USA.

Pennar Industries is expected to execute the orders within the next two quarters.

Pennar Industries is engaged in the manufacturing of cold-rolled steel strips, precision tubes, cold-rolled formed sections, electrostatic precipitators, and profiles.

For a fundamental analysis of the above company, check out Equitymaster's Indian stock screener which has a separate screen for top steel companies in India.

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