Sensex Today Rallies 1,000 Points; Reliance & Tata Motors Surge 3%

After opening the day on a strong note, Indian share markets continued their momentum throughout the trading session and had their best day in months.

Benchmark indices bounced back in style after fears of a global banking crisis started to ease, driving domestic markets higher for a third consecutive day, aided by high-weightage information technology (IT) stocks.

Meanwhile, index-heavyweight Reliance Industries largely drove overall gains as shares surged over 4% in the intraday trade.

At the closing bell on Friday, the BSE Sensex stood higher by 1,031 points (up 1.8%).

Meanwhile, the NSE Nifty closed up by 272 points (up 1.6%).

Reliance, Nestle, and Infosys were among the top gainers today.

Apollo Hospital, Adani Ports, and Sun Pharma on the other hand were among the top losers today.

The SGX Nifty was trading at 17,413 up by 153 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 1.2% higher.

All sectors ended on a positive note with stocks in the IT sector, energy sector, and realty sector witnessing most of the buying.

Shares of Zydus Lifesciences and Godrej Consumer hit their 52-week highs today.

Asian stock markets ended on a firm note. The Nikkei gained 0.9%, while the Hang Seng was up 0.5%. The Shanghai Composite ended 0.4% higher.

The rupee is trading at 82.19 against the US$.

Gold prices for the latest contract on MCX are trading flat at Rs 59,881 per 10 grams.

Meanwhile, silver prices for the latest contract on MCX are trading higher by 0.3% at Rs 72,016 per kg.

4 Reasons Why Indian Share Market is Rising

#1 Upbeat global cues

US markets extended the winning streak to the second straight day after diluting concerns over the banking crisis triggered renewed buying across technology names.

The Dow Jones, the S&P 500, and Nasdaq Composite advanced up to 0.7% overnight. Moreover, a rise in weekly unemployment claims mounted hopes of a slowdown in monetary policy tightening.

Tracking positive moves in Wall Street, Asia-Pacific markets, too, closed higher. Key indices Nikkei, Kospi, and Hang Seng indices surged up to 1%.

#2 Index-heavyweight shares rally

Shares of Reliance Industries rallied over 4% to Rs 2,333 per share in Friday's intra-day trade, after the conglomerate announced its meeting on 2 May 2023, to mull the demerger of its financial services unit.

According to the plan, RIL's shareholders would receive shares in the demerged entity for each one held in the company.

#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 rupee appreciated 24 paise to 82.1 in Friday's early trade, following strong global cues, and foreign inflows.

The dollar index, which gauges the greenback's strength against six major currencies, meanwhile, closed 0.05% higher at 102.2.

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

#4 Turnaround in FII flows

After the global financial turmoil butchered markets, FIIs have turned in favor of Indian markets, on the back of attractive valuations.

In the past two days, FIIs have bought equities worth Rs 27.8 billion (bn). So far in this month, they bought Rs 16.4 bn worth of equities.

Speaking of stock markets, in 2022, the Indian Space Research Organisation (ISRO) turned 50. The institution's R&D activities over the last 5 decades were reasonably secretive, if not obscure.

They were certainly not in the realm of commoners like us to track. So, space-related commercial activities were almost unthinkable. But in the last few years, things changed. And dramatically so.

Most of the changes germinated in space startups. But how many private Spacetech companies have you heard of apart from SpaceX? Well, if you haven't heard of many, be prepared for it now.

Coal India surpasses production target

In news from the mining sector, Coal India, on Friday, breached its production target of 700 million (m) tons a day before the current financial year ends.

The company produced 700.4 m tons of coal till the penultimate day of the financial year, with 100.4% target satisfaction.

The growth was 13% YoY over 619.8 m tons of the same date in the financial year 2022. With a day left, Coal India is likely to end the financial year 2023 with an output of 703.4 m tons, going by the current rate of production. It produced 622.6 m tons in the previous fiscal year.

The volume increase of 81 m tons in a single year would be a historic high since the company's inception. It outstrips the previous high of 44.5 m tons increase reported in 2015-2016 by nearly two-fold.

The 81 m tons quantum upsurge of the year is almost equivalent to the combined growth of the previous seven financial years, beginning 2015-2016.

Four of Coal India's subsidiaries, BCCL, NCL, WCL, and MCL, also surpassed their respective production targets for the year.

Coal India (CIL) is an Indian central public sector undertaking (PSU) under the ownership of the Ministry of Coal, Government of India. The PSU contributes around 82% to the total coal production in India.

Coming to the stock performance, the share price of Coal India has eroded over 5% so far in 2023, declining 4% in the past five days alone.


Why Lupin's share price is falling

Moving on to news from the pharma sector, Shares of Lupin declined over 1% on 31 March 2023 after the US Food and Drugs Administration issued Form 483 with ten observations for the company's Pithampur unit.

The US Food and Drug Administration (USFDA) inspected the plant from 21 March to 29 March 2023.

The inspection closed with the issuance of a Form-483 with ten observations.

This comes just a few months after the company received Form-483 with eight observations for its Mandideep-based manufacturing facility.

Lupin is a leading pharmaceutical company from India and is among the top 10 generic companies in the world.

Lupin, one of the top pharma companies in India, is losing its shine. 

Go Digit Insurance refiles IPO papers

Moving on to the news from the Initial public offerings (IPO) space, Go Digit General Insurance refiled its draft papers with the Securities Exchange Board of India (SEBI) to raise funds via an initial public offering (IPO).

The market regulator had in February returned the draft papers.

The DRHP was rejected based on SEBI's guidelines for Capital and Disclosure Requirements.

The IPO will consist of a fresh issuance of Rs 12.5 billion, and an offer for the sale of up to 109.5 million shares by shareholders and promoters. Go Digit Infowarks Services will offer up to 109.43 million shares through an OFS.

The proceeds from the offering will be used to increase the company's capital base, maintain solvency levels, and fund general corporate expenses.

Go Digit offers motor, health, travel, property, marine, liability insurance, and other such products.

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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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