Sensex Today Rallies 540 Points; Hitachi Energy Surges 11%

After opening the day on a positive note, Indian share markets gained momentum as the session progressed and ended on a firm footing.

The Nifty 50 and the Sensex, key indices of the Indian stock market, opened on a positive note and surged by over 1%. The majority of components within these indices showed gains, reflecting a broad-based optimism among investors.

At the closing bell, the BSE Sensex stood higher by 540 points (up 0.8%).

Meanwhile, the NSE Nifty closed higher by 173 points (up .8%).

NTPC, Tata Steel, and BPCL were among the top gainers today.

ONGC, ICICI Bank, and Bharti Airtel on the other hand, were among the top losers today.

The GIFT Nifty was trading at 22,109, up by 185 points, at the time of writing.

The BSE MidCap index ended 2.4% higher and the BSE SmallCap index ended 2% higher.

Sectoral indices are trading on a positive note, with sTocks in the metal sector, power sector, and realty sector witnessing the most buying.

The rupee is trading at 83.15 against the US$.

Gold prices for the latest contract on MCX are trading 1.5% higher at Rs 66,701 per 10 grams.

Meanwhile, silver prices were trading 1.2% higher at Rs 76,223 per 1 kg.

Here are four reasons why Indian Markets are rising today

#1 US Fed Rate Cut

Overnight the Fed left US rates on hold between 5.25% and 5.5%, as expected, and nudged up inflation forecasts. Policymakers' median projection for three 25 basis point rate cuts this year was unchanged from December.

#2 Upbeat Global Markets

Asian shares bounced while Japan's Nikkei jumped to record highs on Thursday after the US Federal Reserve indicated it would stick with plans for cutting interest rates. MSCI's broadest index of Asia-Pacific shares outside Japan jumped 1.6%. The S&P 500 notched a record closing high overnight, and US and European futures rose in Asia trade.

#3 Decline in Dollar Index

In foreign exchange markets the dollar, which had gained in recent days against the risk of a more hawkish turn from the Fed, was sold against most major peers, lifting the yen from near multi-decade lows to 150.5 per dollar.

Meanwhile, the Indian rupee rose 12 paise to 83.06 against the US dollar in early trade.

#4 Buying Across the Board

Almost all sectoral indices witnessed buying in intraday trade on Thursday. Nifty Bank jumped over a percent while the sectoral indices of PSU bank and metal on the NSE rose over 2% each.

Speaking of stock markets, in 1947 a group of researchers at Bell Labs, a subsidiary of AT&T, invented the transistor, a switch that controls electric current.

A thriving industry grew up around California, outsourcing low-value tasks, such as chip assembly, to Asia, where labor was cheaper.

Japanese firms such as Toshiba and Fujitsu managed to take a share of some chip markets.

Bajaj Auto: Nifty's Consistent Champion

In news from the auto sector, when it comes to the least-loved sectors by investors, two-wheeler figures are pretty much high up on that list. So it would come as a surprise to most people that the top two consistent performers in the Nifty over the last year have been Bajaj Auto and Hero Motocorp.

Similarly, few would have been willing to bet their money on Adani Ports after the pounding it took in January and February last year over the Hindenburg report. Here too the street is in for a surprise: Adani Ports figures at number three for consistency.

To test the consistency of performance of Nifty 50 stocks in FY24 we observed the monthly returns of Nifty 50 constituents and compared it with Nifty 50 returns.

Nifty 50 has delivered positive returns in 8 of the 12 months since April 2024, and only in 4 instances, it has generated negative returns. However, there are at least 16 Nifty stocks that gave positive returns on more occasions, reflecting better consistency in performance in FY24.

And Adani Ports, Hero MotoCorp, and Bajaj Auto have given the maximum positive returns among the 16 contesters. Better consistency also indicates momentum in the underlying security.

Bajaj Auto gave positive returns in 11 months of the past 12 months and outperformed the index in 10 out of 12 months.

The company's newly launched Triumph has a presence in Bangalore and Kerala and its market share has reached 20% in the category. It plans to grow its footprint beyond 100 cities, covering 50% of the market.

Jupiter Wagons Rises 4%. Here's Why.

Moving on to news from the real estate sector, Jupiter Wagons rallied 4.4% to hit a high of Rs 348.35 in intra-day deals on the BSE after the company announced the acquisition of Bonatrans India for Rs 2.7 bn.

Jupiter Wagons (JWL) in a press release said, the acquisition of Bonatrans India marks a significant milestone for the company and positions it as the first rolling stock manufacturer to have its wheel plant.

Bonatrans situated in Aurangabad, Maharashtra, stands as a distinguished manufacturer of rolling stock wheelsets. With a production capacity of 20,000 Wheels and 10,000 Axles annually, the acquisition promises to bolster JWL's self-reliance and operational efficiency while reducing dependency on imported wheels.

Apart from JWL, BEML, Alstom Rail Transportation India, Plasser India, and Titagarh Rail Systems are a few of the existing clients of Bonatrans.

As part of the Make in India initiative, JWL is poised to invest an additional Rs 10 bn over the next two years. These investments will enhance production capacity and drive the plant towards full backward integration.

The ultimate goal is to cater to the burgeoning needs of the Indian railway sector, with aspirations to transform it into an export hub, leveraging JWL's existing esteemed partners.

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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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