Sensex Today Rallies 599 Points; Private Banks Rally

After opening the day deep in red, Indian share markets reversed the trend as the session progressed and ended on a firm footing.

Equity markets recouped losses in the afternoon session on Friday, after Iran said it has no plans to counter retaliate against Israel.

At the closing bell, the BSE Sensex stood higher by 599 points (up 0.8%).

Meanwhile, the NSE Nifty closed higher by 153 points (up 0.7%).

M&M, HDFC Bank, and Bajaj Finance were among the top gainers today.

Bajaj Auto, TCS, and HCL Tech on the other hand, were among the top losers today.

The GIFT Nifty was trading at 22,107, up by 40 points, at the time of writing.

The BSE MidCap index ended 0.3% lower and the BSE SmallCap index ended flat.

Sectoral indices are trading mixed, with stocks in the metal sector, and the banking sector witnessing the most buying. Meanwhile, stocks in the power sector and realty sector witnessed selling pressure.

Shares of Hitachi Energy, Linde India, and KSB hit their respective 52-week highs today.

The rupee is trading at 83.5 against the US$.

Gold prices for the latest contract on MCX are trading 0.2% higher at Rs 72,550 per 10 grams.

Meanwhile, silver prices were trading 0.1% lower at Rs 83,215 per 1 kg.

Here are three reasons why Indian Markets are rising today

#1 Eased Geopolitical Concerns

The rising tussle between Iran and Israel took a breather as Irani officials said that they do not intend to take any immediate retaliation against the Jewish State. The eased turmoil between the two states led to buying at Dalal Street.

#2 Elections in India

India enters the voting for the general elections of 2024 as the polling kicks off on more than 100 seats spread across 21 states and Union Territories of the company.

It is the first phase if seven phases, making it the world's largest electoral exercise. Dalal Street is expecting a third tenure for incumbent Modi Government.

#3 Falling Crude Prices

The crude oil prices gave up their early gains to trade flat, at best, marginally higher. Brent oil futures were seen at US$ 87.3 at 14.30 IST. Earlier in the day, oil prices jumped US$ 3 a barrel on concern that the Middle East oil supply could be disrupted.

#4 Buying in Heavyweights

Buying in the heavyweight counters including HDFC Bank, Bharti Airtel, ICICI Bank, ITC, and Bajaj Finance led the rally. HDFC Bank, which was up more than 2 percent, contributed more than 200 points of the Sensex's gains. Bajaj Finance, Airte, and ITC added more than 50 points each.
 

Why Man Industries Share Price is Rising

In news from the aluminum sector, shares of Man Industries (India) rallied around 3% in early trade on 19 April, after the firm received approval from Shell Global for external, internal, and concrete coating of steel pipelines at Anjar, Gujarat.

The assessment tested the performance of external, internal, and concrete coating for steel pipelines. Three different types of coating were tested. Shell Global Solutions International BV gave their thumbs up to the results.

On 29 February, Man Industries received orders worth Rs 5.6 bn. The total unexecuted order book as of today stands at approximately Rs 20 bn to be executed in the next six months. The order is for the supply of various types of pipes.

The company, which was founded in 1988, is a manufacturer of large-diameter carbon steel pipes used in industries such as oil and gas, petrochemicals, water, dredging, and fertilizers.

Over the past six months, shares of the company have jumped around 72%. In comparison, the benchmark Nifty 50 index has clocked gains of around 12% during the same period.

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Going forward, the company expects around Rs 40 billion (bn) top line in two years.

Man Industries has participated in massive bids for new businesses in domestic and overseas markets and expects to receive incremental orders in the coming months.
 

ICICI Securities Snaps 3-Day Losing Streak

Moving on to news from the finance sector, ICICI Securities shares snapped a three-day losing run on 19 April to trade higher on strong growth in revenue and net profit for the March quarter.

Net profit doubled to Rs 5.4 bn. Revenue was up 74% year-on-year to Rs 15.4 bn, driven by increased broking income in the cash segment and growth in the investment banking segment.

Sequentially, revenues were up 17% and net profit by 15%.

The equity business grew 140% year-on-year and gained market share as well. Derivative revenue increased by 25%, driven by improvements in order parameters, client base, and lots. Retail equities and allied revenue also saw growth due to increased cash volumes and expansion in the equity allied business.

Interest income was at Rs 5.2 bn in Q4 FY24, up 82.1% YoY, due to increase in average MTF funding book and MTF & fixed deposits yields.

Brokerage income soared 88.7% YoY to Rs 5.9 bn in the March quarter, primarily due to increase in equity & derivative volumes.

The distribution business reported revenues of Rs 1.9 bn for the quarter, down 1.6% YoY and up 9% QoQ. Sequentially, the growth was led by increasing mutual fund distribution business.

Institutional equities & allied revenue business during the quarter was Rs 1.1 bn, up 118% YoY and up 19% QoQ in Q4 FY24.


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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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