JSW Energy, Federal Bank, Zuari Inds, and Titagarh Wagons were in focus as the domestic market was expected to open strong despite global turmoil. Mindspace Business Parks had raised INR 550 crore through green bonds with a fixed quarterly coupon of 8.02% for three years and thirty days. Kishore Biyani had withdrawn his resignation from Future Retail’s suspended board due to objections raised by the Resolution Professional. ITC had benefited from its non-cigarette ventures, as its FMCG, hotels, agriculture, paperboard, paper, and packaging sectors had grown. Patanjali Foods’ promoter holding had been frozen as it had failed to meet the mandatory public shareholding requirement. The Nifty Metal index had dropped by 3%, causing the stocks of Hindalco, Jindal Steel, and Tata Steel to fall by as much as 5%.
The market was recorded at a 6-month low today. The market capitalization of Reliance Industries Limited (RIL) has fallen below INR 15 trillion, with its stock declining by 9% over the past six days. According to CapitalinePlus data, the company’s market capitalization has decreased by INR4.12 trillion from its all-time high of INR19.07 trillion, which was recorded on April 28, 2022. Kotak Institutional Equities suggested that Reliance Jio’s introduction of new family plans could potentially delay postpaid tariff hikes. The telecom giant’s efforts to expand its market share through these plans may lead to increased competition within the industry, compelling competitors to adjust their offerings and postpone any tariff increases in the postpaid segment.
The stocks of state-owned oil marketing companies (OMCs) were in the spotlight as crude oil prices hit a one-year low, causing prices to surge up to 5% on the BSE. This rally occurred amidst a volatile market, as crude oil prices dropped by over 6% overnight. The Nifty 50 index was seen to undergo a technical correction due to the ongoing global turmoil. In addition to this, the local market was negatively impacted by the Adani conglomerate’s stocks plummeting this year, as well as rising interest rates. Wipro recorded a 52-week low as concerns about revenue growth continue to mount. The stock has declined by 38% over the past year. Nirmal Bang also noted that Q1 FY24 may be a challenging quarter for Wipro due to both cautious customer behavior and the implementation of productivity concessions.
In times of market turmoil, FMCG stocks such as Britannia, ITC, and Radico were expected to serve as a hedge. The domestic market has been experiencing a lot of uncertainty since mid-February, causing anxiety among investors.
The BSE 500 index saw several stocks gain on Thursday, with Network 18 Media being the biggest winner with an increase of 8.3%. Other top gainers included ICICI Pru Life, TV18 Broadcast, Hikal, and HPCL, each rising between 6% and 8%. While Samvardhana Motherson was the biggest loser with a 10.4% decline. Other significant losers included Brightcom Group, Hindalco, Jubilant Pharmonova, and JK Papers, each falling between 4% and 7%.
As the day ends for the market, Zee Entertainment Enterprises Ltd. saw a surge of 10% following reports that it has agreed to pay off an outstanding debt owed to IndusInd Bank Ltd. The repayment is part of the company’s efforts to resolve insolvency proceedings and move closer to a merger with a unit of the Sony Group, which is expected to result in a $10 billion media conglomerate. IndusInd Bank’s shares dropped over 2%, despite ZEEL’s agreement to pay back $10 million to the lender. Meanwhile, Samvardhana Motherson’s shares plummeted 11% after Sumitomo Wiring Systems Ltd (SWS) sold 230 million shares in the company, representing around 3.4% of the total, through a block deal mechanism at a floor price of about Rs 69.90 per share, which is a discount of 9% from the previous closing price. The transaction value was estimated at Rs 1,600 crore, according to reports.
Reliance Industries Limited hit a new 52-week low during intra-day trading as oil prices fell, causing its market capitalization to drop below Rs 15 trillion. However, the BSE Oil & Gas index saw a 1% rise as HPCL and HPCL shares increased by 6% each. Adani Group’s stocks, on the other hand, had a mixed ending, with Adani Total Gas being the worst hit.
On the closing bell, Sensex ended the day higher than the last 5 days, and Nifty was recorded at 16,950 pts. In a volatile trading session at the Sensex, 17 out of the 30 stocks in the index rallied. The consumer sector led the gains. Although large-cap stocks saw gains, the mid- and small-cap indices fell in the broader market. The rupee concluded at 82.73% compared to Wednesday’s closing rate of 82.60%, indicating a decrease.
