In the week ended on Friday, 10 May 2024, the S&P BSE Sensex tumbled 1,231.07 points or 1.67% to settle at 72,664.47. The Nifty 50 index dropped 388.10 points or 1.73% to close at 22,054.60. The BSE Mid-Cap index slipped 3.27% to end at 41,027.75. The BSE Small-Cap index declined 3.80% to close at 45,396.99.

Weekly Index Movement:

The domestic equity benchmarks ended almost flat on Monday. The S&P BSE Sensex, a barometer index, managed a marginal gain of 0.02%, closing at 73,895.54. However, the Nifty 50 index, representing the 50 largest companies, inched down by 0.15%, settling at 22,442.70.

The benchmarks equity indices ended with major losses on Tuesday, bucking positive global cues. The barometer index, the S&P BSE Sensex slipped 383.69 points or 0.52% to 73,511.85. The Nifty 50 lost 140.20 points or 0.62% to 22,302.50.

Domestic stock market ended flat Wednesday, The barometer index, the S&P BSE Sensex was down 45.46 points or 0.06% to 73,466.39. The Nifty 50 ended flat at 22,302.50.

The domestic stock market plunged on Thursday. The benchmark Sensex tanked a hefty 1,062 points (1.45%) to settle at 72,404. The broader Nifty 50 followed suit, plummeting 345 points (1.55%) to close at 21,957.

The domestic indices closed with moderate gains on Friday. The barometer index, the S&P BSE Sensex gained 260.30 points or 0.36% to 72,664.47. The Nifty 50 index added 97.70 points or 0.44% to 22,055.20.

Economy:

The seasonally adjusted HSBC India Services Business Activity Index fell from 61.2 in March to 60.8 in April, highlighting one of the strongest growth rates seen in just under 14 years.

Meanwhile, the HSBC India Composite PMI Output Index moderated to 61.5 in April, from 61.8 in March, the latest reading was one of the highest seen in close to 14 years and signalled a substantial rate of expansion across the private sector.

On a separate note, India's foreign exchange reserves witnessed a decline for the third consecutive week, falling by $2.412 billion to $637.922 billion during the week ending April 26th. This decrease was primarily driven by a decline in foreign currency assets and gold reserves.

The Federation of Automobile Dealers Associations (FADA) today released Vehicle Retail Data for April'24. The Indian Auto Retail sector achieved a 27% YoY growth in April 2024, with the combined March-April period showing a 14% YoY increase.

The two-wheeler (2W), three-wheeler (3W), passenger vehicle (PV), tractor (Trac) and commercial vehicle (CV) segments grew by 33%, 9%, 16%, 1%, and 2%, respectively.

Comparing combined March and April 2024 with the same period last year shows a 14% YoY growth for the entire industry.

The industry remains cautiously optimistic due to rising interest in new models and strategic planning, but careful monitoring of election-related uncertainty and financial challenges is crucial to navigate the evolving market.

Stocks in Spotlight:

Titan Company declined 7.04% after the company’s standalone net profit tumbled 24.42% to Rs 786 crore on 22.18% decrease in revenue from operations to Rs 10,047 crore for Q4 FY24 over Q3 FY24. For year on year basis, The Tata Group company reported 7.08% rise in standalone net profit and 17.47% jumped in revenue from operations for Q4 FY24 over Q4 FY23.

Kotak Mahindra Bank fell 0.11% after the bank reported 18% rise in standalone net profit to Rs 4,133 crore in Q4 FY24 from Rs 3,496 crore in Q4 FY23. Total income of the bank increased by 27% YoY to Rs 15,285.35 crore during the period under review.

Lupin slipped 4.62%. The pharma major’s consolidated net profit surged 52.33% to Rs 359.43 crore in the quarter ended March 2024 as against Rs 235.96 crore during the previous quarter ended March 2023. Sales jumped by 13.04% to Rs 4,895.11 crore in the quarter ended March 2024 as against Rs 4330.30 crore during the previous quarter ended March 2023.

Hero MotoCorp gained 8.15% after the two-wheeler major's standalone net profit increased 18.29% to Rs 1,016.05 crore on 14.6% rise in revenue from operations to Rs 9,519.30 crore in Q4 FY24 over Q4 FY23. Hero MotoCorp sold 13.92 lakh units of motorcycles and scooters in fourth quarter of FY24, up 9.61% from 13.92 lakh units sold in Q4 FY23.

Meanwhile, the company’s consolidated net profit jumped 16.13% to Rs 935.01 crore in the quarter ended March 2024 as against Rs 805.12 crore during the previous quarter ended March 2023. Sales rose 14.02% to Rs 9616.68 crore in the quarter ended March 2024 as against Rs 8434.28 crore during the previous quarter ended March 2023

Dr Reddy's Laboratories declined 6.22%. The company’s consolidated net profit jumped 36.42% to Rs 1,309.80 crore in Q4 FY24 as against Rs 960.10 crore recorded in Q4 FY23. Sales rose 12.49% to Rs 7,083.00 crore in the quarter ended March 2024 as against Rs 6296.80 crore during the previous quarter ended March 2023.

Larsen & Toubro dropped 5.44%. The company reported consolidated revenues at Rs 67,079 crore in Q4 March 2024, recording a y-o-y growth of 15%. The share of international revenues during the quarter was 45%. The quarterly PAT was at Rs 4,396 crore, registered a growth of 10% y-o-y basis. The board has recommended a final dividend of Rs 28 per equity share, for the approval of shareholders.

State Bank of India rose 0.89% after the largest PSU bank’s standalone net profit grew 23.98% to Rs 20,698.35 crore on 20.11% rise in total income to Rs 1,28,411.88 in Q4 FY24 over Q4 FY23.

Cipla tumbled 6.18% after the company reported 79% jump in consolidated net profit to Rs 939.04 crore on 10% increase in revenue from operations to Rs 6,163 core in Q4 FY24 over Q4 FY23.

Bharat Petroleum Corporation advanced 1.3%. The state-owned oil marketing firm’s standalone net profit dropped 34.79% to Rs 4,224.18 crore in Q4 FY24 as against Rs 6,477.74 crore posted in Q4 FY23. Net sales (excluding excise duty) fell marginally to Rs 1,16,555.12 crore in the March quarter from Rs 1,18,112.08 crore recorded in the corresponding quarter previous year.

Global markets:

Bank of England left interest rates unchanged at 5.25% but hinted at potential cuts in the coming months.

Nonfarm payrolls increased by 175,000 on the month. The unemployment rate ticked higher to 3.9%, compared to 3.8% in the prior month, according to the Bureau of Labor Statistics.

US initial unemployment claims for the week ending May 4th increased to 231,000, exceeding expectations, the jump was interpreted by markets as a sign of a cooling labor market, potentially prompting the Fed to lower interest rates.