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Bulls roar over Dalal Street in early afternoon deals
Mar-28-2024

Bulls were roaring over the Dalal Street in early afternoon deals, with both Sensex and Nifty garnering gains of over a percent, aided by heavy buying at Power and Capital Goods counters, despite negative cues from other Asian markets. Further, Bajaj Finserv gained the most among major industry players on the BSE. Sentiments remained upbeat, amid reports that India's central bank will keep building its forex reserves as it seeks to build larger buffers, and strong inflows into the country's equity and debt markets give it an opportunity to do so.

On the global front, Asian markets were trading mostly in red, after Singapore's producer price inflation accelerated in February amid an increase in the non-oil index. The data from the Department of Statistics showed that the manufacturing producer price index climbed 2.2 percent year-on-year in February, faster than January's 1.8 percent rise. The non-oil index rose 3.3 percent annually in February, while the oil index showed a decrease of 3.0 percent.

Back home, metal industry stocks were in watch, as credit rating agency ICRA in its latest report has said that primary non-ferrous metal industry’s earnings would remain stable in FY2025, considering steady movement in realisations and an easing of input cost pressure to an extent. The domestic demand growth is expected to remain healthy at around 10% in FY2025 and would significantly outpace the expected growth of around 2% in global demand. 

The BSE Sensex is currently trading at 73754.57, up by 758.26 points or 1.04% after trading in a range of 73120.33 and 73826.80. There were 28 stocks advancing against 2 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index surged 0.57%, while Small cap index was up by 0.67%.

The top gaining sectoral indices on the BSE were Power up by 1.49%, Capital Goods up by 1.35%, PSU up by 1.29%, Utilities up by 1.27% and Healthcare up by 1.16%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Bajaj Finserv up by 4.34%, Bajaj Finance up by 3.11%, Nestle up by 2.18%, Larsen & Toubro up by 1.88% and Ultratech Cement up by 1.80%. On the flip side, HCL down by 0.52% and Axis Bank down by 0.42% were the top losers.

Meanwhile, the Finance Ministry has said that the Centre plans to raise Rs 7.5 lakh crore through market borrowing in the April-September period of 2024-25 (H1FY25) to fund the revenue gap. In the next financial year (FY25), the government plans to borrow a total of Rs 14.13 lakh crore. The fundraise would be done through dated securities, including Rs 12,000 crore through issuance of sovereign green bonds (SGBs). Based on market feedback and in line with global market practices, it has been decided to introduce a new dated security of 15-year tenor.

The ministry said the gross market borrowing of Rs 7.5 lakh crore shall be completed through 26 weekly auctions. The market borrowing will be spread over three, five, seven, 10, 15, 30, 40, and 50-year securities. The share of borrowing (including SGBs) under different maturities will be: 3-year (4.8 per cent), 5-year (9.60 per cent), 7-year (8.8 per cent), 10-year (25.6 per cent), 15-year (13.87 per cent), 30-year (8.93 per cent), 40-year (19.47 per cent) and 50-year (8.93 per cent). 

It further said that the government will continue to carry out switching of securities to smoothen the redemption profile. The government will continue to reserve the right to exercise the greenshoe option to retain an additional subscription of up to Rs 2,000 crore against each of the securities indicated in the auction notifications. Weekly borrowing through the issuance of Treasury Bills in the first quarter of FY25 is expected to be Rs 27,000 crore for the first seven auctions and Rs 22,000 crore for the subsequent six auctions.

The CNX Nifty is currently trading at 22356.55, up by 232.90 points or 1.05% after trading in a range of 22163.60 and 22373.50. There were 44 stocks advancing against 6 stocks declining on the index.

The top gainers on Nifty were Bajaj Finserv up by 4.28%, Bajaj Finance up by 3.19%, Apollo Hospital Ent. up by 2.74%, Eicher Motors up by 2.69% and Hero MotoCorp up by 2.60%. On the flip side, Shriram Finance down by 1.76%, Bajaj Auto down by 1.12%, HCL Tech. down by 0.46%, Axis Bank down by 0.38% and Britannia down by 0.33% were the top losers.

Asian markets were trading mostly in red; Taiwan Weighted lost 53.57 points or 0.27% to 20,146.55, Jakarta Composite plunged 31.53 points or 0.43% to 7,278.56, Straits Times fell 23.1 points or 0.72% to 3,228.61, KOSPI dropped 9.29 points or 0.34% to 2,745.82 and Nikkei 225 slipped 594.66 points or 1.48% to 40,168.07, while Shanghai Composite strengthened 7.29 points or 0.24% to 3,000.43 and Hang Seng advanced 155.2 points or 0.94% to 16,548.04.
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