The Indian equity markets witnessed rangebound trading on Thursday, with modest gains observed in mid-afternoon sessions. Key indices, including the Nifty 50 and S&P BSE Sensex, showed resilience, with the FMCG sector leading the charge for the second consecutive trading session. By 14:27 IST, the S&P BSE Sensex was up by 89.89 points or 0.012%, settling at 74,175.88, while the Nifty 50 index rose 38.90 points or 0.17% to 22,514.10.
Both indices achieved new all-time highs during the afternoon session, with Nifty 50 touching 22,525.65 and Sensex peaking at 74,245.17, further solidifying the markets’ upward momentum.
Broader Market Performance
The broader market outperformed the frontline indices, with both mid-cap and small-cap stocks registering stronger gains. The S&P BSE Mid-Cap index climbed 0.64%, while the S&P BSE Small-Cap index rose 0.89%.
Market breadth was positive, reflecting a bullish sentiment. On the BSE, 2,214 stocks advanced, while 1,571 stocks declined, and 108 stocks remained unchanged.
It was announced that the domestic market would remain closed on 8 March 2024 in observance of Mahashivratri.
Economy Update
India’s economic outlook remains strong, with Reserve Bank of India (RBI) Governor Shaktikanta Das predicting that the country’s GDP growth for the current fiscal year, ending in March, could be “very close” to 8%. According to Das, rural demand has shown considerable improvement, now much stronger than it was a year ago, while urban demand continues to remain robust, contributing to the overall growth trajectory.
Buzzing Sector: FMCG
The FMCG sector was the standout performer of the day, extending its rally into a second straight session. The Nifty FMCG index gained 0.85%, reaching 54,340.10, following a 1.28% rise over the previous two trading sessions.
Top gainers within the FMCG space included:
- Radico Khaitan: Up 3.88%
- Tata Consumer Products: Up 2.59%
- Marico: Up 1.83%
- ITC: Up 1.4%
- Hindustan Unilever: Up 0.82%
Other notable gainers in the FMCG sector were:
- Nestle India: Up 0.58%
- Dabur India: Up 0.56%
- Colgate-Palmolive (India): Up 0.53%
- Procter & Gamble Hygiene and Health Care: Up 0.02%
However, some FMCG stocks faced pressure, with Varun Beverages slipping 0.85%, United Breweries falling 0.83%, and Godrej Consumer Products edging lower by 0.48%.
Numbers to Track
The yield on India’s 10-year benchmark federal paper dropped 0.31%, settling at 7.032% compared to the previous day’s close of 7.054%, reflecting some easing in the bond market.
In the foreign exchange market, the Indian rupee edged higher against the US dollar. The rupee was hovering at 82.7850, marginally up from its previous close of 82.8300.
In commodities, MCX Gold futures for April 2024 settlement increased by 0.42%, reaching Rs 65,451 per 10 grams, supported by demand from investors seeking safe-haven assets amid global market uncertainties.
Meanwhile, the US Dollar Index (DXY), which tracks the greenback’s performance against a basket of major currencies, fell 0.13%, standing at 103.24.
In the commodities market, Brent crude for April 2024 settlement declined by 27 cents or 0.33%, trading at $82.69 per barrel.
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Stocks in Spotlight
Several individual stocks were in the spotlight on Thursday due to specific developments:
- Zydus Lifesciences advanced 1.22% after announcing that its Ahmedabad API facility had been granted permission by the US Food and Drug Administration (FDA) to commercially manufacture and supply the active pharmaceutical ingredient (API). This regulatory approval bolstered investor confidence in the company’s growth prospects.
- Wardwizard Innovations & Mobility surged 2.49% following the company’s announcement of strong sales figures. In February 2024, Wardwizard dispatched 2,018 units of electric two-wheelers, marking a 112% year-over-year increase, reflecting the growing demand for electric vehicles in the Indian market.
Outlook
The performance of FMCG stocks and broader market indices points toward continued strength in specific sectors, with investors eyeing key developments across the economy. However, with the upcoming market holiday on 8 March, trading volumes may taper off as market participants prepare for the long weekend.
Investors will also continue to monitor the performance of India’s rupee, bond yields, and commodity prices, especially given the ongoing fluctuations in crude oil prices and global economic conditions. Additionally, the government’s stance on macroeconomic policies, rural demand growth, and global factors like crude oil prices could have a significant impact on market movements in the near future.
With the RBI governor’s optimistic remarks about GDP growth and the strong performance of the FMCG sector, India’s market outlook remains cautiously positive, despite occasional rangebound sessions like today’s. Traders and analysts will continue to keep an eye on sectoral trends and global cues to guide investment strategies going forward.
