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Informist, Wednesday, Apr. 16, 2025

By Gopika Balasubramanium

MUMBAI – Benchmark equity indices closed higher Wednesday after a volatile intra-day session. Analysts said investors, who looked to book profits intraday, bought more as indices rose sharply. Gains in index heavyweights such as HDFC Bank, ICICI Bank and Bharti Airtel lifted the Nifty 50 higher. On the other hand, the automobile and information technology sectors saw some selling pressure.

The Nifty 50 closed at 23437.20 points, up 108.65 points or 0.5%, and the BSE Sensex ended at 77044.29 points, up 309.40 points or 0.4%. Nifty mid- and small-cap indices outperformed benchmark peers, with the Nifty Smallcap 50 closing over 1% higher, gaining the most among broader market indices.  

Private bank stocks such as IndusInd Bank and Axis Bank were the biggest gainers in the Nifty 50 and closed over 7% and 4%, respectively. Shares of IndusInd Bank closed sharply higher after hitting a one-month high of INR 794.40. The stock jumped after the bank said the total impact on the bank due to discrepancies in the derivatives portfolio was slightly lower than the initially estimated. On Tuesday, the bank said that according to PricewaterhouseCoopers, the total impact was 2.27% of the bank's net worth as of December 2024, lower than the initial estimate of 2.35%.  

Oil and Natural Gas Corp. closed over 3.7% higher at INR 241.22 after CLSA said that the company will benefit from the government's reduction of gas allocation to gas distribution companies by 18-20%. CLSA said that the reclassification increases the company's share of higher-priced new well gas to 17% from 11%, ET Now reported.

Other stocks such as Mahanagar Gas and Indraprastha Gas fell after the government reduced the domestic gas allocations under the administrative price mechanism. These stocks came off lows to close 1.4-4.8% lower. Brokerage JM Financial said the cut will likely result in a decline in gas allocation for compressed natural gas businesses to 40% from the current 51%. City gas distribution companies will likely need to increase CNG prices by around 1%, or INR 0.65-INR 1.2 per kilogram, assuming crude oil prices of $60-$75 per barrel, the brokerage said.

Maruti Suzuki, whose 42% sales accounted for CNG and hybrid vehicles in 2023-24 (Apr-Mar), closed 1.6% lower as the rise in CNG prices may affect the demand for vehicles. Shares of Bajaj Auto ended 0.4% lower. "Maruti (Suzuki) and Bajaj (Auto) are down as the government reduced CNG gas allocation to CGD (city gas distribution) companies by 15-18%, which will lead to increase in CNG prices and dent sentiments for CNG (vehicle) users," Saral Seth, vice president – research tracking automobile sector at IndSec Securities & Finance, said.

Some stocks reacted to their March quarter earnings as well. Shares of Indian Renewable Energy Development Agency closed 5.6% higher after the company reported a 49% year-on-year jump in its bottom line in the March quarter. Shares of ICICI Lombard General Insurance Co. fell slightly after the company's net profit for the March quarter declined 30% sequentially to INR 5.10 billion. The stock, which fell 4.2% to hit an intraday low of INR 1,745.60, came off lows to end 0.6% down. Shares of ICICI Prudential Life Insurance Co. closed 3.4% higher after the company's net profit more than doubled on year to INR 3.86 billion. 

Among other stocks, Zydus Lifesciences and Lupin closed 6.9% and 3.9% lower, respectively, after the two companies lost a patent litigation case related to Mirabegron, the generic equivalent of Myrbetriq in the US. The US Federal Court ruled in favour of Japanese company Astellas Pharma, which had originally developed the drug, CNBC-TV18 reported. The ruling is a setback for both companies as it will not allow them to market their generic version of the drug in the US.

Shares of Easy Trip Planners closed 8.6% lower amid market rumours that the Enforcement Directorate searched the premises of the company's promoter, Nishant Pitti. On the sectoral front, Nifty PSU Bank and Nifty Media were the top gainers and closed 2.4% and 1.9% higher, respectively. Nifty Auto was the worst hit and closed 0.4% lower, while Nifty Pharma and Nifty Healthcare closed 0.2% down each. 

* Of the Nifty 50 stocks, 33 rose and 17 fell

* Of the Sensex stocks, 20 rose and 10 fell

* On the NSE, 2,068 stocks rose, 834 fell, and 75 were unchanged

* On the BSE, 2,636 stocks rose, 1,309 fell, and 133 were unchanged

* Nifty PSU Bank: up 2.4%; Nifty Media: 1.9%; Nifty Auto: down 0.4%

BSE                                               NSE

Sensex: 77044.29, 309.40 up points or 0.4%       Nifty 50: 23437.20, up 108.65 points or 0.5%

End

US$1 = INR 85.6

Edited by Saji George Titus

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