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Informist, Wednesday, Apr. 23, 2025

By Akash Mandal

MUMBAI – The benchmark indices extended gains Wednesday for the seventh straight session to end at their highest levels in over four months as bulls shrugged off geopolitical and tariff-related worries. During the day, the Nifty 50 dipped into the red briefly on selling for profit but rose again to reclaim the 24300 points level. Over the past seven sessions, the benchmark indices have gained nearly 9%.

The sentiment in global markets was boosted after US Treasury Secretary Scott Bessent hinted at an easing of the trade war with China. Further, President Donald Trump said he has no plans to get rid of US Federal Reserve Chair Jerome Powell. Following these developments, indices in the US rose overnight to end 2.5-3.0% higher. Markets in Asia also ended higher Wednesday. Indices in Europe also opened over 2% higher.

The Nifty 50 ended at 24328.95 points, up 161.70 points or 0.7%. The BSE Sensex closed at 80116.49 points, up 520.90 points or 0.7%. Banking and financial services stocks took a breather after several days of gains. These were the biggest drag on the Nifty 50. At the same time, information technology stocks rose, contributing to most of the gains in the Nifty 50. The broader market indices also gained, with small- and mid-cap indices closing 0.3-1.2% higher.

Shares of HCL Technologies were in demand, surging nearly 8% after the IT giant gave better-than-expected revenue growth guidance of 2-5% in constant currency terms for the financial year 2025-26 (Apr-Mar). After market hours Tuesday, the company reported a consolidated net profit of INR 43.07 billion for the March quarter, down over 6% sequentially but in line with analysts' estimates of INR 43.52 billion.

Other information technology stocks also rose as lowering of trade tensions globally is a positive for the sector, analysts said. Coforge, Persistent Systems, and LTIMindtree gained 4-6%. The Nifty IT rose over 4% and was the top performer among sectoral indices.

The Nifty Bank fell 0.5% after six straight sessions of gains during which the index had risen nearly 11%. HDFC Bank, Kotak Mahindra Bank, and State Bank of India each fell 1-2%. Technical and derivatives analysts had Tuesday said bank stocks may fall in the short term as investors take out some profits. On the day when these stocks fell, IT stocks managed to keep the headline indices afloat.

Most sectoral indices ended higher. Sectors such as automobiles, pharmaceuticals, and metals, which are likely to be affected by tariffs imposed by the US, also ended higher on hopes of trade tensions easing globally. Among automobile stocks, Mahindra & Mahindra gained over 3.5% after brokerage HSBC said the company's earnings growth for FY26 could outpace that of its peers. Pickup in demand for electric vehicles is a key upside catalyst for the stock, CNBC-TV18 reported HSBC as saying.

Among other stocks, Waaree Energies rose 15% and was the top gainer in the Nifty 500 after its consolidated net profit rose 34% on year for the March quarter. Its revenue also rose 36%. The stock ended higher for the ninth straight session, rising a staggering 44% in that period.

AU Small Finance Bank also ended over 8% higher as brokerages said its credit and deposit growth outpaced that of the industry during the March quarter. The bank also said it expects to receive a universal banking licence from the Reserve Bank of India in 2025. The bank's net profit of INR 5.04 billion for the quarter was in line with expectations.

Niva Bupa Health Insurance Co. ended 8% higher after brokerage Motilal Oswal Financial Services initiated coverage on the stock with a 'buy' rating and a target price of INR 100.

Shares of Jammu & Kashmir Bank fell nearly 10% and were the worst hit in the Nifty 500 after a terrorist attack in Pahalgam killed at least 26 people and left several others injured. The stock may have reacted to disruptions in operations of the bank, given that the highest number of the bank's branches are in the Union territory of Jammu and Kashmir, a senior research analyst at a domestic brokerage said. The bank had 1,012 branches as of Dec. 31, of which 837, or nearly 83%, were in Jammu and Kashmir, as per the bank's website.

Shares of air-conditioner manufacturing companies such as Havells India, Voltas, and Blue Star fell 3-6% after Havells said product sales are growing at a slower pace due to a delayed summer. However, Havells, which sells air-conditioners under the Lloyd brand, also said it is hopeful of sales improving as the summer progresses.

* Of the Nifty 50 stocks, 39 rose and 11 fell

* Of the Sensex stocks, 23 rose and 7 fell

* On the NSE, 1,516 stocks rose, 1,340 fell, and 75 were unchanged

* On the BSE, 2,078 stocks rose, 1,873 fell, and 155 were unchanged

* Nifty IT: up 4.3%; Nifty Auto: up 2.4%; Nifty Consumer Durable: down 1%

BSE                                               NSE

Sensex: 80116.49, up 520.90 points or 0.7%        Nifty 50: 24328.95, up 161.70 points or 0.7%

End

US$1 = INR 85.42

Edited by Rajeev Pai

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