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Market Update

Nifty : 23,328.55  +500.00 (+2.19%)  Sensex : 76,734.89  +1577.63 (+2.10%)

* Equity benchmark Sensex surged nearly 1,600 points, closing above the 23,300 mark, driven by optimism from a global market rally. This positive momentum followed encouraging developments in U.S. trade policy, including a sharp decline in the U.S. Dollar Index, which dropped to a three-year low below 100. Notably, the U.S. government excluded iPhones, computers, and other electronics from reciprocal tariffs, signaling a softening of its stance towards China and boosting global sentiment. Additionally, U.S. President Donald Trump’s consideration of tariff exemptions for imported vehicles and auto parts further contributed to the positive outlook.

* On the domestic front, the India Meteorological Department (IMD) forecasted an above-normal monsoon, with a Long Period Average (LPA) of 105%, which, along with a fall in Wholesale Inflation to a seven-month low of 2.05%, helped lift market sentiment. The Nifty rose by 500 points (or 2.2%) to close at 23,328, while the Sensex gained 1,577 points (or 2.1%) to finish at 76,734 compared to the previous day's close. Key indices in sectors like real estate, metals, defense, banks, and autos saw significant gains of 3-5%.

* Fertilizer stocks, including RCF, Chambal Fertilizer, FACT, and Pradeep Phosphates, rallied by 3-11%, fueled by expectations of increased demand following the IMD's monsoon forecast. Global markets, including the U.S., Asia, and Europe, rose 3-4% in the last two trading sessions after the U.S. government excluded electronics from reciprocal tariffs. Auto parts giants Bharat Forge and Motherson Sumi saw gains of Rs.75 each after President Trump announced he was considering exemptions for 25% auto parts tariffs on U.S. carmakers. Additionally, metal stocks benefited from the U.S. Dollar Index’s sharp drop. In real estate, stocks like DLF, Ananat Raj, Sobha, Prestige, and Macrotech Developers saw strong gains, buoyed by optimism for demand recovery amid lending rate cuts by banks and the RBI's recent interest rate reduction.

Technical Outlook:

* Nifty Index opened gap up by 540 points and after the pullback from 23200 levels, it remained range bound at the higher zones for the rest of the day. Bulls were determined to keep it afloat after the gap up and it closed above 23300 with gains of around 500 points.

* It formed a small bodied candle with longer lower wick indicating smart buying at any small declines and has been making higher lows from the last four sessions. Now it has to hold above 23200 zones for an up move towards 23500 then 23650 levels while supports have shifted higher to 23200 and then 23000 level.

Derivative Outlook:

* Nifty future closed positive with gains of 1.95% at 23364 levels. Positive setup seen in PFC, Ind Hotel, Cholafin, REC, LIC Housing Fin, RBL Bank, Indigo, Dixon, MRF, BHEL, GAIL, Axis Bank, Ramco Cement, Bajaj Finance and SBI Card while weakness in Muthoot Finance, Glenmark, PNB, Voltas, COLPAL, TCS, Cropmton, IGL and Zyduslife.

* On option front, Maximum Call OI is at 24000 then 23500 strike while Maximum Put OI is at 23300 then 23000 strike. Call writing is seen at 23300 then 23500 strike while Put writing is seen at 23300 then 23000 strike. Option data suggests a broader trading range in between 22900 to 23800 zones while an immediate range between 23100 to 23500 levels.

* M&m Fin - Company will consider increasing its borrowing limits in a board meeting scheduled for April 22. This move is likely aimed at enhancing the company's financial flexibility and capacity to support its business growth.

* Poonawala Fincorp - Company has launched a gold loan business plan to expand its presence in Tier-II and Tier-III cities. The company plans to open 400 new branches in a phased manner over the next four quarters, aiming to strengthen its footprint and increase its market share in the gold loan segment.

* IDFC First Bank - Company’s board of directors will consider a preferential issue on April 17. The decision is expected to be taken during the board meeting, subject to regulatory approvals and other necessary clearances.

* Biocon - Biocon Biologics, a subsidiary of Biocon, has signed a settlement and license agreement with a Regeneron arm. The agreement allows for the commercialization of Yesafili, a biosimilar used to treat ophthalmology conditions, in the US market. This partnership is expected to benefit patients by increasing access to affordable treatment options.

* Satin Creditcare Network - Company has implemented a cap of 3 on the number of microfinance lenders its customers can borrow from. This move aims to promote responsible borrowing and reduce debt burden on customers, aligning with regulatory guidelines for microfinance institutions.

* Mercury EV Tech - Company has commissioned a 3.2 GW lithium-ion battery manufacturing facility in Vadodara. The facility is set to begin pilot production in mid-May 2025, marking a significant step in the company's efforts to enhance its battery production capabilities.

* Rategain - Company has partnered with AirGain, a leading airline retailing platform, to implement a competitive pricing strategy for airlines. This collaboration aims to optimize pricing and revenue management for airlines, leveraging Rategain's technology and AirGain's expertise.

* Lal Path Labs - Company has introduced an advanced diagnostic test for Amyloidosis, a condition characterized by abnormal protein buildup in the body. This new test is expected to aid in early detection and accurate diagnosis of the condition, enabling timely treatment and better patient outcomes.

Global Market Update

* European Market - European stock gain led by auto and auto parts stocks after US President Donald Trump said he is exploring possible temporary exemptions to his tariffs on the sector to give companies more time to set up US manufacturing. UK, Germany and France Index gain 1% each.

* Asian Market - Asian stocks rose, with automakers helping to lead the charge after US President Trump indicated a temporary reprieve from tariffs on imported vehicles and parts, adding to investor hopes for relief on some levies. Japan, South Korea and Taiwan Index gained up to 1.5%

* Commodity - Crude oil prices stabilized at $64/bbl even regaining some lost ground earlier in the day as President Trump indicated he was open to more tariff exemptions and as China’s imports of crude hit the highest in 20 months in March.

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