May 9, 2024
3 min
On May 9, benchmark indices witnessed a significant decline, with the NSE Nifty 50 slipping below 22,000 and the BSE Sensex plunging over 1,000 points. Both indices started the day on a downward trajectory and continued to fall over 1 percent intraday.
At close, the Sensex recorded a decline of 1,062 points or 1.5 percent, ending at 72,404, while the Nifty 50 dropped by 335 points or 1.5 percent, closing at 21,967. The market saw 865 shares advancing, 2,394 shares declining, and 102 shares remaining unchanged.
This marks the fifth consecutive day of sell-offs for the headline indices. Multiple factors, including the ongoing Lok Sabha elections, lacklustre Q4 results for the 2024 season, and rising crude prices, have contributed to this prolonged downturn.
Arvinder Singh Nanda, Senior Vice President of Master Capital Services, noted that uncertainty surrounding the general elections has notably increased India's volatility gauge, the India VIX, which hit a 52-week high at 19, reflecting market apprehension. In the broader market, both the BSE Midcap index and the BSE Smallcap index experienced declines of more than 2 percent each.
Earlier today, Gaurang Shah, Senior Vice President at Geojit Financial Services, suggested that while volatility may be noticeable in the Nifty 50 and Sensex, it is expected to be even more pronounced in the small-cap and mid-cap segments.
Nifty is anticipated to find immediate support levels near 21,739 and 21,676, with resistances projected at 22,144 and 22,331. Presently, Nifty appears poised for a rebound from its lower levels.
Similarly, Bank Nifty is expected to encounter immediate support around 47,083 and 46,679, while resistances are likely at 47,896 and 48,300. Bank Nifty is currently showing signs of recovery from its lower levels.
PCR Analysis: Nifty PCR-OI has decreased with nifty has negative which shows CALL WRITING.
Open Interest Analysis: Nifty future MAY contract OI has increased with negative close which shows Short Buildup.
Cost of Carry Analysis: Nifty MAY month contract has ended in high compare with JUNE contract and high range compare with previous session which indicates a recover from lower levels.
India VIX Analysis: India VIX has closed at 18.20 vs 17.08 (DoD) basis which shows increase in volatility.
SBI, India's largest lender, reported a 24% increase in net profit to Rs 20,698 crore for the quarter ending March 31, 2024, driven by robust loan demand, surpassing analysts' estimates of Rs 13,400 crore. The bank also declared a dividend of Rs 13.70 per share for FY24. SBI's shares were trading nearly 3% higher at Rs 834.40 apiece on May 9. In terms of asset quality, SBI showed improvement, with GNPA reducing to 2.24% from 2.78% last year and net NPA declining to 0.57% from 0.67%. The bank's loan growth remained strong, marking one of the best performances in over eight quarters, with a notable improvement in the ratio between gross and net NPAs, which hit a 36-quarter low. SBI's interest earned grew by 19% to Rs 1.11 lakh crore in the reported quarter compared to Rs 92,951 crore a year ago. According to a stock exchange filing, credit growth stood at 15.24% YoY, with domestic advances growing by 16.26% YoY, while corporate advances and agri advances crossed Rs 11 lakh crore and Rs 3 lakh crore, respectively.
In Q4FY24, total income surged to Rs 1.28 lakh crore from Rs 1.06 lakh crore in the year-ago period, while operating expenses saw a moderate increase to Rs 30,276 crore from Rs 29,732 crore in the same period last year.
Overall provisions nearly halved to Rs 1,609 crore from Rs 3,315 crore in the year-ago period.
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