At 11:30 IST, the barometer index, the S&P BSE Sensex, was up 144.45 points or 0.20% to 74,029. The Nifty 50 index added 5.65 points or 0.03% to 22,481.50.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index fell 0.76% and the S&P BSE Small-Cap index declined 0.78%.

The market breadth was weak. On the BSE, 1,258 shares rose and 2,453 shares fell. A total of 186 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, surged 12.96% to 16.51.

Economy:

Despite falling from 61.2 at the end of the previous fiscal quarter to 60.8 in April, the seasonally adjusted HSBC India Services Business Activity Index highlighted one of the strongest growth rates seen in just under 14 years. Survey members attributed the latest upturn in output to favorable economic conditions, demand strength and rising intakes of new work.

Despite coming in below the Flash estimate (62.2), the final HSBC India Composite PMI Output Index still signaled a substantial rate of expansion across the private sector. At 61.5 in April (March: 61.8), the latest reading was one of the highest seen in close to 14 years.

As was the case for output, manufacturers continued to note a stronger increase in new business intakes than service providers. Aggregate sales rose sharply, and at one of the fastest rates since mid-2010. Goods producers also led April's rise in payroll numbers, with softer growth in the service economy curbing job creation at the composite level.

Meanwhile, in the third consecutive weekly decline, India’s forex reserves dropped $2.412 billion to $637.922 billion during the seven days ended April 26, according to the RBI data.

For the week ended April 26, the foreign currency assets — a major component of the reserves — decreased $1.159 billion to $559.701 billion, the data released on Friday showed.

Gold reserves decreased $1.275 billion to $55.533 billion during the week. The special drawing rights (SDRs) were up $15 million to $18.048 billion, said the RBI.

India’s reserve position with the IMF was also up $8 million to $4.639 billion in the reporting week, the apex bank data showed.

IPO Update:

The initial public offer (IPO) of Indegene received 72,84,321 bids for shares as against 2,88,66,677 shares on offer, according to stock exchange data at 11:15 IST on Monday (06 May 2024). The issue was subscribed 0.25 times.

The issue opened for bidding on Monday (06 May 2024) and it will close on Wednesday (08 May 2024). The price band of the IPO is fixed at Rs 430 to Rs 452 per share. An investor can bid for a minimum of 33 equity shares and in multiples thereof.

Buzzing Index:

The Nifty Consumer Durables index fell 2.01% to 33,784.75. The index slipped 2.44% in three consecutive trading sessions.

Titan Company (down 6.14%), Kalyan Jewellers India (down 3.55%), Whirlpool of India (down 2.57%), Rajesh Exports (down 2.45%), Voltas (down 1.46%), Kajaria Ceramics (down 1.09%), V-Guard Industries (down 0.95%), Bata India (down 0.66%), Dixon Technologies (India) (down 0.49%) and Century Plyboards (India) (down 0.37%) declined.

On the other hand, Amber Enterprises India (up 2.79%), Crompton Greaves Consumer Electricals (up 1.15%) and Cera Sanitaryware (up 0.75%) edged higher.

Titan Company declined 6.14% after the company’s standalone net profit tumbled 24.42% to Rs 786 crore on 22.18% decrease in revenue from operations to Rs 10,047 crore for Q4 FY24 over Q3 FY24.

Stocks in Spotlight:

Kotak Mahindra Bank jumped 5.30% to Rs 1629.25 after the bank reported 18% rise in standalone net profit to Rs 4,133 crore in Q4 FY24 from Rs 3,496 crore in Q4 FY23. The bank’s total income increased by 27% YoY to Rs 15,285.35 crore during the period under review.

Seamec slipped 1.28%. The company said that CRISIL Ratings has upgraded its rating on the long-term bank facilities of the company to 'CRISIL A+/Stable’ from 'CRISIL A/Positive’.

Global Markets:

Most of the Asian stocks trading higher on Monday as a softer-than-expected U.S. jobs report fueled hopes that the Federal Reserve could start cutting rates soon. Investors, meanwhile, awaited the Reserve Bank of Australia’s rate decision on Tuesday and China’s April trade data on Thursday. Japan and South Korea’s markets are closed for a public holiday.

U.S. stocks closed sharply higher Friday, as Treasury yields fell after a softer-than-anticipated April jobs report.

The Berkshire Annual Meeting 2024 on Saturday proceeded in Omaha with Warren Buffett, Greg Abel, and Ajit Jain fielding shareholder queries. Buffett spoke on a variety of issues, including the India opportunity, stock market outlook, US dollar, AI, Apple stake cuts, global investments and more.

The U.S. economy added fewer jobs than expected in April while the unemployment rate rose. Nonfarm payrolls increased by 175,000 on the month. The unemployment rate ticked higher to 3.9%, compared to 3.8% in the prior month, according to the Bureau of Labor Statistics.