The domestic stock market started the new financial year on a strong note, mirroring a global rally. The key indices, Sensex and Nifty, surged to new highs on the back of positive investor sentiment and buying in sectors like metals, realty, and media. Although the rally fizzled out a bit later, both indexes managed to close in positive territory. This optimistic market performance is likely fueled by expectations of a potential Fed rate cut in June and promising domestic earnings growth forecasts. Investors will now be closely monitoring upcoming events like the RBI policy decision and US jobs data for further market cues.

The barometer index, the S&P BSE Sensex, was up 363.20 points or 0.49% to 74,014.55. The Nifty 50 index added 135.10 points or 0.61% to 22,462. Both the indices advanced over 2% in three trading sessions.

The Sensex and Nifty 50 clocked an all-time high of 74,254.62 and 22,529.95, respectively in morning trade.

JSW Steel (up 4.81%), Larsen & Toubro (up 1.66%) and HDFC Bank (up 1.52%) boosted the indices.

Broader markets outperformed the benchmarks, with BSE's Mid-Cap and Small-Cap indices gaining over 1.64% and 2.98%, respectively.

The market breadth was robust. On the BSE, 3235 shares rose and 665 shares fell. A total of 158 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, slumped 5.84% to 12.08.

Economy:

India's Goods and Services Tax (GST) collections hit the second-highest level ever in March 2024, reaching Rs 1.78 lakh crore. This robust figure, representing an 11.5% year-on-year jump, strengthens positive sentiment about the Indian economy. For the entire financial year 2023-24, total GST collections surpassed Rs 20 lakh crore for the first time, marking a significant 11.7% increase compared to the previous year.

Further strengthening positive economic sentiment, forex reserves hit an all-time high of $642.63 billion, marking the fifth consecutive weekly increase. This positive economic indicator comes alongside data showing sustained growth in core industries. The Eight Core Industries Index (ICI) rose 6.7% in February compared to the same period last year.

Numbers to Track:

MCX Gold futures for 5 April 2024 settlement rose 1.16% to Rs 68,460.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.04% to 104.59.

The United States 10-year bond yield rose 0.34% to 4.208.

In the commodities market, Brent crude for May 2024 settlement shed 29 cents or 0.33% to $86.71 a barrel.

Global Markets:

US stock futures are pointing towards a positive open today, with the Dow Jones index up 116 points. This follows a wave of optimism in Asian markets on Monday, where most indexes closed higher.

Easing concerns about inflation fueled the rally. China's manufacturing data showed improvement, and US inflation numbers, though rising, were not as bad as some feared. This strengthens the case for a potential Fed rate cut later this year, as anticipated by investors.

European stocks also joined the upward trend. However, some markets like Australia and Hong Kong remain closed for Easter Monday.

The US core personal consumption expenditures price index rose 0.3% in February after climbing in the previous month, marking its biggest back-to-back gain in a year. The measure is up 2.8% from a year earlier.

Fed Chair Jerome Powell said Friday the central bank?s preferred gauge of inflation was ?pretty much in line with our expectations.? Powell added that it wouldn?t be appropriate to lower rates until officials are sure inflation is in check.

Stocks in Spotlight:

Maruti Suzuki India fell 0.34% The car major announced that its total sales grew by 10.06% to 1,87,196 units in March 2024 as against 1,70,071 units sold in March 2023. Sequentially, total sales decreased 5.20% as compared with 1,97,471 units sold in February 2024.

Mahindra & Mahindra (M&M) shed 0.31%. The company announced that its overall auto sales for the month of March 2024 stood at 68,413 vehicles, registering a growth of 3.51% as against 66,091 vehicles sold in March 2023.

Eicher Motors shed 1.79%. The auto maker's unlisted subsidiary, VE Commercial Vehicles (VECV) reported 5.6% year on year decrease in commercial vehicles (CV) sales to 11,242 units in March 2024.

Escorts Kubota added 2.89% after said that the company?s Agri Machinery Business has sold 8,587 tractors in March 2024, which is lower by 16.7% as compared with sales of 10,305 tractors recorded in March 2023.

Steel Strips Wheels (SSWL) jumped 5.77% after the company achieved net turnover of Rs 340.72 crore in March 2024 as compared with Rs 367.69 crore in March 2023, recording de-growth of 7.34% YoY.

Infosys shed 0.20%. The company said that it is expecting a refund of Rs 6,329 crore from the Income Tax Department, Government of India for assessment years 2007-08 to 15-16, 17-18 & 18-19 during the quarter.

Adani Total Gas (ATGL) jumped 4.78% after the company?s wholly owned subsidiary, Adani TotalEnergies Biomass said that it has commissioned operations at phase 1 of Barsana Biogas Plant, located in the Mathura, Uttar Pradesh.

Confidence Petroleum India surged 7.30% after the company commissioned three new CNG stations in Bangalore. This expansion brings the company's total number of CNG stations in the city to 35. Further, Confidence Petroleum's CNG retailing division in Bangalore has achieved a significant milestone, reaching a daily sales volume of 140,000 kilograms.

NCC rallied 4.43% after the company said that it has received new orders worth Rs 3,086 crore in the month of March, 2024.

G M Breweries zoomed 13% after said that the company?s board will meet Thursday, 04 April 2024, to consider a proposal for issue of bonus shares by way of capitalization of reserves, subject to approval from members of the company.

Man Industries (India) hit an upper circuit of 5% after the firm said that its board has appointed Sanjay Kumar Agrawal as the chief financial officer (CFO) and key managerial personnel of the company effective from 1 April 2024.

Prestige Estates Projects surged 8% after the company through its subsidiaries, has entered into landmark deal with (Abu Dhabi Investment Authority) ADIA and Kotak AIF for Rs 2,001 crore ($240 million).

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