Nifty, Sensex begin FY24's last trading day higher, driven by IT, financials

Markets open marginally higher: On the final trading day of financial year 2024 (FY24), the benchmark indices Nifty and Sensex started trading slightly higher, following the earlier indications provided by GIFT Nifty. The market uptick was primarily led by financials and a rebound in IT stocks. However, volatility is expected due to the monthly derivatives expiry.

The stock market is set to remain closed on March 29 on account of Good Friday.

The NSE Nifty50 opened with a gain of 0.24 per cent at 22,176.85, while the BSE Sensex saw a 0.27 per cent increase at 73,192.06.

Leading the gainers on the BSE were Bajaj Finserv, Bajaj Finance, and SBI, while Maruti, Titan, and HCLTech faced losses. Similarly, on the NSE, Dr Reddy and Hindalco emerged as top gainers, whereas Shriram Finance and Maruti were among the top laggards.

In broader market trends, the Midcap segment observed a 0.33 per cent upptick, while the SmallCap segment rose 0.50 per cent. 

Sectorally, Media and PSU stocks registered gains of 1.2 per cent and 1.02 per cent, respectively, while auto stocks experienced a 0.22 per cent decline.

According to provisional data from the NSE, foreign institutional investors (FIIs) net purchased shares amounting to Rs 2,170.32 crore, whereas domestic institutional investors (DIIs) bought stocks worth Rs 1,197.61 crore on March 27. 

V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, “The upward directional move expected from early April has been confirmed by the strong 119 points rally in Nifty yesterday. The primary catalyst for the ongoing rally is the huge liquidity flows into the market. DIIs have pumped in a massive Rs 24,373 crores into the market during the last seven trading days imparting resilience to the market. Since flows into the market continue and are showing no signs of slowdown, a scramble for high quality stocks with good growth prospects is likely. This was evident in the spurt in Reliance stock yesterday."

Investors will keep a close watch on several stocks, including Dr Reddy, which secured an exclusive distribution deal with Sanofi India, and Balmer Lawrie, announcing plans to establish a warehousing zone with a Rs 230 crore investment. Biocon's approval from the UK healthcare department for its diabetes drug, along with BHEL's order worth Rs 4,000 crore from Adani Power, will also be monitored closely.

“A significant trend in the market is the steady performance of industrials like L&T, Siemens, Cummins and ABB. This trend is likely to continue. Pharma is another sector which is on sound footing. It is important to note that the PSU Bank Index which has given stellar return of 90% in FY24, has further potential to go up since there is valuation comfort in the segment,” Vijayakumar noted.