It has been third straight day of gains for the benchmark indices ahead of the FOMC meet outcome. At the time of writing this story, Sensex was up over 750 points, while Nifty clocked 14857 levels. Broader indices though underperformed the headline indices with nifty Midcap 100 up by 1.14%.
1. Financial and banks lead:
The results from financial companies including Bajaj Finance have missed on Q4 number with operating profit coming in muted at nearly 11 percent. Loan loss provisions remained elevated at 3.4 per cent of AUM as the company took accelerated write-offs of Covid-related stress of Rs 1,530 crore.
Despite this top gainers are Bajaj finance, Bajaj Finserv, IndusInd Bank and Kotak Mahindra Bank.
SBI shares also moved higher after the lender has decided to raise funds worth $2 billion.
2. Auto pack also was up over 2 percent:
Auto pack led by TVS Motor which posted a good Q4 show was up by over 2%. Shares of TVS Motor gained as much as 15%, followed by Bajaj Auto, Eicher Motors, Motherson Sumi and M&M.
3. Better Q4 earning show:
"Q4 results continue to be good. Axis Bank's numbers confirm the trend of leading private sector banks growing their market share. Early bird midcap results are much better than expected. Midcaps are likely to outperform in the coming days", said V.K. Vijayakumar, chief investment strategist at Geojit Financial Services.
Bajaj Finance's net profit rose 42% to Rs. 1,347 crore in the January-March period.
4. Global markets:
In the US treasury yield climbed to top levels of 1.65 percent as investor look out for the Federal Reserve's latest policy decision due later today. The central bank is not expected to take any action on monetary policy. At the time of writing this report, European markets were mostly up led by FTSE up 0.3 percent.
The global support to markets continues with positive economic data from the US. The FOMC (Federal Open Market Committee) comment expected today is likely to reaffirm the Fed's accommodative stance, imparting further resilience to markets. In brief, the gloomy covid scenario is unlikely to impact the market meaningfully," Vijaykumar added.