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On 12 March 2024, Indian stock markets experienced a broad selloff due to a significant rise in the US dollar and long-term bond yields. This was triggered by bigger-than-expected US CPI data for March, which led to diminished expectations of a US rate cut in June.
The Sensex closed down by 793 points (1.06%) at 74,244.90, while the Nifty 50 fell by 234 points (1.03%) to 22,519.40.
The US dollar and 10-year treasury yields approached five-month highs as investors anticipate the Fed to delay rate cuts and potentially reduce rates by less than 50 basis points this year.
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Impact on the stock market
All major sectoral indices closed lower, with Nifty Pharma, PSU Bank, Oil & Gas, Media, and FMCG down around or more than 1% each. Nifty Bank declined by 0.86%.
| Sector/Index | Performance |
| Information Technology | -0.78% |
| Healthcare | -1.45% |
| Oil & Gas | -1.23% |
| Realty | -0.88% |
| PSU Banks | -1.26% |
Top gainers today
| Company | Price | Change (%) |
| Divis Labs | 3,779.70 | +1.09% |
| Bajaj Auto | 9,064.85 | +0.66% |
| Tata Motors | 1,018.50 | +0.49% |
| TCS | 4,001.40 | +0.42% |
| TATA Cons. Prod | 1,149.45 | +0.36% |
Top losers today
| Company | Price | Change (%) |
| Sun Pharma | 1,540.00 | -3.99% |
| Maruti Suzuki | 12,266.55 | -3.28% |
| Power Grid Corp | 275.25 | -2.58% |
| Titan Company | 3,619.30 | -2.48% |
| ONGC | 265.70 | -2.32% |
Market aftermath: Impact on stocks
Sun Pharma shares drop 3.4%
Sun Pharmaceutical Industries Ltd shares fell 3.4% after the US FDA labelled its Dadra facility as “official action indicated” (OAI) following an inspection in December 2023, indicating possible regulatory action. Shares were trading at ₹1,549.30 on the BSE.
Sun Pharma recently secured approval for Winlevi (clascoterone cream 1%) in Australia to treat acne. Sharekhan forecasts continued significant growth for Sun Pharma due to investments in its R&D pipeline, particularly in speciality products and treatments.
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TCS reports ₹12,434 crore Q4 net profit, revenue up 3.5%
Tata Consultancy Services (TCS) reported a net profit of ₹12,434 crore for Q4 FY24, a 9.1% increase year-on-year. Revenue for the quarter was ₹61,237 crore, up 3.5% YoY and 1.1% quarter-on-quarter.
Operating margin rose 150 basis points YoY to 26%, while net margin increased 100 basis points YoY to 20.3%. TCS declared a dividend of ₹28 per share. The company saw its highest-ever order book despite global macro uncertainties.
Pratham EPC soars 20% on ₹497-crore order
Pratham EPC Projects Limited’s shares surged 20%, reaching the upper circuit after securing a ₹497-crore order, more than twice its ₹241-crore market cap.
The order involves an EPC contract for crude oil pipelines in the Gulf of Khambhat and Gujarat fields, expected to be completed in 36 months. The company, which debuted in March with a stock price of ₹113.30 on NSE, primarily offers gas pipeline services and project management in the oil and gas sector.
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Crude oil futures rise
Crude oil futures rose on Friday morning as Israel prepared for potential conflicts beyond Gaza. At 9:08 am, June Brent oil futures were up 0.60% at $90.28, while May WTI futures rose 0.73% to $85.64.
April crude oil futures on MCX increased by 0.48% to ₹7,143, with May futures also up 0.48% to ₹7,102.
Conclusion
In today’s market update for April 12, 2024, Indian stock markets saw a broad selloff due to concerns about US monetary policy following higher-than-expected US CPI data.
Sun Pharma faced regulatory hurdles, but TCS reported strong earnings. Pratham EPC’s stock surged with a major order win. Crude oil prices rose amid geopolitical tensions.
Stay tuned to StockGro for more updates.
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