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The Indian stock market demonstrated resilience and continued its upward trajectory for the sixth consecutive session on March 24th, with broad-based gains across various sectors. The Nifty index surpassed the 23,600 mark, while the Sensex surged by approximately 1,100 points, reflecting positive investor sentiment. Notably, all sectoral indices closed in the green, indicating widespread participation in the market's rally. Leading the gains were sectors such as banking, capital goods, oil & gas, power, realty, and telecom, each experiencing gains ranging from 1 to 2 percent. The BSE Midcap and Smallcap indices also registered significant advances, both increasing by 1.5 percent, suggesting robust performance in the broader market beyond the large-cap stocks. This sustained upward momentum points to a confluence of factors, including positive economic indicators, favorable global cues, and company-specific developments that have bolstered investor confidence. The strong performance of the banking sector, for instance, could be attributed to expectations of increased lending activity and improved asset quality. Similarly, the gains in the capital goods sector might reflect optimism regarding infrastructure development and industrial growth. The oil & gas sector's performance could be linked to fluctuations in global oil prices and developments in domestic energy policy. Overall, the market's positive performance on March 24th underscores the underlying strength and resilience of the Indian economy.
Among the top gainers, Poonawalla Fincorp emerged as a standout performer, with its shares surging nearly 4%. This impressive gain followed the company's announcement of a new AI-powered underwriting solution, developed in collaboration with IIT Bombay. This innovative tool leverages the power of Large Language Models (LLM) and Machine Learning (ML) to automate and streamline the credit evaluation process. By integrating these advanced technologies, Poonawalla Fincorp aims to accelerate decision-making for credit managers, thereby improving efficiency and reducing turnaround times. The implementation of AI in underwriting represents a significant step forward in the financial services industry, potentially leading to more accurate risk assessments and improved customer experiences. Kotak Mahindra Bank also experienced a significant rally, with its shares soaring over 4% to reach a 41-month high of Rs 2,174. This marked the bank's highest level since October 2021, indicating a strong resurgence in investor confidence. The rally was fueled by key leadership appointments, including the appointment of Bhavnish Lathia as the new Chief Technology Officer (CTO). This strategic move is widely viewed as a concerted effort to bolster the bank's digital banking capabilities and enhance its technological infrastructure. The appointment of a seasoned technology leader like Lathia signals Kotak Mahindra Bank's commitment to innovation and its desire to remain competitive in the rapidly evolving digital landscape. Manappuram Finance also witnessed substantial gains, with its shares jumping over 4% to hit an intraday high. This surge continued the company's impressive 22% rally over the preceding eight consecutive sessions. The positive momentum was largely driven by the company's Rs 4,400 crore deal with Bain Capital, which acquired an 18% stake in Manappuram. This significant investment from a reputable private equity firm like Bain Capital underscores the company's strong fundamentals and growth potential. Furthermore, multiple brokerage firms have issued bullish calls on the stock, further amplifying investor enthusiasm. The influx of institutional investment and positive analyst ratings have collectively contributed to Manappuram Finance's strong market performance.
RailTel Corporation of India also experienced a significant surge, with its shares soaring 10% to trade at Rs 339. This followed the company's announcement of securing a Rs 25.15 crore order from Hindustan Petroleum Corporation. The railway PSU stock had previously skyrocketed to 6.5 times its IPO price of Rs 94, demonstrating its initial popularity among investors. However, it subsequently experienced a steep 57% decline to a recent low of Rs 265 on March 3. The recent surge suggests a potential recovery in investor sentiment, possibly driven by the new order and renewed optimism regarding the company's growth prospects. Hindustan Aeronautics Ltd. (HAL) also witnessed a notable rally, with its shares surging 5.09%. The surge was accompanied by trading volumes exceeding the 5-day average, indicating heightened investor interest. This increased trading activity suggests that investors are actively buying and selling HAL shares, potentially driven by positive news or expectations of future growth. On the other hand, some stocks experienced significant declines. KEC International witnessed a sharp decline of 3.73%, closing at Rs 808.85, amid heavy trading volumes. This decline may have been triggered by negative news or concerns about the company's future performance. Titan shares declined 3% after Ambit Securities cautioned about a potential slowdown in Q4 growth momentum. The stock has already underperformed the Nifty 50 over the past six months, and the concerns raised by Ambit have heightened investor caution, particularly amid broader worries about sluggish demand in the discretionary spending segment.
Mahindra & Mahindra shares experienced a notable decline of 3.01%, making it one of the biggest laggards in today’s session. Despite strong financial performance and consistent revenue growth, the shares dropped after reports suggested that it is in talks to acquire Japan's Sumitomo Corp's entire stake in heavy vehicle-maker SML Isuzu. While this acquisition could potentially expand Mahindra & Mahindra's product portfolio and market reach, investors may be concerned about the potential financial implications of the deal. IndusInd Bank shares slipped 2.50%, erasing early gains after reports surfaced that the lender had engaged Grant Thornton to conduct a forensic audit into recent accounting lapses. The audit is aimed at identifying any evidence of fraud or internal misstatements, raising concerns among investors. This development has increased regulatory scrutiny and dampened sentiment, despite the stock's recent resilience. The news of the forensic audit has undoubtedly shaken investor confidence, leading to a sell-off in IndusInd Bank shares. Bharti Airtel shares ended the day 0.40% lower after reports suggested that the government may not offer relief on AGR dues, a setback for telecom players. Earlier, a proposal was floated to waive 50% of the interest component and 100% of the penalty. However, the Cabinet Secretariat has reportedly informed the Department of Telecom that no such relief is under consideration. This lack of government support on AGR dues has negatively impacted investor sentiment towards Bharti Airtel, as it increases the company's financial burden.
Source: Top gainers and losers today: Stocks that moved the most on March 24