Barometers extend gains, metal shares shine

The key equity benchmarks marched higher and hit the day`s high in morning trade. The Nifty traded above 22,200 level. Metal shares extended gains for the second consecutive trading session.

At 10:28 IST, the barometer index, the S&P BSE Sensex, was jumped 719.38 points or 0.99% to 73,219.68. The Nifty 50 index surged 222.95 points or 1.01% to 22,205.75.

In the broader market, The S&P BSE Mid-Cap index rose 0.49% and the S&P BSE Small-Cap index added 0.72%.

The market breadth was strong. On the BSE, 2,496 shares rose and 1,025 shares fell. A total of 150 shares were unchanged.

Economy:

India�s economy grew much faster than expected in the October to December quarter. Data showed GDP grew 8.4% in the third fiscal quarter on the back of higher private consumption and strong manufacturing and construction activity. The October-December quarter reading was also higher than the 7.6% growth clocked in the prior three months. The government raised its GDP growth outlook for fiscal year 2023-24 to 7.6% from 7.3% forecast earlier.

Meanwhile, India`s eight core sectors posted a growth of 3.6% in January, according to data released by the Ministry of Commerce and Industry on February 29. In December 2023, core sector growth had printed in at 3.8%. The commerce ministry, on February 29, revised this figure up to 4.9%.

Separately, the Central government`s fiscal deficit widened to Rs 11.03 lakh crore in April 2023-January 2024 from Rs 9.82 lakh crore in April-December, data released by the Controller General of Accounts showed on February 29.

Furthermore, the seasonally adjusted HSBC India Manufacturing Purchasing Managers� Index (PMI) recovered further from December`s 18-month low, rising from 56.5 in January to 56.9 in February. Production levels were raised in tandem with a further steep increase in inflows of new orders, besides advanced technology and buoyant demand conditions.

Ines Lam, Economist at HSBC, said: "The HSBC final India Manufacturing PMI indicates that production growth continued to be strong, supported by both domestic and external demand. Manufacturing firms� margins improved as input price inflation slipped to the lowest since July 2020. Buoyed by robust demand and improving profit margins, manufacturers have an optimistic outlook about future business conditions."

Buzzing Index:

The Nifty Metal index jumped 2.33% to 8,106.20. The index rallied 3.25% in two trading sessions.

Steel Authority of India (up 5.2%), Welspun Corp (up 5.11%), Ratnamani Metals & Tubes (up 3.65%), JSW Steel (up 3.29%), Tata Steel (up 3.02%), Jindal Stainless (up 2.64%), National Aluminium Company (up 2.47%), Jindal Steel & Power (up 2.28%), Hindalco Industries (up 1.68%) and Hindustan Zinc (up 1.58%) advanced.

On the other hand, APL Apollo Tubes (down 0.58%) and Vedanta (down 0.17%) edged lower.

Stocks in Spotlight:

Bajaj Auto added 1.71% after the company reported 24% increase in total auto sales to 3,46,662 units in February 2024 as compared with 2,80,226 sold in February 2023.

One 97 Communications (Paytm) rallied 3.16% after the company and its associate entity, Paytm Payments Bank (PPBL), have introduced additional measures to strengthen their approach towards independent operations of PPBL. Paytm and PPBL have mutually agreed to discontinue various inter-company agreements with Paytm and its group entities..

Lemon Tree Hotels advanced 2.33% after the company announced the opening of Lemon Tree Resort, Kumbhalgarh. This is the seventh property of the group in the picturesque state of Rajasthan.

Cantabil Retail India declined 2.59%. The company has opened 13 new showrooms/ shops at different location in India during February 2024. Now total number of showrooms/ shops of the company stands at 529.

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