Barometers trade with significant gains; market breadth strong
Published on Mar 06, 2023 09:26
The domestic equity benchmarks traded with strong gains in early trade, buoyed by across the board buying in index pivotals. The Nifty traded hovered near the 17,750 level. Shares across sectors advanced with oil & gas, metal and IT stocks rising the most.
At 09:25 IST, the barometer index, the S&P BSE Sensex, was up 510.86 points or 0.85% to 60,319.83. The Nifty 50 index added 148.50 points or 0.84% to 17,742.85.
Adani Enterprises (up 10%), Adani Ports (up 3.51%), HCL Tech (up 2.10%), Infosys (up 1.60%) and Power Grid Corp (up 1.51%) were the top Nifty gainers.
Meanwhile, Britannia (down 0.83%), CIpla (down 0.61%), JSW Steel (down 0.34%) and Tata Steel (down 0.14%) were the top Nifty laggards.
In the broader market, the S&P BSE Mid-Cap index rose 0.62% while the S&P BSE Small-Cap index advanced 0.76%.
The market breadth was strong. On the BSE, 1,936 shares rose and 731 shares fell. A total of 138 shares were unchanged.
The government, in the latest review, has hiked the windfall profit tax levied on crude petroleum to Rs 4,400 per tonne from Rs 4,350. The special additional excise duty on diesel has been reduced to Rs 0.5 a litre from Rs 2.5, while it has been slashed to `nil` on Aviation Turbine Fuel. The new tax rates come into effect from 4 March 2023.
Stocks in Spotlight:
Mahanagar Gas jumped 5.92%. The company will acquire 100% stake in Unison Enviro (`UEPL`) for 531 crore. This acquisition will enable MGL to expand to newer geographical areas in Maharashtra (Ratnagiri, Latur & Osmanabad) and Karnataka (Chitradurga & Davanagere) thereby providing new avenues for long term growth.
Computer Age Management Services (CAMS) added 0.65%. The company announced the acquisition of a 55.42% stake in Think Analytics India (Think360 AI), a full-stack AI and data sciences firm, which provides innovative solutions using digital technologies like advanced analytics, AI/ML and mobile & cloud computing. The acquisition is aimed to strengthen its account aggregator framework and enhance AI & Analytics services.
Neogen Chemicals advanced 3.57%. The company entered into a definitive agreement to acquire 100% stake in BuLi Chemicals India from Livent for Rs 25 crore. BuLi Chem is engaged in carrying out Manufacture and sale of N Butyl Lithium and other organolithium products. It has presence in India.
Numbers to track:
The yield on India`s 10-year benchmark federal paper declined to 7.400 from 7.416 in previous trading session.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 81.7275, compared with its close of 81.9750 during the previous trading session.
MCX Gold futures for 5 April 2023 settlement rose 0.41% to Rs 55,950.
The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.09% to 104.43.
The United States 10-year bond yield was down 0.58% to 3.940.
In the commodities market, Brent crude for May 2023 settlement fell 62 cents or 0.72% to $85.21 a barrel.
Asian stock markets mostly advanced on Monday as investors further digested China`s growth target set in its parliamentary sessions and looked ahead to a week of economic data.
China`s National People`s Congress (NPC) has kicked off its annual parliamentary session, announcing a modest target for economic growth of about 5%. The session, which began in Beijing on Sunday, is also set to hand President Xi Jinping a third term in office and implement the biggest government shake-up in a decade.
US stocks ended higher Friday as Treasury yields eased from their recent highs and investors weighed the cumulative impact from Fed hikes already implemented and digested this week`s comments from the central bank.
The Dow Jones Industrial Average rose 1.17%, the S&P 500 climbed 1.61%, and the Nasdaq Composite gained 1.97%. The yield on benchmark 10-year Treasury note dipped below the 4% threshold.
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