Barometers turn rangebound; bank shares edge lower

The benchmark indices traded in a narrow range with modest losses in mid-morning trade. The Nifty traded below the 21,950 mark. Bank shares declined for the second consecutive trading session.

At 11:30 IST, the barometer index, the S&P BSE Sensex, was down 456.29 points or 0.63% to 72,166.80. The Nifty 50 index fell 148.40 points or 0.67% to 21,906.65.

In the broader market, the S&P BSE Mid-Cap index declined 0.11% and the S&P BSE Small-Cap index shed 0.08%.

The market breadth was negative. On the BSE, 1,583 shares rose and 2,081 shares fell. A total of 129 shares were unchanged.

Economy:

The HSBC Flash India Composite PMI Output Index, which measures the month-on-month change in the combined output of India`s manufacturing and service sectors, increased from 61.2 in January to 61.5 in February. This growth reflects a sharp expansion, the strongest since mid-2023. Both the manufacturing and services sectors saw improved growth, attributed to factors such as buoyant demand conditions, technology investment, efficiency gains, expanded clientele, and favorable sales developments.

IPO Update:

The initial public offer (IPO) of GPT Healthcare received bids for 32,02,880 shares as against 1,97,63,327 shares on offer, according to stock exchange data at 11:36 IST on Thursday (22 February 2024). The issue was subscribed 0.16 times.

The issue opened for bidding on Thursday (22 February 2024) and it will closed on Monday (26 February 2024). The price band of the IPO is fixed at Rs 176 to Rs 186 per share. An investor can bid for a minimum of 80 equity shares and in multiples thereof.

The IPO of Juniper Hotels received bids for 42,35,040 shares as against 2,89,47,367 shares on offer, according to stock exchange data at 11:36 IST on Thursday (22 February 2024). The issue was subscribed 0.15 times.

The issue opened for bidding on Wednesday (21 February 2024) and it will closed on Friday (23 February 2024). The price band of the IPO is fixed at Rs 342 to Rs 360 per share. An investor can bid for a minimum of 40 equity shares and in multiples thereof.

Buzzing Index:

The Nifty Bank index fell 1.09% to 46,508.80. The index shed 1.24% in two trading sessions.

IndusInd Bank (down 1.74%), HDFC Bank (down 1.37%), Kotak Mahindra Bank (down 1.35%), Bank of Baroda (down 1.2%), State Bank of India (down 1.03%), Punjab National Bank (down 1.01%), ICICI Bank (down 0.65%), Federal Bank (down 0.49%), IDFC First Bank (down 0.43%) and AU Small Finance Bank (down 0.39%) edged lower.

On the other hand, Axis Bank (up 0.7%), Bandhan Bank (up 0.5%) advanced.

Stocks in Spotlight:

NBCC rallied 3.95% after it obtained in-principle approval from Greater Noida Authority to develop unused and purchasable floor area ratio (FAR) in furtherance of existing projects of Amrapali valuing Rs 10,000 crore.

South Indian Bank jumped 5.35% to Rs 33.46 after the bank said that its board has approved the proposal to raise Rs 1,151.01 crore through rights issue.

Credo Brands Marketing added 0.11%. The company said that the credit rating agency CARE Ratings has reaffirmed the company�s long-term rating at `CARE A+; Stable�.

Global Markets:

Asian stocks traded mixed on Thursday with the technology sector showing gains driven by positive signals from Nvidia. However, concerns about high U.S. interest rates tempered overall market sentiment. The Nikkei 225 benchmark in Japan reached a record high.

The region took a weak lead from Wall Street, influenced by the Federal Reserve`s minutes from its late-January meeting, indicating a cautious approach to cutting interest rates. Several Fed officials reiterated this stance in separate addresses. Despite this, Nvidia experienced a substantial surge of up to 10% in after-hours trading, as the company`s quarterly earnings surpassed estimates, and it provided a stronger-than-expected revenue forecast for the upcoming quarter.

In the U.S., the Dow Jones closed higher on Wednesday, with investors displaying dip-buying into the close. This occurred despite concerns revealed in the Federal Reserve`s January meeting minutes, where members expressed worries about the potential of cutting interest rates too soon.

Meanwhile, the Bank of Korea maintained its benchmark interest rate unchanged on Thursday, aligning with expectations. The central bank signaled its commitment to keeping monetary policy restrictive until inflation aligns with its annual target.

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