Indices nudge higher; Nifty above the 22,200 level

The domestic equity indices traded with minor gains in early trade. The Nifty traded above the 22,200 level. Realty, PSU bank and media stocks advanced while oil & gas and FMCG shares declined.

At 09:27 IST, the barometer index, the S&P BSE Sensex, was up 54.46 points or 0.07% to 73,215.44. The Nifty 50 index rose 24.15 points or 0.11% to 22,241.60.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index rose 0.41% and the S&P BSE Small-Cap index gained 0.61%.

The market breadth was strong. On the BSE, 2,113 shares rose and 776 shares fell. A total of 120 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,410.05 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,823.68 crore in the Indian equity market on 22 February 2024, provisional data showed.

Economy:

The Reserve Bank of India`s (RBI) monetary policy committee (MPC) expressed caution regarding inflation, according to the minutes of the MPC meeting released on 22nd February. The committee members, including RBI Governor Shaktikanta Das, highlighted concerns about uncertainty in food prices, citing it as a significant source of volatility for the overall inflation outlook. Governor Das also emphasised that geopolitical tensions and supply chain disruptions could further contribute to inflation risks.

Deputy Governor Michael Debabrata Patra emphasized the need for a restrictive monetary policy to maintain downward pressure on inflation while minimising the output costs of disinflation. Governor Das warned that recurring food price shocks could disrupt the ongoing disinflation process, posing risks of de-anchoring inflation expectations and generalising price pressures.

Stocks in Spotlight:

Angel One added 0.05%. The company will raise up to Rs 2000 crore through preferential issue, QIP or other modes. The objective is to enhance financial flexibility, supporting business growth, and capitalizing on emerging opportunities in both current and expanding broking activities, as well as in the broader fintech sector.

Vodafone Idea surged 7.31% after the Aditya Birla Group Chairman Kumar Mangalam Birla on Thursday said that the group was committed to the cash-strapped Vodafone Idea. The company will consider fundraising at a board meeting on 27 February 2024.

Bajaj Auto rose 0.05%. The company has made further investment of Rs. 45.75 crores in Yulu Bikes, India`s largest shared electric two wheeler mobility company.

RVNL advanced 3.80% and Salasar Techno Engineering rallied 3.29%. The joint venture has emerged as the lowest bidder from Madhya Pradesh Power Transmission Company for construction of 132 KV & 220 KV Transmission Lines and associated Feeder Bays. The order cost is Rs 173.99 crore.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper was up 0.04% to 7.065 as compared with previous close of 7.062.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 82.8525, compared with its close of 82.8575 during the previous trading session.

MCX Gold futures for 5 April 2024 settlement rose 0.14% to Rs 62,064.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.02% to 103.94.

The United States 10-year bond yield rose 0.37% to 4.341.

In the commodities market, Brent crude for April 2024 settlement shed 34 cents or 0.41% to $83.33 a barrel.

Global Markets:

The US Dow Jones index futures were currently up by 36 points, signaling a positive opening for US stocks today.

Most Asian stocks rose on Friday, contributing to a week of substantial market growth globally. The impressive financial results of AI company Nvidia triggered a surge in record highs across Asia, Europe, and the U.S. However, Japan`s Nikkei was closed for a public holiday on that day.

Wall Street achieved record highs on Thursday, driven by a surge in technology stocks, particularly fueled by positive earnings and guidance from NVIDIA Corporation, a prominent AI company. Despite warnings from the Federal Reserve about prolonged higher interest rates, investors remained optimistic. However, weak purchasing managers index readings for February suggested a decline in business activity in the U.S.

The S&P 500 climbed 2.1% to reach a record 5,087.03 points, the Dow Jones Industrial Average rose 1.2% to a record 39,069.11 points, and the NASDAQ Composite outperformed, surging nearly 3% to a record high of 16,041.62 points.

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