Indices trade near flat line; PSU bank shares decline

The domestic key indices pared all gains and traded near the flat line in mid-afternoon trade. The Nifty traded above the 21,650 level. PSU banks shares declined after witnessing buying demand for the past two trading session.

At 14:30 IST, the barometer index, the S&P BSE Sensex, was up 20.24 points or 0.03% to 71,867.81. The Nifty 50 index added 9.90 points or 0.05% to 21,668.50.

In the broader market, the S&P BSE Mid-Cap index shed 0.22% and the S&P BSE Small-Cap index added 0.16%.

The market breadth was positive. On the BSE, 2010 shares rose and 1775 shares fell. A total of 125 shares were unchanged.

Economy:

The seasonally adjusted HSBC India Services PMI Business Activity rose to 59 in December from 56.9 in November, highlighting a sharp increase in output that was the most pronounced since September.

Favourable economic conditions and positive demand trends were the key determinants of output growth, anecdotal evidence showed. Not only did new business intakes rise further in December, but also to the greatest extent in three month, the PMI release stated. The HSBC India Composite PMI Output increased to 58.5 in December 2023 as against 57.4 in November 2023, signalling a sharp rate of expansion that was the strongest since September.

Buzzing Index:

The Nifty PSU Bank declined 1.21%to 5,790.10. The index rose 2.2% in the past two trading session.

Punjab & Sind Bank (down 1.45%), Central Bank of India (down 1.43%), Bank of Baroda (down 1.35%), Canara Bank (down 1.32%), Bank of Maharashtra (down 1.17%), UCO Bank (down 1.08%), Punjab National Bank (down 0.98%), Indian Overseas Bank (down 0.79%), State Bank of India (down 0.51%) declined.

On the other hand, Indian Bank (up 0.39%), Union Bank of India (up 0.08%) and Bank of India (up 0.04%) edge higher.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose 0.17% to 7.232 as compared with previous close 7.220

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.1650, compared with its close of 83.2425 during the previous trading session.

MCX Gold futures for 5 February 2024 settlement shed 0.13% to Rs 62560.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.28% to 102.72.

The United States 10-year bond yield advanced 0.88% to 4.028.

In the commodities market, Brent crude for February 2024 settlement advance 47 cents or 0.61% to $78.06 a barrel.

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