Indices trade with major gains; metal shares advance

The key equity indices continued to trade with significant gains in mid-morning trade. The Nifty traded above the 22,000 level. Metal shares rallied after declining for the two consecutive trading sessions.

At 11:27 IST, the barometer index, the barometer index, the S&P BSE Sensex, was up 698.28 points or 0.97% to 72,799.97. The Nifty 50 index gained 223.10 points or 1.02% to 22,062.20.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index added 1.84% and the S&P BSE Small-Cap index gained 2.02%.

The market breadth was strong. On the BSE, 2,841 shares rose and 732 shares fell. A total of 139 shares were unchanged.

Economy:

The HSBC Flash India composite PMI rose to 61.3 in March as compared with 60.6 in February. It indicated a sharp rate of expansion that was the strongest since July 2023.

The data showed the strongest increase in private sector output for eight months during March, amid a pick-up in growth at goods producers. Buoyant demand conditions fuelled growth, with aggregate sales rising at a sharp and accelerated pace. The manufacturing industry led the upturn with the fastest expansions in factory orders and production in nearly three-and-a-half years.

Pranjul Bhandari, Chief India Economist at HSBC, said, �Led by the strongest manufacturing output in nearly three-and-a-half years, the composite output index rose quickly. New orders rose at a faster pace than in the previous month, and within that both domestic and export orders showed improved vigour. Input prices grew at a faster pace in March, and all the increase was not passed on to output prices, leading to some softening in composite margins.�

Buzzing Index:

The Nifty Metal index advanced 2.51% 8,058.35. The index declined 1.70% in the past two trading sessions.

National Aluminium Company (up 5.99%), Steel Authority of India (up 5.46%), Hindustan Copper (up 4.22%), Welspun Corp (up 4.2%) and Jindal Steel & Power (up 3.41%) were the top gainers. Among the other gainers were Tata Steel (up 3.09%), Ratnamani Metals & Tubes (up 2.67%), Hindalco Industries (up 2.55%), JSW Steel (up 1.83%) and Vedanta (up 1.83%) advanced.

Stocks in Spotlight:

Prince Pipes & Fittings jumped 2.14% after the company has entered into asset purchase agreement with Klaus Waren Fixtures and NM Shah for the purchase of certain assets in two tranches. Total cost of acquisition is Rs 55 crore, funded through internal accruals.

Railtel Corporation of India advanced 2.91% after it received work order from State Project Director (SPD), Bihar Education Project Council (BEPC) worth Rs 99.01 crore.

Global Markets:

Asian stocks advanced on Thursday with Japan`s Nikkei hitting record highs on Thursday after Wall Street set new highs as the Federal Reserve signaled it remains on track for three interest-rate cuts this year despite a recent uptick in inflation.

Wall Street`s main stock indexes closed higher on Wednesday after the Federal Reserve eased investor jitters by keeping borrowing costs unchanged.

Following its two-day policy meeting, the central bank�s rate-setting Federal Open Market Committee said it will keep its benchmark overnight borrowing rate in a range between 5.25% - 5.5%. Along with the decision, Fed officials penciled in three quarter-percentage point cuts by the end of 2024. However, Fed`s outlook for rate cuts in 2025 has come down to three times, than earlier four. Chair Jerome Powell said the Fed also did not elaborate on timing but said he still expects the cuts to come, as long as the data cooperate.

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