Indices trade with minor losses; metal shares in demand

The headline equity indices continued to trade near the flat line with small losses in mid-morning trade. The Nifty traded below the 22,200 level after hitting the day`s high of 22,249.40 in morning trade. Metal shares advanced after declining in the past trading session.

At 11:27 IST, the barometer index, the S&P BSE Sensex, was down 49.16 points or 0.07% to 73,008.24. The Nifty 50 index shed 12 points or 0.05% to 22,184.95.

In the broader market, the S&P BSE Mid-Cap index declined 0.35% and the S&P BSE Small-Cap index shed 0.02%.

The market breadth was negative. On the BSE, 1,828 shares rose and 1,856 shares fell. A total of 122 shares were unchanged.

IPO Update:

The initial public offer (IPO) of Juniper Hotels received bids for 14,75,520 shares as against 2,89,47,367 shares on offer, according to stock exchange data at 11:30 IST on Wednesday (21 February 2024). The issue was subscribed 0.05 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 Metal index gained 1.50% to 8,075.45. The index shed 0.32% in the past trading sessions.

JSW Steel (up 2.71%), Tata Steel (up 2.69%), Hindalco Industries (up 2.21%), Hindustan Copper (up 1.82%) , Vedanta (up 1.54%), Jindal Steel & Power (up 1.38%), Steel Authority of India (up 1.3%), National Aluminium Company (up 0.97%), Adani Enterprises (up 0.95%) and Ratnamani Metals & Tubes (up 0.46%) edged higher.

Stocks in Spotlight:

Union Bank of India advanced 4.89% after the company announced that its board approved the opening of qualified institutional placement (QIP) of equity shares with the floor price of Rs 142.78 per share.

Thermax rose 0.41%. The company has entered into license and technical assistance agreement with Flowtech Co, South Korea (Licensor) to manufacture poly carboxylate ether products.

Shares of Best Agrolife rose 0.06%. The company announced the grant of a 20-year patent for a new fungicide composition.

Global Markets:

The US Dow Jones index futures is currently down by 9 points, signaling a negative opening for US stocks today. Traders awaited more cues on monetary policy from the minutes of the Federal Reserve�s late-January meeting.

Asian stocks were mixed on Wednesday, as traders weighed big tech prospects ahead of Nvidia Corp.`s hotly anticipated earnings that dragged Wall Street away from its all-time highs.

In January, Japanese exports surpassed expectations, growing by 11.9% year-on-year due to increased overseas demand for automobiles and electronics. This exceeded the anticipated 9.5% rise and marked Japan`s fastest export growth since November 2022. Conversely, imports experienced a larger-than-expected decline of 9.6%, compared to the predicted 8.4% drop, reflecting sluggish domestic demand. Consequently, Japan`s trade balance unexpectedly shifted to a surplus of 240 billion yen ($1.60 billion) from a deficit of 410 billion yen in December.

In the US, the Nasdaq 100 dropped almost 1% while the S&P 500 fell below 5,000 in the last session. Nvidia`s stock also fell more than 4% ahead of its scheduled earnings announcement on Wednesday. Traders are keenly observing its result, seeking confirmation that the chipmaker can meet the high expectations associated with the artificial-intelligence boom.

The US 10-year bond yield is recorded at 4.27%. In the commodities market, Brent crude for April 2024 settlement was at $82.57 a barrel.

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