Market drifts higher in early trade, breadth strong
Published on Feb 24, 2023 09:33
The domestic benchmark indices were trading with decent gains in early trade on buying demand in index pivotals. The Nifty traded above the 17,550 mark. PSU Bank, pharma and realty stocks advanced while metal, media and auto declined.
At 09:30 IST, the barometer index, the S&P BSE Sensex, was up 181.54 points or 0.30% to 59,787.34. The Nifty 50 index gained 50.05 points or 0.29% to 17,563.20.
In the broader market, the S&P BSE Mid-Cap index added 0.44% while the S&P BSE Small-Cap index rose 0.47%.
The market breadth was strong. On the BSE, 1,835 shares rose and 772 shares fell. A total of 103 shares were unchanged.
Foreign portfolio investors (FPIs) sold shares worth Rs 1,417.24 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,586.06 crore in the Indian equity market on 23 February, provisional data showed.
The Finance Ministry released the monthly economic review for January 2023 which reported that the geopolitical tensions in Europe, spiralling energy, food and fertiliser prices, monetary tightening and inflationary trends have elevated the downside risks to the global economic outlook. Despite these headwinds, the Indian economy is estimated to grow by 7% YoY in FY23.
During the fourth quarter of 2022-23, various high-frequency indicators (HFIs) pointed towards a slowdown in general, as monetary tightening appeared to have started weakening global demand. This may continue in 2023 as various agencies have forecasted a decline in global growth. Apart from the lagged impact of monetary tightening, the uncertainties emanating from the lingering pandemic and relentless conflict in Europe may further dampen global growth.
Stocks in Spotlight:
Bharat Forge added 0.21%. The `Investment Committee - Defence Business` of the company at its meeting has approved the transfer of the company`s stake in Aeron Systems Private Limited (�Aeron�) to Kalyani Strategic Systems Limited, a wholly-owned subsidiary of the Company (�KSSL�).
Alkem Laboratories rose 1.15%. In response to Form 483 issued by the US FDA containing one observation, the company had submitted a detailed corrective and preventive action (CAPA) plan to the regulator within the stipulated timelines. The inspection has now been closed by the US FDA.
Kanoria Chemicals & Industries jumped 6.86%. The company is setting up a new Formaldehyde Plant with 300 TPD capacity at Ankleshwar, Gujarat. The upcoming Formaldehyde plant will be with latest Metal Oxide based technology.
West Coast Paper Mills rallied 3.06%. In view of discussions had between management and joint negotiation committee of Trade Unions, illegal strike of contract workers was called off and production at the paper and paper board division at Dandeli has been re-started.
Isgec Heavy Engineering gained 1.34%. The company has received an order for supply of Seven Waste Heat Recovery Boilers utilising Waste Gases from DRI Sponge Iron Kiln.
Olectra Greentech surged 10.52%. Olectra Greentech is set to offer the next-generation transport system to the Indian market. Olectra announced its Hydrogen Bus in technical partnership with Reliance.
Asian stocks were trading mixed on Friday as the nominee to lead the Bank of Japan spoke at a confirmation hearing. Bank of Japan governor nominee Kazuo Ueda has expressed support for the current monetary policy, as per reports. He added more time is needed to achieve the central bank`s inflation target and it aims to achieve price stability in a sustainable and stable manner.
Japan`s nationwide consumer price index rose 4.2% compared to a year ago in January, government data showed. The economy`s core CPI excluding fresh food and energy prices rose 3.2%, data showed, as overall CPI rose 4.3% year on year.
Wall Street ended higher on Thursday as investors grappled with how interest rate policy might affect the US economy.
US economic growth in the fourth quarter was weaker than previously estimated. Inflation-adjusted gross domestic product, or the total value of all goods and services produced in the US, increased at a 2.7% annualized rate during the period, Commerce Department data showed Thursday. The figure compares with a previously reported 2.9% advance.
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