Nifty above 17,350 mark; PSU bank stocks advance

The key equity barometers traded with minor gains in mid-afternoon trade. The Nifty traded above the 17,350 mark after hitting the day`s low of 17,312.75 in mid-morning trade. PSU bank witnessed buying demand in three consecutive trading sessions.

At 14:29 IST, the barometer index, the S&P BSE Sensex, was up 44 points or 0.07% to 59,035.52. The Nifty 50 index gained 13.75 points or 0.08% to 17,373.50.

In the broader market, the S&P BSE Mid-Cap index rose 0.13% while the S&P BSE Small-Cap index gained 1.02%.

The market breadth was strong. On the BSE, 2,685 shares rose and 884 shares fell. A total of 131 shares were unchanged.

The Reserve Bank of India (RBI) monetary policy meeting begins today. The outcome of the meeting will be announced on April 6. The RBI`s monetary policy committee (MPC) may reportedly increase the repo rate by 25 basis points (bps) in order to combat rising inflation.

Economy:

The seasonally adjusted S&P Global India Manufacturing Purchasing Managers` Index (PMI) rose from 55.3 in February to 56.4 in March, signalling the strongest improvement in operating conditions in 2023 so far. That said the PMI average for the final fiscal quarter (55.7) came in below that recorded in the prior period (56.3 in Q3).

March data highlighted a further upturn in new business placed with Indian manufacturers. Moreover, the rate of expansion was sharp and the quickest in three months. Firms suggested that marketing efforts bore fruit. Demand resilience and competitive pricing were also cited as growth drivers," said the survey by S&P Global.

The survey noted that moderation in cost pressures prompted buying, as the March data showed the second-weakest increase in input prices in two-and-a-half years.

Meanwhile, the gross GST revenue collected in March 2023 is Rs. 1,60,122 crore. The total gross collection for 2022-23 stands at Rs 18.10 lakh crore. The gross revenues in 2022-23 were 22% higher than that last year. This was the fourth time in the current financial year that the gross GST collection has crossed Rs 1.5 lakh crore, marking the second-highest collection ever.

Numbers to track:

The yield on India`s 10-year benchmark federal paper rose to 7.332 from 7.315 previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.3550, compared with its close of 82.21 during the previous trading session.

MCX Gold futures for 5 April 2023 settlement fell 0.04% to Rs 59,380.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, rose 0.20% to 102.71.

The United States 10-year bond yield advanced 1.36% to 3.537.

In the commodities market, Brent crude for June 2023 settlement jumped $4.50 or 5.63% to $84.39 a barrel.

Buzzing Index:

The Nifty PSU bank index rose 0.88% to 3,748.95, extending gains for the third straight session. The index rallied 5.09% in past three trading sessions.

UCO Bank (up 5.97%), Punjab & Sind Bank (up 3.9%), Indian Overseas Bank (up 3.34%), Central Bank of India (up 2.9%), Bank of Maharashtra (up 2.63%), Union Bank of India (up 1.73%), Punjab National Bank (up 1.39%), Bank of India (up 1.34%), Canara Bank (up 0.76%) and State Bank of India (up 0.43%) advanced.

Stocks in Spotlight:

SML Isuzu was locked in an upper circuit of 20% after the company`s total sales grew 59% to 2,169 units in March 2023 compared with 1,363 units sold in March 2022.

Dhanlaxmi Bank rallied 3.81% after the bank`s gross advances increased by 16.85% to Rs 9,867 crore as on 31 March 2023 from Rs 8,444 crore as on 31 March 2022.

Escorts Kubota declined 1.63%. The company announced that its Agri Machinery business in March 2023 sold 10,305 tractors, registering a growth of 2.3% as against 10,074 tractors sold in March 2022.

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