Nifty hits record high, ends above 22,200; NSE VIX dips 5%

The benchmark indices settled higher on Thursday, with the Nifty50 reaching a new high of 22,252.50, propelled by widespread buying across sectors. This upturn came after a negative start, during which the Nifty50 temporarily dipped below 21,900 before staging a rally in the final hours of trading. The market displayed high volatility, largely attributed to the weekly expiry of Nifty50 options. However, the Nifty50 found support at the 21-day EMA on the lower end before surging towards higher levels. IT, auto and metal shares advanced, while banks and financial stocks declined.

The barometer index, the S&P BSE Sensex jumped 535.15 points or 0.74% to 73,158.24. The Nifty 50 index added 162.40 points or 0.74% to 22,217.45

ITC (up 2.73%), TCS (up 2.44%) and Reliance Industries (up 0.86%) boosted the indices.

In the broader market, the S&P BSE Mid-Cap index gained 0.92% and the S&P BSE Small-Cap index rose 0.54%.

The market breadth was positive. On the BSE, 2,014 shares rose and 1,813 shares fell. A total of 106 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, slipped 4.58% to 15.20.

Economy:

The HSBC Flash India Composite PMI Output Index, which measures the month-on-month change in the combined output of India`s manufacturing and service sectors, increased from 61.2 in January to 61.5 in February. This growth reflects a sharp expansion, the strongest since mid-2023. Both the manufacturing and services sectors saw improved growth, attributed to factors such as buoyant demand conditions, technology investment, efficiency gains, expanded clientele, and favorable sales developments.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose 0.27% to 7.064 as compared with previous close 7.045.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 82.8300, compared with its close of 82.9600 during the previous trading session.

MCX Gold futures for 5 April 2024 settlement rose 0.08% to Rs 62,156.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.31% to 103.68.

The United States 10-year bond yield shed 0.37% to 4.309.

In the commodities market, Brent crude for March 2024 settlement rose 42 cents or 0.51% to $83.45 a barrel.

Global Markets:

The Dow Jones index futures were up 158 points, indicating a positive opening in the US stocks today.

Markets in Europe and Asia advanced on Thursday with the technology sector showing gains driven by positive signals from Nvidia. However, concerns about high U.S. interest rates tempered overall market sentiment. The Nikkei 225 benchmark in Japan reached a record high.

Europe manufacturing purchasing managers� index fell to 46.1 from 46.6 in January, while services PMI rose to 50 from 48.4 the previous month.

The Bank of Korea maintained its benchmark interest rate unchanged on Thursday, aligning with expectations. The central bank signaled its commitment to keeping monetary policy restrictive until inflation aligns with its annual target.

In the U.S., the Dow Jones closed higher on Wednesday, with investors displaying dip-buying into the close. This occurred despite concerns revealed in the Federal Reserve`s January meeting minutes, where members expressed worries about the potential of cutting interest rates too soon.

Stocks in Spotlight:

Vodafone Idea surged 6.19% after Aditya Birla Group Chairman Kumar Mangalam Birla on Thursday said that the group was committed to the cash-strapped Vodafone Idea. The company will consider fundraising at a board meeting on 27 February 2024.

Grauer & Weil (India) surged 14.57% the company informed that its board will meet on Monday, 26 February 2024 to consider the proposal of issue of bonus shares to the shareholders of the company.

South Indian Bank jumped 9.71% after the bank said that its board has approved the proposal to raise Rs 1,151.01 crore through rights issue.

NBCC (India) hit an upper circuit of 5% after the company has entered into Memorandum of Understanding (MoU) with HUDCO.

Larsen & Toubro advanced 2.05% after the EPC major announced that its construction arm has secured a significant order for its Buildings & Factories (B&F) business, to construct residential towers in Thane.

Grasim Industries rose 0.4%. Aditya Birla Group Chairman, Kumar Mangalam Birla, announced the launch of `Birla Opus` decorative paints brand, targeting Rs.10,000 crore gross revenue within 3 years of full-scale operations.

Olectra Greentech gained 2% after the company secured an order worth Rs 4,000 crore from Brihan Mumbai Electric Supply & Transport (BEST), to supply, operate and maintain 2,400 electric buses.

Rail Vikas Nigam (RVNL) rose 0.38%. The company announced that RVNL-SALASAR JV has emerged as lowest (L-1) bidder for a tender floated by Madhya Pradesh Power Transmission Company worth Rs 173.99 crore.

ABB India surged 8.86% after the company�s net profit (from continuing operations) grew by 12.8% to Rs 345.20 crore in Q4 CY23 as compared with Rs 305.91 crore recorded in Q4 CY22. The company�s total revenue from operation increased 13.62% to Rs 2,757 crore for the fourth quarter of CY23 as compared to Rs 2,426.91 recorded in corresponding quarter last year. Seamless execution of a strong backlog, revenue mix, services focus and capacity utilization led to increased revenue across almost all businesses and divisions.

Brigade Enterprises shed 0.01%. The company signed a joint development agreement with PVP Ventures to develop 2.5 million square feet residential project in Chennai.

Paisalo Digital rose 1.03%. The board approved raising of funds by way of issuance of equity shares upto Rs 1,260 crore through qualified institutional placements (QIP).

IPO Update:

The initial public offer (IPO) of GPT Healthcare received bids for 72,43,360 shares as against 1,97,63,327 shares on offer, according to stock exchange data at 17:00 IST on Thursday (22 February 2024). The issue was subscribed 37%.

The issue opened for bidding on Thursday (22 February 2024) and it will closed on Monday (26 February 2024). The price band of the IPO is fixed at Rs 176 to Rs 186 per share. An investor can bid for a minimum of 80 equity shares and in multiples thereof.

The IPO of Juniper Hotels received bids for 66,03,040 shares as against 2,89,47,367 shares on offer, according to stock exchange data at 15:30 IST on Thursday (22 February 2024). The issue was subscribed 23%.

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.

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