Nifty trades above 21,650; private bank shares rises

The key equity barometers traded with moderate gains in mid-morning trade. The Nifty scaled above 21,650 level after hitting day�s low of 21,448.85 in early trade. Private Bank shares advanced after declining in the past trading session.

At 11:30 IST, the barometer index, the S&P BSE Sensex, was up 548.75 points or 0.77% to 71,688.65. The Nifty 50 index added 146.35 points or 0.68% to 21,668.45.

In the broader market, the S&P BSE Mid-Cap index added 0.83% and the S&P BSE Small-Cap index rose 1.32%.

The market breadth was strong. On the BSE, 2,401 shares rose and 1,271 shares fell. A total of 122 shares were unchanged.

Economy:

Growth in India is projected to remain strong at 6.5% in both 2024 and 2025, the International Monetary Fund said on Tuesday. The report pegged global growth at 3.1% in 2024 and 3.2% in 2025. Growth in China is projected at 4.6% in 2024 and 4.1% in 2025, with an upward revision of 0.4% points for 2024 since the October 2023 World Economic Outlook, the IMF said, adding that in the US, growth is likely to fall from 2.5% in 2023 to 2.1% in 2024 and 1.7% in 2025. China and India account for most of the upward revision. In China, growth was supported by higher spending on disaster reconstruction and resilience projects. In India, strong domestic demand underpinned another increase in our growth estimate, the Fund noted.

IPO Update:

The initial public offer (IPO) of BLS E- Services received bids for 32,42,58,336 shares as against 1,37,02,904 shares on offer, according to stock exchange data at 11:30 IST on Wednesday (31 January 2024). The issue was subscribed 23.66 times.

The issue opened for bidding on Tuesday (30 January 2024) and it will close on Thursday (01 February 2024). The price band of the IPO is fixed at Rs 129-135 per share. An investor can bid for a minimum of 108 equity shares and in multiples thereof.

Buzzing Index:

The Nifty Private Bank index rose 1.61% to 23,701.10. The index shed 0.33% in the past trading session.

IDFC First Bank (up 2.24%), Axis Bank (up 2.17%), Federal Bank (up 2.1%), ICICI Bank (up 2.05%) and Bandhan Bank (up 1.92%), HDFC Bank (up 1.79%), IndusInd Bank (up 1.59%), RBL Bank (up 1.51%), City Union Bank (up 1.26%) and Kotak Mahindra Bank (up 0.32%) advanced.

Stocks in Spotlight:

Voltas jumped 5.69% after the company�s net loss narrowed to Rs 28 crore in Q3 FY24 from Rs 110 crore in Q3 FY23. Consolidated total income for the quarter ended 31st December, 2023 was higher by 32% at Rs.2684 crores as compared to Rs. 2036 crores in the corresponding quarter last year.

KEC International rallied 5.15% after the company reported a consolidated net profit of Rs 97 crore in Q3 FY24, which is significantly higher as compared with a PAT of Rs 18 crore recorded in Q3 FY23. Revenues rose by 14% year-over-year (YoY) to Rs 5,007 crore during the period under review.

Global Markets:

Asian stocks were trading mixed on Wednesday ahead of the rate decision from the U.S. Federal Reserve and as investors assessed a slew of economic data from across the region, including China and Australia.

China�s factory activity contracted for a fourth consecutive month in January. The official non-manufacturing managers� index rose to 50.7 in January from 50.4 in December, according to data from the National Bureau of Statistics released Wednesday.

US stocks ended mixed on Tuesday ahead of the much-awaited US Fed`s policy outcome.

The International Monetary Fund slightly increased its global growth forecast for 2024, noting that a hard landing is looking less likely but cited ongoing geopolitical conflicts as potential overhangs to global growth. The IMF raised its global growth projection to 3.1% in 2024, which is 0.2% higher than its forecast from October 2023. The International Monetary Fund (IMF) has raised its 2024-25 GDP growth forecast for India by 20 basis points to 6.5%.

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