Sensex adds 89 pts; auto shares in demand

The headline equity indices continued to trade with minor gains in early afternoon trade. The Nifty traded above the 21,650 mark. Auto shares extended gains for the second consecutive trading session.

At 12:30 IST, the barometer index, the S&P BSE Sensex, was up 89.08 points or 0.12% to 71,936.55. The Nifty 50 index added 33.10 points or 0.15% to 21,691.70.

In the broader market, the S&P BSE Mid-Cap index rose 0.36% and the S&P BSE Small-Cap index gained 0.59%.

The market breadth was positive. On the BSE, 2,274 shares rose and 1,455 shares fell. A total of 123 shares were unchanged.

Economy:

The seasonally adjusted HSBC India Services PMI Business Activity rose to 59 in December from 56.9 in November, highlighting a sharp increase in output that was the most pronounced since September.

Favourable economic conditions and positive demand trends were the key determinants of output growth, anecdotal evidence showed. Not only did new business intakes rise further in December, but also to the greatest extent in three month, the PMI release stated.

The HSBC India Composite PMI Output increased to 58.5 in December 2023 as against 57.4 in November 2023, signalling a sharp rate of expansion that was the strongest since September.

Derivatives:

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, declined 3.18% to 12.91. The Nifty 25 January 2024 futures were trading at 21,782.90, at a premium of 91.2 points as compared with the spot at 21,691.70.

The Nifty option chain for the 25 January 2024 expiry showed maximum Call OI of 28.9 lakh contracts at the 22,000 strike price. Maximum Put OI of 38.3 lakh contracts were seen at 21,000 strike price.

Buzzing Index:

The Nifty Auto index added 0.75% to 18,464.05. The index advanced 0.80% in two trading sessions.

Tube Investments of India (up 5.26%), Balkrishna Industries (up 2.4%), Hero MotoCorp (up 1.54%), Samvardhana Motherson International (up 1.5%), Eicher Motors (up 1.15%), MRF (up 0.9%), Sona BLW Precision Forgings (up 0.89%), Bosch (up 0.8%), Bajaj Auto (up 0.69%) and Bharat Forge (up 0.48%) advanced.

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