Sensex climbs 535 pts; Nifty hits fresh life high; VIX drops 4.58%

The domestic equity barometers ended a volatile session with strong gains on Thursday. The Nifty settled above the 22,200 level after hitting the day`s low of 21,875.25 in mid-morning trade. IT, auto and metal stocks advanced while bank, financial services and private bank shares declined.

As per provisional closing data, 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

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

The market breadth was positive. On the BSE, 2,083 shares rose and 1,732 shares fell. A total of 118 shares were unchanged.

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

Economy:

India�s manufacturing Purchasing Managers� Index (PMI) for the month of February came in at 56.7 as compared to 56.5 in the previous month, up from December�s 18-month low of 54.9. According to the HSBC India Manufacturing Purchasing Managers� Index, compiled by S&P Global, India�s Services PMI rose to 62 from 61.8 on a month on month (MoM) basis and composite PMI was at 61.5 as against 61.2 (MoM).

Growth improved in both the manufacturing (five-month high) and services (seven-month high) economies, with survey participants attributing the upturn to buoyant demand conditions, investment in technology, efficiency gains, expanded clientele and favourable sales developments, the PMI release stated.

IPO Update:

The initial public offer (IPO) of GPT Healthcare received bids for 1,97,63,327 shares as against 62,80,560 shares on offer, according to stock exchange data at 15:30 IST on Thursday (22 February 2024). The issue was subscribed 3.14 times.

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 2,89,47,367 shares as against 58,69,120 shares on offer, according to stock exchange data at 15:30 IST on Thursday (22 February 2024). The issue was subscribed 4.93 times.

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.

Buzzing Index:

The Nifty IT index gained 1.94% to 38,130.15. The index declined 2.78% in the past three trading session.

HCL Technologies (up 3.34%), Tech Mahindra (up 2.53%), Tata Consultancy Services (up 2.53%), Wipro (up 2.17%), Mphasis (up 1.69%), Infosys (up 1.59%), L&T Technology Services (up 1.48%), LTIMindtree (up 1.28%), Coforge (up 1.05%) and Persistent Systems (up 0.58%) advanced.

Stocks in Spotlight:

Larsen & Toubro advanced 2.09% 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 0.32%. The company�s chairman Kumar Mangalam Birla will launch `Birla Opus Paints` business and inaugurate three Birla Opus Paints plants today.

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.

Brigade Enterprises shed 0.04%. The company signed a joint development agreement with PVP Ventures to develop 2.5 million square feet residential project in Chennai.

Grauer & Weil (India) surged 15.03% 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 9.86% after the bank said that its board has approved the proposal to raise Rs 1,151.01 crore through rights issue.

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

Paisalo Digital rose 0.19%. The board approved raising of funds by way of issuance of equity shares upto Rs 1,260 crore through qualified institutional placements (QIP).

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.

Global Markets:

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.

The region took a weak lead from Wall Street, influenced by the Federal Reserve`s minutes from its late-January meeting, indicating a cautious approach to cutting interest rates. Several Fed officials reiterated this stance in separate addresses. Despite this, Nvidia experienced a substantial surge of up to 10% in after-hours trading, as the company`s quarterly earnings surpassed estimates, and it provided a stronger-than-expected revenue forecast for the upcoming quarter.

The US 10-year bond yield is recorded at 4.307%. In the commodities market, Brent crude for April 2024 settlement was at $83.08 a barrel.

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