Sensex rallies 900 pts, Nifty ends near 17,600; VIX drops 6% to 12.18 mark

The domestic equity benchmarks ended with robust gains on Friday, tracking positive global cues. After opening at 17,451.25, the Nifty extended gains during the day and settled near the 17,600 level. All the sectoral indices on the NSE ended in green with banks and metal shares leading. Adani group stocks were in demand after US-based GQG Partners invested Rs 15,446 crore in group companies.

The S&P BSE Sensex gained 899.62 points or 1.53% to 59,808.97. The Nifty 50 index advanced 272.45 points or 1.57% to 17,594.35.

Reliance Industries (up 2.46%), HDFC Bank (up 1.95%) and ICICI Bank (up 1.74%) pushed the indices higher.

The broader indices lagged the benchmarks. The S&P BSE Mid-Cap index rose 0.58% while the S&P BSE Small-Cap index added 0.68%.

The market breadth was strong. On the BSE, 2,146 shares rose and 1,370 shares fell. A total of 123 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, slipped 6.09% to 12.18.

Economy:

The seasonally adjusted S&P Global India Services PMI Business Activity Index came in at 59.4 in February as against 57.2 in January, attaining its highest level in 12 years and indicating a sharp expansion in output. Where growth was reported, survey participants mentioned favourable demand conditions and new business gains.

Numbers to Watch:

The yield on India`s 10-year benchmark federal paper declined to 7.417 from 7.43 in previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 82, compared with its close of 82.60 during the previous trading session.

MCX Gold futures for 5 April 2023 settlement advanced 0.17% to Rs 55,835.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.26% to 104.75.

The United States 10-year bond yield fell 1.63% to 4.007

In the commodities market, Brent crude for May 2023 settlement declined 37 cents or 0.44% to $84.38 a barrel.

Global Markets:

Markets in Europe and Asia advanced across the board on Friday, following Wall Street`s gains overnight after Atlanta Fed president Raphael Bostic said he`s "firmly� in favor of sticking with quarter-point hikes.

For the Euro zone, the Services PMI increased to 52.7 in February from 50.8 in January. The Composite PMI hit an eight-month high in February at 52.0 from 50.3 in the previous month.

China`s services sector saw a jump in activity, according to the Caixin/S&P Global services purchasing manager`s index, with a reading of 55 in February from 52.9 in January.

The headline S&P Global Singapore purchasing manager`s index fell to 49.6 in February.

Japan`s services purchasing managers index came in at 54, higher than the 52.3 in January. A reading above 50 signals expansion, while a reading below 50 indicates contraction for the sector.

Tokyo`s consumer price index rose by 3.3% in February, a lower print than January`s 4.3% government data showed. Overall, CPI for the capital city reached 3.4%, a cooler print from the 4.4% seen last month, while prices excluding food and energy for Tokyo rose by 1.8%, also a slower pace than 1.7% from January.

US stocks were initially under pressure as the trading day started, but rallied in the afternoon after Bostic`s remarks. The Dow Jones Industrial Average led gains among the major U.S. indexes, rising 1.05%, while the S&P 500 and Nasdaq Composite closed 0.76% and 0.73% higher.

Stocks in Spotlight:

Adani Group stocks were in focus after US-based investment firm GQG Partners bought 21 cr shares worth Rs 15,446 cr in four Adani companies. Adani Enterprises (AEL), Adani Ports and Special Economic Zone (APSEZ), Adani Green Energy (AGEL) and Adani Transmission rose by 5% to 17%.

State Bank of India (SBI) jumped 5.11% on reports that the state-owned lender may lower its stake in Yes Bank after its 3-year lock-in period ends on 13 March 2023. Currently SBI holds a 26.14% stake in Yes Bank.

Alembic Pharmaceuticals rose 0.25%. The company will take an impairment charge of Rs 1,150.43 crore on three manufacturing facilities under construction in Gujarat. The stock hit a new 52-week low of Rs 476.30 today.

Edelweiss Financial Services fell 1.67% after the media reported that the Income-Tax department conducted raids at premises linked to the investment and financial services company in Mumbai yesterday. As per reports, the raids took place over suspected tax evasion.

Natco Pharma rose 1.54% after the company said it will consider the proposal of a share buyback on 8 March 2023.

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