Market Commentary - End-Session
Indices notch record high on strong GDP, US data As on : 01-Mar-24  17:41

Domestic stock market continued their hot streak, closing at record highs on Friday. Both the Sensex and Nifty indexes scaled new peaks, fueled by a combination of positive factors. The key driver of the rally was stronger-than-expected GDP growth reported for India's October-December quarter. Positive US inflation data and continued buying by FIIs provided additional support. After opening at 22,048.30, the Nifty 50 index marched higher as the session progressed to settle above the 22,300 level. Among sectors, banks and metals shares were in demand. On the other hand, media, healthcare and pharma shares declined.

In the barometer index, the barometer index, the S&P BSE Sensex zoomed 1,245.05 points or 1.72% to 73,745.35. The Nifty 50 index surged 355.95 points or 1.62% to 22,338.75.

The Sensex clocked an all-time high of 73,802.55 while the Nifty hit record high of 22,348.40 in late trade.

Larsen & Toubro (up 4.39%), ICICI Bank (up 3.18%) and Reliance Industries (up 2.09%) boosted the indices.

In the broader market, the S&P BSE Mid-Cap index rose 0.89% and the S&P BSE Small-Cap index added 0.68%.

The market breadth was strong. On the BSE, 2,366 shares rose and 1,489 shares fell. A total of 92 shares were unchanged.

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, slipped 2.16% to 15.24.

The National Stock Exchange and Bombay Stock Exchange will hold a special live trading session on Saturday, 2 March 2024 in the equity and F&O segments with an intra-day switchover from the Primary site to the Disaster Recovery site. There will be two sessions ? the first from 9:15 am to 10 am and the second from 11:30 am to 12:30 pm.

Economy:

India?s economy grew much faster than expected in the October to December quarter. Data showed GDP grew 8.4% in the third fiscal quarter on the back of higher private consumption and strong manufacturing and construction activity. The October-December quarter reading was also higher than the 7.6% growth clocked in the prior three months. The government raised its GDP growth outlook for fiscal year 2023-24 to 7.6% from 7.3% forecast earlier.

In February, India's goods and services tax (GST) collection amounted to Rs 1.68 lakh crore, marking a 12.5% increase compared to the same period last year. Although this figure is 3.3% lower than the revised January collection of Rs 1.74 lakh crore, it continues the trend of surpassing the Rs 1.5-lakh-crore mark for the 12th consecutive month.

Meanwhile, India's eight core sectors posted a growth of 3.6% in January, according to data released by the Ministry of Commerce and Industry on February 29. In December 2023, core sector growth had printed in at 3.8%. The commerce ministry, on February 29, revised this figure up to 4.9%.

Separately, the Central government's fiscal deficit widened to Rs 11.03 lakh crore in April 2023-January 2024 from Rs 9.82 lakh crore in April-December, data released by the Controller General of Accounts showed on February 29.

Further, the seasonally adjusted HSBC India Manufacturing Purchasing Managers? Index (PMI) recovered further from December's 18-month low, rising from 56.5 in January to 56.9 in February.

Numbers to Track:

The yield on India's 10-year benchmark federal paper shed 0.20% to 7.064 as compared with previous close 7.065.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.8975, compared with its close of 82.8900 during the previous trading session.

MCX Gold futures for 5 April 2024 settlement rose 0.16% to Rs 62,668.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.02% to 104.18.

The United States 10-year bond yield fell 0.61% to 4.225.

In the commodities market, Brent crude for April 2024 settlement added $1.11 or 1.36% to $83.02 a barrel.

Global Markets:

Most of the European stocks edged higher on Friday after February?s flash euro zone inflation reading. The headline consumer price index fell to 2.6% from January?s 2.8%.

Asian stocks ended mixed as investors digested manufacturing data from the mainland. Japan?s Nikkei 225 index hit a fresh record high. South Korea markets were shut for the Movement Day holiday.

China?s manufacturing activity contracted for a fifth straight month in February, official figures on Friday showed. Data from China?s National Bureau of Statistics showed manufacturing PMI fell to 49.1 in February from 49.2 in January. The Caixin/S&P Global manufacturing PMI, however, edged up to 50.9 in February from 50.8 in the previous month.

Overnight on Wall Street, the S&P 500 and Nasdaq closed at record highs as tech and chip stocks rallied. The U.S. personal consumer expenditures (PCE) price index, the Federal Reserve's preferred gauge for inflation, rose 0.3% in January from a month earlier. The core PCE price index rose 0.4%.

February Auto Sales:

Tata Motors rose 2.78% after the auto major's domestic and international sales for February 2024 stood at 86,406 vehicles, up 8.41% as compared to 79,705 units sold in February 2023.

Bajaj Auto added 1.62% after the company reported 24% increase in total auto sales to 3,46,662 units in February 2024 as compared with 2,80,226 sold in February 2023.

Mahindra & Mahindra jumped 2.01% after the company announced that it has recorded 24% rise in total vehicle sales to 72,923 units in February 2024 from 58,801 units sold in the same period last year.

Eicher Motors advanced 1.32% after the company announced that it has sold 75,935 motorcycle units in February 2024, which is higher by 6% as compared with 71,544 units in February 2023.

Ashok Leyland rose 1.18%. The commercial vehicle manufacturer sold 17,464 vehicles in February 2024, which is lower by 6% as compared with 18,571 units sold in February 2023.

Escorts Kubota added 1.54% after the tractor manufacturer said that its agri machinery business division sales declined 17.02% to 6,481 units in February 2024 as against 7,811 units sold in February 2023.

Maruti Suzuki India jumped 3.01% after its total sales grew by 14.59% to 197,471 units in February 2024 as against 172,321 units recorded in February 2023.

TVS Motors Company rallied 4.7% after the company sold 368,424 units in February 2024, registering a growth of 33% as against 276,150 units sold in February 2023.

Stocks in Spotlight:

Coal India rose 2% after the company?s coal production increased 8.7% to 74.8 million tonnes (MT) during the period as compared with 68.8 MT produced in same period last year.

Larsen & Toubro (L&T) rallied 4.39% after the company has commissioned its first indigenously manufactured electrolyser at the green hydrogen plant in Hazira, Gujarat.

Meanwhile, the EPC major announced that it received major contract from the Ministry of Defence for the supply of high power radars (HPR) to the Indian Air Force (IAF).

NTPC added 2.38% after the Unit-2 of 660 MW capacity of North Karanpura super thermal power project, (3 x 660 MW) successfully completed trial operation.

Landmark Cars zoomed 5.41% after the company informed that it has received a letter of intent from MG Motor India for opening a dealership in Ujjain, Madhya Pradesh.

One 97 Communications (Paytm) hit an upper circuit of 5% after the company and its associate entity, Paytm Payments Bank (PPBL), have introduced additional measures to strengthen their approach towards independent operations of PPBL. Paytm and PPBL have mutually agreed to discontinue various inter-company agreements with Paytm and its group entities.

Borosil Renewables rallied 5.85% after the securities issue committee of its board approved the proposal of raising funds through issue of equity shares on a rights issue basis for upto Rs 500 crore.

Waaree Renewable Technologies hit an upper circuit of 5% after the company received letter of intent (LOI) from North Eastern Electric Power Corporation (NEEPCO) for aggregating Rs 1,401 crore.

Servotech Power Systems rose 0.76% while Indian Oil Corporation (IOCL) added 2.48% after the company received an order of 1400 DC fast EV chargers from Indian Oil Corporation (IOCL) and other EV charger OEMs.

IPO Update:

The initial public offer (IPO) of Mukka Proteins received 38,99,15,490 bids for shares as against 5,60,00,435 shares on offer, according to stock exchange data at 17:00 IST on Friday (01 March 2024). The issue was subscribed 6.96 times.

The issue opened for bidding on Thursday (29 February 2024) and it will close on Monday (04 March 2024). The price band of the IPO is fixed at Rs 26 to 28 per share. An investor can bid for a minimum of 535 equity shares and in multiples thereof.

Bharat Highways InvIT's IPO received 10,57,27,500 bids for shares as against 10,30,12,800 shares on offer, according to stock exchange data at 17:00 IST on Friday (01 March 2024). The issue was subscribed 1.03 times.

The issue opened for bidding on Wednesday (28 February 2024) and it will close on Friday (01 March 2024). The price band of the IPO is fixed at Rs 98 to 100 per share. An investor can bid for a minimum of 150 equity shares and in multiples thereof.

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