Benchmarks trade with decent gains; PSU bank shares advance

The key equity benchmark traded with moderate gains in early-afternoon trade. The Nifty traded above 21,650 level. PSU bank shares advanced after declining in the past trading session.

At 12:26 IST, the barometer index, the S&P BSE Sensex, added 213.16 points or 0.30% to 71,285.65. The Nifty 50 index rose 38.60 points or 0.18% to 21,654.65.

In the broader market, the S&P BSE Mid-Cap index shed 0.37% and the S&P BSE Small-Cap index declined 0.88%.

The market breadth was weak. On the BSE, 1,354 shares rose and 2,388 shares fell. A total of 108 shares were unchanged.

Economy:

India`s retail inflation, based on Consumer Price Index Numbers, eased to a three-month low of 5.10% in January 2024 against 5.69% during the previous month, the latest data released by the Ministry of Statistics & Programme Implementation showed on Monday. India`s factory output, meanwhile, grew 3.8% in December 2023, the data showed. The IIP in November 2023 stood at 2.4%, while during the year-ago period, the factory output stood at 5.1%.

Derivatives:

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, rose 0.12% to 16.08. The Nifty 29 February 2024 futures were trading at 21,690.50, at a premium of 44.25 points as compared with the spot at 21,646.25.

The Nifty option chain for the 29 February 2024 expiry showed maximum Call OI of 94.3 lakh contracts at the 22,000 strike price. Maximum Put OI of 64.1 lakh contracts were seen at 21,500 strike price.

Buzzing Index:

The Nifty PSU Bank index rose 0.68% to 6,682.25. The index slipped 4.43% in the past trading sessions.

Central Bank of India (up 4.34%), Punjab & Sind Bank (up 4.17%), Bank of Maharashtra (up 4.16%), UCO Bank (up 2.9%) and Punjab National Bank (up 2.62%), Bank of India (up 2.06%), Canara Bank (up 1.04%), Indian Overseas Bank (up 0.7%), Bank of Baroda (up 0.33%) and State Bank of India (up 0.11%) advanced.

Stocks in Spotlight:

Coal India rallied 4.19% after the company�s consolidated net profit jumped 17.80% to Rs 9,093.69 crore on 2.79% increase in revenue from operations to Rs 36,153.97 crore in Q3 FY24 over Q3 FY23.

Mahindra & Mahindra`s declined 1.42%. The company�s total production increased 32.38% to 1,01,169 units in the month of January 2024 as against 76,421 units as compared with January 2023.

Steel Authority of India (SAIL) slipped 3.86% after the company�s standalone net profit declined 28.50% to Rs 331.40 crore in Q3 FY24 as against with Rs 463.54 crore posted in Q3 FY23. Revenue from operations fell 6.77% year on year to Rs 23,345.48 crore in the quarter ended 31 December 2023.

Rail Vikas Nigam (RVNL) jumped 7.70% after the company said that it has emerged as the lowest bidder (L1) for a project worth Rs 106.37 crore floated by the Madhya Pradesh Paschim Kshetra Vidyut Vitran Company.

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