Early rally fizzles, Nifty ends near 22,500; NSE VIX drops below 14 mark

Domestic markets edged higher on Thursday, extending their winning streak to two days. The Nifty climbed above 22,450, but volatility reigned due to weekly options expiry. A strong opening saw fresh all-time highs, with the Nifty 50 index surpassing 22,500 for the first time. However, the market failed to hold these gains, mirroring the mixed signals from global markets. Media, metal and FMCG shares were in demand. On the other hand, oil & gas and banks shares were under pressure.

The barometer index, the S&P BSE Sensex added 33.40 points or 0.05% to 74,119.39. The Nifty 50 index rose 19.50 points or 0.09% to 22,493.55.

The Nifty and the Sensex hit all-time highs in afternoon trade at 22,525.65 and 74,245.17, respectively.

Tata Motors (up 2.14%), Bajaj Finance (up 1.71%) and ITC (up 1.39%) boosted the indices.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.39% and the S&P BSE Small-Cap index gained 0.70%.

The market breadth was positive. On the BSE, 2,077 shares rose and 1,732 shares fell. A total of 113 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, slipped 4.77% to 13.61.

The domestic market will remain closed on 7 March 2024, on account of Mahashivratri.

Economy:

India`s GDP growth in the current fiscal year ending in March could be "very close" to 8%, Reserve Bank of India (RBI) governor Shaktikanta Das reportedly said. Das said rural demand had been improving and was much stronger than a year ago, while urban demand continued to be very strong.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper shed 0.40% to 7.026 as compared with previous close 7.054.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 82.7350, compared with its close of 82.8300 during the previous trading session.

MCX Gold futures for 5 April 2024 settlement rose 0.43% to Rs 65,460.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.16% to 103.21.

The United States 10-year bond yield rose 0.07% to 4.103.

In the commodities market, Brent crude for May 2024 settlement shed 39 cents or 0.47% to $82.57 a barrel.

Global Markets:

Shares in Europe and Asia displayed a mixed performance on Thursday as investors awaited crucial policy announcements from central banks.

Positive economic news emerged from China, with exports experiencing a significant jump in the first two months of 2024. Compared to December`s 2.3% increase, exports surged by 7.1% year-on-year during the January-February period. Imports also climbed to 3.5% from 0.2%, resulting in a trade surplus of $125.16 billion for the combined months.

U.S. stocks closed Wednesday on a high note following comments from Federal Reserve Chair Jerome Powell. While acknowledging ongoing inflation concerns, Powell reassured investors of potential rate cuts later in the year. However, his prepared testimony before Congress clarified that the Fed isn`t ready for immediate action, emphasizing the need for further progress in controlling inflation before considering lower borrowing costs.

Stocks in Spotlight:

Tata Motors rallied 2.14% after the car maker informed that it will increase the price of its commercial vehicles up to 2% effective from 1 April 2024.

Bajaj Finserv added 2% after its subsidiary, Bajaj Allianz General Insurance Company`s gross direct premium underwritten for February 2023 was at Rs 1,294.80 crore, recording a growth of 38.52% year on year.

Larsen & Toubro rose 1%. The EPC major announced that its hydrocarbon business, L&T Energy Hydrocarbon (LTEH) has secured a significant order from the Oil & Natural Gas Corporation (ONGC) for the MHN TCPP PGC BGC Project (MTPBP), off India�s West Coast.

Housing & Urban Development Corporation (HUDCO) advanced 3.40% after the firm executed a memorandum of understanding (MoU) with the Maharashtra State Electricity Distribution Company (MSEDC).

Hindustan Aeronautics (HAL) gained 2.71% after the company informed that the amendment to the light combat aircraft (LCA) initial operating capability (IOC) contract has made an upward revision in the contract value.

Asian Paints rose 1.50% after the company said that it�s a wholly-owned subsidiary, Asian Paints (Polymers) (APPPL) has entered into requisite agreements with Gujarat Chemical Port (GCPL) to set up an ethylene storage and handling facility in Dahej, Gujarat.

Suzlon Energy locked in 5% upper circuit after the company announced that it has received a new order from Juniper Green Energy for the development of a 72.45 MW wind power project.

GPT Infraprojects rallied 2.87% after the company secured an order from North Central Railway, Agra, Uttar Pradesh aggregating to Rs 135 crore.

SpiceJet added 2.08% after the airline operator announced the resolution of $49.8 million (Rs 413-crore) dispute with Echelon Ireland Madison One.

LTIMindtree shed 0.84%. The company informed that its board has approved the appointment of Vipul Chandra as the chief financial officer (CFO) of the company with effect from 25 April 2024.

IPO Update:

The initial public offer (IPO) of Gopal Snacks received 1,66,83,337 bids for shares as against 1,19,79,993 shares on offer, according to stock exchange data at 17:00 IST on Thursday (7 March 2024). The issue was subscribed 1.39 times.

The issue opened for bidding on Wednesday (6 March 2024) and it will close on Monday (11 March 2024). The price band of the IPO is fixed at Rs 381 to 401 per share. An investor can bid for a minimum of 38 equity shares and in multiples thereof.

The IPO of J G Chemicals received 22,69,11,245 bids for shares as against 81,68,714 shares on offer, according to stock exchange data at 17:00 IST on Thursday (7 March 2024). The issue was subscribed 27.78 times.

The issue opened for bidding on Tuesday (5 March 2024) and it will close on Thursday (7 March 2024). The price band of the IPO is fixed at Rs 210 to 221 per share. An investor can bid for a minimum of 67 equity shares and in multiples thereof.

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