INDICES EDGE LOWER IN EARLY TRADE; BREADTH NEGATIVE

The domestic equity indices traded with minor losses in early trade. The Nifty traded below the 22,100 level. IT, metal and auto stocks advanced while PSU bank, oil & gas and financial services shares declined. Market could be volatile due to expiry of weekly index options on the NSE.

At 09:27 IST, the barometer index, the S&P BSE Sensex, was down 87.19 points or 0.12% to 72,535.90. The Nifty 50 index shed 19.25 points or 0.08% to 22,035.80.

In the broader market, the S&P BSE Mid-Cap index declined 0.31% and the S&P BSE Small-Cap index shed 0.19%.

The market breadth was negative. On the BSE, 1,320 shares rose and 1,593 shares fell. A total of 85 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 284.66 crore, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 411.57 crore in the Indian equity market on 21 February 2024, provisional data showed.

Stocks in Spotlight:

Titagarh Rail Systems rose 0.14%. The company has made an equity investment of Rs 100 crore in Shivaliks Mercantile, which is the joint venture special purpose vehicle (JV-SPV) of the company. Additionally, Shivaliks, the JV-SPV, has acquired a further 28.23% stake in the equity share capital of Titagarh Firema S.p.A, Italy (Firema), an associate company of TRSL, for a cash consideration of Euro 20.21 million (equivalent to Rs 180.33 crore) on 21 February 2024. This move aims to enhance capabilities and capacities for various products in India and globally.

Grauer & Weil (India) soared 16.75% after the company`s board will meet on 26 February 2024 to consider issue of bonus shares to the shareholders of the company.

Grasim Industries advanced 1.97% after the chairman of the company Kumar Mangalam Birla will launch Birla Opus paints business and inaugurate three Birla Opus Paints plants at Panipat (Haryana), Ludhiana (Punjab) and Cheyyar (Tamil Nadu) on 22nd February 2024 from the Panipat plant.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper was up 0.04% to 7.048 as compared with previous close 7.045.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 82.9250, compared with its close of 82.9600 during the previous trading session.

MCX Gold futures for 5 April 2024 settlement rose 0.04% to Rs 62,135.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.04% to 103.96.

The United States 10-year bond yield shed 0.53% to 4.301.

In the commodities market, Brent crude for April 2024 settlement added 13 cents or 0.16% to $83.16 a barrel.

Global Markets:

Most of the Asian stocks 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.

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.

In the U.S., the Dow Jones closed higher on Wednesday, with investors displaying dip-buying into the close. This occurred despite concerns revealed in the Federal Reserve`s January meeting minutes, where members expressed worries about the potential of cutting interest rates too soon.

Meanwhile, 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 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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