Selective buying pushes key indices up, broader market tanks

Domestic equity benchmarks closed slightly higher on Tuesday, led by gains in IT stocks. The Nifty 50 index surpassed the 22,300 mark. Selective buying in large-cap stocks lifted key indices into positive territory despite a volatile session. However, the broader market witnessed sharp corrections, with PSU banks, media and metal stocks declining. Bucking the trend, IT and private bank shares advanced. Investors now await upcoming inflation data in the US and India, hoping for further moderation that could pave the way for an interest rate cut.

In the barometer index, the S&P BSE Sensex gained 165.32 points or 0.22% to 73,667.96. The Nifty 50 index added 3.05 points or 0.01% to 22,335.70.

HDFC Bank (up 2.30%), TCS (up 1.69%), LTIMindtree (up 1.61%), Infosys (up 0.80%) and Reliance Industries (up 0.65%) supported the indices.

The broader market tanked. The S&P BSE Mid-Cap index fell 1.31% and the S&P BSE Small-Cap index tumbled 2.11%.

Market breadth was weak, with declining stocks outnumbering advancing ones by a significant margin. On the BSE, 625 shares rose and 3,272 shares fell. A total of 70 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, slipped 2.55% to 13.64.

Economy:

India`s passenger vehicle wholesales surged 11% in February compared to last year, driven by continued strong demand for SUVs, according to industry body SIAM. Dispatches to dealers reached 370,786 units last month, up from 334,790 units in February 2023. This marks the highest ever sales for passenger vehicles in the month of February.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose 0.14% to 7.024 as compared with the previous close of 7.014.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 82.7725, compared with its close of 82.7750 during the previous trading session.

MCX Gold futures for 5 April 2024 settlement shed 0.13% to Rs 65,950.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.01% to 102.87.

The United States 10-year bond yield declined 0.44% to 4.090.

In the commodities market, Brent crude for April 2024 settlement rose 61 cents or 0.74% to $82.82 a barrel.

Global Markets:

European shares advanced while Asian stocks ended mixed on Tuesday. Investor sentiment remained cautious as they awaited the release of the U.S. Consumer Price Index (CPI) data later on Tuesday. This data is expected to be a key factor in the Federal Reserve`s plans for potential interest rate adjustments in 2024.

Unlike other Asian markets, Japanese stocks continued their downward trend. This decline reflects growing speculation that the Bank of Japan might raise interest rates sooner than anticipated.

The U.S. market witnessed a pullback on Monday, snapping a streak of record highs for major indices. Information technology stocks faced selling pressure, raising questions about whether stocks tied to artificial intelligence can sustain their momentum after significant rallies.

Stocks in Spotlight:

Aditya Birla Capital advanced 2.23% after the company received board approval to merge its subsidiary Aditya Birla Finance into the main company. Regulatory and shareholder approvals are pending.

Mahindra & Mahindra shed 0.15%. The company informed that its total production jumped 26.07% to 73,380 units in the month of February 2024 compared with 58,203 units produced in the same period last year.

Tata Power Company slipped 4.13%. The company said that Tata Power Solar Systems has successfully commissioned the country�s largest solar and battery energy storage systems (BESS) project at Rajnandgaon in Chhattisgarh.

IRB Infrastructure Developers dropped 4.49%. The company stated that its project SPV, IRB Lalitpur Tollway has achieved financial closure for a project in Uttar Pradesh and Madhya Pradesh by tying up project finance of Rs 3,500 crore from the lender.

H.G. Infra Engineering shed 1.12%. The company said that it has received the letter of award from the National Highways Authority of India (NHAI) for an Andhra Pradesh-based project worth Rs 862.11 crore.

Imagicaaworld Entertainment dropped 5.12%. The company said that it has been declared as the successful bidder for establishing a landmark concept at the Sabarmati Riverfront in Ahmedabad.

Spicejet slipped 9% after the company�s chief operating officer COO and chief commercial officer CCO resigned from their positions.

IPO Update:

The initial public offer (IPO) of Popular Vehicles and Services received 39,17,300 bids for shares as against 1,44,15,110 shares on offer, according to stock exchange data at 17:00 IST on Tuesday (12 March 2024). The issue was subscribed 27%.

The issue opened for bidding on Tuesday (12 March 2024) and it will close on Thursday (14 March 2024). The price band of the IPO is fixed at Rs 280 to 295 per share. An investor can bid for a minimum of 50 equity shares and in multiples thereof.

New Listing:

Shares of R K Swamy ended at Rs 263.25 on the BSE, representing a discount of 8.59% as compared with the issue price of Rs 288.

The scrip was listed at Rs 252, exhibiting a discount of 1.14% to the issue price.

On the BSE, over 6.91 lakh shares of the company were traded in the counter.

Shares of Bharat Highways Infrastructure Investment Trust InvITended at Rs 103.10 on the BSE, representing a premium of 1.03% as compared with the issue price of Rs 100.

The scrip was listed at Rs 101.10, exhibiting a premium of 1.01% to the issue price.

On the NSE, over 1.54 crore shares of the company were traded in the counter.

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