SENSEX, NIFTY HIT FRESH LIFE HIGHS POST STRONG GDP PRINT

The headline equity indices traded near the record high level in early afternoon trade. The Nifty traded near the 22,300 mark. Private bank shares extended gains for the second consecutive trading session.

At 12:27 IST, the barometer index, the barometer index, the S&P BSE Sensex soared 1,014.20 points or 1.40% to 73,480.07. The Nifty 50 index jumped 307.25 points or 1.42% to 22,295.05.

The Nifty and the Sensex hit all-time highs in early afternoon trade at 22,306.15 and 73,587.82, respectively.

The broader market underperformed the frontline indices. S&P BSE Mid-Cap rose 0.56% and the S&P BSE Small-Cap index added 0.63%.

The market breadth was strong. On the BSE, 2,484 shares rose and 1,176 shares fell. A total of 136 shares were unchanged.

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.

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.

Furthermore, 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. Production levels were raised in tandem with a further steep increase in inflows of new orders, besides advanced technology and buoyant demand conditions.

Ines Lam, Economist at HSBC, said: "The HSBC final India Manufacturing PMI indicates that production growth continued to be strong, supported by both domestic and external demand. Manufacturing firms� margins improved as input price inflation slipped to the lowest since July 2020. Buoyed by robust demand and improving profit margins, manufacturers have an optimistic outlook about future business conditions."

Derivatives:

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, shed 0.77% to 15.45. The Nifty 28 March 2024 futures were trading at 22,392.35, at a premium of 97.3 points as compared with the spot at 22,295.05.

The Nifty option chain for the 28 March 2024 expiry showed maximum Call OI of 32.2 lakh contracts at the 23,000 strike price. Maximum Put OI of 45.1 lakh contracts were seen at 21,000 strike price.

Buzzing Index:

The Nifty Private Bank index gained 1.81% to 23,523. The index advanced 2.18% in the two trading sessions.

ICICI Bank (up 2.87%), IndusInd Bank (up 2.14%), Kotak Mahindra Bank (up 1.88%), Bandhan Bank (up 1.76%), Axis Bank (up 1.6%), City Union Bank (up 1.26%), HDFC Bank (up 1.05%), RBL Bank (up 0.94%), Federal Bank (up 0.83%) and IDFC First Bank (up 0.31%) advanced.

Stocks in Spotlight:

Eicher Motors rose 0.62%. The company announced that it sold 75,935 motorcycle units in February 2024, which is higher by 6% as compared with 71,544 units in February 2023.

Aurobindo Pharma shed 0.14%. The drug maker announced that the US drug regulator had concluded its inspection at the injectable facility of Eugia SEZ with seven observations.

Borosil Renewables surged 5.83% 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.

Landmark Cars zoomed 6.74% after the company informed that it has received a letter of intent from MG Motor India for opening a dealership in Ujjain, Madhya Pradesh.

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