Indices pare early gains; auto stocks zoom

The main indices pared early gains and traded with small losses in morning trade. Domestic sentiment was negative amid anticipation of the first U.S. interest rate hike in three years, which could come this week. Auto, healthcare and pharmaceutical stocks were in demand while metal and IT shares corrected.

At 10:25 IST, the barometer index, the S&P BSE Sensex, fell 40.35 points or 0.07% at 56,445.15. The Nifty 50 index declined 6.45 points or 0.04% at 16,864.35.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.7% while the S&P BSE Small-Cap index gained 0.54%.

The market breadth was strong. On the BSE, 1,966 shares rose and 1,073 shares fell. A total of 122 shares were unchanged.

Economy:

India's consumer price index based inflation rose slightly to 6.07% in February 2022 from 6.01%in the previous month, data released by the Ministry of Statistics and Programme Implementation showed yesterday. The consumer food price index also edged up to 5.85% in February 2022 compared to 5.43% in previous month.

Buzzing Index:

The Nifty Auto index gained 1.71% to 10,246.55, extending its winning run to second consecutive trading session. The auto index has rallied 2.67% in two days.

Maruti Suzuki India (up 2.8%), Mahindra & Mahindra (up 2.31%), Ashok Leyland (up 2.19%), Tata Motors (up 1.89%) and Bosch (up 1.61%) were the top gainers. Among the other gainers were Hero MotoCorp (up 1.54%), Eicher Motors (up 1.2%) and Bajaj Auto (up 0.91%).

Stocks in Spotlight:

Godrej Properties gained 2.29%. The Mumbai-based developer said that it has acquired approximately 50 acres of land in Sonipat, Haryana, which will offer approx. 1 million sq. ft. of plotted residential development, plot sizes and lifestyle amenities. The site has good connectivity to the Delhi border and national highways. In addition, the site is in close proximity to the upcoming educational and industrial hub of Sonipat and offers a well-developed social infrastructure.

Avantel was locked in an upper circuit of 20% at Rs 892.40 after the company received the supply order for supply of Loco devices for implementation of RTIS phase - 2 (Real Time Train Information system) for an amount of Rs 125.68 crore.

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