Benchmarks continues to trade lower, European mkt opens higher

The equity indices continued to trade with modest losses in afternoon trade. The Nifty traded below the 22,000 level. Media, metal and IT shares advanced while banking stocks shares declined.

At 13:30 IST, the barometer index, the S&P BSE Sensex, was down 270.88 points or 0.37% to 72,352.21. The Nifty 50 index lost 87.35 points or 0.40% to 21,967.70.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.21% and the S&P BSE Small-Cap added 0.18%.

The market breadth was weak. On the BSE, 1,758 shares rose and 1,989 shares fell. A total of 124 shares were unchanged.

Economy:

The HSBC Flash India Composite PMI Output Index, which measures the month-on-month change in the combined output of India's manufacturing and service sectors, increased from 61.2 in January to 61.5 in February. This growth reflects a sharp expansion, the strongest since mid-2023. Both the manufacturing and services sectors saw improved growth, attributed to factors such as buoyant demand conditions, technology investment, efficiency gains, expanded clientele, and favorable sales developments.

Gainers & Losers:

Eicher Motors (up 1.76%), HCL Technologies (up 1.59%), Coal India (up 1.52%), Hindalco Industries (up 1.16%) and Bajaj Auto (up 1.05%) were major Nifty gainers.

IndusInd Bank (down 3.14%), Bharat Petroleum Corporation (down 2.31%), Hero Motocorp (down 1.92%), Grasim Industries (down 1.91%), and Titan Company (down 1.77%) were major Nifty losers.

Grasim Industries declined 1.91% after the company said that the companys chairman Kumar Mangalam Birla will launch 'Birla Opus Paints' business and inaugurate three Birla Opus Paints plants today.

Stocks in Spotlight:

Larsen & Toubro rose 0.81%. The EPC major announced that its construction arm has secured a significant order for its Buildings & Factories (B&F) business, to construct residential towers in Thane.

South Indian Bank jumped 6.91% after the bank said that its board has approved the proposal to raise Rs 1,151.01 crore through rights issue.

Brigade Enterprises fell 1.08% after the company signed a joint development agreement with PVP Ventures to develop 2.5 million square feet residential project in Chennai.

Grauer & Weil (India) surged 14.45% after the company informed that its board will meet on Monday, 26 February 2024 to consider the proposal of issue of bonus shares to the shareholders of the company.

Global Markets:

Europen stocks traded higher while Asian market traded mixed 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 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 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.

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