Market Commentary - Mid-Session
The headline equity benchmarks traded with robust gains in early afternoon trade driven by foreign capital inflows and bargain buying, which boosted investor sentiment. The Nifty traded above the 23,600 level. PSU Bank shares extended gains for five consecutive trading sessions.
At 12:30 IST, the barometer index, the S&P BSE Sensex, soared 1,026.76 points or 1.33% to 77,922.56. The Nifty 50 index rallied 295.60 points or 1.27% to 23,646.
The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index jumped 1.26% and the S&P BSE Small-Cap index added 1.34%.
The market breadth was strong. On the BSE, 2,708 shares rose and 1,290 shares fell. A total of 179 shares were unchanged.
Economy:
India's private sector economy ended the 2024/25 fiscal year on a strong footing, sustaining robust expansions in new business intakes and output, according to preliminary HSBC flash PMI data. Although the rates of growth softened from February, they remained well above their respective long-run averages. Outstanding business volumes continued to rise, supporting another round of job creation, while price trends were mixed.
The HSBC Flash India Composite Output Index marginally decreased from February's final reading of 58.8 to 58.6 in March. The latest figure was still above its long-run average of 54.7, indicating a sharp rate of expansion.
The HSBC Flash India Manufacturing PMI increased from 56.3 in February to 57.6 in March, signaling a notable improvement in operating conditions that was broadly aligned with the average for the 2024/25 fiscal year.
Pranjul Bhandari, Chief India Economist at HSBC, said, India's manufacturing sector expanded at a faster pace in March, according to the flash PMI. The output index rose to its highest level since July 2024. Yet the margin squeeze on manufacturers intensified as input price inflation ticked up, while factory gate prices rose at the weakest rate in a year. The moderation in new export orders growth was also noteworthy amid tariff announcements.
Derivatives:
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, soared 7.95% to 13.58. The Nifty 27 March 2025 futures were trading at 23,655.10, at a premium of 9.1 points as compared with the spot at 23,646.
The Nifty option chain for the 27 March 2025 expiry showed a maximum call OI of 129.4 lakh contracts at the 24,000 strike price. Maximum put OI of 127.5 lakh contracts was seen at a 23,000 strike price.
Buzzing Index:
The Nifty PSU Bank index added 2.18% to 6,264.70. The index jumped 8.56% in the five consecutive trading sessions.
Canara Bank (up 3.35%), Punjab National Bank (up 2.75%), Union Bank of India (up 2.5%), Bank of Baroda (up 2.24%), State Bank of India (up 2.21%), Punjab & Sind Bank (up 2.12%), Central Bank of India (up 1.75%), UCO Bank (up 1.75%), Indian Overseas Bank (up 1.7%), and Bank of India (up 1.5%) advanced.
Stocks in Spotlight:
Huhtamaki India rallied 2.73% after the company's board approved the re-appointment of Dhananjay Salunkhe as managing director (MD) and Jagdish Agarwal as whole-time director (WTD) for three-year terms, starting in 2025.
Larsen & Toubro (L&T) rose 2.01% after the firm said that Subramanian Sarma will be elevated from whole-time director & president, Energy, to deputy managing director (MD) & president of the company with effect from 2nd April 2025.
SBC Exports rose 1.03% after securing a repeat export order from Gawgee Brothers Wholesalers Co. LLC, Dubai, for supplying T-shirts, trousers, shorts, and other garment articles.
Hindustan Copper (HCL) rose 1.10% after the company announced the appointment of Sanjiv Kumar Singh, director (Mining), as the chairman and managing director of the company, effective from 21 March 2025.
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