Market Commentary - Mid-Session
The key equity indices traded with major gains in mid-afternoon trade driven by foreign capital inflows and bargain buying, which boosted investor sentiment. The Nifty traded above the 23,700 level. IT shares extended gains for third consecutive trading sessions.
At 14:26 IST, the barometer index, the S&P BSE Sensex, soared 1,180.08 points or 1.53% to 78,085.50. The Nifty 50 index rallied 350.75 points or 1.50% to 23,701.15.
The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index jumped 1.67% and the S&P BSE Small-Cap index gained 1.53%.
The market breadth was strong. On the BSE, 2,699 shares rose and 1,373 shares fell. A total of 188 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, surged 7.63% to 13.54.
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.
The HSBC Flash India Services PMI Business Activity Index dropped to 57.7 in March, down from the 59.0 in February.
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.
Buzzing Index:
The Nifty IT index jumped 1.99% to 37,432.75. The Index increased 3.34% in the three consecutive trading sessions.
Tech Mahindra (up 3.54%), Persistent Systems (up 3.21%), Mphasis (up 2.81%), Wipro (up 2.14%) and HCL Technologies (up 2.13%), LTIMindtree (up 2.05%), Tata Consultancy Services (up 1.73%), Coforge (up 1.23%) and Infosys (up 0.41%) advanced.
Stocks in Spotlight:
Diamond Power Infrastructure was locked in 5% upper circuit after the company announced that it has received a letter of intent (LoI) from Adani Green Energy for a project worth Rs 214.65 crore.
Salasar Techno Engineering surged 20% after the company announced that its board will meet on 26 March 2025, to consider the proposed amalgamation of EMC, its wholly owned subsidiary, with the company.
Sammaan Capital advanced 1.14% after the company announced that its board has approved the proposed issuance of foreign currency denominated bonds.
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