Indices trade with modest gains; Nifty climbs above 17,650

The key equity benchmarks traded with significant gains in early afternoon trade. The Nifty marched above 17,650 mark after hitting day's low of 17,584.20 in mid- morning trade. Financial services, bank and consumer durables stocks advanced while metal, oil & gas and realty shares declined.

At 12:30 IST, the barometer index, the S&P BSE Sensex, was up 378.66 points or 0.63% to 60,310.90. The Nifty 50 index shed 72.15 points or 0.41% to 17,682.55.

Gains in the Nifty 50 index were capped due to steep selling in Adani Enterprises (down 14.87%), Adani Ports & SEZ (down 3.42%) and Ambuja Cements (down 3.25%).

The National Stock Exchange (NSE) has put Adani Enterprises, Adani Ports & SEZ and Ambuja Cements under additional surveillance measure (ASM) framework effective 3 February 2023.

The broader market underperformed the headline indices. The S&P BSE Mid-Cap index lost 0.90% while the S&P BSE Small-Cap index fell 0.75%.

Sellers outnumbered buyers. On the BSE, 976 shares rose and 2,423 shares fell. A total of 136 shares were unchanged.

India Services PMI:

The S&P Global India services Purchasing Managers' Index (PMI) fell to 57.2 in January as compared to 58.5 in December. It has been above the key level of 50 that separates growth from contraction for an eighteenth straight month.

Meanwhile, The S&P Global India Composite PMI Output Index fell from December's near 11-year high of 59.4 to 57.5 in January. Manufacturing production increased at a stronger rate than services activity, but growth moderated in both cases.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, slipped 4.27% to 15.06. The Nifty 23 February 2023 futures were trading at 17,736.25, at a premium of 53.7 points as compared with the spot at 17,682.55.

The Nifty option chain for the 23 February 2023 expiry showed maximum Call OI of 30.8 lakh contracts at the 18,000 strike price. Maximum Put OI of 31.4 lakh contracts were seen at 17,500 strike price.

Buzzing Index:

The Nifty Bank index rose 0.62% to 40,922.20, extending gains for the second day. The index advanced 1.01% in two trading sessions.

HDFC Bank (up 1.97%), IndusInd Bank (up 1.28%), Bank of Baroda (up 1.1%), State Bank of India (up 0.09%) advanced.

On the other hand, IDFC First Bank (down 2.43%), Punjab National Bank (down 1.97%) and Federal Bank (down 1.61%) edged lower.

Stocks in Spotlight:

Dredging Corporation of India rose 0.47%. The company said that it has signed an agreement with lnland Waterways Authority of India (IWAI) under the Ministry of Ports, Shipping and Waterways, Government of lndia, for a project worth Rs 204.5 crore.

HDFC Asset Management Company added 0.39% after the AMC announced that it has received approval from SEBI for change in control of the company due to proposed stake sale by abrdn Investment Management Limited, the co-sponsor of HDFC Mutual Fund.

Crompton Greaves Consumer Electricals slipped 8.46% to Rs 304.20 after the company reported 41% decline in consolidated net profit to Rs 88.19 crore despite of 7.5% rise in net sales to Rs 1,516.21 crore in Q3 FY23 over Q3 FY22.

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