FIRST TRADE: Sensex rises over 400 pts; Nifty above 22,100 on strong GDP data; auto, financials and metals rally

Stock market today: The equity market started the March series on a strong note on Friday, March 1. The benchmark indices Sensex and Nifty opened higher amid heavy buying in auto, metals, and financials as faster-than-expected domestic economic growth and in-line US inflation data boosted sentiment. Last seen, the S&P BSE Sensex rose 0.54 per cent, or 394.93 points, at 72,895.23, and the five-scrip barometer traded 0.62 per cent, or 138.2 points higher, at 22,121. 

"The main factor influencing the market today is likely to be the better-than-expected Q3 GDP growth number, which has come in at an impressive 8.4 per cent. However, it is important to note that the GVA has come on expected lines at 6.5 per cent. The difference between GDP growth and GVA is due to the excellent 32 per cent growth in net indirect taxes. Significant internals from the GDP numbers are the 11.6 per cent growth in manufacturing, the 9.5 per cent growth in construction, and the 10.6 per cent growth in capital formation. The impressive GDP numbers provide fundamental support for the bull market," said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

In the broader market, Nifty Mid Cap 100 and Small Cap 100 traded over half a per cent higher, mirroring the headline index gains. Nifty Bank was up 0.84 per cent at 46,508.7. 

Dr. Vijayakumar added that large-cap companies such as RIL, Bharti Airtel, L&T, and ICICI Bank have the potential to lead the rally. Tepid private consumption numbers will be a drag on consumer staple stocks like HUL. The broad trend of the market, going forward, will be the outperformance of large caps over the broader market.

BUZZING STOCKS

Suven Pharma shares were up over 11 per cent after Suven Pharmaceuticals Limited and Cohance Lifesciences Limited announced a proposed merger.

Paytm shares were up over 3 per cent after the company cancelled several agreements with Paytm Payments Bank.

Delta Corp shares were up over 2 per cent after it formed a new subsidiary, Delta Penland Private Limited, with Peninsula Land.

MOIL shares were up nearly 5 per cent after the prices of selected manganese ore increased by 5 per cent. 

Jindal Stainless shares were up over 2 per cent after promoter group Virtuous Tradecorp bought 32.50 lakh, or 0.4 per cent shares at 647.10 per share.

Conversely, GPT Healthcare shares were down over 5 per cent after Nomura Singapore sold 4.53 lakh shares at 202.46 per share.

GLOBAL MARKETS

Japan's Nikkei hit a fresh record high on Friday, buoyed by the bounce on Wall Street as a key U.S. inflation reading was in line with expectations, while markets elsewhere in Asia were more subdued on China's still-uncertain economic outlook.

The Nikkei index gained 1.8 per cent to hit a fresh all-time high, extending a surge of 7.9 per cent the previous month when it breached levels last seen in 1989. Australia's resource-heavy shares also hit a record high and were last up 0.3 per cent on the day.

(With inputs from agencies.) 

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