Mid-day Mood | Indices marginally up after Nifty hits a new high

Indices trade in green after Nifty 50 hits record high

The equity benchmarks traded in the green around noon on March 4 after the Nifty hit a new all-time high of 22,440.90 early in the day. Positive global cues and optimism arising from India's better-than-expected Q3 growth aided the sentiment.

Around noon, the Sensex was up 53.32 points, or 0.07 percent, at 73,859.47 and the Nifty was up 21.20 points, or 0.09 percent, at 22,399.60. About 1,239 shares advanced, 2,066 declined and 118 remained unchanged.

In Q3, the Indian economy grew 8.4 percent, supported by healthy growth in the manufacturing and construction sectors, while gross value added (GVA) grew in-line at 6.5 percent.

Globally, sentiment was upbeat Japan's Nikkei breached 40,000 for the first time on March 4 and the US’ Nasdaq Composite reached a new peak on March 1.

This week, all eyes will be on US Federal Reserve chair Jerome Powell when he testifies before lawmakers on March 6 and 7, though analysts expect him to stay in wait-and-see mode on rates given the recent upside surprise on inflation.

Power, oil and gas, and financial services sectors led the gains, while IT, metal, and construction names traded lower.

ONGC, GAIL, and BPCL were among the biggest gainers in the oil and gas segment. Infosys and TCS dragged down the Nifty IT index.

The release of the US ISM services PMI on March 5, Powell’s testimony and the announcement of US job data alter in the week will be tracked for potential impact on the market sentiment, said Santosh Meena, Head of Research, Swastika Investmart.

Crude oil is rising and a negative surprise can disturb the mood. "However, the market is ignoring any bad news and continuing its bullish momentum," he said.

Oil prices inched up after OPEC+ members agreed to extend voluntary oil output cuts of 2.2 million barrels a day into the second quarter, largely in line with market expectations.

For Nifty, 22,250 and 22,150 will be the immediate support, said Sameet Chavan, the head of technical and derivative research, Angel One.

"Additionally, the level of 21,850 has gained significant respect after being defended for two consecutive Thursdays, suggesting that any major weakness would likely only occur if this level is breached," Chavan said. Resistance is at 22,500 and 22,630.

Bajaj Auto, BPCL, Power Grid Corp of India, Dr Reddy's Laboratories, and NTPC

Infosys, Tata Steel, Eicher Motors, SBI Life Insurance, and JSW Steel

NTPC, Power Grid Corp of India  and Bharti Airtel

JSW Steel, Tata Steel, Mahindra & Mahindra and Infosys

Godrej Properties: The share traded 3.5 percent higher after the company announced it has entered definitive agreements to develop a township project on a 62-acre land parcel in north Bengaluru.

One 97 Communications: The Paytm stock fell 3 percent in morning deals after reports claimed that the Reserve Bank of India may revoke the banking licence of Paytm Payments Bank Ltd .