Sensex bounces 335 pts, Nifty ends at 22,146.65; Adani Enterprises soars over 6%

In the barometer index, the S&P BSE Sensex gained 335.39 points or 0.46% to 73,097.28. The Nifty 50 index added 148.95 points or 0.68% to 22,146.65.The domestic stock market rebounded on Thursday, fueled by buying across most sectors.

The Nifty 50 ended near 22,150, recovering from an intraday low of 21,917.50. Expiring weekly index options on the NSE caused volatile trading. Oil & gas, metals, and media stocks saw strong demand, while banks and financials dipped.

However, analysts warn of potential overvaluation in some mid-and small-cap stocks. This comes after market regulator Sebi raised concerns about "frothy" valuations in these segments and urged mutual funds to moderate their investments. The stress test results from these mutual funds are due on March 15th.

Adani Enterprises (up 6.29%), Adani Ports & SEZ (up 5%) and Infosys (up 2.53%) boosted the indices.The broader market rallied. The S&P BSE Mid-Cap index jumped 2.28% and the S&P BSE Small-Cap surged 3.11%.The market breadth was strong. On the BSE, 2679 shares rose and 1197 shares fell. A total of 82 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, slipped 5.61% to 13.62.Fitch Ratings raised India's GDP growth forecast for the next fiscal year (FY25) to 7% from their previous estimate of 6.5%. They expect the strong economic growth to continue. The rating agency also expects a reduction in interest rates by the Reserve Bank of India (RBI) and a decline in inflation by the end of 2024.

Meanwhile, India's wholesale price inflation fell to a four-month low of 0.20% in February, compared to 0.27% in January. This is the first time inflation has been positive since October 2023. The increase is mainly due to rising prices of food, crude oil, and manufactured goods.

The yield on India's 10-year benchmark federal paper rose 0.07% to 7.044 as compared with the previous close of 7.039.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.8225, compared with its close of 82.8100 during the previous trading session.