At 12:27 IST, the barometer index, the S&P BSE Sensex, was up 203.26 points or 0.28% to 74,068.86. The Nifty 50 index added 17.20 points or 0.08% to 22,493.05.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index fell 0.71% and the S&P BSE Small-Cap index declined 0.69%.

The market breadth was weak. On the BSE, 1,315 shares rose and 2,477 shares fell. A total of 178 shares were unchanged.

Economy:

Despite falling from 61.2 at the end of the previous fiscal quarter to 60.8 in April, the seasonally adjusted HSBC India Services Business Activity Index highlighted one of the strongest growth rates seen in just under 14 years. Survey members attributed the latest upturn in output to favorable economic conditions, demand strength and rising intakes of new work.

Despite coming in below the Flash estimate (62.2), the final HSBC India Composite PMI Output Index still signaled a substantial rate of expansion across the private sector. At 61.5 in April (March: 61.8), the latest reading was one of the highest seen in close to 14 years.

As was the case for output, manufacturers continued to note a stronger increase in new business intakes than service providers. Aggregate sales rose sharply, and at one of the fastest rates since mid-2010. Goods producers also led April's rise in payroll numbers, with softer growth in the service economy curbing job creation at the composite level.

Meanwhile, in the third consecutive weekly decline, India’s forex reserves dropped $2.412 billion to $637.922 billion during the seven days ended April 26, according to the RBI data.

For the week ended April 26, the foreign currency assets — a major component of the reserves — decreased $1.159 billion to $559.701 billion, the data released on Friday showed.

Gold reserves decreased $1.275 billion to $55.533 billion during the week. The special drawing rights (SDRs) were up $15 million to $18.048 billion, said the RBI.

India’s reserve position with the IMF was also up $8 million to $4.639 billion in the reporting week, the apex bank data showed.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 11.69% to 16.33. The Nifty 30 May 2024 futures were trading at 22,606, at a premium of 112.95 points as compared with the spot at 22,493.05.

The Nifty option chain for the 30 May 2024 expiry showed maximum Call OI of 26.2 lakh contracts at the 23,500 strike price. Maximum Put OI of 34.6 lakh contracts were seen at 22,000 strike price.

buzzing index:

The Nifty Media index declined 1.89% to 1,816.10. The index dopped 5.03% in the four consecutive trading sessions.

Zee Entertainment Enterprises Ltd (down 3.21%), Tips Industries Ltd (down 2.98%), TV18 Broadcast Ltd (down 2.8%), Network 18 Media & Investments Ltd (down 2.69%) and Dish TV India Ltd (down 2.54%) were the top losers.

Among the other losers were Hathway Cable & Datacom Ltd (down 2.05%), PVR Inox Ltd (down 1.47%), Sun TV Network Ltd (down 0.44%).

stocks in spotlight:

Britannia Industries rallied 7.53%. The FMCG company said that its consolidated net profit declined 3.76% to Rs 536.61 crore in Q4 FY24 as compared with Rs 557.60 crore in Q4 FY23. Revenue from operations increased 5.45% to Rs 4,104.07 crore in the quarter ended 31 March 2024 as compared with Rs 3892.02 crore posted in the quarter ended 31 March 2023.

Kotak Mahindra Bank jumped 5.27% after the bank reported 18% rise in standalone net profit to Rs 4,133 crore in Q4 FY24 from Rs 3,496 crore in Q4 FY23. Total income of the bank increased by 27% YoY to Rs 15,285.35 crore during the period under review.

Mangalore Refinery & Petrochemicals (MRPL) slipped 6.03% after the company reported 40.41% decline in standalone net profit to Rs 1,136.84 crore in Q4 FY24 from Rs 1,907.98 crore recorded in Q4 FY23. Revenue from operations (excluding excise duty) fell marginally to Rs 25,328.67 crore in Q4 FY24 as compared to Rs 25,365.43 crore recorded in Q4 FY23.