Indian equity benchmarks
continued their slide for the eighth straight day on Tuesday due to selling in
Metal, Oil & Gas and Energy stocks amid worries over further interest rate
hikes. Investors remain cautious ahead of India's GDP data for the
OctoberDecember 2022 quarter (Q3FY23) to be released later in the day. After
making a cautious start, markets traded marginally higher as traders took some
support with Comptroller & Auditor General of India (CAG) G C Murmu's statement
that the blue economy occupies a vital position in India's economic growth and
it could well be the next multiplier of GDP and wellbeing, provided
sustainability and socioeconomic welfare are kept at the centre stage. However,
soon markets cut initial gains and fell sharply lower in afternoon deals, as
traders got anxious with ICRA Ratings' stating that India Inc's operating
profit margin narrowed by a sharp 2.37% in the December quarter to 16.3% on an
annual basis due to high inflation and rising energy costs. Traders were also
cautious amid a private report stating that a doveturnedhawk in India's
monetary policy committee said demand in the economy was leading to significant
price gains and high interest rates are required to keep a lid over inflation,
including the core measure. Continued foreign fund outflows also dented the
market sentiment. Foreign institutional investors (FII) sold shares worth Rs
2,022.52 crore on February 27, the National Stock Exchange's provisional data
showed. Finally, the BSE Sensex fell 326.23 points or 0.55% to 58,962.12 and
the CNX Nifty was down by 88.75 points or 0.51% to 17,303.95.
The US markets ended in red on
Tuesday as traders seemed reluctant to make more significant moves amid ongoing
concerns about the outlook for interest rates. Traders were keeping an eye on
reports on weekly jobless claims and manufacturing and service sector activity,
which will be released in coming days. The data could shed additional light on
the strength of the economy and provide further clues about how much the
Federal Reserve is likely to raise interest rates. On the sectoral front, Oil
stocks showed a significant move to the downside on the day, dragging the NYSE
Arca Oil Index down by 1.8 percent. The weakness in the sector came despite a
sharp increase by the price of crude oil, as crude for April delivery surged
$1.37 or 1.8 percent to $77.05 a barrel. Natural gas and pharmaceutical stocks
also saw notable weakness, while steel and gold stocks moved to the upside on
the day. On the economic data front, MNI Indicators released a report showing
Chicago-area business activity unexpectedly contracted at a slightly faster
rate in the month of February. MNI Indicators said its Chicago business
barometer edged down to 43.6 in February from 44.3 in January, with a reading
below 50 indicating a contraction. Street had expected the Chicago business
barometer to inch up to 45.0. A separate report released by the Conference
Board showed U.S. consumer confidence unexpectedly decreased for the second
consecutive month in February. The Conference Board said its consumer
confidence index slid to 102.9 in February from a downwardly revised 106.0 in
January. The continued decrease surprised participants, who had expected the
consumer confidence index to inch up to 108.5 from the 107.1 originally
reported for the previous month.
Crude oil futures ended higher on
Tuesday as hopes for a strong economic rebound in China offset worries about
U.S. interest rate hikes dragging down consumption in the world's biggest
economy. Crude oil prices are expected to rise above $90 a barrel toward the
second half of 2023 as Chinese demand recovers and Russian output falls. On
Wednesday, the Energy Information Administration is scheduled to release its
report on oil inventories in the week ended February 24th. Benchmark crude oil
futures for April delivery surged $1.37 or 1.8 percent to 77.05 a barrel on the
New York Mercantile Exchange. Brent crude for April delivery rose $1.44 or 1.75
percent to $83.89 a barrel on London's Intercontinental Exchange.
Indian Rupee ended higher against
the US dollar on Tuesday ahead of the release of Q3 GDP data. Traders
overlooked Reserve Bank of India's (RBI) latest data showing that banks' credit
growth slowed down to 16.8 percent in the Q3 (OctoberDecember) of FY23 from
17.2 percent in the preceding quarter. In the yearago period, bank credit grew
at 8.4 percent. Growth in credit was led by bank branches in metropolitan
centres, which account for nearly 60 per cent of the total credit by SCBs and
recorded 17.2 per cent rise (yoy) in lending; urban, semiurban and rural
centres also recorded double digit credit growth. On the global front, U.S.
dollar resumed its rally on Tuesday following a brief pause at the start of the
week, putting it back on track to end the month with an impressive gain after a
fourmonth losing streak. Finally, the rupee ended at 82.64 (Provisional),
stronger by 15 paise from its previous close of 82.79 on Monday.
The FIIs as per Tuesday's data
were net sellers in both equity and debt segments. In equity segment, the gross
buying was of Rs 4422.27 crore against gross selling of Rs 6050.78 crore, while
in the debt segment, the gross purchase was of Rs 233.27 crore against gross
selling of Rs 293.06 crore. Besides, in the hybrid segment, the gross buying
was of Rs 8.18 crore against gross selling of Rs 18.23 crore.
The US markets ended lower on
Tuesday as more evidence of stubborn inflation added to expectations that
central banks will keep rates high. Asian markets are trading in green on
Wednesday as investors await a slew of key economic data across the region.
Indian markets exhibited a weak trend and ended lower for the eighth straight
trading session on Tuesday amid sustained selling in index heavyweights such as
- Reliance, Infosys, Tata Steel and ITC. Today, the start new month is likely
to be negative amid overnight losses on Wall Street coupled with weak GDP data
on domestic front. data released by the Ministry of Statistics and Programme
Implementation showed that India's gross domestic product (GDP) growth rate
fell for the second consecutive quarter in October-December, coming in at 4.4%,
it is lower than the 6.3% growth in the second quarter of 2022-23. Continued
foreign fund outflows likely to dent domestic sentiments. Foreign institutional
investors (FII) sold shares worth Rs 4,559.21 crore on February 28, the
National Stock Exchange's provisional data showed. Traders will be concerned as
a report from S&P Global Market Intelligence showed Private equity (PE)
investments in India dropped 23.4% in 2022 from a year earlier. Traders may
take note of India Ratings' statement that the record heat in February can lead
to more rate hikes from RBI. Besides, the central government's fiscal deficit
for the first 10 months of 2022-23 widened to Rs 11.91 lakh crore. At Rs 11.91
lakh crore, the fiscal deficit for April 2022-January 2023 accounts for 67.8
percent of the full-year target for 2022-23. However, some respite may come
later in the day as production of eight infrastructure industries - the core
sector - expanded 7.8% year-on-year (YoY) in January, its fastest pace in four
months, owing to a lower base and a near all-round showing. Some support will
also come as Chief Economic Advisor V Anantha Nageswaran said high frequency
data indicate buoyant economic growth momentum and the 7% GDP growth estimate for
the current fiscal is very realistic. He also said that there are enough signs
that manufacturing is in good health. The auto sector stocks will also be in
action, reacting to their monthly sales numbers. Ratings agency Crisil said
India's passenger vehicle sales are expected grow about 9%-10% in fiscal year
2024, roughly 20% above pre-pandemic peak levels, as strong demand and easing
chip shortages prop-up the world's fourth-largest car market. Meanwhile,
Automotive component maker Divgi TorqTransfer Systems to launch its initial
public offering (IPO) and the issue will open for subscription on March 1.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
17,303.95
|
17,225.95
|
17,411.20
|
BSE
Sensex
|
58,962.12
|
58,677.48
|
59,365.23
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata Steel
|
765.40
|
104.10
|
102.75
|
106.25
|
Adani Enterprises
|
339.48
|
1371.35
|
1184.06
|
1478.31
|
Power Grid Corporation of India
|
274.19
|
222.00
|
219.50
|
223.75
|
Adani Ports And Special Economic Zone
|
253.60
|
590.70
|
556.95
|
619.45
|
HCL Technologies
|
207.94
|
1085.00
|
1069.76
|
1098.56
|
Tata Steel has raised Rs 2150 crore through allotment of 2,15,000 - 8.03% Fixed rate, Unsecured, Redeemable, Rated, Listed, NCDs having face value Rs 1 lakh each, for cash, for a tenor of 5 years, on private placement basis.
Infosys has rolled out Private 5G-as-a-Service to accelerate business value for its enterprise clients worldwide.
Wipro has formed four strategic GBLs to deepen alignment to clients' evolving business needs and capitalize on emerging opportunities in high-growth segments of the market.
Tech Mahindra is eyeing to soon hit $7 billion revenue run rate for current fiscal year, out of which the telecom vertical is estimated to contribute $3 billion.