Indian equity
benchmarks gained for second straight session on Tuesday buoyed by hectic
buying in Auto, IT and TECK counters amid positive domestic and global cues.
The benchmarks staged a gap up opening, as the finance ministry stated that GST
collections crossed the Rs 1 lakh crore-mark for the fifth month in a row in
February, rising 7 per cent annually to over Rs 1.13 lakh crore, indicating
economic recovery. Goods and Services Tax (GST) collections had risen for two
straight months to touch record Rs 1,19,875 crore in January and Rs 1.15 lakh
crore in December. However, some profit taking in noon deals led to benchmarks
coming off intraday highs. Some concern came after the Biden administration has
told the US Congress that India's recent emphasis on import substitution
through the Make in India campaign has epitomised the challenges facing the
bilateral trade relationship. In its 2021 Trade Policy Agenda and 2020 Annual
Report, the US Trade Representative (USTR) said that during 2020, the US
continued its engagement with India to try to resolve longstanding market
access impediments affecting US exporters. Though, late buying led to the
Sensex and Nifty close near day's highs. Traders also found solace with the
Crisil report stated that on the back of timely government and regulatory
measures this fiscal, which helped the economy to recover faster than expected,
bank credit is seen growing 400-500 bps to 9-10 percent in the next financial
year. In the current fiscal, bank credit is expected to rise 4-5 percent
despite the sharpest contraction in the economy since Independence. Some
support also came with the finance ministry stating that the Centre has
released Rs 1.04 lakh crore to states in four months since October 2020, to
meet GST compensation shortfall. Traders also took a note of the Reserve Bank
of India's (RBI) statement that Economic activity is gaining steam in India as
Covid-19 incidences recede but private investments are missing in action. It
also said the ongoing vaccine rollout is releasing pent-up optimism. Finally,
the BSE Sensex rose 447.05 points or 0.90% to 50,296.89, while the CNX Nifty
was up by 157.55 points or 1.07% to 14,919.10.
The US markets
ended lower on Tuesday as traders cashed in on the strong gains posted during
trading on Monday. The weakness on the day came despite a continued decrease by
the yield on the benchmark ten-year note, which moved lower for the third
straight session. The 10-year Treasury yield, a point of focus lately for
equity investors, dipped below 1.41%. The benchmark rate appeared to be
stabilizing this week after surging to a high of 1.6% last week, which eased
some of the fears about higher borrowing costs and inflation. Further, markets
fell led by technology names, Apple and Facebook fell about more than 2% each.
Amazon and Microsoft both slipped 1%, while Tesla dropped 4.5%. Tech and
consumer discretionary were the two worst-performing sectors, falling more than
1% each. However, downside remained
capped as President Joe Biden said that Merck will help make Johnson &
Johnson's single shot Covid vaccine as the country tries to ramp up supply.
Economically sensitive cyclical sectors have outperformed the broader market
this year amid optimism about vaccines and economic resurgence. Energy and
financials have risen 28% and 12%, respectively, year to date.
Crude oil futures ended lower on
Tuesday, extending their previous session's losses, as traders bet that
Organization of the Petroleum Exporting Countries and its allies (OPEC+) will
decide later this week to restore some output in April. OPEC+ will hold a
committee meeting Wednesday to offer a recommendation on production levels, and
the group will hold its main decision-making gathering on Thursday. OPEC+ could
discuss allowing as much as 1.5 million barrels per day (bpd) of crude back
into the market. Previously, Saudi Arabia has said that it will start to
increase production in April. Crude oil futures for April declined 89 cents or
1.5 percent to settle at $59.75 barrel on the New York Mercantile Exchange. May
Brent crude fell 99 cents or 1. 6 percent to settle at $62.70 a barrel on
London's Intercontinental Exchange.
Indian rupee ended substantially
stronger on Tuesday on fresh selling of American currency by banks and
exporters. Besides, healthy growth in the domestic equity market also added to
the rupee gains. Traders took support with the finance ministry's statement
that GST collections crossed the Rs 1 lakh crore-mark for the fifth month in a
row in February, rising 7 per cent annually to over Rs 1.13 lakh crore,
indicating economic recovery. Adding optimism, Crisil report stated that on the
back of timely government and regulatory measures this fiscal, which helped the
economy to recover faster than expected, bank credit is seen growing 400-500
bps to 9-10 percent in the next financial year. On the global front, dollar
rose to its highest level in a month against its basket on Tuesday and riskier
currencies fell back, as underlying concerns about rising bond yields drove
investors back into safe-haven assets. Finally, the rupee ended at 73.37, 18
paise stronger from its previous close of 73.55 on Monday.
The FIIs as per Tuesday's data
were net buyer in equity segment, while net seller in debt segment. In equity
segment, the gross buying was of Rs 7929.62 crore against gross selling of Rs
7080.21 crore, while in the debt segment, the gross purchase was of Rs 388.83
crore against gross selling of Rs 1160.24 crore. Besides, in the hybrid
segment, the gross buying was of Rs 5.50 crore against gross selling of Rs
32.76 crore.
The US markets settled lower on
Tuesday after a wobbly day, pulled down by losses in Apple and Tesla, giving
back some of their big gains from a day earlier. Asian markets are trading
mostly in green on Wednesday on optimism that US stimulus will energise the
global economic recovery. Indian markets ended higher for second straight
session on Tuesday with gains in Auto and IT stocks as some semblance of calm
returned to global bond markets after last week's turmoil. Today, continuing
their rising trend for third straight session, the markets are likely make
positive start mirroring gains in Asian peers. Traders will be taking
encouragement principal economic advisor to the finance ministry Sanjeev
Sanyal's statement that Indian economy is recovering faster than expected and
the government will spend on building infrastructure rather than boosting
consumer demand artificially. Some support will come as RBI governor
Shaktikanta Das expressed optimism about the overall COVID-19 situation
following the rollout of the vaccines and complimented all the SAARC central
banks for their efforts in combating the pandemic. However, there may be some
cautiousness as India's tally of coronavirus cases has risen to 11,139,323,
with a daily increase of 15,704 in total cases. Death toll has reached 157,385,
with 110 fatalities in a day. India's count of active cases has jumped to
171,776. The country continues to be second-most-affected globally, and ranks
13th among worst-hit nations by active cases. Auto stocks will be in focus with
a private report that Domestic commercial vehicle (CV) sales in February grew
in line with a pick-up in manufacturing and infrastructure activities. While
the truck segment reported positive growth, the bus segment continues to be in
red. Besides, Union Minister Nitin Gadkari has asked automakers to build
flex-engine vehicles for using alternative fuel. There will be some reaction in
oil & gas sector stocks with report that India's fuel consumption is likely
to rise nearly 10 per cent in the fiscal year beginning April 1, as a reflating
economy drives petrol and diesel demand. Telecom stocks will be in limelight as
India's first auction of telecom spectrum in five years ended with Rs 77,814.80
crore of airwaves being acquired, mostly by Reliance Jio which picked up 488.35
MHz of spectrum for Rs 57,122.65 crore. Bharti Airtel acquired 355.45 MHz at Rs
18,698.75 crore, and Vodafone Idea with 11.80 MHz for Rs 1,993.40 crore.
Meanwhile, MTAR Technologies' Rs 596 crore initial public offering (IPO) will
open for subscription today. The company is selling shares in the price band of
Rs 574-575 per share.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
14,919.10
|
14,800.24
|
14,998.54
|
BSE
Sensex
|
50,296.89
|
49,922.74
|
50,555.44
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata
Motors
|
1,277.08
|
345.75
|
332.40
|
353.15
|
NTPC
|
536.49
|
112.55
|
109.06
|
114.86
|
Indian
Oil Corporation
|
457.20
|
102.20
|
101.26
|
103.61
|
Oil
& Natural Gas Corporation
|
363.03
|
113.50
|
111.95
|
115.85
|
State
Bank of India
|
305.34
|
394.20
|
389.99
|
398.99
|
Cipla has received final approval for its ANDA for Sumatriptan Nasal Spray, 20 mg from the USFDA.
Bharti Airtel has acquired 355.45 MHz spectrum across Sub GHz, mid band and 2300 MHz bands for a total consideration of Rs 18,699 crore in the latest spectrum auction.
Bajaj Auto has launched the new version of its 102 cc bike Platina 100 Electric Start priced at Rs 53,920 (ex-showroom Delhi).
SBI has reduced interest rates on home loans by up to 10 basis points and is offering loans starting from a 6.70 percent rate.