Indian equity benchmarks dropped for the fourth consecutive day on Wednesday, as concerns pertaining to recent rise in Covid-19 cases in various parts of the country and high inflation continued to weigh on investors' sentiments. Additionally, weak cues from global markets ahead of FOMC meeting outcome also caused selling in domestic equities. Markets made cautious start, as traders remained anxious with India Ratings and Research (Ind-Ra) in its latest report stated that the performance of unsecured assets classes, such as microfinance loans, unsecured business loans and consumer loans, is worsening with deteriorating financial conditions of borrowers. For secured asset classes, it has a stable performance outlook given the recovery in the economy in FY22. However, markets witnessed some buying in late morning deals, as some support came with the commerce ministry's preliminary data stating that India's exports grew 17.27 percent to $14.22 billion during March 1-14 as compared to the year-ago period, showing healthy signs of revival. The key sectors which recorded a healthy growth in exports include engineering, rice, gems and jewellery. But benchmarks once again fell into red terrain in afternoon session and ended over a percent lower, as traders were worried as Union Health Secretary Rajesh Bhusan warned that Maharashtra was at the beginning of a second wave of the COVID-19 pandemic. In a letter to the Maharashtra government, said that a report by the Central team that had visited the state from March 7-11 found that there was very limited active effort to track, test, isolate cases and quarantine the contacts. There was some cautiousness too as India reported 28,869 fresh Covid-19 cases on Tuesday pushing the overall tally to 11,438,464, according to Worldometer. The death toll from the deadly infection jumped to 159,079. Traders overlooked reports that the retail industry's business is on the brink of full recovery as it achieved 93 per cent of the pre-COVID sales in February. Finally, the BSE Sensex fell 562.34 points or 1.12% to 49,801.62, while the CNX Nifty was down by 189.15 points or 1.27% to 14,721.30.

The US markets ended higher on Wednesday after the Federal Reserve forecast stronger economic growth and higher inflation this year and indicated it expects to keep interest rates at near-zero levels through 2023. The Fed provided updated forecasts along with the announcement of the its universally expected decision to maintain the target range for the federal funds rate at zero to 0.25 percent. The Fed also reiterated it plans to continue purchasing bonds at a rate of at least $120 billion per month until substantial further progress has been made toward its policy goals. The Fed said members now expect US GDP to soar by 6.5 percent in 2021 compared to the 4.2 percent spike forecast last December. The forecast for the pace of growth in core consumer prices, which exclude food and energy prices, was also upwardly revised to 2.2 percent from 1.8 percent. It acknowledged that indicators of economic activity and employment have turned up recently.

Crude oil futures ended lower for fourth straight session on Wednesday weighed down by data showing another jump in US crude stockpiles and concerns over the outlook for energy demand amid a slowdown in coronavirus vaccinations in several parts of Europe. Data from the Energy Information Administration said crude inventories in the US rose by 2.396 million barrels in the week ended March 13. However, the increase was less than what street had expected. Meanwhile, the International Energy Agency said in its monthly Oil Market Report that global energy demand is unlikely to return to pre-pandemic levels for another two years at least, which weighed on oil prices. Crude oil futures for April dropped $0.20 or 0.3 percent to settle at $64.60 barrel on the New York Mercantile Exchange. May Brent crude fell $0.44 or 0.6 percent to settle at $67.98 a barrel on London's Intercontinental Exchange.

Indian rupee ended unchanged on Wednesday. Investors were concerned with the impact of rising cases of Covid-19 in the country, and awaited the outcome of the US Federal Reserve's monetary policy. Traders were worried as Union Health Secretary Rajesh Bhusan warned that Maharashtra was at the beginning of a second wave of the COVID-19 pandemic. However, some support came with reports that the retail industry's business is on the brink of full recovery as it achieved 93 per cent of the pre-COVID sales in February. On the global front, pound held firm against both the euro and the dollar as Britain's dismissal of safety concerns over the AstraZeneca vaccine gave the currency some berth to recovery from the previous   falls.Finally, the rupee ended unchanged from its previous close of 72.55 on Tuesday.

The FIIs as per Wednesday's data were net buyer in both equity and debt segment. In equity segment, the gross buying was of Rs 13501.58 crore against gross selling of Rs 6244.21 crore, while in the debt segment, the gross purchase was of Rs 1525.30 crore with gross sales of Rs 911.48 crore. Besides, in the hybrid segment, the gross buying was of Rs 38.32 crore against gross selling of Rs 37.48 crore.

The US markets ended higher on Wednesday following the US Fed's positive economic growth outlook. Asian markets are trading in green on Thursday after the Federal Reserve pledged to keep monetary policy and rates unchanged and projected a rapid jump in U.S. economic growth this year as the COVID-19 crisis eases. Indian markets ended lower on Wednesday for the fourth consecutive session amid selling in banking, financials, auto, metals and pharma counters. Today, the start of session is likely to be gap-up following rally in US and other Asian markets. Some support will come as Veteran banker K V Kamath expressed optimism that India's sovereign rating would go up on the back of efforts being taken by the government to push economic reforms. Traders may take note of report that Oil Minister Dharmendra Pradhan said India and the UAE on Wednesday discussed ways to strengthen energy cooperation, despite the nation asking its refiners to reduce their reliance on Middle Eastern oil. Besides, as per a report, even as concerns rise across the globe on the safety of the AstraZeneca-Oxford vaccine, India has found it safe, saying the nationwide inoculation drive can continue. The AstraZeneca-Oxford vaccine - called Covishield in India - is manufactured in the country by Pune-based Serum Institute of India, the world's largest vaccine maker by volume. Though, concern over rising domestic Covid-19 cases may cap the gains. India reported 35,482 fresh Covid-19 cases on Wednesday pushing the overall tally to 11,438,464, according to Worldometer. The death toll from the deadly infection jumped to 159,249. Maharashtra reported as many as 23,179 new cases of coronavirus. There will be some buzz in the telecom stocks reacting to their monthly subscriber data. Banking stocks will in focus as a survey carried out by FICCI-IBA showed that asset quality of banks, which saw some improvement in the second half of 2020, is likely to worsen during the first six months of 2021. There will be some reaction in aviation stocks with Indian aviation regulator DGCA said around 78.27 lakh (7.8 million) domestic passengers travelled by air in February 2021 which is 36.71 per cent lower than the corresponding period last year. Meanwhile, the Centre is proposing to waive off new vehicle registration charges for customers who have scrapped their older vehicles and are submitting a scrapping certificate. The draft rules can come into effect from October 1, 2021.

Support and Resistance: NSE (Nifty) and BSE (Sensex)

Nifty Top volumes

• NTPC's JV -- Energy Efficiency Services is planning to procure around 1 crore light-emitting diode bulbs for its Gram Ujala programme. 
• SBI has extended the first Secured Overnight Financing Rate linked external commercial borrowing to Indian Oil Corporation. 
• Bharti Airtel added more than 5.89 million wireless subscribers in January 2021. 
• Coal India to increase its coal dispatch to the power plants.