Indian equity markets witnessed a
relief rally and logged strong gains on Tuesday, amid improved global
sentiment. Benchmarks started the session on an optimistic note and stayed in
green for the whole day, as sentiments got a boost with the Finance Ministry
stating that Indian economy is expected to grow at 7 per cent in FY23 despite
global headwinds. It noted that supported by the gains from high services
exports, the moderation in oil prices, and the recent fall in import-intensive
consumption demand, India's current account deficit is estimated to fall in
FY23 and FY24, providing a buffer to the rupee in uncertain times. Some
optimism also came with Minister of State for Finance Bhagwat K Karad stating
that the government has taken various reforms following which asset quality of
public sector banks has improved significantly with gross NPA ratio declining
from the peak of 14.6 per cent in March 2018 to 5.53 per cent in December
2022. Markets extended gains in second
half of the session, taking support from the Retirement fund body, Employees'
Provident Fund Organisation's (EPFO) latest Provisional Estimate of Net Payroll
data report showing that India created 1485948 new jobs in the month of January
2023 as against revised figure of 1280613 in December 2022. Traders overlooked
the Ministry of Labour and Employment's statement that retail inflation for
agricultural and rural workers increased to 6.94 per cent and 6.87 per cent,
respectively, in February 2023, due to increases in prices of medicines,
doctor's fees, and bus fares, among others. Traders also paid no heed towards a
private report stating that India's economic activity held steady in February
though there were early signs of slowing consumption amid concerns of future
growth prospects and hawkish monetary policy.
Finally, the BSE Sensex rose 445.73 points or 0.77% to 58,074.68 and the
CNX Nifty was up by 119.10 points or 0.70% to 17,107.50.
The US markets ended higher on
Tuesday on easing concerns about turmoil in the financial sector following
recent steps taken to rescue distressed banks in the U.S. and Europe. Positive
sentiment was also generated in reaction to remarks by Treasury Secretary Janet
Yellen, who said the government is prepared to once again take action to
protect bank depositors if smaller lenders are threatened. Meanwhile, traders
continued to look ahead to the Federal Reserve's highly anticipated monetary
policy announcement on Wednesday. While the recent banking turmoil led to some
speculation the Fed may leave interest rates unchanged, CME Group's FedWatch
Tool is currently indicating an 86.4 percent chance of a 25 basis point rate
hike. On the sectoral front, banking stocks turned in some of the market's best
performances on the day, driving the KBW Bank Index up by 5.0 percent. The
index continued to regain ground after ending last Friday's trading at its
lowest closing level in well over two years. Substantial strength was also
visible among energy stocks, with the Philadelphia Oil Service Index and the
NYSE Arca Oil Index spiking by 3.5 percent and 3.0 percent, respectively. The
rally by oil service stocks came as crude oil for May delivery jumped $1.85 to
$69.67 a barrel, extending the rebound seen on Monday.
Crude oil futures ended higher on
Tuesday amid improving risk sentiment thanks to the coordinated efforts by
major central banks to rescue troubled U.S. and European banks. The dollar was
quite subdued with investors looking ahead to the Federal Reserve's monetary
policy announcement on Wednesday. Meanwhile, a meeting of key ministers from
OPEC+, which includes OPEC members plus Russia and other allies, is scheduled
for April 3. Benchmark crude oil futures for April delivery rose $1.69 or about
2.5 percent to settle at $69.33 a barrel on the New York Mercantile Exchange.
Brent crude for May delivery gained $1.37 or about 1.86 percent to settle at $
75.16 (provisional) a barrel on London's Intercontinental Exchange.
Indian Rupee depreciated against the US dollar
on Tuesday amid a rise in crude oil prices and unabated foreign fund outflows
from the domestic equity market. Investors awaited the Federal Reserve's
interest rate decision. Traders overlooked Finance Ministry's statement that
Indian economy is expected to grow at 7 per cent in FY23 despite global
headwinds while retail inflation would moderate in line with wholesale
inflation which fell to a 25-month low in January. On the global front, dollar
steadied and sterling fell on Tuesday as traders reckoned banking stress would
keep the Federal Reserve and the Bank of England from hiking rates much
further, or at all, later in the week.
Finally, the rupee ended at 82.66 (Provisional), depreciate by 10 paise
from its previous close of 82.56 on Monday.
The FIIs as per Tuesday's data
were net sellers in equity segment, while net buyers in debt segment. In equity
segment, the gross buying was of Rs 4717.40 crore against gross selling of Rs
6623.05 crore, while in the debt segment, the gross purchase was of Rs 1015.75
crore against gross selling of Rs 796.24 crore. Besides, in the hybrid segment,
the gross buying was of Rs 22.55 crore against gross selling of Rs 2.19 crore.
The US markets ended higher on
Tuesday as traders became optimistic on the financial sector's outlook
following Treasury Secretary Janet Yellen's reassurances to safeguard against
further banking crises. Asian markets were trading in green in early deals on
Wednesday following the broadly positive cues from global markets overnight.
Indian equity markets ended higher on Tuesday led by Consumer Durables,
Financial Services and Bankex stocks. Today, markets are likely to make positive
start amid positive global market cues as investors await US Federal Reserve's
rate hike decision which will be announced late evening today. Traders may get
support as the Reserve Bank of India (RBI) in its article has said unlike the
global economy, India would not slow down and maintain the pace of expansion
achieved in 2022-23. It said the NSO's end-February data release indicates that
the Indian economy is intrinsically better positioned than many parts of the
world to head into a challenging year ahead, mainly because of its demonstrated
resilience and its reliance on domestic drivers. It said even as global growth
is set to slow down or even enter a recession in 2023 as global financial
markets wager, India has emerged from the pandemic years stronger than
initially thought, with a steady gathering of momentum since the second quarter
of the current financial year. Traders may take note of report that the bank
accounts of non-resident Indians (NRIs) received $5.95 billion during April
2022-January 2023, more than doubling from the $2.7 billion in the equivalent
period in FY22. There may be some buzz in real estate sector related stocks as
Colliers India and FICCI in report said that leasing of office space across six
major cities may fall by 25-30 per cent this calendar year to 35-38 million
square feet on subdued demand. These six cities are Delhi-NCR, Mumbai,
Bengaluru, Hyderabad, Chennai and Pune. There may be some buzz in automobile
industry related stocks as Union Minister of State for Heavy Industries Krishan
Pal Gurjar said total sales of electric vehicles in the year 2022 stood at
10,15,196 as against 3,27,976 in the previous year 2021. Total 2,56,980 EVs
have been registered in the current year till March 15. Moreover, Tyre industry
related stocks might be in focus as private report stated domestic tyre
industry is expected to witness double-digit growth next fiscal with the
automobile industry back on full swing.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
17,107.50
|
17,039.76
|
17,151.46
|
BSE
Sensex
|
58,074.68
|
57,825.41
|
58,228.65
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
State
Bank of India
|
294.85
|
521.75
|
517.65
|
524.65
|
Tata
Steel
|
264.35
|
104.80
|
104.26
|
105.36
|
ICICI
Bank
|
187.56
|
851.75
|
842.36
|
857.81
|
HDFC
Bank
|
165.25
|
1577.30
|
1561.50
|
1587.80
|
NTPC
|
128.94
|
176.95
|
175.65
|
177.90
|
NTPC's wholly owned subsidiary -- NTPC Renewable Energy has signed MoU with Indian Army for setting up Green Hydrogen Projects in its establishments on BOO model.
Bharti Airtel has rolled out various family plans offering monthly data in the range of 105-320 GB as it looks to attract prepaid users to switch to postpaid connections.
Larsen & Toubro has secured multiple offshore packages for its Hydrocarbon Business from a prestigious overseas client.
Reliance Industries' subsidiary -- Reliance Jio Infocomm has launched its True 5G services in 41 additional cities across 16 states and union territories.