Indian equity benchmarks swung between gains and losses on Thursday and finally settled in red due to a sell-off in Realty and Banking stocks amid a weak trend in European equities. Markets made a negative start, as traders were anxious with Fitch Ratings stating that India has some room to cut capital expenditure in FY24 as there may be pressure on revenue as the buoyancy assumptions in the Union budget may be inflated. But, key gauges erased losses and recovered gradually in afternoon deals, as traders took support with exchange data showing that Foreign Institutional Investors (FIIs) turned net buyers in the domestic capital market on Wednesday as they purchased shares worth Rs 61.72 crore. Some support also came as data put out by the Reserve Bank of India (RBI) in its latest monthly bulletin showed that transmission of repo rate to banks' deposit and lending rates seems to be better in an interest rate easing cycle than in the monetary tightening period.  However, the recovery was short-lived as key indices once again fell sharply in late afternoon deals, due to a sluggish start in the European market led by a 50bps hike by the Swiss National Bank. Meanwhile, industry body PHDCCI has approached the government seeking reintroduction of the Credit Linked Capital Subsidy Scheme to facilitate technology upgradation of micro and small enterprises. On the global front, European markets were trading lower amid U.S. Federal Reserve's rate hike move that was widely expected. Investors also concerned about the health of the banking industry after US Treasury Secretary Janet Yellen commented that the regulators are not looking to provide any 'blanket' deposit insurance to stabilise the US banking system, without working with law makers.  Asian markets settled mostly higher on Thursday despite the U.S. Federal Reserve raised rates by 25 basis points and signaled another hike to fight inflation. Finally, the BSE Sensex fell 289.31 points or 0.50% to 57,925.28 and the CNX Nifty was down by 75.00 points or 0.44% to 17,076.90.

The US markets ended higher in volatile session on Thursday as market participants were reassured by U.S. Treasury Secretary Janet Yellen's reassurances that measures will be taken to keep Americans' deposits safe and fresh concerns of a US banking crisis. Meanwhile, investors continued to digest the Federal Reserve's latest interest rate hike. The Fed hiked interest rates by 25 basis points on Wednesday, representing its 9th consecutive interest rate hike since it started the tightening policy in March 2022.  On the sectoral front, semiconductor stocks moved sharply higher on the day, driving the Philadelphia Semiconductor Index up by 2.7 percent to its best closing level in eleven months. Software stocks also showed a strong move to the upside on the day, with the Dow Jones U.S. Software Index climbing by 1.8 percent. Meanwhile, oil service stocks came under pressure over the course of the session, dragging the Philadelphia Oil Service Index down by 2.5 percent. A notable decrease by the price of crude oil weighed on the sector. on the economic data front, a report released by the Labor Department unexpectedly showed a slight decrease by first-time claims for U.S. unemployment benefits in the week ended March 18th. The Labor Department said initial jobless claims slipped to 191,000, a decrease of 1,000 from the previous week's unrevised level of 192,000. Street had expected jobless claims to rise to 201,000. The report said the less volatile four-week moving average also edged down to 196,250, a decrease of 250 from the previous week's unrevised average of 196,500.

Crude oil futures ended lower on Thursday, reversing early gains after U.S. Energy Secretary Jennifer Granholm told lawmakers that refilling the country's Strategic Petroleum Reserve (SPR) may take several years. Oil prices fell amid concerns the interest rate hikes by several central banks could slow down economic growth and impact the outlook for energy demand. Federal Reserve Chair Jerome Powell highlighting banking sector credit risks, and larger than expected increase in U.S. crude inventories weighed as well on oil prices. However, optimism about higher demand from China helped limit oil's downside. Benchmark crude oil futures for April delivery fell $0.94 or about 1.3 percent to settle at $69.96 a barrel on the New York Mercantile Exchange. Brent crude for May delivery dropped $0.78 or about 1 percent to settle at $75.91 a barrel on London's Intercontinental Exchange.

Indian rupee strengthened against the dollar on Thursday, tracking the weakness of the American currency in the overseas market. Sentiments were upbeat as National Stock Exchange's provisional data showed foreign institutional investors (FII) have turn net buyers for first time in last 10 straight sessions, buying shares worth Rs 61.72 crore on March 22. Besides, the Reserve Bank of India (RBI) in its latest monthly bulletin showed that transmission of repo rate to banks' deposit and lending rates seems to be better in an interest rate easing cycle than in the monetary tightening period. On the global front, sterling rose to a seven-week high against the dollar on Thursday ahead of a Bank of England meeting, with the central bank expected to rise interest rates once again in a bid to try to tame surging inflation. Finally, the rupee ended at 82.27 (Provisional), stronger by 32 paise from its previous close of 82.59 on Tuesday.

The FIIs as per Thursday's data were net sellers in equity segment, while net buyers in debt segment. In equity segment, the gross buying was of Rs 12211.46 crore against gross selling of Rs 13255.79 crore, while in the debt segment, the gross purchase was of Rs 2271.85 crore against gross selling of Rs 376.58 crore.  Besides, in the hybrid segment, the gross buying was of Rs 33.22 crore against gross selling of Rs 27.09 crore.

The US markets ended higher on Thursday cheered by Treasury Secretary Janet Yellen's reassurance that measures would be taken to keep deposits safe in the banking system. Asian markets are trading mixed on Friday despite Treasury yields extending declines for a third day. Indian markets ended in red on Thursday on aggressive selling after Janet Yellen's hawkish comments spooked markets across the globe. Today, domestic equity markets are likely to get cautious start tracking weakness across Asian peers. Markets are likely to remain range-bound in today's session due to a lack of triggers. Traders will be concerned amid foreign fund outflows. FIIs were net sellers to the tune of Rs 995 crore in the cash markets on March 23, provisional data from exchanges showed. However, some support will come as Chief Economic Advisor (CEA) V Anantha Nageswaran indicated that with global crude oil prices on the slide, India's current account deficit (CAD), too, will drop in the current fiscal year (2022-23, or FY23) and the next (2023-24, or FY24), with the external situation being quite stable. Separately, Nageswaran said a host of global issues pertaining to inflation, energy security and climate change would be discussed in the G20 second Framework Working Group meeting scheduled to begin Friday. Besides, India's exports to the UAE are expected to touch an all-time high of $32 billion by the end of this fiscal due to the benefits of free trade agreement between the countries. Meanwhile, Agriculture Minister Narendra Singh Tomar has launched a DigiClaim platform under the national crop insurance portal for speedy disbursal of claims to insured farmers. Banking stocks will be remaining in limelight with report that Finance minister Niramala Sitharaman is scheduled to meet managing directors of public sector banks (PSBs) on March 25 for performance review in the backdrop of failure of few banks in the US and liquidity crisis faced by Credit Suisse. There will be some reaction in metal stocks with a private report that India's iron ore exports are set to fall 24% to a five-year low in the current fiscal year to March, as an export tax imposed last May stalled shipments. Automobile industry stocks will be in focus amid report that vehicle prices across commercial, passenger, and two-wheeler segments in India are set to rise in April as stricter emission rules kick in and automakers pass on the impact of input cost inflation. Top companies like Hero MotoCorp, Maruti Suzuki and Tata Motors have announced price increases across product portfolios. Others are likely to follow suit soon.

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

Nifty Top volumes

• Larsen & Toubro has entered into an Electrolyzer Manufacturing Binding agreement with McPhy Energy for a long-term partnership to explore opportunities unfolding in emerging Green Hydrogen market. 
• Reliance Industries' step down arm -- Reliance Consumer Products has launched its range of home and personal care products. 
• Maruti Suzuki India has planned price increase in April 2023 which shall vary across models, as the Company continues to witness increased cost pressure driven by overall inflation and regulatory requirements. 
• HCL Technologies has launched its latest digital innovation, HCLTech Metafinity, to enable enterprises to build exciting use cases in the metaverse and delight customers with real-time, immersive experiences.