Rising for the seventh straight
session, Indian equity benchmarks ended with gains of over half percent on
Tuesday propelled by robust buying in Metal, Utilities and Banking stocks. On
the back of positive Asian cues, the Indian indices started on a firm note and
extended the gains as the day progressed. Traders got encouragement as India
Ratings said the share of combined capex of states in the GDP may improve
marginally to 2.8% in FY24 from 2.5% in FY23. Some support also came with Union
Finance Minister Nirmala Sitharaman's statement that India's structural reforms
approach has ensured that it remains a globally attractive destination for
investment and the country is well-positioned in the global economy, allowing
it to grow briskly, possibly faster, in the coming years. However, key gauges
erased most of their initial gains in late afternoon deals as traders turned
cautious amid report that a private weather forecaster predicted below normal
monsoon in India in 2023 on account of El Nino conditions. Investors also
remained on sidelines ahead of India's consumer price index (CPI) and Index of
Industrial Production (IIP) data along with US CPI data. But, markets regained
traction to end higher amid continuous foreign fund inflows. Foreign Portfolio
Investors (FPIs) further bought equities worth Rs 882.52 crore on Monday,
according to exchange data. Besides, expectations of healthy fourth-quarter
earnings, easing inflation, a pause in rate hikes by the RBI, the return of
foreign portfolio investors and improving macroeconomic indicators have underpinned
market sentiments. Traders took note of report that India's G20 sherpa Amitabh
Kant said India will use the G20 narrative to push its digital transformation
story to the rest of the world with an objective of transforming the lives of
people in the Global South. Finally, the BSE Sensex rose 311.21 points or 0.52%
to 60,157.72 and the CNX Nifty was up by 98.25 points or 0.56% to 17,722.30.
The US markets ended mostly lower
on Tuesday. A lack of major U.S. economic data kept some traders on the
sidelines ahead of the release of several key reports in the coming days. The
Labor Department's report on consumer price inflation in the month of March is
due to be released on Wednesday and could have a significant impact on the
outlook for interest rates. Street currently expect consumer prices to rise by
0.3 percent in March, while the annual rate of growth is expected to slow to
5.2 percent from 6.0 percent. Core consumer prices, which exclude food and
energy prices, are expected to climb by 0.4 percent in March, although the
year-over-year growth is expected to accelerate to 5.6 percent from 5.5
percent. Meanwhile, Reports on produce price inflation, retail sales and
industrial production are also likely to attract attention in the coming days. Earnings
news may also drive trading later in the week, with financial giants Citigroup
(C), JPMorgan Chase (JPM) and Wells Fargo (WFC) due to report their quarterly
results on Friday. On the sectoral front, despite the lackluster performance by
the broader markets, airline stocks moved sharply higher on the day, driving
the NYSE Arca Airline Index up by 3.4 percent. Optimism about additional
stimulus from China also contributed to substantial strength among steel
stocks, as reflected by the 3.1 percent surge by the NYSE Arca Steel Index.
Crude oil futures ended sharply
higher on Tuesday on optimism about additional Chinese economic stimulus.
Traders reacted to soft inflation data from China. China's consumer inflation
hit an 18-month low in March and producer price deflation deepened further,
creating room for the central bank to potentially ease its monetary policy.
Besides, oil prices also rose on hopes that the Federal Reserve might ease up
on its policy tightening after a key U.S. inflation report this week. A U.S
inflation report to be released on Wednesday is expected to help investors
gauge the near-term trajectory for interest rates. Benchmark crude oil futures
for May delivery rose $1.79 or nearly 2.4 percent to settle at $81.53 a barrel
on the New York Mercantile Exchange. Brent crude for June delivery surged $1.43
or 1.70 percent to settle at $85.61 a barrel on London's Intercontinental
Exchange.
Indian Rupee ended lower against
the US dollar on Tuesday as dollar demand from importers weighed on investor
sentiments. Traders were cautious ahead of inflation report due on April 12,
wholesale Inflation on April 14 and earning season of Q4FY23. Investors
overlooked India Ratings' statement that the share of combined capex of states
in the GDP may improve marginally to 2.8% in FY24 from 2.5% in FY23. Besides,
Union Finance Minister Nirmala Sitharaman's statement that India's structural
reforms approach has ensured that it remains a globally attractive destination
for investment and the country is well-positioned in the global economy,
allowing it to grow briskly, possibly faster, in the coming years. On the
global front, British pound rose for the first day in five against a softening
dollar on Tuesday as risk-sentiment improved, helping to push sterling towards
the 10-month high it reached last week. Finally, the rupee ended at 82.12
(Provisional), depreciate by 13 paise from its previous close of 81.99 on
Monday.
The FIIs as per Tuesday's data
were net buyers in both equity and debt segment. In equity segment, the gross
buying was of Rs 4382.62 crore against gross selling of Rs 2999.16 crore, while
in the debt segment, the gross purchase was of Rs 936.66 crore against gross
selling of Rs 171.19 crore. Besides, in the hybrid segment, the gross buying
was of Rs 2.48 crore against gross selling of Rs 2.95 crore.
The US markets ended mostly in
red on Tuesday after the International Monetary Fund cut its global growth
forecast and warned it was too soon to sound the all-clear from the banking
turmoil. Asian markets are trading mixed on Wednesday as investors await U.S.
inflation data to gauge near-term trajectory for interest rates. Indian markets
ended higher on Tuesday for a seventh consecutive session with banks, auto and
metal stocks leading the surge. Today, start of the session is likely to be
cautious ahead of macro-economic data -- consumer price index (CPI) and Index of
Industrial Production (IIP) -- due to be released later in the day and amid
mixed moves across global markets. Traders will be taking encouragement as the
India Meteorological Department (IMD), the state-run official weather agency,
predicted normal rains during this year's monsoon season - June to September -
at 96 per cent of the Long Period Average (LPA) in spite of the anticipated El
Nino conditions. As per a private report, ample rains may boost production of
crops like rice, soybeans, corn and sugar cane, helping to lower food prices
and aiding the government's efforts to cool inflation. However, there may be
some cautiousness as the International Monetary Fund (IMF) slashed its economic
growth forecast for India by 20 basis points (bps) to 5.9 per cent for 2023-24
(FY24), citing lesser scope for pent-up demand due to historical revisions to
data. The IMF also projected India's retail inflation to ease to 4.9 per cent
in FY24 from 6.7 per cent in FY23, and the current account deficit to come down
to 2.2 per cent of GDP from an estimated 2.6 per cent a year ago. Traders may
be concerned with private report that India's private equity (PE) investment
stood at $2,172 million in the first quarter of calendar year 2023, down 75.4
per cent from $8,830 million in Q1 of CY 2022. The investments declined 31.9
per cent sequentially. Sugar stocks would be in focus with a private report
that prices of the commodity in the global markets are soaring. There will be
some reaction in power industry stocks as rating agency CRISIL said due to
unprecedented rainfall, demand for power in India fell 1.3 per cent in March.
This fall in demand also led to a fall in power generation by 7 per cent
year-on-year (YoY) in the month. Moreover, market participants on Dalal Street
await the announcement of financial results by Tata Consultancy Services (TCS),
due later in the day, for domestic cues. The Tata group IT giant is all set to
kick off the corporate earnings season post-market hours.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
17,722.30
|
17,668.71
|
17,762.31
|
BSE
Sensex
|
60,157.72
|
59,962.50
|
60,310.30
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata
Steel
|
493.05
|
107.60
|
105.85
|
108.60
|
ICICI
Bank
|
395.04
|
882.90
|
870.06
|
890.66
|
State
Bank of India
|
264.14
|
532.50
|
527.86
|
536.41
|
Axis
Bank
|
239.31
|
853.70
|
846.60
|
858.25
|
HDFC
Bank
|
211.81
|
1664.95
|
1654.24
|
1672.54
|
NTPC has recorded a coal production of 23.2 million tonnes in FY23, witnessing a 65 per cent growth against 14.02 million tonnes a year ago from its four operational coal mines.
State Bank of India is planning for long term fund raising in single / multiple tranches of up to $2 billion under Reg-S/144A, through a public offer and/or private placement during FY24.
Maruti Suzuki India is targeting to more than double its SUV sales this year (FY24) and take the leadership position in the fast-growing segment with a market share of over 25 per cent.
ICICI Bank has reportedly introduced an equated monthly instalment (EMI) facility for UPI payments made by scanning QR code.