Indian equity
benchmarks ended Monday's session with sharp losses amid weak trends in Asian
markets. After making flat-to-positive start, key gauges slipped into red and
continued their downward slide as the trading session progressed as investors
remained on sidelines ahead of the India's Consumer Price Index (CPI) inflation
and Index of Industrial Production (IIP) data to be out tomorrow. Some concern
also came amid a private report stating that India's headline retail inflation
rate in February is not likely to have changed from January's 5.1 percent,
extending its stay within the Reserve Bank of India's (RBI) tolerance range of
2-6 percent to a sixth consecutive month. Traders overlooked data from the
Reserve Bank of India (RBI) showing that foreign exchange reserves rose $6.6
billion to a two-year high of $625.6 billion in the week ended March 1. In the
previous week, reserves had risen $3 billion to $619.1 billion. Traders paid no
heed towards report that Moody's Ratings raised India's GDP growth forecast for
FY24 to around 8 per cent from 6.6 per cent on the back of strong domestic
consumption and capital expenditure. Investors also ignored Commerce and
Industry Minister Piyush Goyal's statement that the many developed and
developing countries including Bangladesh, Sri Lanka, and nations of the Gulf
region are keen to start trade in rupee with India as it would help cut
transaction costs for businesses. Traders took note of a report that India and
the European Free Trade Association (EFTA) signed a landmark trade and economic
partnership agreement (TEPA) to open up the EFTA markets for Indian businesses
and the Indian markets for the EFTA. As part of the deal, the EFTA countries
have committed to invest $100 billion in India over the next 15 years. Finally,
the BSE Sensex fell 616.75 points or 0.83% to 73,502.64 and the CNX Nifty was
down by 160.90 points or 0.72% to 22,332.65.
The US markets ended mostly in
red on Monday amid uncertainty about the outlook for interest rates ahead of
the release of key inflation data in the coming days. The Labor Department is
scheduled to release its closely watched report on consumer price inflation in
the month of February on Tuesday. Street currently expects consumer prices to
climb by 0.4 percent in February after rising by 0.3 percent in January. Core
consumer prices, which exclude food and energy prices, are expected to rise by
0.3 percent in February following a 0.4 percent increase in January. Meanwhile,
the annual rate of consumer price growth is expected to come in unchanged from
the previous month at 3.1 percent, while annual core consumer price growth is
expected to slow to 3.7 percent from 3.9 percent. The consumer price inflation
data could have a significant impact on the outlook for interest rates, with
Federal Reserve officials saying they need greater confidence inflation is
slowing before they consider cutting rates. While the Fed is widely expected to
leave rates unchanged at its monetary policy meeting next week, the data could
impact expectations regarding when the central bank will eventually lower
rates. On the sectoral front, despite the recovery attempt by the broader
markets, semiconductor stocks still saw significant weakness on the day, with
the Philadelphia Semiconductor Index falling by 1.4 percent. Within the sector,
semiconductor equipment maker Applied Materials (AMAT) slumped by 2.0 percent
despite raising its quarterly cash dividend from $0.32 to $0.40 per share.
Crude oil futures ended
marginally lower on Monday on concerns about the outlook for demand from China
and on caution ahead key U.S. consumer price inflation data. Investors were
awaiting U.S. inflation data and reports from OPEC and the International Energy
Agency (IEA) this week for more clues on the demand outlook. OPEC and the IEA
are scheduled to release their monthly oil market reports on Tuesday and
Thursday, respectively. Benchmark crude oil futures for April delivery fell
$0.08 or about 0.1% to settle at $77.93 a barrel on the New York Mercantile
Exchange. However, Brent crude for May delivery was up by $0. 13 or about 0.2%
to $81.21 per barrel on London's Intercontinental Exchange.
Indian rupee ended lower on
Monday tracking bearish equity markets. Some concern came amid a private report
stating that India's headline retail inflation rate in February is not likely
to have changed from January's 5.1 percent, extending its stay within the
Reserve Bank of India's (RBI) tolerance range of 2-6 percent to a sixth
consecutive month. Traders paid no heed towards report that Moody's Ratings
raised India's GDP growth forecast for FY24 to around 8 per cent from 6.6 per
cent on the back of strong domestic consumption and capital expenditure. On the
global front, the yen firmed against the dollar on Monday as signs the Bank of
Japan will exit negative interest rates at its policy meeting next week
contrasted with expectations that the Federal Reserve will cut rates in June. Finally,
the rupee ended at 82.75 (Provisional), weaker by 8 paise from its previous
close of 82.67 on Thursday.
The FIIs as per Monday's data
were net buyers in both equity and debt segments. In equity segment, the gross
buying was of Rs 26287.64 crore against gross selling of Rs 15699.03 crore,
while in the debt segment, the gross purchase was of Rs 5151.65 crore with
gross sales of Rs 769.49 crore. Besides, in the hybrid segment, the gross
buying was of Rs 194.03 crore against gross selling of Rs 10.53 crore.
The US markets ended mostly in
red on Monday with investors preparing for this week's consumer and producer
price data, which they hope will provide a better idea of whether the Federal
Reserve can begin cutting interest rates in the coming months. Asian markets
are trading mostly in green on Tuesday as Japan's corporate inflation figures
for January came in higher than expected. Indian markets snapped a two-day
winning run and ended lower as investors remained cautious ahead of the release
of US inflation data. Today, markets are likely to get flat-to-positive start
ahead of industrial production and retail inflation data to be out later in the
day for more directional cues and amid mixed global cues. Foreign fund inflows
likely to aid domestic sentiments. Foreign portfolio investors (FPIs) continue
to buy the Indian equities for the third consecutive week. The equity segment
saw an inflow of $919.47 million last week. The month of March has seen a total
inflow of $1.42 billion so far. This is a positive signal. Foreign
institutional investors (FIIs) net bought shares worth Rs 4,212.76 crore on
March 11, provisional data from the NSE showed. Some support will come as a
report by India Ratings and Research said India will join the coveted club of
upper-middle income countries by FY36. The ratings agency's report estimated
that by FY47, it will become a $15 trillion economy. Traders may take note of
Amish Mehta, CEO of Crisil sating that the Indian economy is expected to show
resilience on the back of sustained domestic demand and consumption. He added
that the agency expects GDP growth in the upcoming fiscal to moderate to 6.8
per cent. There will be some buzz in the power stocks as the Department of
Pharmaceutical announced the revamped Pharmaceuticals Technical Upgradation
Assistance (PTUAS) scheme, aiming to provide financial assistance to drug
manufacturers for upgrading their technological capabilities and conforming
with global standards. Power distribution company's stocks will be in focus
with a private report that as power demand touched record levels during the
last financial year, the cost of electricity for the power distribution
companies (discoms) escalated, and so did their debt for meeting their working
capital needs. Power demand grew at 8.9 per cent between financial year (FY)
2021 and 2023, as against 4.3 per cent between FY14 and FY20. There will be
some reaction in insurance industry stocks as non-life insurers posted a nearly
13 per cent year-on-year (YoY) growth in gross direct premium underwritten in
February 2024. But there was a sequential dip in their revenue. Meanwhile,
Bharat Highways InvIT will list today over an issue price of Rs 100 and RK
Swamy will debut today against an issue price of Rs 288.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
22,332.65
|
22,251.06
|
22,470.41
|
BSE
Sensex
|
73,502.64
|
73,228.59
|
73,982.03
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata
Steel
|
541.55
|
153.75
|
151.54
|
157.44
|
HDFC
Bank
|
252.66
|
1427.00
|
1418.01
|
1440.96
|
Power
Grid
|
190.21
|
284.85
|
282.19
|
289.74
|
ITC
|
176.20
|
409.20
|
405.36
|
415.66
|
State
Bank of India
|
167.78
|
773.95
|
765.40
|
787.65
|
- Power Grid Corporation of India
has executed MoU with Rajasthan Rajya Vidyut Prasaran Nigam to incorporate a JV
Company for development of Intra State Transmission System in the state of
Rajasthan
- Sun Pharma's subsidiary -- Sun
Pharmaceutical Industries Inc.is recalling around 55,000 bottles of a generic
medication to treat gout from the American market due to manufacturing
practices norms deviations.
- Bharti Airtel has deployed
additional sites in Nashik district to densify its network.
- Tata Motors has rolled out the 1
millionth car from its state-of-the-art facility in Sanand, Gujarat.