Indian equity
benchmarks experienced a volatile trading session with an ongoing battle
between the bulls and bears but managed to eke out marginal gains on Tuesday. After making a slightly positive start,
markets added gains amid foreign fund inflows. Foreign institutional investors
(FIIs) net bought shares worth Rs 4,212.76 crore on March 11, provisional data
from the NSE showed. Sentiments got a boost 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. Some support also came as Commerce and Industry minister
Piyush Goyal has exuded confidence that during this fiscal, the country's goods
and services export numbers will be at the same level; as it was last year
despite slowdown and uncertainties in the global trade. He also said that the
government measures such production-linked incentives schemes and focus on
high-quality goods and services would help in containing the country's trade
deficit. But, markets were volatile during the day but managed to keep their
heads above water for the most part of the session. Traders took a note of CEO
of Crisil Amish Mehta's statement 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. Finally, markets ended flat,
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 later
in the day. Finally, the BSE Sensex rose 165.32 points or 0.22% to 73,667.96
and the CNX Nifty was up by 3.05 points or 0.01% to 22,335.70.
The US markets ended higher on
Tuesday with Nasdaq settling over one and half percent. The strength on markets
reflected a positive reaction to the Labor Department's highly anticipated
report on consumer price inflation in the month of February. The Labor
Department said its consumer price index climbed by 0.4 percent in February
after rising by 0.3 percent in January. The increase matched street estimates.
Excluding food and energy prices, core consumer prices also rose by 0.4 percent
in February, matching the increase seen in January. Economists had expected
core prices to rise by 0.3 percent. The report also said the annual rate of
consumer price growth ticked up to 3.2 percent in February from 3.1 percent in
January. The year-over-year growth was expected to be unchanged. Meanwhile, the
annual rate of core consumer price growth slowed to 3.8 percent in February
from 3.9 percent in January. Street had expected the pace of growth to
decelerate to 3.7 percent. While core price growth slowed by slightly less than
expected, the slowdown still seems to have added to optimism about the Federal
Reserve lowering interest rates in June. on the sectoral front, Software stocks
saw substantial strength on the day, resulting in a 2.6 percent surge by the
Dow Jones U.S. Software Index. Oracle (ORCL) led the sector higher, soaring by
11.8 percent after reporting better than expected fiscal third quarter earnings
and strong cloud revenue growth. Semiconductor stocks also showed a significant
move back to the upside, driving the Philadelphia Semiconductor Index up by 2.1
percent.
Crude oil futures ended lower on
Tuesday as slightly hotter than expected U.S. inflation data and persisting worries
about the outlook for demand from China outweighed a report from OPEC that said
global oil demand will likely remain strong this year and in 2025. OPEC expects
oil demand this year to rise 1.43 million barrels per day over the previous
year, slightly up from an earlier forecast for a rise of 1.42 million barrels
per day. However, oil prices climbed higher earlier in the day amid tensions in
the Middle East, where Israeli forces continue their deadly attacks in the Gaza
Strip. Benchmark crude oil futures for April delivery fell $0.37 or about 0.47%
to settle at $77.56 a barrel on the New York Mercantile Exchange. However,
Brent crude for May delivery was up by $0. 71 or about 0.87% to $81.92 per
barrel on London's Intercontinental Exchange.
Indian rupee ended lower against
the U.S. dollar on Tuesday ahead of the release of key macroeconomic data.
Traders overlooked reports that Commerce and Industry minister Piyush Goyal has
exuded confidence that during this fiscal, the country's goods and services export
numbers will be at the same level; as it was last year despite slowdown and
uncertainties in the global trade. He also said that the government measures
such production-linked incentives schemes and focus on high-quality goods and
services would help in containing the country's trade deficit. On the global
front, dollar held broadly steady on Tuesday ahead of key U.S. inflation data
due later in the day, while the yen firmed near a one-month high on mounting
expectations the Bank of Japan could exit negative interest rates as early as
next week. Finally, the rupee ended at 82.78 (Provisional), weaker by 3 paise
from its previous close of 82.75 on Monday.
The FIIs as per Tuesday's data
were net buyers in both equity and debt segments. In equity segment, the gross
buying was of Rs 23302.51 crore against gross selling of Rs 19357.00 crore,
while in the debt segment, the gross purchase was of Rs 2009.87 crore with
gross sales of Rs 1671.99 crore. Besides, in the hybrid segment, the gross
buying was of Rs 62.15 crore against gross selling of Rs 32.01 crore.
The US markets ended higher on
Tuesday with the S&P 500 registering a record high close as Oracle shares
surged and consumer price data failed to dampen investors' hopes of interest
rate cuts in the coming months. Asian markets are trading mostly in green on
Wednesday after Wall Street jumped overnight, following US inflation data that
largely met expectations. Indian markets ended higher with marginal gains on
Tuesday led by gains in index heavyweights - HDFC Bank, TCS and Reliance
Industries. Today, markets are likely to get an optimistic start tracking
broadly positive cues from global markets. Also, in line with street estimate,
India's inflation data likely to aid domestic sentiments. Retail inflation in
February eased to a four-month low of 5.09 per cent, remaining within the
Reserve Bank's comfort zone of 6 per cent for the sixth month in a row, showed
a government data. The February inflation print based on Consumer Price Index
(CPI) was almost unchanged compared to the January number of 5.1 per cent,
though prices of certain items in the food basket firmed up. Foreign fund
inflows likely to support markets. Foreign institutional investors (FIIs) net
bought shares worth Rs 73.12 crore on March 12, provisional data from the NSE
showed. However, fall in industrial growth data likely to dampen sentiments in
the markets. India's industrial production growth slowed to 3.8 per cent in
January, according to the latest government data. Growth in factory output,
based on the Index of Industrial Production (IIP), slowed mainly due to poor
performance of manufacturing, mining and power sectors. There may be some
cautiousness as a report of economic think tank GTRI stated that with
escalating everyday attacks and no end in sight, the Red Sea crisis will
adversely impact trade volumes in substantial ways in 2024. The Global Trade
Research Initiative (GTRI) said that rising shipping, and insurance costs and
delayed arrival of shipments will continue to disrupt global value chains,
squeeze margins, and make exports of many low-margin products unviable from
current locations. There will be some buzz in the automobile industry stocks
with the data released by the Society of Indian Automobile Manufacturers (Siam)
showing that passenger vehicles in India recorded their highest-ever February
domestic sales of 370,786 units this year, 10.8 per cent higher than 334,790
units in February last year. As per the data, two-wheelers and three-wheelers
also witnessed higher sales in February this year as compared to the last year.
Pharma stocks will be in focus after the Department of Pharmaceuticals notified
a new code which prohibits pharma companies from offering gifts and travel
facilities to healthcare professionals or their family members. Meanwhile, JG
Chemicals will make debut on the exchanges against the issue price is Rs 221.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
22,335.70
|
22,243.61
|
22,440.16
|
BSE
Sensex
|
73,667.96
|
73,338.66
|
74,000.70
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata
Steel
|
349.48
|
152.30
|
150.61
|
154.26
|
ITC
|
348.83
|
401.90
|
398.66
|
405.81
|
HDFC
Bank
|
327.09
|
1460.75
|
1438.66
|
1473.41
|
ICICI
Bank
|
217.85
|
1075.05
|
1055.54
|
1094.69
|
State
Bank of India
|
215.30
|
759.00
|
751.65
|
772.05
|
- Wipro has expanded its
partnership with Nutanix Inc to launch new Nutanix-focused business unit.
- HCL Technologies has been
recognized for its talent readiness and digital talent capability by Everest
Group and Avasant.
- Tech Mahindra has signed a
strategic partnership with Etihad Etisalat to deliver best-in-class loyalty
programs for individual and business customers.
- ITC has acquired 2,356
Compulsorily Convertible Preference Shares of Rs 10 each of Sproutlife Foods
(Sproutlife), in terms of the Securities Subscription & Purchase Agreement
and the Shareholders Agreement executed on April 19, 2023.