Indian equity
markets garnered marginal gains on Monday. After a negative start, markets
witnessed volatility during the first half, following the broadly negative cues
from Wall Street on Friday, as traders seemed reluctant to make significant
moves and look ahead to the U.S. central bank's monetary policy meeting this
week. While the US Fed is widely expected to leave interest rates unchanged,
traders will look to the accompanying statement for clues about the outlook for
rates. Some anxiety came as former chief economic adviser Arvind Subramanian
said India's latest GDP numbers are 'absolutely mystifying' and difficult to
comprehend. However, erasing all of their losses, key indices turned positive
in the second half of the trading session, as market participants took some
support with the provisional data from the NSE showing that foreign
institutional investors (FIIs) net bought shares worth Rs 848.56 crore on March
15, 2024. Some support also came as latest data by the Reserve Bank of India
(RBI) showed that India's foreign exchange reserves jumped by $10.47 billion to
$636.1 billion for the week ending on March 8. This is the biggest surge since
the week ended July 14, 2023. Markets managed to hold their heads above water
till the end of day, as sentiments were optimistic, amid a private report
stating that India's current world-beating economic growth rate on the back of
an investment boom resembles that of 2003-07 when growth averaged more than 8
per cent. Some relief came after the government launched various initiatives
including Dissemination of Indian Standard Time through NTP, an Integrated
Price Monitoring Dashboard and CCPA website for seamless redressal of violation
of consumers rights, with an aim to empower consumers and protect consumer rights.
Finally, the BSE Sensex rose 104.99 points or 0.14% to 72,748.42 and the CNX
Nifty was up by 32.35 points or 0.15% to 22,055.70.
The US markets ended higher on
Monday. After showing a strong move to the upside early in the session, markets
gave back some ground over the course of the trading day but managed to close
mostly higher. Technology stocks helped lead the early rally on markets, with
the tech-heavy Nasdaq showing a particularly strong move to the upside. Shares
of Alphabet (GOOGL) surged by 4.6 percent after a report from Bloomberg said
Apple (AAPL) is in talks to build Google's Gemini artificial intelligence
engine into the iPhone. Nvidia (NVDA) also jumped early in the session ahead of
its GTC Conference, where the chipmaker is expected to provide updates on its
AI initiatives, but gave back ground before ending the day up by 0.7 percent. Meanwhile,
traders continued to look ahead to the Federal Reserve's two-day monetary
policy meeting on Tuesday and Wednesday. The Fed is widely expected to leave
interest rates unchanged, but the central bank's accompanying statement and
economic projections could have a significant impact on the outlook for rates.
On the economic data front, a report released by the National Association of
Home Builders showed an unexpected improvement in U.S. homebuilder confidence
in the month of March. The report said the NAHB/Wells Fargo Housing Market
Index rose to 51 in March from 48 in February. Street had expected the index to
come in unchanged. With the unexpected increase, the housing market index
surpassed the breakeven point of 50 for the first time since hitting 56 last
July.
Crude oil futures ended sharply
higher on Monday amid concerns about supply due to geopolitical risks following
continued drone attacks by Ukraine on Russian oil refineries. According to
private report, the disruption in Russian refineries will likely result in a
drop of close to 200,000 barrels per day to around 2.15 million barrels per day
this month. Besides, oil prices were also supported by data showing a drop in
crude exports from Iraq and Saudi Arabia. Meanwhile, improved industrial output
and retail sales data from China and the IEA forecast of a supply deficit
through 2024, changing its earlier prediction of a surplus, contributed as well
to the jump in oil prices. Benchmark crude oil futures for April delivery rose
$1.68 or about 2.1% to settle at $82.72 a barrel on the New York Mercantile
Exchange. Brent crude for May delivery surged by $1.55 or about 1.8% to $86.89
per barrel on London's Intercontinental Exchange.
Indian rupee ended lower on
Monday on firm crude oil prices. Some cautiousness came in as former chief
economic adviser Arvind Subramanian said India's latest GDP numbers are absolutely
mystifying and difficult to comprehend. Traders overlooked data by the Reserve
Bank of India (RBI) showing that India's foreign exchange reserves jumped by
$10.47 billion to $636.1 billion for the week ending on March 8. This is the
biggest surge since the week ended July 14, 2023. On the global front, the
dollar was steady on Monday as traders looked ahead to a week dominated by
central bank meetings worldwide, with the Bank of Japan seemingly on the brink
of ending negative rates and the focus on how many rate cuts the Federal
Reserve projects. Finally, the rupee ended at 82.90 (Provisional), weaker by 4
paise from its previous close of 82.86 on Friday.
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 50330.25 crore against gross selling of Rs 49557.16 crore,
while in the debt segment, the gross purchase was of Rs 3100.90 crore with
gross sales of Rs 2145.02 crore. Besides, in the hybrid segment, the gross
buying was of Rs 321.72 crore against gross selling of Rs 309.98 crore.
The US markets ended higher on
Monday ahead of the US Fed meet later this week, where the central bank is
expected to keep rates steady and provide cues on its monetary policy
trajectory. Asian markets are trading mostly in red on Tuesday ahead of central
bank monetary policy decisions from the Bank of Japan and the Reserve Bank of
Australia. Indian markets remained volatile on Monday and ended with marginal
gains as investors looked for decisive cues. Today, markets are likely to get
negative start amid weakness in Asian counterparts as all eyes remain on the
BOJ amid bets that the central bank could end its negative interest rate policy
after 17 years. Foreign fund outflows likely to dent sentiments in the domestic
markets. Provisional data from the NSE showed that foreign institutional
investors (FIIs) net sold shares worth Rs 2,051.09 crore on March 18. However,
some support may come as Reserve Bank of India (RBI) data showed that India's
outward foreign direct investment (FDI) commitments rose substantially to $3.47
billion in February 2024, compared to over $2.82 billion in February 2023.
Sequentially, FDI commitments were also up from $2.18 billion in January 2024.
Traders may take note of a report that Indian industry has cheered the latest
exports data that were released on March 15. According to the data, India's
overall exports, merchandise and services combined, in February 2024 are
estimated to be $73.55 Billion, exhibiting a positive growth of 14.20 per cent
on a year-on-year basis. IT sector stocks will be in focus with report that
uncertain macroeconomics in key markets like the US and Europe will continue to
drag growth for the Indian IT services industry. A report released by ICRA said
that the industry is poised to witness a modest revenue growth of 2 per cent in
the first three quarters of FY24, and it will maintain a restrained trajectory
in the range of 3-5 per cent in FY25. This is the second consecutive year when
the credit rating agency has forecasted a growth rate in the range of 3-5 per
cent for the Indian IT sector. There will be some reaction in insurance
industry stocks as Financial Services Secretary Vivek Joshi said the insurance
sector has witnessed an influx of Rs 53,900 crore in foreign direct investment
(FDI) from December 2014 to January 2024. This comes against the backdrop of
the liberalisation of overseas capital flow norms by the government. Fertilizer
industry stocks will be in limelight as the government extended the permission
by a year for import of urea (agri grade) through India Potash till March 2025.
Meanwhile, Jefferies has identified 11 stocks set to benefit from long-term
macro trends like capital expenditures, government manufacturing initiatives,
and financialisation. The brokerage expects these equities to more than double
by 2029. Moreover, Popular Vehicles and Services will make its debut on bourses
today against an issue price of Rs 295.
Support and Resistance:
NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
22,055.70
|
21,940.26
|
22,147.41
|
BSE
Sensex
|
72,748.42
|
72,379.75
|
73,051.48
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Tata
Steel
|
1669.13
|
148.80
|
143.91
|
151.96
|
State
Bank of India
|
181.45
|
732.45
|
723.74
|
739.54
|
ITC
|
159.34
|
417.60
|
416.10
|
419.90
|
NTPC
|
136.90
|
317.95
|
314.30
|
322.25
|
Power
Grid
|
124.24
|
264.65
|
260.55
|
267.70
|
- Bajaj Finance has raised Rs
504.49 crore through the allotment of 50,000 Secured Redeemable NCDs, at the
face value of Rs 1 lakh each.
- NTPC is all set to start
commercial operations of second unit of its North Karanpura Super Thermal Power
Project on March 20, 2024.
- Bharti Airtel has deployed
additional sites in Sambhaji Nagar and Jalna district to densify its network.
- Tata Sons is reportedly set to
divest a 0.65 per cent stake in in TCS in the open market.