Indian equity
markets snapped their 2-days losing run and ended higher in the volatile
session on Tuesday amid buying seen in Realty, Consumer Durables and TECK
stocks. After making slightly negative start, markets gyrated between gains and
losses for first half of the session, amid foreign fund outflows. Provisional data
from the NSE showed that foreign institutional investors (FIIs) net sold shares
worth Rs 285.15 crore on February 26. Some cautiousness also came as India
expressed serious concerns in a WTO meeting in Abu Dhabi over increase in the
use of trade protectionist measures by certain countries in the name of
environment protection. The remarks assume significance as the country has
earlier flagged issues over the European Union's (EU) decision to impose carbon
tax (a kind of import tax) on sectors such as steel and fertiliser; and
adoption of deforestation regulation by the 27-nation bloc. However, in the
afternoon deals, benchmark indices picked momentum to end higher, as traders
took support with a private report stating that India's real GDP growth for the
December quarter is all set to come at a higher-than-anticipated 7 per cent.
Traders got encouragement after the Union Finance Minister Nirmala Sitharaman
noted the rapid growth of the Start-up and Fintech sector of India, especially
in the last decade, and welcomed suggestions from the FinTech leaders to
achieve greater Ease of Doing Business and Ease of Living for consumers. Adding
to the optimism, Prime Minister Narendra Modi has said the world no longer
feels surprised at India's achievements as it has become a new normal now and
they today realise the benefit of walking alongside the country. Finally, the
BSE Sensex rose 305.09 points or 0.42% to 73,095.22 and the CNX Nifty was up by
76.30 points or 0.34% to 22,198.35.
The US markets ended the choppy
trading session mostly in green on Tuesday amid uncertainty about the near-term
outlook. Traders remained on the sidelines ahead of the release of some key
economic data later this week, including a closely watched inflation reading.
The Commerce Department's report on personal income and spending, which is
scheduled to be released on Thursday, includes a reading on consumer price
inflation said to be preferred by the Federal Reserve. The inflation data could
have a notable impact on the outlook for interest rates, as Fed officials have
said they need greater confidence inflation is slowing before cutting rates. A
report released by the Commerce Department before the start of trading showed a
substantial decrease by new orders for U.S. manufactured durable goods saw a
substantial decrease in the month of January. The Commerce Department said
durable goods orders plunged by 6.1 percent in January after falling by a
revised 0.3 percent in December. Street had expected durable goods orders to
tumble by 4.5 percent compared to the unchanged reading that had been reported
for the previous month. Excluding a steep drop in orders for transportation
equipment, durable goods orders dipped by 0.3 percent in January after edging
down by 0.1 percent in December. Ex-transportation orders were expected to rise
by 0.2 percent. Meanwhile, the Conference Board released a report showing an
unexpected deterioration in U.S. consumer confidence in the month of February.
The Conference Board said its consumer confidence index slid to 106.7 in
February from a downwardly revised 110.9 in January.
Crude oil futures magnify their
gains and ended higher for second straight session on Tuesday on supply
concerns due to the disruptions in the Red Sea route and amid uncertainty about
a cease-fire in the Israel-Hamas war. U.S. President Joe Biden said My national
security advisor tells me that we're close - close but not done yet. My hope is
by next Monday we will have a cease-fire. The President said that there's an
agreement that the Israelis would not engage in activities during Ramadan,
giving time to get all the hostages out. Traders are also looking ahead to the
OPEC+ meeting, scheduled to take place later in the week. The group is expected
to extend production cuts into the next quarter. Benchmark crude oil futures
for April delivery rose $1.29 or 1.66% to settle at $78.87 a barrel on the New
York Mercantile Exchange. Brent crude for April delivery was up by $1.12 or
1.36% to $83.65 per barrel on London's Intercontinental Exchange.
Indian rupee ended marginally
lower against the U.S. dollar on Tuesday amid withdrawal of foreign funds and
increased month-end demand for the American currency. Some cautiousness came as
India expressed serious concerns in a WTO meeting in Abu Dhabi over increase in
the use of trade protectionist measures by certain countries in the name of
environment protection. The remarks assume significance as the country has
earlier flagged issues over the European Union's (EU) decision to impose carbon
tax (a kind of import tax) on sectors such as steel and fertiliser; and
adoption of deforestation regulation by the 27-nation bloc. On the global
front, the dollar traded on the back foot on Tuesday, as markets looked ahead
to a week of key U.S. economic data that will provide fresh signals on how soon
the Federal Reserve may begin cutting interest rates. Finally, the rupee ended
at 82.89 (Provisional), weaker by 1 paisa from its previous close of 82.88 on
Monday.
The FIIs as per Tuesday's data
were net sellers in equity segment, while they were net buyers in debt segment.
In equity segment, the gross buying was of Rs 12511.65 crore against gross
selling of Rs 12768.01 crore, while in the debt segment, the gross purchase was
of Rs 1031.93 crore with gross sales of Rs 459.68 crore. Besides, in the hybrid
segment, the gross buying was of Rs 59.50 crore against gross selling of Rs
31.86 crore.
The US markets ended mostly higher
on Tuesday as weak economic data stirred expectations of an
earlier-than-anticipated rate hike by the Federal Reserve. Asian markets are
trading mixed on Wednesday ahead of Chinese manufacturing data due later this
week. Indian markets snapped two-day losing streak and ended higher on Tuesday
following buying in index major Tata Consultancy Services, Tata Motors and Sun
Pharma amid mostly firm global markets. Today, markets are likely to extend
their previous session's gains with flat-to-positive start. Some support will
come with report that India would benefit from a move of over 70 nations like
the UK, UAE and Australia that have agreed to take on additional obligations in
the services sector under an agreement of the WTO. These WTO (World Trade Organisation)
members are taking the additional obligations under the General Agreement on
Goods in Services (GATS) to ease non-goods trade among themselves and extend
similar concessions to all other members of the WTO. Traders may take note of
report that the borrowing cost for states continued to fall for the third week
in a row, with the weighted average price falling to 7.44 per cent in the debt
auction on Tuesday. The cost had remained at a two-year high throughout January
sniffing at 7.8 per cent. Besides, with the recent NSSO survey 2022-23 showing
a sizable fall in food consumption expenses in the monthly per capita
expenditure (MPCE), Commerce Minister Piyush Goyal said that the data augurs
well for the household consumption basket. Meanwhile, Finance Minister Nirmala
Sitharaman has exuded confidence that India Inc will align itself to the
developmental goals of the nation with an objective of making the country a
developed nation or Viksit Bharat by 2047 on the 100th anniversary of
independence. However, there may be some volatility in the today's session
ahead of key U.S. GDP and inflation readings that could shed light on the
possible timing of a Federal Reserve interest-rate cut. Also, foreign fund
outflows likely to dent sentiments. Foreign institutional investors (FIIs) net
sold shares worth Rs 1,509.16 crore on February 27, provisional data from the
NSE showed. Metal stocks will be in focus with a private report that India's
steel imports touched a six-year high in the first 10 months of the fiscal year
to March, led by Chinese shipments, and India was a net importer of finished
steel. Moreover, Juniper Hotels shares will make a debut on the Indian stock
market today. The issue price is fixed at Rs 360.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
22,198.35
|
22,116.59
|
22,249.19
|
BSE
Sensex
|
73,095.22
|
72,783.14
|
73,284.31
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Power
Grid
|
365.10
|
293.00
|
286.94
|
296.24
|
Tata
Steel
|
241.19
|
144.20
|
142.64
|
145.14
|
ONGC
|
195.83
|
269.75
|
266.40
|
271.65
|
HDFC
Bank
|
160.44
|
1421.90
|
1414.40
|
1428.05
|
State
Bank of India
|
139.69
|
749.50
|
740.35
|
760.50
|
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stores at various cities in India.