Markets likely to extend previous session’s gains with optimistic start

Indian markets snapped the five-day losing streak and ended higher on Thursday on fag-end value buying in banking, energy and financial stocks. Today, markets are likely to extend previous session’s gains with optimistic start as investors react to positive global cues and await next week's FOMC meeting. Domestic sentiments will get some support with report that liquidity support to Credit Suisse by the Swiss central bank helped ease some of the worries about a global banking crisis. Traders may take note of rating agency Crisil’s statement that the India’s economy is likely to log in 6 per cent growth next fiscal, in line with consensus estimates, driven by an increased capex by the private sector. It added the private sector capex is expected to deliver double-digit revenue growth for the second year on the trot. The economy is projected to grow 7 per cent this fiscal. Crisil further said it expects the corporate revenue to log in double-digit rise again next fiscal. Though, there may be some cautiousness amid continued foreign fund outflows. Foreign institutional investors (FII) net sold shares worth Rs 282.06 crore on March 17, according to the provisional data available on the NSE. There will be some buzz in microfinance companies’ stocks with a private report that loan disbursals by microfinance companies increased 19 per cent to Rs 77,877 crore during December quarter 2022-23. The total microfinance loan portfolio increased to Rs 3.21 lakh crore as on December 31, 2022. Textile industry stocks will be in focus as Cotton Association of India (CAI) further reduced its cotton crop estimate for the 2022-23 season to 313 lakh bales as production is expected to decline in Maharashtra, Telangana and Haryana. There will be some reaction in thermal power industry stocks with report that thermal power plants monitored by the Central Electricity Authority (CEA) had 33.5 million tonne of coal stock as on Sunday, which was sufficient to run them for 12 days at 85 per cent capacity utilization. Adani Group stocks will be in limelight after stock exchanges removed three group companies from short-term surveillance.

The US markets ended higher on Thursday after a consortium of banks said it would aid First of Republic with $30 billion deposits. Asian markets are trading in green on Friday following cues from Wall Street.

Back home, Indian equity benchmarks witnessed rollercoaster ride throughout the session to finally end with marginal gains on Thursday, on fag-end value buying in Utilities, Power and Oil & Gas stocks along with a positive opening in the European markets. The indices oscillated between the red and the green throughout the session, as continued foreign fund outflows dented domestic sentiments. The National Stock Exchange's provisional data showed foreign institutional investors (FII) sold shares worth Rs 1,271.25 crore on March 15. Some concern also came amid a private report stating that it would be a tough task for the Indian economy to reach the $5-trillion mark a year before the International Monetary Fund (IMF) projection of 2026-27. Adding more worries among market participants, a parliamentary panel has raised concerns over the marginal budgetary increase in one of the key components of Pradhan Mantri Krishi Sinchayee Yojana. It also raised concern over the reduced allocation in the Digital India Land Records Management Programme, saying both the schemes have remarkable impact on the ground. However, in late afternoon session, equity benchmarks bounced back to end in the positive territory as traders found support with IMF senior representative to India Luis Breuer stating that the RBI was doing the right thing on rate hikes, and added that there was need for more. Breuer also said the Budget’s focus on prudence and fiscal consolidation was a good step that will reduce and stabilise public debt, which is quite high in the country compared to other G20 countries. Some support also came with Commerce Secretary Sunil Barthwal’s statement that the government is expected to release the new five-year foreign trade policy (FTP) by the end of this month, with a view to promoting the country's outbound shipments of goods and services. Finally, the BSE Sensex rose 78.94 points or 0.14% to 57,634.84 and the CNX Nifty was up by 13.45 points or 0.08% to 16,985.60.