Domestic indices trade higher in early deals on value buying

Indian equity benchmarks started the session on optimistic note tracking positive global cues as fears related to the banking crisis in the West seemed to subside. Markets are trading higher in early deals with value buying in counters such as Telecom, Consumer Durables and Capital Goods. Sensex and Nifty are trading above their crucial 57,800 and 17,000 levels, respectively. Sentiments got a boost as the Finance Ministry said Indian economy is expected to grow at 7 per cent in FY23 despite global headwinds. Though, upside remained capped amid foreign fund outflows. The National Stock Exchange’s provisional data showed foreign institutional investors (FII) sold shares worth Rs 2,545.87 crore on March 20. In stock specific development, JKumar Infraprojects jumped as its joint venture -- J Kumar-AICPL received the letter of acceptance from Bangalore Metro Rail Corporation for the construction of airport depot for Bangalore Metro Rail Project for a contract cost of Rs 182.34 crore.

On the global front, Asian markets are trading higher, following the broadly positive cues from global markets overnight, as traders reacted to the latest efforts to address turmoil in the global banking sector, including UBS' state-backed acquisition of Credit Suisse, and the US Fed joining with other global central banks to take coordinated action to enhance banks' access to U.S. dollar liquidity swap line arrangements. The Japanese stock market is closed for the Vernal Equinox holiday.

The BSE Sensex is currently trading at 57807.86, up by 178.91 points or 0.31% after trading in a range of 57767.49 and 57963.27. There were 17 stocks advancing against 11 stocks declining, while 2 stocks remain unchanged on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.08%, while Small cap index was up by 0.33%.

The top gaining sectoral indices on the BSE were Telecom up by 0.88%, Consumer Durables up by 0.71%, Capital Goods up by 0.45%, Industrials up by 0.44%, Bankex up by 0.18%, while Oil & Gas down by 0.48%, PSU down by 0.40%, IT down by 0.38%, Utilities down by 0.13%, TECK down by 0.11% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 1.68%, Reliance Industries up by 1.34%, Bharti Airtel up by 1.31%, Nestle up by 1.23% and Larsen & Toubro up by 1.14%. On the flip side, Tech Mahindra down by 1.38%, Power Grid down by 1.12%, HCL Technologies down by 0.72%, ITC down by 0.63% and Tata Motors down by 0.41% were the top losers.

Meanwhile, The Finance Ministry in its Monthly Economic Review has said that Indian economy is likely to grow at 7 per cent in FY23 despite global headwinds while retail inflation would moderate in line with wholesale inflation which fell to a 25-month low in January. It noted that supported by the gains from high services exports, the moderation in oil prices, and the recent fall in import-intensive consumption demand, India's current account deficit is estimated to fall in FY23 and FY24, providing a buffer to the rupee in uncertain times. It said this will provide a much-needed cushion to India's external sector at a time when the Fed is likely to raise rates further and ensure that India's external finances are not a major cause of concern.

It said the jump in net service exports over the previous year is a critical development as India increases its market share in both IT and non-IT services, whose demand has been triggered by the pandemic, and added that imports are also less costly now with the easing of global commodity prices. It further said ‘With a manageable current account deficit and a growth rate highest among the major economies in FY23, the Indian economy has shown a new-found resilience in sailing through the turbulence caused by the pandemic and geopolitical stress’. As per the report, macroeconomic stability is likely to receive a further boost in FY23 as the current account deficit is set to narrow from the year-beginning estimates.

With regard to growth, the report said real Gross Domestic Product (GDP) estimates for Q3 of 2022-23 reaffirm the ability of the Indian economy to grow on the strength of its domestic demand even as a rise in global uncertainties slows global output. Indian economy witnessed a growth of 4.4 per cent in the third quarter that ended in December 2022. Growth momentum gathered in Q3 of 2022-23 is likely to be sustained in Q4, as reflected in the performance of High-Frequency Indicators for January/February 2023. GST collections have now, in February 2023 crossed the Rs 1.4 lakh crore benchmark for twelve successive months.

Noting that falling international commodity prices and government measures have aided in easing inflationary pressures, the report said ‘with WPI inflation declining to a 25-month low, its transmission to CPI inflation is soon expected. Household inflation expectations remained anchored, as seen in the January 2023 round of RBI's Households' Inflation Expectations Survey’. It said going forward the inflation trajectory will likely be determined by extreme weather conditions like heatwaves and the possibility of an El Nino year, volatility in international commodity prices and pass-through of input costs to output prices. Forecasts by various international agencies show that inflation in India will moderate in FY24 compared to FY23 and is likely to remain in the range of 5-6 per cent, with risks evenly balanced.

The CNX Nifty is currently trading at 17039.40, up by 51.00 points or 0.30% after trading in a range of 17026.05 and 17083.30. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Bajaj Finance up by 1.70%, Bharti Airtel up by 1.39%, Reliance Industries up by 1.32%, Titan Company up by 1.18% and Larsen & Toubro up by 1.18%. On the flip side, Tech Mahindra down by 1.40%, Power Grid down by 1.14%, HCL Technologies down by 0.72%, ITC down by 0.67% and Adani Ports & SEZ down by 0.49% were the top losers.

Asian markets are trading in green; Taiwan Weighted strengthened 77.24 points or 0.5% to 15,497.21, Hang Seng rose 66.91 points or 0.35% to 19,067.62, Jakarta Composite gained 48.25 points or 0.73% to 6,660.74, Straits Times advanced 39.66 points or 1.26% to 3,179.42, KOSPI increased 8.98 points or 0.38% to 2,388.18 and Shanghai Composite was up by 4.83 points or 0.15% to 3,239.74.