Post Session: Quick Review

Indian markets halted two-day falling spree on first day of trading week, as traders opted for short covering. Markets showed volatile trade but maintained their gains whole day. Indices ignored weak Asian markets performance however traders followed US markets, which were ended higher on Friday, as traders felt the banking concerns have been overdone amid optimism the Federal Reserve is nearing the end of its tightening cycle. Positive trigger from European markets too kept the markets optimistic. Besides, trades found support after German Chancellor Olaf Scholz said there's no reason for any kind of concern about Deutsche Bank. However, in last leg of trade, indices drag sharply but managed to keep head above water, as traders booked profit after markets got traction. Traders would be looking forward to RBI's first monetary policy meeting for the next fiscal which will be held on April 3 to April 6, 2023.

Markets made slightly positive start and soon added traction, as traders picked the stocks at lower level. Besides, foreign investors have pumped Rs 7,200 crore into the Indian equities so far this month, mainly driven by bulk investment in the Adani Group companies by the US-based GQG Partners. Further, in volatile session markets continued to trade higher, as sentiments remained positive with the Reserve Bank stating that India’s forex kitty rose by $12.798 billion to $572.801 billion in the week ended March 17. Besides, S&P Global Ratings kept its forecast for India's economic growth unchanged at 6 per cent in the fiscal year starting April 1, before rising to 6.9 per cent in the following year. In the quarterly economic update for Asia-Pacific, S&P saw inflation rate easing to 5 per cent in 2023-24 fiscal, from 6.8 per cent in the current financial year. In late afternoon session, markets touched their day’s high point but failed to end the session near day’s high.

On the global front, European markets were trading higher as a sense of calm returned to markets following a week of turbulence over concerns about banking sector stability after the collapse of Credit Suisse and two U.S. mid-sized lenders. Asian markets ended mostly in red following caution of ongoing banking crisis in the United States and Europe, while International Monetary Fund chief also warned increased risk of financial stability. Back home, tea industry remained in focused, as leading planters body, Indian Tea Association (ITA) said that climate change is threatening the industry globally which is resulting in lower yields and rise in production costs.

The BSE Sensex ended at 57,653.86, up by 126.76 points or 0.22% after trading in a range of 57,415.02 and 58,019.55. There were 16 stocks advancing against 14 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index declined 0.37%, while Small cap index was down by 1.50%. (Provisional)

The top gaining sectoral indices on the BSE were Healthcare up by 0.73%, Metal up by 0.19%, FMCG up by 0.10%, TECK up by 0.08% and Bankex was up by 0.05%, while Utilities down by 2.48%, Power down by 2.13%, Telecom down by 1.18%, Realty down by 1.17% and Industrials was down by 0.93% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Reliance Industries up by 1.50%, Maruti Suzuki up by 0.96%, Sun Pharma up by 0.91%, SBI up by 0.77% and Ultratech Cement up by 0.71%. On the flip side, Power Grid down by 1.10%, Axis Bank down by 0.98%, Mahindra & Mahindra down by 0.93%, Tata Motors down by 0.90% and NTPC down by 0.87% were the top losers. (Provisional)

Meanwhile, in spite of the impact of Russia's war with Ukraine, British Deputy High Commissioner in charge of Kerala and Karnataka Chandru Iyer said the UK and India are heading towards an era of positive engagement in trade and business relations, with steps underway to promote mutual investments in both the nations. Iyer who is also UK's Deputy Trade Commissioner for South Asia said there was potential to double the business by 2030. Calling war a global phenomenon that affects all countries in more ways than one, he hailed entrepreneurs for being enterprising and resilient in the face of adversity.

Iyer said ‘If you look at the flow of business or the trade numbers between the UK and India for the period ending Q4 of last year, the number stood at 34 billion British pounds. For the same period ending the year before last, it was around 19 billion pounds. So it's been a big jump in trade and business’. He added ‘The interest in UK is so high that people want to come there and set up their business and use that as their global headquarters... This means that countries are doing more business together. The aspirations have the potential to double the trade and investment numbers by 2030’. Detailing plans to attract Indian investment in the UK, he said his team was working across India to identify companies with potential and was holding discussions, understanding their aspirations and connecting them with the right people in the UK.

Talking about Indian students who opted for the UK for higher studies and were finding it difficult to land a part-time job, he said employment was at an all-time low in the UK but opportunities were coming up. He said there was a huge demand for STEM professionals in the UK, and Indian students had a lot of opportunities in technical businesses and the banking sector as well. About the collaboration with the state government in the education sector, the British diplomat said he was keen to work with Kerala on student exchange and co-branded courses.

The CNX Nifty ended at 16,985.70, up by 40.65 points or 0.24% after trading in a range of 16,918.55 and 17,091.00. There were 28 stocks advancing against 22 stocks declining on the index. (Provisional)

The top gainers on Nifty were Grasim Industries up by 2.30%, Reliance Industries up by 1.55%, Cipla up by 1.37%, Sun Pharma up by 1.09% and SBI up by 0.95%. On the flip side, Adani Ports down by 1.39%, SBI Life down by 1.16%, Mahindra & Mahindra down by 1.12%, Tata Motors down by 1.07% and Power Grid down by 1.03% were the top losers. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 37.18 points or 0.5% to 7,442.63, France’s CAC rose 58.04 points or 0.82% to 7,073.14 and Germany’s DAX was up by 150.48 points or 1% to 15,107.71.

Asian markets settled mostly lower on Monday amid ongoing concerns over the health of the global financial system after the head of the International Monetary Fund warned that the global economy faces risks to its financial stability. But, three regional US Federal bank presidents said that the banking system was not facing a liquidity crisis. Chinese shares declined after data showed China's industrial profits dropped in the first two months of 2023 from the year before, despite China is showing signs of robust economic recovery. However, Japanese shares gained by tracking Wall Street gains last Friday, while a weaker yen also boosting sentiment in the exporter-heavy market.