Post Session: Quick Review

29 Mar 2023 Evaluate

Sustained buying in last leg of trade helped the Indian markets to end session with gains of over half a percent, as traders took fundamental strong stocks. Buying interest in IT, Metal and banking counters mainly pushed the markets higher during the day. The broader indices, the BSE Mid cap and Small cap index added some additional support to markets. Traders were excited for additional news out of the banking sector as well as some key U.S. economic data later in the week. However, in afternoon session gains remain capped as traders went for Tax loss harvesting where they can reduce their income tax outgo. The investor may make a fresh position in the counter after further dip in the stock and hold it for long term. Positive cues from global markets also prompted indices to remain in green most part of day. Bulls energizing themselves ahead of Ram Navami holiday.

Initially, markets made optimistic start and remained above water despite US markets ended lower on Tuesday. Eased in concern over banking crises too aided sentiments. Besides, Commerce and Industry Minister Piyush Goyal said the country's merchandise and services exports are estimated to cross $760 billion in the current fiscal ending March 31. He said that at a time when the whole world is facing recession, high inflation and elevated interest rates, India is performing well. However, further markets trimmed their gains but in late afternoon deals got traction to trade higher. Some support also came with a private report that India and China will contribute to half of the world's growth this year, and it highlighted that Asia will remain a crucial growth engine with an estimated 4.5 per cent GDP expansion, making it a standout performer amidst the global economic slowdown. Finally, both Sensex and Nifty closed the Wednesday’s trade near day’s high level.

On the global front, European markets were trading higher, echoing an upbeat mood in Asian markets following Chinese tech giant Alibaba’s break-up plans, while strong outlook from chipmaker Infineon and a CEO change at Swiss bank UBS further aided the mood. Asian markets ended mostly in green, boosted by hopes China’s long-running tech crackdown might be coming to an end after Alibaba revealed its split-up plans. Back home, Finance Minister Nirmala Sitharaman has said that public sector banks could recover only 14 per cent of the written-off loans worth Rs 7.34 lakh crore in the last five years ending March 2022. Of Rs 7.34 lakh crore written-off loans, state-owned lenders recovered Rs 1.03 lakh crore. So after recovery, net written-off stood at Rs 6.31 lakh crore in the last five years.

The BSE Sensex ended at 57,960.09, up by 346.37 points or 0.60% after trading in a range of 57,524.32 and 58,124.20. There were 26 stocks advancing against 4 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 1.67%, while Small cap index was up by 1.68%. (Provisional)

The top gaining sectoral indices on the BSE were Realty up by 2.55%, Auto up by 1.74%, Industrials up by 1.66%, PSU up by 1.65% and Metal was up by 1.57%, while Oil & Gas down by 0.03% was the only losing index on BSE. (Provisional)

The top gainers on the Sensex were HCL Tech up by 2.72%, Tata Motors up by 2.07%, Hindustan Unilever up by 1.98%, Bajaj Finserv up by 1.93% and Indusind Bank up by 1.93%. On the flip side, Bharti Airtel down by 0.63%, Reliance Industries down by 0.56%, ICICI Bank down by 0.49% and Asian Paints down by 0.47% were the top losers. (Provisional)

Meanwhile, expressing optimism over India’s exports growth, Commerce and Industry Minister Piyush Goyal has said that the country's merchandise and services exports are likely to cross $760 billion in the current fiscal ending March 31 (FY23). Exports grew to $676 billion in 2021-22 from $500 billion. He added that at a time when the whole world is facing recession, high inflation and elevated interest rates, India is performing well.

He said ‘I can say with great pride, happiness, and thanks to all your efforts that India has crossed in its 75th year of independence, as we speak today, $750 billion of exports’, and added that the financial year is expected to end with a total exports (merchandise and services) of about $760 billion. He stressed that over the last 9 years, the focus of the Modi-government has been on building the foundation blocks which are necessary for an economy to have many years of uninterrupted and sustainable growth.

He also said various steps being taken by the government are making India more cost competitive, be it the huge investment in infrastructure coupled with logistics, technological advancement, or the PM GatiShakti. He also said the performance of India's global trade has proved the naysayers wrong. The minister also said the FTAs (Free Trade Agreements) with the UAE and Australia have been welcomed by the industry. He noted that the speed of India's FTAs did not come at the cost of compromising the quality of agreements and it was done after extensive stakeholder consultation.

He said ‘We have a string of countries from across the globe wanting to engage with India today to expand and deepen ties’, and added the world recognises the delta of opportunities that India offers. He further said leveraging on the G20 Presidency and the edge India has today, the need of the hour is speedy and aggressive outreach to global markets with focus on investment, trade, technology and tourism.

The CNX Nifty ended at 17,080.70, up by 129.00 points or 0.76% after trading in a range of 16,940.60 and 17,126.15. There were 44 stocks advancing against 6 stocks declining on the index. (Provisional)

The top gainers on Nifty were Adani Enterprises up by 8.72%, Adani Ports up by 7.29%, JSW Steel up by 2.86%, Eicher Motors up by 2.85% and HCL Tech up by 2.54%. On the flip side, UPL down by 1.01%, Bharti Airtel down by 0.65%, Reliance Industries down by 0.59%, Asian Paints down by 0.50% and ICICI Bank down by 0.44% were the top losers. (Provisional)

European markets were trading higher, UK’s FTSE 100 increased 53.33 points or 0.71% to 7,537.58, France’s CAC rose 94.83 points or 1.32% to 7,183.17 and Germany’s DAX was up by 137.93 points or 0.9% to 15,279.95.

Asian markets settled mostly higher on Wednesday on easing concerns over the banking sector after the sale of assets in US lender Silicon Valley Bank, which collapsed earlier this month. Hong Kong shares led regional gains after Alibaba Group announced a major restructuring plan. Japanese shares gained, in spite of fall in Wall Street shares overnight. However, Chinese shares ended slightly lower.

Asian Indices

Last Trade            

Change in Points

Change in %  

Shanghai Composite

3,240.06-5.32-0.16

Hang Seng

20,192.40407.752.02

Jakarta Composite

6,839.4479.111.16

KLSE Composite

1,420.35

11.260.80

Nikkei 225

27,883.78365.531.31

Straits Times

3,262.547.000.21

KOSPI Composite

2,443.92

8.980.37

Taiwan Weighted

15,769.7668.280.43


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