Post Session: Quick Review

The Indian equity markets managed to garner some gains in last leg of trade despite volatile trade on Monday. Some short covering and selective buying led the markets higher. But, there were some inflation jitters that made investors cautious during the day. RBI's rate-setting panel started its three-day meeting amid expectations that the central bank may go for 25 basis points hike in benchmark interest rate, probably the last in the current monetary tightening cycle that began in May 2022. However, the Fed signaled last week that it expects just one more rate increase this year, leaving traders looking for clues about the timing of the final rate hike. Traders reacted positively the data showing an unexpected slowdown in the annual rate of core consumer price growth in the U.S. Investors pinned hopes for a pause in rate hikes by the Federal Reserve later this year. As for broader indices, Small cap index were outshined on Monday’s trade.

After making positive start, markets soon turned volatile in the fear of future rate hike. Trades overlooked report that GST collection grew 13 per cent in March to Rs 1.60 lakh crore - the second highest mop-up since the rollout of the indirect tax regime. Further, markets traded lower, as traders were cautious with the latest public debt management report showing that the government’s total liabilities rose to Rs 150.95 lakh crore in December quarter from Rs 147.19 lakh crore in the three months ended September 2022. Traders took note of report that the data released by the Controller General of Accounts (CGA) showed that the central government’s fiscal deficit touched 82.8 per cent of the full-year target at the end of February. In actual terms, the fiscal deficit or gap between the expenditure and revenue collection during April-February period stood at Rs 14.53 lakh crore. However, markets wiped out all losses to end higher as sentiments got boost after India's manufacturing sector activity improved in the month of March, as growth of factory orders and production quickened to the strongest in three months. With pressure on supply chains subsiding and raw material availability improving, input cost inflation retreated to its second-lowest mark in two-and-a-half years.

On the global front, European markets were trading mostly in green after the Federal Reserve's preferred gauge of inflation rose less than expected in February, boosting optimism policymakers might hit the pause button on rate hikes in May. Asian markets ended mostly in green, despite surge in oil prices brought inflation. Back home, exuding confidence over India’s exports growth, Commerce and Industry Piyush Goyal has said that the country’s merchandise and services exports will cross $2 trillion by 2030 from the current level of $765 billion, after he unveiled a ‘dynamic and responsive’ foreign trade policy.

The BSE Sensex ended at 59,106.44, up by 114.92 points or 0.19% after trading in a range of 58,793.08 and 59,204.82. There were 22 stocks advancing against 8 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 0.36%, while Small cap index was up by 1.17%. (Provisional)

The top gaining sectoral indices on the BSE were Telecom up by 1.78%, Auto up by 1.39%, Realty up by 0.80%, Consumer Durables up by 0.76% and Bankex was up by 0.54%, while Oil & Gas down by 0.59%, Power down by 0.34%, IT down by 0.33%, FMCG down by 0.32% and Utilities was down by 0.15% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Maruti Suzuki up by 2.50%, Bajaj Finance up by 1.86%, Bharti Airtel up by 1.47%, Bajaj Finserv up by 1.39% and NTPC up by 1.28%. On the flip side, Infosys down by 1.15%, ITC down by 1.03%, Hindustan Unilever down by 0.89%, Power Grid down by 0.49% and Sun Pharma down by 0.28% were the top losers. (Provisional)

Meanwhile, the output of eight core industries recorded an almost flat growth rate of 6 percent in February 2023 as against 5.9 percent in the same month last year. The growth in February is lowest in the last three months. The output of core sectors had increased by 8.9 percent in January 2023 and 7 percent in December 2022.

It was 5.7 percent in November 2022. Barring crude oil, all the segments posted an increase in production. The Eight Core Industries - coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity - comprise 40.27 percent of the weight of items included in the Index of Industrial Production (IIP).
Coal production, having 10.33 per cent weight increased by 8.5 per cent in February, 2023 over February, 2022 and its cumulative index increased by 15.2 per cent during April to February 2022-23 over corresponding period of the previous year. Natural Gas production, having 6.88 per cent weight increased by 3.2 per cent in February, 2023 over February, 2022 and its cumulative index increased by 1.5 per cent during April to February, 2022-23 over the corresponding period of previous year.

Petroleum Refinery production, having 28.04 per cent weight increased by 3.3 per cent in February, 2023 over February, 2022 and its cumulative index increased by 5.2 per cent during April to February, 2022-23 over the corresponding period of previous year. Fertilizers production, having 2.63 per cent weight increased by 22.2 per cent in February, 2023 over February, 2022 and its cumulative index increased by 11.5 per cent during April to February, 2022-23 over the corresponding period of previous year. Steel production, having 17.92 per cent weight increased by 6.9 per cent in February, 2023 over February, 2022 and its cumulative index increased by 7.5 per cent during April to February, 2022-23 over the corresponding period of previous year.

Cement production, having 5.37 per cent weight increased by 7.3 per cent in February, 2023 over February, 2022 and its cumulative index increased by 9.7 per cent during April to February, 2022-23 over the corresponding period of previous year. Electricity generation, having 19.85 per cent weight increased by 7.6 per cent in February, 2023 over February, 2022 and its cumulative index increased by 9.9 per cent during April to February, 2022-23 over the corresponding period of previous year. However, crude oil production, having 8.98 per cent weight declined by 4.9 per cent in February, 2023 over February, 2022 and its cumulative index declined by 1.6 per cent during April to February, 2022-23 over the corresponding period of previous year.

The CNX Nifty ended at 17,398.05, up by 38.30 points or 0.22% after trading in a range of 17,312.75 and 17,428.05. There were 35 stocks advancing against 15 stocks declining on the index. (Provisional)

The top gainers on Nifty were Hero MotoCorp up by 3.57%, Coal India up by 3.04%, Bajaj Auto up by 2.81%, Maruti Suzuki up by 2.54% and Eicher Motors up by 1.88%. On the flip side, BPCL down by 4.17%, Adani Enterprises down by 1.89%, Apollo Hospital down by 1.78%, Infosys down by 1.20% and ITC down by 1.20% were the top losers. (Provisional)

European markets were trading mostly in green, UK’s FTSE 100 increased 54.42 points or 0.71% to 7,686.16 and France’s CAC was up by 28.39 points or 0.39% to 7,350.78. On the flip side, Germany’s DAX was down by 4.57 points or 0.03% to 15,624.27.

Asian markets settled mostly higher on Monday tracking Wall Street gains last Friday after the US Federal Reserve’s preferred gauge of inflation rose slightly less than anticipated in February, boosting optimism the US Fed might hold off on raising interest rates at its next meeting in early May. Chinese and Hong Kong shares gained after Beijing launched a cybersecurity probe into US memory chip maker Micron Technology, despite a private survey showed China's manufacturing activity unexpectedly eased in March. Japanese shares rose, despite signs of worsening business sentiment in the first quarter of this year among big Japanese manufacturers. Although, a sharp rise in crude oil prices on the back of surprise output cuts announced by OPEC+ nations stoked investor concerns around potential resurgence in inflation globally.