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NSE Intra-day chart (07 March 2019)
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Market Commentary 08 March 2019
Sensex, Nifty to open in red territory amid global growth concerns


Indian bourses managed to end Thursday's trading session in positive territory, with Sensex and Nifty reclaiming their crucial psychological level of 36,700 and 11,050, respectively. Markets made a positive start, amid reports that the income tax (I-T) department notified the modified norms for startups to enable them to seek 'angel tax' exemption for investments of up to Rs 25 crore, with an aim to encourage budding entrepreneurs. The modified norms will be effective retrospectively from February 19, 2019, when the Department for Promotion of Industry and Internal Trade (DPIIT) relaxed the norms for startups. Trade remained positive for the most part of the session, aided by CARE Ratings' latest report showing that debt quality of Indian companies improved during January-August 2018. CARE Ratings' Debt Quality Index (CDQI) remained positive in the reported period. However, some volatility witnessed during noon deals, as the Process Plant and Machinery Association of India (PPMAI) expressed concern on surge in metal and capital goods imports from countries such as Korea, Indonesia, Malaysia and Japan with whom India has pacts to promote free trade. It said that the Free Trade Agreements (FTAs) along with lack of reciprocity is adversely hurting the steel manufacturers as well as the capital goods industry. Traders got cautious with a private report stating that the likelihood of Indian GDP growth coming at below 7 percent in 2019-20 is very high despite aiding factors like low oil prices and an expansionary budget. The report also noted that global slowdown, tight financial conditions and political uncertainty in the election year will be the biggest headwinds for growth. Finally, the BSE Sensex surged 89.32 points or 0.24% to 36,725.42, while the CNX Nifty was up by 5.20 points or 0.05% to 11,058.20.


Extending their losses for four straight sessions, the US markets ended lower on Thursday, after the European Central Bank (ECB) slashed its economic growth forecast, citing lingering, mainly external uncertainties. The ECB also said it now expects eurozone interest rates to remain at the current level at least till the end of this year. The eurozone growth outlook for this year was cut to 1.1% from 1.7%, while the outlook for next year was trimmed to 1.6% from 1.7%. The ECB said that the risks surrounding the euro area growth outlook are still tilted to the downside, on account of the persistence of uncertainties related to geopolitical factors, the threat of protectionism and vulnerabilities in emerging markets. Besides, ECB President Mario Draghi said while there are signs that some of the idiosyncratic domestic factors dampening growth are starting to fade, the weakening in economic data points to a sizeable moderation in the pace of the economic expansion that will extend into the current year. On the economic front, a day ahead of the release of the more closely watched monthly jobs report, the Labor Department released a report showing a modest decrease in first-time claims for US unemployment benefits in the week ended March 2. The report said initial jobless claims edged down to 223,000, a decrease of 3,000 from the previous week's revised level of 226,000. Meanwhile, a report released by the Federal Reserve showed consumer credit in the US increased by more than expected in the month of January. The report said consumer credit climbed by $17.0 billion in January after rising by a revised $15.4 billion in December. Dow Jones Industrial Average plunged 200.23 points or 0.78 percent to 25473.23, S&P 500 declined 22.52 points or 0.81 percent to 2748.93 and Nasdaq was down by 84.46 points or 1.13 percent to 7421.46.


Crude oil futures ended higher on Thursday buoyed by data showing a fall in February Organization of the Petroleum Exporting Countries (OPEC) output to its lowest in nearly four years. OPEC's crude production from edged down by 60,000 barrels a day to 30.8 million barrels a day in February from a month earlier. The output level was the lowest since March 2015, when Gabon, Equatorial Guinea and Congo had yet to join OPEC-though at the time, Qatar was still a member. Among the 11 members with quotas under the output cut agreement that began at the start of the year, compliance stood at 79%, with Saudi Arabia slashing output to 10.15 million barrels a day in February- its lowest since May 2018. Benchmark crude oil futures for April surged 44 cents or 0.8 percent to settle at $56.66 a barrel on the New York Mercantile Exchange. May Brent crude gained 31 cents or 0.5 percent to settle at $66.30 a barrel on London's Intercontinental Exchange.


Indian rupee continued its upward march for the third straight session on Thursday, on persistent selling of the American currency by exporters. Traders took note of a report that India has further strengthened its position of being a net importer of oil during the five years of the Modi government, floundering on an ambitious plan that entailed reducing country's import dependency of oil by 10 per cent by 2022. However, gains remain capped as Organisation for Economic Co-operation and Development (OECD) warned that trade tensions and political uncertainty including BREXIT are weighing on the world's economy. OECD lowered its forecast to 3.3 per cent for this year, down from the 3.5 per cent it predicted in November, which was itself a downgrade from a previous 3.7 per cent. On the global front, euro took a breather on Thursday as investors prepared for the European Central Bank meeting, with many hoping any signals it will add fresh stimulus into the economy could inject some life into currencies stuck in trading ranges. Finally, the rupee ended at 70.00, 28 paise stronger from its previous close of 70.28 on Wednesday.


The FIIs as per Thursday's data were net buyers in equity and debt segments both. In equity segment, the gross buying was of Rs 6716.72 crore against gross selling of Rs 5329.79 crore, while in the debt segment, the gross purchase was of Rs 1887.59 crore with gross sales of Rs 794.69 crore. Besides, in the hybrid segment, the gross buying was of Rs 0.07 crore against gross selling of Rs 2.34 crore.


The US markets ended lower on Thursday after the European Central Bank unveiled plans to deploy additional stimulus, raising fresh worries about the health of the global economy. Asian markets are trading in red on Friday on the back of an overnight slide on Wall Street, as investors grappled with fresh concerns over the state of the global economy. Indian markets extended their gains for fourth straight session and ended higher with modest gains on Thursday as investors sentiment remained positive amid a strengthening rupee and sustained foreign fund inflows. Today, the start of last trading day of the week is likely to be in red mirroring weakness in Asian peers amid global growth concerns. The European Central Bank slashed its growth forecasts and launched an emergency round of policy stimulus. On the domestic front, traders will be concerned about a report that the government may be staring at higher-than-projected deficit for the current fiscal with country's direct tax revenue expected to fall short by Rs 60,000 to 70,000 crore over the revised target of Rs 12 lakh crore for FY19. As per the report, the direct tax revenue growth is at 12.2 per cent so far as against revised full year aim of 19.8 per cent. However, some support may come later in the day with Commerce and Industry Minister Suresh Prabhu's statement that the country's goods export will touch $330 billion in 2018-19, which will be the highest ever. He said the country's merchandise exports have seen high growth in the past six years through sector-specific interventions, focused export promotion initiatives, and quick resolution of issues. Meanwhile, the Reserve Bank of India (RBI) notified the norms for banks with regards to two per cent interest subvention or subsidy for short-term crop loans during 2018-19 and 2019-20. The Centre has already approved the scheme. Under the scheme, an additional two per cent interest subvention is provided to farmers repaying loans promptly. There will be some reaction in power sector stocks with report that the government has cleared investment proposals worth over Rs 31,560 crore in power projects, including two coal-based thermal plants and a hydro project on river Chenab in Jammu and Kashmir. There will be some buzz in the textile industry stocks with report that the Union Cabinet has approved a scheme for rebate of all state and central embedded levies for apparel and made-up textile segments, which would make shipments zero-rated, thereby boosting the country's competitiveness in export markets. Besides, the Cotton Association of India said that the total cotton production is likely to decline by over 11 percent to 328 lakh bales (of 170 kgs each) for the 2018-19 season, mainly low rainfall in many key cotton growing areas. In the last season (2017-18) the total cotton output stood at 365 lakh bales.


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  • L&T's construction arm - L&T Construction has secured orders from clients across varied states in India. 
  • Tata Motors has signed a MoU with Wise Travel India to deploy Tigor Electric Vehicles in New Delhi. 
  • Indian Oil Corporation has inaugurated LNG import terminal at Ennore in Tamil Nadu. 
  • Maruti Suzuki India has set up Fully Automated Driving Test Centre at the Regional Transport Office in Mayur Vihar Phase I, Delhi.
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