Indian benchmark indices ended marginally higher after a volatile
trade on Tuesday led by gains in Healthcare, Industrials and Basic Materials
stocks. After making cautious start, benchmark indices traded higher with gains
of over half a percent in morning deals, as sentiments got boost with data
showing that India has attracted record total FDI inflow for the first ten
months of a financial year in 2020-21. Accordingly, the inflow rose to $72.12
billion during April to January, 2021, 15 per cent higher as compared to the
first ten months of 2019-20, when it stood at $62.72 billion. The FDI equity
inflow grew by 28 per cent in the first ten months of FY 2020-21 ($54.18
billion) compared to the year ago period ($42.34 billion). Some support also
came in as the country witnesses a rapid resurgence of coronavirus cases, a
Finance Ministry report has exuded confidence in the Indian economy and termed
the economic recovery as resilient citing improvement in high frequency
indicators. The Monthly Economic Review for March 2021 released by the
Department of Economic Affairs (DEA) said that the agricultural sector remains
the bright spot of Indian economy with foodgrains production touching 303.3
million tonnes in 2020-21 beating record production levels for the fifth
consecutive year in a row. However, key gauges were unable to sustain most of
the gains by the end of the trade, as traders remine concerned with Care
Ratings' statement that Maharashtra's radical lockdown move will have an
economic impact of Rs 40,000 crore, with the trade, hotels and transport sector
to bear the biggest dent. The rating agency said the loss of economic activity
will have a 0.32 per cent impact on the gross value added (GVA) growth at the
national level. It revised down its national GDP growth estimate to 10.7 - 10.9
per cent from the 11 - 11.2 per cent given a week ago. Some concern also came
with ICRA Ratings' report stated that as the impact of various relief measures,
including a moratorium on loan repayment and asset classification standstill
wanes off, gross non-performing assets of banks may likely rise to 9.6-9.7 per
cent by March 31, 2021. Finally, the BSE Sensex rose 42.07 points or 0.09% to
49,201.39, while the CNX Nifty was up by 45.70 points or 0.31% to 14,683.50.
The US markets ended lower on Tuesday as traders expressed
some uncertainty about the near-term outlook for the markets following recent
strength. The Dow and the S&P 500 both ended Monday's trading at record
closing highs, while the tech-heavy Nasdaq extended last week's rally to reach
its best closing level in well over a month. A quiet day on the US economic
front also kept traders on the sidelines ahead of the release of the minutes of
the Federal Reserve's latest monetary policy meeting on Wednesday. Reports on
weekly jobless claims, the US trade deficit and producer price inflation may
also attract attention in the coming days along with remarks by Fed Chair
Jerome Powell. Meanwhile, traders largely shrugged off report the International
Monetary Fund raised its global growth projections for this year and next,
citing huge fiscal stimulus in some big economies and a vaccine-driven recovery
in the future. The world economy is set to grow 6.0 percent this year and 4.4
percent next year, the global lender said in its latest World Economic Outlook
(WEO) report.
Crude oil futures ended higher on Tuesday as concerns about
energy demand eased a bit after data showed a smart acceleration in China's
service sector activity. Survey results from IHS Markit showed the Caixin
Purchasing Managers' Index rose to 54.3 in March from 51.5 in February. The
pace of expansion was the fastest in last three months. The score has remained
above the neutral 50.0 level for eleventh consecutive month. The survey showed
that new orders increased at the fastest pace in three months despite a slight
fall in export business. Further, a weak dollar contributed as well to oil's
uptick. However, worries about rising coronavirus cases and extension of
lockdown measures in several parts of Europe limited oil's rise. Crude oil
futures for May rose $0.68 or 1.2 percent to settle at $59.33 barrel on the New
York Mercantile Exchange. June Brent crude gained $0.55 or 0.88 percent to
settle at $62.70 a barrel on London's Intercontinental Exchange.
Continuing
previous session drubbing, domestic currency concluded substantially weaker
against dollar on account of continued dollar demand from importers and banks.
Sentiments remained fragile amid concerns that rising Covid-19 cases and
subsequent lockdowns in some states may hurt economic recovery and cause
foreign outflows. Traders seemed to have overlooked Commerce and Industry
Ministry's latest data showing that foreign direct investment (FDI) equity
inflows into the country grew by 28 percent to $54.18 billion during
April-January 2020-21. FDI inflows stood at $42.34 billion during April-January
2019-20. On the global front, pound slipped on Tuesday as traders continued to
bet on a speedy re-opening of the British economy. Finally, the rupee ended
73.42, weaker by 12 paise from its previous close of 73.30 on Monday.
The FIIs as per
Tuesday's data were net seller in both equity and debt segment. In equity
segment, the gross buying was of Rs 4705.29 crore against gross selling of Rs
5365.17 crore. In the debt segment, the gross purchase was of Rs 229.63 crore
against gross selling of Rs 1666.33 crore. Besides, in the hybrid segment, the
gross buying was of Rs 6.42 crore against gross selling of Rs 9.55 crore.
The US markets
ended lower on Tuesday a day after notching all-time highs on signs of rapid
economic recovery. Asian markets were trading mostly higher on Wednesday as
more growth data was reported, including IMF's revised forecast on global
economic recovery. Indian equity benchmarks ended volatile session in green
terrain on Tuesday. Today, the start of session is likely to be cautious ahead
of the Reserve Bank of India's (RBI) monetary policy outcome later today.
Reserve Bank of India (RBI) will present its first bi-monthly policy for
2021-22 on April 7, 2021. The announcements by RBI today will set the direction
for monetary policy for the new financial year. Traders will be concerned as
India has recorded a massive surge of 115,269 Covid-19 cases in the last 24
hours. With this, India has seen the biggest-ever daily surge, taking the tally
to 12,799,746, Worldometer showed. Active cases have crossed the 800,000-mark
and now stand at 843,779. India is now the 4th-worst hit country in terms of
active cases. India also witnessed a grim record of second-most fatalities due
to covid-19 in a single day in 2021, which stood at 631. The death toll from
the deadly infection stands at 166,208. Maharashtra reported over 55,000
Covid-19 cases in the last 24 hours in a persistent rise in cases, while Delhi
witnessed 5,100 fresh cases. However, some recovery may be expected in latter
trade on report that the International Monetary Fund (IMF) has raised its
projection for India's economic growth in the current financial year by one
percentage point to 12.5 per cent. The forecast, published in the IMF's World
Economic Outlook, suggests India would again become the fastest-growing large
economy in the world. In fact, India is the only country among major world
economies that is projected to grow at a double-digit rate during FY22. China
comes closest, with a forecast of 8.4 per cent economic expansion. Meanwhile,
Central Board of Direct Taxes (CBDT) chairman PC Mody said that the Centre's
tax resolution scheme Vivad Se Vishwas has resolved nearly a third of all
direct tax disputes and has netted Rs 54,005 crore in tax revenue, 51% of which
are from the central PSUs. Cement stocks will keep buzzing as Icra said
domestic cement demand is expected to be highest in the decade, estimated to
surpass 340 million tonne in FY2022, driven by sustained rural housing demand
and significant pick-up in infrastructure activity. On the supply side, the
capacity addition is also expected to increase by 22-25 million tonne in
FY2022. There will be some buzz in Aviation stocks as ratings agency Icra said
that India's domestic passenger traffic slipped to a 10-year low at an
estimated 53.4 million in the just-concluded financial year. However, in the
previous fiscal there were no passenger flight operations for almost two months
due to the pandemic-induced lockdown.
Support
and Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
14,683.50
|
14,578.57
|
14,783.77
|
BSE Sensex
|
49,201.39
|
48,897.74
|
49,543.65
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support
(Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Adani Ports
|
645.56
|
849.85
|
777.67
|
887.37
|
Tata Motors
|
630.32
|
308.00
|
303.93
|
312.93
|
SBIN
|
441.48
|
350.95
|
347.83
|
355.53
|
JSW Steel
|
265.33
|
537.00
|
524.67
|
545.32
|
ITC
|
256.74
|
212.80
|
210.32
|
215.12
|
Maruti Suzuki India has reported 86.33% rise in its total production at 1,72,433 units in March 2021 as compared to 92,540 units produced in the same month of last year.
Tata Motors' wholly owned subsidiary -- Jaguar Land Rover (JLR) has commenced bookings for the updated version of F-PACE SUV.
NTPC has added 660 MW Unit-2 of Tanda Super Thermal Power Station in Uttar Pradesh to its installed capacity.
Reliance Industries' telecom arm has entered into agreement with Bharti Airtel for acquisition of right to use spectrum in the 800MHz band in Andhra Pradesh, Delhi and Mumbai circles.