Morning Update :–The car, oil and gas, metal, IT, power, and capital goods sectors all fell by 0.5-1 percent. Midcap and smallcap indices are in the red.
Sensex – Fall -414 Points at 72,682
Nifty 50 – Fall -138 Points at 22,007
Indian Market
FII AND DII
| FII Sold | Â Â Â 1,356.29Â Cr |
| DII Bought | Â 139.47 Cr |
Indian Market News
- Asian markets trade lower, with the Kospi and Hang Seng down 1% each.
- Wall Street ends down after PPI data, as chipmakers plummet.
- Oil prices fall after crossing $85 due to profit-taking.
- OMCs cut fuel and diesel prices by Rs 2 per litre nationwide.
- Morgan Stanley expects India investments to expand faster than consumption in the current cycle.
- US retail sales rebounded in February, but weekly unemployment claims fell.
- Fitch places IIFL Finance on negative rating watch following RBI action.
- Popular Vehicles and Services IPO has fully subscribed on the final day of bidding.
- Institutional investors invest Rs 54 crore in a SME offering through the anchor book of KP Green Engineering.
- Krystal Integrated Services IPO subscribed 36% on the first day of bidding.
- Pune E – Stock Broking will debut on BSE SME on March 15.
- The dollar rises as US inflation data weighs on the rate outlook.
- On March 14, 2024, Reliance Power signed a Settlement Agreement with Axis Bank to satisfy its debts.
- L&T Technology Services secured a USD 100 million programme in cybersecurity.
Global Markets updates
GIFT Nifty
Trends in the GIFT Nifty imply a gap-down beginning for India’s wider index, with a loss of 132 points (0.60%). The Nifty futures were trading near the 22,130.50 mark.
US Markets
US stocks fell on Thursday, as chipmaker stocks continued to decline for a second day and investors began to question if the Federal Reserve will lower interest rates sooner than anticipated due to an increase in producer prices.
According to data, the cost of items like food and petrol climbed in February, causing U.S. producer prices to rise more than anticipated.
To reach 38,905.66, the Dow Jones Industrial Average dropped 137.66 points, or 0.35%. The Nasdaq Composite fell 49.24 points, or 0.3%, to 16,128.53, while the S&P 500 lost 14.83 points, or 0.29%, to 5,150.48.
Asian Markets
Following the US producer price growth of 0.6 percent in February, which was faster than anticipated, Asian markets saw a decline in trade on Friday.
With the first estimates of the spring wage negotiations in Japan anticipated to be released later in the day, investors throughout Asia will be keeping a close eye on any updates.
Gold Prices
Gold fell on Thursday as prospects of an early rate decrease by the Federal Reserve were dampened by a higher-than-expected increase in the U.S. producer price index (PPI) for February. This increase also strengthened the currency and Treasury yields.
As of 10:03 a.m. EDT (1403 GMT), spot gold was down 0.6% at $2,161.10 per ounce, moving away from the record high of $2,194.99 reached on March 8. US gold futures fell to $2,166.60, a 0.7% decrease.
CrudeÂ
Although oil prices somewhat decreased on Friday, they were still expected to rise by almost 4% this week due to several factors, including dramatic drops in U.S. fuel and crude supplies, drone attacks on Russian refineries, and higher-than-expected estimates for energy consumption.
May Brent crude oil futures slid 41 cents, or 0.5%, to $85.01 a barrel at 1234 GMT on Thursday, following their first close above $85 a barrel since November. West Texas Intermediate (WTI) oil for the United States dropped 32 cents, or 0.4%, to $80.94 in April.
Dollar
Concerns about when and how much the Federal Reserve might lower interest rates this year were heightened by hotter-than-expected U.S. inflation data on Friday, which helped to end the dollar’s three-week losing streak.
News Updates
Nationwide, OMCs cut the price of petrol and diesel by Rs 2 per litre.
State-run Oil Marketing Companies (OMCs) declared that starting at 6 a.m. on 15 March, the price of petrol and diesel would be reduced nationwide by Rs 2 per litre.
Diesel will be sold in Delhi for Rs 87.62 per litre, while petrol would now cost Rs 94.72 per litre, down from Rs 96.72 previously. The OMCs’ action coincides with the nation’s upcoming Lok Sabha elections.
In February, US retail sales increased while weekly jobless claims decreased.
Although US retail sales increased in February due to growth at petrol stations and auto dealerships, consumer spending is slowing as consumers struggle with rising borrowing prices and inflation.
Retail sales increased by 0.6% in the previous month, the Census Bureau of the Commerce Department announced on Thursday. Sales for January were down 1.1%, as opposed to the 0.8 percent that had been previously reported, according to revised data. Retail sales, which are primarily goods-related and are not inflation-adjusted, were expected to increase by 0.8 percent in February, according to economists surveyed by Reuters.
A supplementary report released on Thursday by the Labour Department revealed that, for the week ending March 9, the number of first claims for state unemployment benefits decreased by 1,000 to a seasonally adjusted 209,000. 218,000 claims were anticipated by economists for the most recent week.
During the week ending March 2, the number of beneficiaries (a proxy for hiring) climbed by 17,000 to 1.811 million following an initial week of aid.
According to Morgan Stanley, the current cycle is seeing investments in India rise faster than consumption.
According to Morgan Stanley researchers, investments in India are expected to rise at a faster rate than consumption over the coming years. In 2026–2027, Gross Fixed Capital Formation (GFCF) is expected to reach 36% of GDP.
In a research released on March 13, Morgan Stanley economists stated, “Real GFCF growth continued to hold strong at 10.5 percent in 4Q23 (October-December 2023), staying above the pre-Covid 2017-18 average of 9.6 percent.”
“On the flip side, private consumption (growth) is still relatively weak, tracking at just 3.5 percent in 4Q23, below the pre-Covid 2017-18 average of 6.5 percent,” they stated.
Following the RBI’s move, Fitch places IIFL Finance under negative rating watch.
IIFL Finance was placed on ‘Rating Watch Negative’ (RWN) by rating agency Fitch on March 14. The Reserve Bank of India (RBI) issued a regulatory direction on March 4 instructing IIFL Finance to stop making new loans backed by gold and any associated off-balance-sheet funding activities. The RWN complies with this directive.
The RWN suggests that after the Watch is resolved, the rating might stay the same or even drop.
Stocks in news
Wipro: Desjardins and the technology services and consulting firm have reached an agreement for Wipro’s NetOxygen Platform to be used in the modernization of consumer banking services. Desjardins’ credit card and consumer lending operations will benefit from the solution.
One97 Communications: One97 Communications, the parent company of Paytm, has been approved by the National Payments Corporation of India (NPCI) to engage in UPI services as a Third-Party Application Provider (TPAP) under the multi-bank model. In accordance with the revised model, Paytm will now offer the payment service in collaboration with four additional institutions, who will serve as its payment system providers (PSP): Axis Bank, HDFC Bank, State Bank of India, and Yes Bank.
RailTel Corporation of India: The company has been awarded a work order of Rs 113.46 crore by the Odisha Computer Application Centre (OCAC).
Biocon: As of March 15, Indranil Sen has stepped down from his role as the company’s chief financial officer. He left his position as CFO to take advantage of opportunities outside the company.
Eris Lifesciences: The board of directors has approved the pharmaceutical company’s agreement to pay the company’s proprietors Rs 237.50 crore to purchase a 19% equity investment in Swiss Parenterals.
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