Morning Update :–The Nifty saw big gains from JSW Steel, Hindalco Industries, Tata Steel, HDFC Life, and Power Grid Corporation, while M&M, Infosys, ICICI Bank, Nestle, and TCS fell
Sensex – Fall -11 Points at 74,074
Nifty 50 – Fall -0.45 Points at 22,473
Indian Market
FII AND DII
| FII Bought | Â Â Â 2,766.75 Cr |
| DII Bought | 2,149.88 Cr |
Indian Market News
- US markets end higher, Treasury yields fall as Powell promises rate cuts.
- The dollar declines with Treasury yields on expectations of looming US rate cuts.
- Asian markets were mainly trading higher, with Taiwan Weighted up 1% and the Kospi up 0.5%.
- Adani Ent’s Dubai unit buys France-based Le Marche for 5,000 euros.
- Oil prices rise as US stocks build less than predicted.
- Gold extends its record run as rate cut bets gain ground.
- The government is likely to sell up to 7% ownership in NLC India via OFS to raise up to Rs 2,100 crore.
- M&M promoter firm seeks to sell interest worth $215 million through block sale.
- Powell reiterates that the Fed needs more confidence in inflation to cut.
- Yen advances on the possibility of an impending BOJ turn; dollar generally down.
- IGL lowers CNG prices in Delhi by Rs 2.5/kg, to Rs 74.09/kg.
- Gopal Snacks IPO earned 56% on its first day, with retail accounting for 89% of the total.
- JG Chemicals IPO subscribed 6.08 times on the second day of bidding.
- Moody’s upholds Tata Motors’ BA3 ratings; outlook remains positive following demerger action.
Global Markets updates
GIFT Nifty
The GIFT Nifty, which gained 55.50 points, or 0.25 percent, suggests that the wider index in India is off to a good start. The 22,646.50 level was the trading range for the Nifty futures.
US Markets
The benchmark US Treasury yield fell to a one-month low on Wednesday as Wall Street led global stocks to a higher close. This came as Federal Reserve Chair Jerome Powell reassured investors that rate cuts this year are still possible even though inflation is not completely under control.
The S&P 500 gained 26.11 points, or 0.51 percent, to 5,104.76, the Nasdaq Composite added 91.96 points, or 0.58 percent, to 16,031.54, and the Dow Jones Industrial Average increased by 75.86 points, or 0.2 percent, to 38,661.05.
Asian Markets
As investors awaited trade statistics from Australia and China on Thursday, the Nikkei 225 index in Japan reached a new all-time high.
News Updates
When US crude stocks slightly increase and the Fed cuts rates, oil prices rise by 2%.
Due to a larger-than-expected build-up in US crude inventories, a significant withdrawal from distillate and petrol stockpiles, and statements made by the Federal Reserve chairman indicating that he still anticipates US interest rate cuts this year, oil prices rose by almost 2 percent on Wednesday.
Reduced interest rates may spur economic growth, which in turn may raise the demand for oil.
Futures for Brent increased by $1.65, or 2%, to $83.69 per barrel. At $80.22, US West Texas Intermediate (WTI) crude increased by $2.07, or 2.7 percent.
Brent was expected to climb for the first time in the past five days.
Gold maintains record run as bets on rate cuts gather traction.
On Wednesday, gold reached a new high, fueled primarily by speculations on US monetary easing. Meanwhile, autocatalyst palladium rebounded above $1,000 for the first time since January 12.
Spot gold increased by 0.6 percent to $2,139.39 an ounce during the session, having earlier reached an all-time high of $2,148.99. US gold futures increased to $2,147.60, up 0.3 percent. Silver increased by 1.2% to $23.97.
DGGI takes action against Prataap Snacks, ITC, and other parties for suspected tax evasion.
The Directorate General of GST Intelligence (DGGI) has launched actions against FMCG companies, including ITC, Prataap Snacks, PepsiCo, Balaji Wafers, RP Sanjiv Goenka Group, and others, for alleged tax evasion. This is a significant move that targets several major players in the FMCG sector.
Owing to problems with classification that may have resulted in tax fraud, the DGGI has intensified its attack on about ten to twelve FMCG companies, according to sources who spoke with CNBC-TV18. “The DGGI has sent notices and investigation intimation letters to FMCG companies for paying a lower rate of Goods and Services Tax (GST) on products coming under the head of — extruded snacks and fried pellet snacks,” according to sources.
In 2023, the government made it clear that snacks made by the extrusion technique should be paid 18%, not the 12% that the business is now paying. Extrusion is a method for making puffed treats that are ready to eat.
For 5,000 euros, Adani Ent’s Dubai branch purchases Le Marche, a France-based company.
On March 6, Adani Enterprises notified the stock exchanges that Ospree International FZCO, a Dubai-based subsidiary, had paid 5,000 euros to purchase a 100% share in Le Marche Duty Free SAS (LMDF), a company based in France.
On February 7, 2024, LMDF was founded in France with the intention of conducting duty-free operations there. The business has not yet started to operate.
LMDF is owned by Atul Ahuja, a Flemingo Group promoter. Adani said that it had purchased 5,000 shares of LMDF from Ahuja, the company’s only shareholder, for a nominal face value of one euro each.
The exchange statement further stated that the transaction is of a “strategic nature” in the best interests of Mumbai Travel Retail Private Ltd (MTRPL), a step-down subsidiary of Adani Enterprises.
Government may use the OFS to sell up to 7% of NLC India in order to raise up to Rs 2,100 crore.
According to sources who spoke with CNBC-Awaaz on March 6, the government may use an offer for sale (OFS) to sell up to 7% of NLC India in order to raise between Rs. 2,000 crore and Rs. 2,100 crore.
According to the channel, the government intends to sell up to 5% of the state-owned company, with the opportunity to activate the greenshoe option and sell an extra 2% of the company.
According to CNBC-Awaaz, the Department of Investment and Public Asset Management, along with government representatives, will shortly make a decision on this.
Powell says the Fed needs greater assurance on inflation before cutting
Congress was reminded by Federal Reserve Chair Jerome Powell that the US central bank would not be lowering interest rates until it is certain that it has defeated inflation.
The Fed chairman stated in prepared testimony to a House subcommittee on Wednesday that it will probably be appropriate to start lowering borrowing prices “at some point this year,” but he also made it clear that they are not yet ready.
The comments reinforced a theme that has been expressed by almost every Fed official in recent weeks: because the labour market and economy are robust, officials should wait to lower interest rates until they have further proof that inflation is returning to target.
Stocks in news
Mahindra and Mahindra: According to several persons acquainted with the matter, a promoter group company is probably going to sell about 0.75 percent of M&M in order to generate about $215 million through a block sale. The offer price range for the block deal, which has been issued, is Rs 1,911.5 to Rs 1,970.65 per share.
NLC India: The government plans to sell a base offer size of 5% of the company’s shares, with the option to sell an extra 2% of shares (the oversubscription option) through an offer-for-sale on March 7 and March 11.
Jupiter Waggons: The company has been offered a contract of Rs 956.88 crore by the Ministry of Railways (Railway Board) to build and supply 2,237 BOSM Waggons.
Hindustan Aeronautics: An adjustment to the LCA (Light Combat Aircraft) IOC (Initial Operational Clearance) contract has been inked by the state-run military industry. The contract’s revised value is Rs 5,077.95 crore instead of Rs 2,700.87 crore.
GPT Infraprojects: North Central Railway, Agra, has placed an order with the infrastructure provider for Rs 135 crore. This deal is a joint venture in which GPT owns a 51 percent part.
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