Share Market HIGHLIGHTS: Sensex ends 115 points lower at 58568, Nifty closes at 17464 on monthly F&O expiry

Sensex ends 115 points or 0.20% lower at 58,568, while Nifty 50 closes at 17,464 on monthly F&O expiry. Bank Nifty ended 0.11% higher.

Sensex and Nifty were down with losses on Thursday afternoon just ahead of the closing bell. Sensex and Nifty fell nearly 0.20% each.

Foreign Institutional Investors (FIIs) net sold $5.4 billion worth of Indian equities in the first 15 days of March, extending their last five months’ selling spree. The outflows in the first half of March have been most severe since March of 2020, when the covid-19 pandemic stepped outside China and spread across the world. Although Domestic Institutional Investors (DII) have tried to even out things, the severity of outflows has been mammoth. Bank of America Securities (BofA) in a report showed that FIIs have sold stocks from the financial and the discretionary sector the most.

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Rakesh Jhunjhunwala’s portfolio stock Nazara Technologies rallied over 5 per cent to day’s high of Rs 1,691.80 apiece on Thursday, after the firm said that it will invest $2.5 million in BITKRAFT Funds. Despite a 5% jump, the stock is still 50 per cent down from its record high of Rs 3,354.40 apiece, touched in October last year. Nazara Technologies, a subsidiary of gaming player Nazara Pte Ltd (Nazara Singapore), said in a BSE filing that it will invest $0.875 million upfront. Read full story

On the wake of negative cues from other Asian markets, Indian equity benchmarks turned negative in the late morning session, with both the Sensex and the Nifty trading in the red. Domestic sentiment remained gloomy, as India Ratings and Research (Ind-Ra) downgraded India's GDP growth prediction for FY23 to 7-7.2 percent, down from 7.6 percent previously expected, citing increased concern over the Russia-Ukraine conflict and the resulting weakening of consumer sentiment. On the global front Asian markets were generally in the red. Likhita Chepa, Senior Research Analyst, CapitalVia Global Research

Hindalco Industries share price plunged on Thursday after the company unveiled an $8-billion capex plan over the next five years. Shares of Hindalco Industries fell as much as 3.58% to touch an intraday low of Rs 577.95 on BSE. The stock, however, has rallied around 582% from its March 2020 low and is expected to rally 25% going forward, according to domestic brokerage firm Motilal Oswal Financial Services. Read full story

The government has provided the clarification on the taxation policy for the individuals. Indian investors can not offset the losses arising from one crypto exchange against the profits from others. This means, even if you make a loss in one asset, you have to pay taxes on the gains on others. The new regime of flat 30% taxation on income from crypto assets from April 1, 2022 will ebb the sentiments for the new age asset class. Though, we hope that the crypto investors will back their investment thesis and stay in with the investment for longer periods. On the other hand, Indian exchanges are still awaiting more clarity around GST structure for the crypto assets and we are hopeful that the regulators will soon come up with an investor friendly GST mechanism. Kunal Jagdale, Founder, BitsAir Exchange

Axis Bank shares rose in intraday trading after it announced plans to uby Citi's retail business. Brokerages such as ICICI Securities, PhillipCapital see as much as 40% upside on the private lender's stock.

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Domestic benchmark indices BSE Sensex and NSE Nifty 50 have recovered strongly in the last few trading sessions. Nifty 50 bounced back from the key support of 16800 and now could be heading towards 18100, said technical analysts at ICICI Direct. “Benchmarks reclaimed half the ground lost over the past six months as the cluster of support in the vicinity of 52 week’s EMA generated buying demand after markets moved to an oversold trajectory,” analysts said in a report. The banking index is also expected to surge higher in the coming weeks and test 38000 levels as volatility cools down on Dalal Street.

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The volatility gauge was down nearly 1% on Thursday morning. The index was sitting just above 20 levels.

Petrol and diesel prices were increased for the ninth time in 10 days by oil marketing companies (OMC). Fuel rates have now increased by roughly Rs 6.40 per litre after OMC hiked prices for the first time last Tuesday. Petrol in the National Capital of Delhi currently retails at Rs 101.81 per litre up from Rs 101.01 per litre yesterday, an increase of 80 paise from yesterday while diesel in the city is priced at Rs 93.07 up from Rs 92.27, an increase of 80 paise from yesterday. In Mumbai, a litre of petrol and diesel cost Rs 116.72 and Rs 100.94, respectively. Pieces were hiked last week for the first time in 4 months. Public sector OMCs including Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation Ltd (IOCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise the fuel prices daily in line with benchmark international price and foreign exchange rates. 

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On the domestic side, equities are trading on a mixed note. FIIs are resilient to investing despite the recovery in the sentiment. For the quarter, they have been net sellers of $15.69 billion. The RBI seems busy managing the liquidity, forex rates and planning the government’s huge borrowing program for FY 23. The impact of Sell/Buy swap on Rupee- which was seen once trading at three weeks high of 75.64, didn’t last long as importers rushed to cover their payables and Rupee fell again up to 75.90 levels at the close. Overall, the 75.50 to 75.70 zone will act as crucial support for the pair. Whereas, resistances are located at 76.20 and 76.50 levels. Amit Pabari, managing director, CR Forex Advisors

Markets have started the final session of fiscal year 2022 (FY22) cautiously due to negative global mood. Traders may be concerned because India Ratings cut its GDP growth prediction for FY23 from 7.6% to 7-7.2 percent, citing increased uncertainty about the Russia-Ukraine conflict and the resulting weakening of consumer morale. Russian military bombed the outskirts of Kyiv on Wednesday, despite promising to pull back operations the day before. On Thursday, Asian markets are trading mixed due to a decline in oil prices. Likhita Chepa, Senior Research Analyst, Capitalvia Global Research

Bank Nifty was up half a per cent on monthly F&O expiry day. Nifty FMCG index too jumped nearly 1%

Infosys, Bajaj Finserv, Reliance Industries Ltd (RIL), Power Grid Corporation of India, Wipro were among top index laggards

Mahindra & Mahindra, ITC, Asian Paints, Housing Development Finance Corporation (HDFC), Tata Steel, Axis Bank were among top Sensex gainers

Axis Bank shares up nearly 2% after it announces plan to acquire Citi's retail biz, stock volume topper on Sensex,

On the technical front 17,300 and 17650 are immediate support and resistance in Nifty 50. For Bank Nifty 35800 and 37000 are immediate support and resistance respectively. Mohit Nigam, Head – PMS, Hem Securities

BSE Sensex jumps over 150 points, while NSE Nifty 50 index crossed 17500 level in the pre-opening session on Thursday, a day of monthly and weekly F&O expiry

On Wednesday crude oil prices soared about 4% on supply tightness and the growing prospect of new Western sanctions against Russia, but on Thursday morning Oil futures dived more than $5 a barrel on Thursday as the Biden administration is weighing releasing some 1 million barrels of oil per day from strategic reserves for several months in a bid to calm soaring crude prices. Yesterday, U.S. crude inventory fell for a second straight week, falling by a bigger-than-expected 3.4 million barrels last week. We expect crude oil prices to remain volatile to negative in today’s session ahead of OPEC+ meeting outcome. Crude oil is having support at $98.40-$95.80 and resistance is at $105.20–107.50, In INR terms crude oil has support at Rs7,640-7,460; while resistance is at Rs7,950–8,140. Rahul Kalantri, VP Commodities, Mehta Equities

Bain Capital today announced that it has agreed to acquire 24.98% equity stake in IIFL Wealth Management from General Atlantic Singapore Fund Pte. Ltd. and FIH Mauritius Investments Ltd, a wholly owned subsidiary of Fairfax India Holdings Corporation. The transaction is subject to regulatory and other customary approvals. BSE filing

Volatility is likely to be the hallmark at local bourses as the violence between Ukraine & Russia has propelled WTI U.S. crude oil futures up 3.5% to $108 per barrel. However, our call of the day suggests smooth sailing shall continue because the great fireworks display is quite likely at Dalal Street as ‘Window Dressing’ could pop up stocks as FY22 comes to an end. Technically speaking, for Nifty the support is seen at 200-DMA at 17063 mark and below the same expect a waterfall of selling which could take Nifty down to 16691 mark with inter-month perspective. The technical landscape will improve considerably only if the index closes above its biggest hurdles at 17807 mark. Prashanth Tapse, Vice President (Research), Mehta Equities

Domestic equities along with global markets witnessed some bounce back in the previous session given the increasing probability of de-escalation of war with Ukraine proposing to adopt a neutral status and Russia’s promise to scale down military operations. “Bulls are now gradually gaining strength in the market. After trading in the range of 17,000-17,400 for 8 trading session, Nifty has finally managed to breakout and close above this zone. Follow up buying is helping the index to sustain well at higher zones. Read full story

Nifty has rallied this week after taking a breather in the previous week. In the process, the Nifty has crossed its previous swing high of 17442, thereby remaining in a strong uptrend. Technical indicators too are giving positive signals as the index trades above the 20 day and 50 day SMA. Daily momentum indicators like the 14-day RSI have bounced back and are in rising mode now. Nifty could now attempt to target the next intermediate highs of 17639-17795 in the coming sessions. Short term trend reversal levels for the Nifty are now at 17003. Read full story

With continued upward momentum, the Nifty 50 index formed a small bull candle on the daily chart, said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. He added that the chart formation signals continuation of upside momentum in the market. “The formation of lower shadows in the last three daily candles indicate buy on intraday dips opportunity in the market”. Read full story

Hariom Pipe Industries IPO received bids of 56,67,536 shares against the offered 85,00,000 equity shares, at a price band of Rs 144-153. Overall the issue was subscribed 67% on the first day of bidding. Retail investors showed interest in the IPO as the portion set aside for them was subscribed 1.88 times. The reserved portion of non-institutional investors witnessed a subscription of 0.03 times. Qualified institutional investors are yet to bid for subscriptions.

The Reserve Bank’s Monetary Policy Committee (MPC) will meet six times during the next financial year. The Reserve Bank of India (RBI) Governor-headed rate setting panel will be holding its first meeting of the next fiscal from April 6-8.

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Asian stock markets were seen trading trading mixed in early trade on Thursday, on the back of drop in oil prices. Japan’s Nikkei 225 and Topix index were flat. South Korea’s Kospi climbed 0.48%.

Nifty futures were trading 37 points or 0.21 per cent up at 17,534 on Singaporean Exchange on the last weekly and monthly F&O expiry of the FY22

The Nifty 50 index opened gap-up and moved above 17500 zones on Wednesday. It surpassed its previous hurdle and sustained well at higher zones. It closed near its day’s high with gains of around 170 points and gave the highest daily close of the last 32 sessions. While doing so, it formed a small-bodied Bullish candle on the daily scale with a long lower shadow indicating continued support based buying seen at lower levels. It came out of its restricted range of the last eight sessions.

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