Investors continue to grapple with the ramifications of Russia’s invasion and isolation, including elevated raw-material costs that have stoked expectations of higher inflation and more aggressive Fed interest-rate hikes.
Sensex ends in the red, Nifty below 17,200; IT, auto, FMCG stocks hit
Indian stock markets ended lower for the third day in a row, with losses led by auto, IT, and FMCG stocks. European shares were flat on Friday and were set to end the week lower, as the escalating Russia-Ukraine conflict kept investors cautious heading into the weekend.
Sensex closed 233.48 points lower at 57362.20, while Nifty fell 69.80 points to 171,53. About 1,256 share advanced, 1,958 declined, and 91 were unchanged.
IT stocks, banks keep Sensex under pressure
Nifty IT index slides over 1%
Restoration of normal ties will require restoration of normalcy in border areas, says Jaishankar after talks with Chinese Foreign Minister: PTI
US, EU reach LNG supply deal to cut dependence on Russia: Bloomberg
The US and the European Union have announced an agreement to try and boost the supply of liquefied natural gas to European countries by the end of 2022 with at least 15 billion cubic meters.
The aim is to work with international partners to help the continent wean itself off Russian fuel imports. Under the agreement, EU member states will work to ensure demand for 50 billion cubic meters of U.S. liquefied natural gas until at least 2030. LNG imports from Russia stood at around 14 billion to 18 billion cubic meters annually in the past years.
Bharti Airtel to buy 4.7% stake in Indus Towers at ₹190-192/share: CNBC TV18
Suryoday Small Finance Bank gets A1+ ratings from ICRA
European stocks waver at open
European stock markets wavered at the open on Friday after a mixed session in Asia, as traders struggled to build on a rally in New York.
London’s benchmark FTSE 100 index dipped 0.1% to 7,459.79 points, as official data showed UK retail sales slid in February.
In the eurozone, Frankfurt’s DAX index won 0.2% to 14,305.68 points and the Paris CAC 40 climbed 0.1% to 6,562.60.
Brent crude futures fall $2 to $117.03/bbl
US WTI crude futures also fall $2 to $110.34/bbl.
Engineering, telecom, healthcare to add 12 million new jobs by FY26: TeamLease Digital
India could cap sugar exports to augment local stocks: Reuters
India is considering restrictions on sugar exports for the first time in six years and may cap exports at around 8 million tonnes in an effort to prevent domestic prices surging, government and industry sources told Reuters.
Any curbs on exports by the world’s second biggest sugar exporter could lift global sugar prices that have been supported by lower output in top producer Brazil and firm crude oil prices, which encourages mills to produce more sugarcane-based ethanol.
India tells visiting Chinese minister border disengagement key to resolving issues: Reuters
India’s national security adviser told the visiting Chinese foreign minister on Friday that an early and complete disengagement of troops from their disputed border was key to resolving issues between the countries, two Indian sources said.
Chinese Foreign Minister Wang Yi met India’s National Security Adviser Ajit Doval after landing in New Delhi late on Thursday, in the highest level visit since deadly border clashes in 2020.
Oil fluctuates as traders weigh threats to Russian energy flows
Oil swung between gains and losses as the U.S. and European Union looked set to announce plans to reduce the region’s reliance on Russian fossil fuels to raise the consequences for Moscow’s invasion of Ukraine.
West Texas Intermediate fluctuated above $112 a barrel after losing more than 2% on Thursday.
U.S. President Joe Biden may on Friday announce a plan to boost U.S. shipments of natural gas to Europe after the bloc shied away for now from curbs on Russian oil imports given opposition from nations including Austria. Over the week, crude is still on course for an advance.
Germany to halve Russian oil imports by mid-year: Bloomberg
Germany is aiming to halve imports of Russian oil by mid-year while rapidly reducing its dependency on the nation’s gas and coal, Bloomberg quoted Der Spiegel magazine as saying, citing an Economy Ministry paper.
Russian gas could account for as little as 30% of imports by the end of the year, down from more than half currently, while the aim is to reduce oil imports almost to nothing by then, the magazine quoted the paper as saying. Purchases of Russian coal should end by the early summer.
Russian stocks bounce in second day of limited trading
Indian civil aviation set for a boom after pandemic: Scindia
Daily domestic air passenger traffic will exceed pre-covid numbers of 4.2 lakh passengers within the next one year, driven by a ‘V-shaped’ recovery following the pandemic, civil aviation minister Jyotiraditya Scindia said on Friday.
Daily domestic passenger traffic, which fell to sub 2,00,000 level during the peak of the third wave of the pandemic, has risen to 3.83 lakh passengers following a demand revival.
Speaking at the biennial Wings India 2022 event, Scindia said passenger throughput in India (for both domestic and international) will reach 410 million by 2024-25 from 300 million passengers in 2022-23.
India, UK conclude second round of talks for proposed free trade agreement: PTI
India and the United Kingdom have concluded the second round of talks for the proposed free trade agreement (FTA), which aims at further strengthening the economic ties, the commerce ministry said on Friday.
A delegation of Indian officials undertook technical talks in London, it added.
For this round of negotiations, a draft treaty text was shared and discussed across most chapters that will make up the agreement, the ministry said.
Two-wheelers continue to face 2Ws continue to face hurdles even as EVs are charged up
India’s transition to electric vehicles (EVs) will be supported by production-linked incentive (PLI) schemes launched by the government. On Thursday, heavy industries ministry said four companies would receive incentives under the PLI scheme for advanced chemistry cell battery storage. These companies are: Reliance New Energy Solar, Ola Electric Mobility, Hyundai Global Motors Co., and Rajesh Exports.
Separately, recall that the government had earlier approved 75 companies under the component champion incentive scheme and 20 companies under the champion OEM (original equipment manufacturer) incentive scheme. (Read here)
Edelweiss Housing Fin ties up with SBI for co-lending in priority sector home loans
Nifty FMCG among worst performing sectoral indices today
Bank Nifty: Axis Securities
Bank Nifty has seen increase in Open Interest of 15.98% with decrease in price of -0.62% indicating Short Build Up.
Nifty has seen decrease in Open Interest of -2.27% with a decrease in price of -0.29% indicating Long Unwinding.
The high Open Interest concentration on Call side is seen at 36,500 strike followed by 37,000 which may act as immediate resistance.
The high Open Interest concentration on Put side is seen at 35,500 strike followed by 36,000 which may act as immediate support.
Total Premium of A-T-M option is at Rs. 623 and probable trading range indicated for the day could be 35,000 to 37,000.
BANK NIFTY Strategy: PUT Spread
View: – Moderately Bearish.
Rationale: Traders could initiate this spread strategy to make modest returns with limited risk and reward. The spread suggested consists of buying one lot of 36,100 strike PUT option and simultaneously selling one lot of 35,600 strike PUT Option.
Ola to buy fintech firm Avail Finance to strengthen financial services biz
SoftBank-backed ANI Technologies Pvt Ltd, which operates cab ride-hailing aggregator platform Ola Cabs, has agreed to buy neobanking platform Avail Finance that provides financial services to the blue collared workforce, the company said in a statement on Thursday.
Ola did not reveal the amount of the acquisition and said that the deal is subject to shareholder approval.
News portal Moneycontrol has reported that the deal is a share-swap transaction, worth $50 million. (Read here)
India rupee opened at 76.15 per US dollar vs 76.37/dollar at previous close
Max Life Insurance partners PhonePe to offer financial protection to consumers
Russia-Ukraine conflict: Slew of earnings downgrades likely but these stocks offer some safety
An analysis by domestic brokerage house IIFL Securities Ltd showed that the steep increase in prices of raw materials such as crude oil and metals following the Russia-Ukraine conflict, has exposed many Indian companies to severe margin pressure. This is likely to lead to an increased risk of earnings downgrades.
“What began as an earnings sensitivity analysis has now started appearing more like an earnings downgrade expectation, because the values we assumed for the purpose of sensitivity for key variables − Brent crude (US$110), LME Metals Index (5000), US$/INR (78) and interest rates (100 basis points higher) − have begun looking like the more-likely levels that will sustain in FY23,” IIFL said in a report on 23 March. (Read here)
Market view: Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One
Thursday was clearly a day of consolidation as we saw Nifty vacillating in a modest range with no clear direction. This was mainly due to the overall sector-specific churning we witnessed throughout the day. The banking remains to be a spoilsport; whereas the IT and Reliance continue to provide the helping hand. Till the time, we do not see Nifty beyond 17450, this consolidation is likely to continue.
So, as far as levels are concerned, 17300 – 17375 – 17450 are the immediate levels to watch out for in the upward direction; whereas on the lower side, 17100 – 17000 remains to be a sacrosanct support zone. Traders are advised not to trade aggressively in indices in this congestion phase, rather continue to focus on thematic moves which are likely to provide excellent trading opportunities.
Motherson Sumi Systems bags order from Boeing: PTI
Auto components major Motherson has bagged an order from Boeing to manufacture and supply aftermarket molded polymer parts for commercial airplane interiors.
This is the first order for Motherson from Boeing and will commence from the third quarter of FY23. It will be produced at a plant situated in Noida, the company said in a statement.
The company did not disclose the value of the order.
Nifty slips below 17,200
Bharti Airtel prepays ₹8,815 crore to clear deferred liabilities for spectrum acquired in 2015: BSE filing
Over the last four months, Airtel has cleared ₹24,334 crores of its deferred spectrum liabilities much ahead of scheduled maturities. These liabilities carried an interest rate of 10% and have been paid off through a combination of strong free cash generated by business, equity proceeds and significantly lower cost debt of similar tenor.
Sensex gives up opening gains, slips into the red
Sensex stocks in opening deals
Sensex rises over 200 points in pre-open
Nifty in pre-open
India’s 2022 GDP growth downgraded to 4.6% due to ongoing war in Ukraine: UN report
India’s projected economic growth for 2022 has been downgraded by over two per cent to 4.6% by the United Nations, a decrease attributed to the ongoing war in Ukraine, with New Delhi expected to face restraints on energy access and prices, reflexes from trade sanctions, food inflation, tightening policies and financial instability, according to a UN report released on Thursday.
The UN Conference on Trade and Development (UNCTAD) report downgraded its global economic growth projection for 2022 to 2.6% from 3.6% due to shocks from the Ukraine war and changes in macroeconomic policies that put developing countries particularly at risk.
Nifty view: Nagaraj Shetti, technical research analyst, HDFC Securities
“The broader uptrend status remains intact for Nifty and we observe positive sequence like higher tops and bottoms on the daily chart. The significant upside breakout of important resistance zone for NSE Nifty is intact around 16,800 to 17,000 levels. Any decline at Nifty from current levels could find strong support at 17,000 to 16,900 levels and there is a possibility of market advancing towards the upper trajectory of 17,400 to 17,500 levels in the near term.”
China finds second black box from China Eastern jet – state media
USD-INR Outlook: Heena Naik, research analyst – currency, Angel One
On Thursday, Indian Rupee made a dull opening at 76.34 levels and thereafter traded in a range between 76.23 to 76.40 levels owing to continuous demand for dollar by importers coupled with suspected IPO related inflows into the system. In the upcoming session, the local unit is likely to continue with its sideways trend as investors refrain from taking any risky bets over to the weekend. However, the possibility of USDINR going south is more on the back of year-end closing dollar selling by IT companies. USDINR is expected to trade in a range between 76.00 to 76.50 levels.
Oil drops as supply crunch fears ease, trading costs rise
Oil prices fell about a $1 on Friday as the United States and allies considered releasing more oil from storage to cool markets and as traders faced higher costs for trading benchmark Brent futures.
Brent crude futures fell $1.07, or 0.9%, to $117.96 a barrel, after sliding 2.1% in the previous session.
U.S. West Texas Intermediate (WTI) crude futures fell $1.20, or 1.1%, to $111.14 a barrel, having dropped 2.3% in the previous session.
Petrol, diesel prices hiked by 80 paise a litre each
Petrol and diesel prices were hiked by 80 paise a litre each on Friday, the third increase in four days.
Petrol in Delhi will now cost ₹97.81 per litre as against ₹97.01 previously while diesel will sell for ₹89.07 a litre, up from ₹88.27.
The increases are the steepest single-day rise since daily price revision began in June 2017. With three increases beginning March 22, petrol and diesel prices have gone up by ₹2.40 a litre.
SGX Nifty futures rise
Nifty futures on the Singapore Exchange rose 78 points, or 0.45%, to 17,300.00 in Friday’s deals, indicating a positive start for Indian benchmarks.
Asian stocks steady, oil pulls back
Stocks in Asia were steady Friday as investors weighed the resilience of global economic recovery to risks from tightening Federal Reserve monetary policy and Russia’s military campaign in Ukraine.
Japanese, Chinese and Hong Kong equities fluctuated in relatively narrow ranges. U.S. futures slipped between red and green after technology shares helped the S&P 500 index to close at a more than six-week high.
Treasuries held losses, leaving the U.S. 10-year yield in the vicinity of levels last seen in 2019. Oil retreated as European Union leaders refrained from fresh steps to cut imports of Russian crude.
Global shares are set for their first consecutive weekly gains in 2022, suggesting equity investors foresee economic growth weathering the conflict, high inflation and the Fed’s campaign against price pressures.
S&P 500 futures rose 0.2% while Nasdaq 100 futures edged up 0.1%. Euro Stoxx 50 futures added 0.1%.
Japan’s Topix index rose 0.4%, Australia’s S&P/ASX 200 index increased 0.5%, South Korea’s Kospi index was up 0.2%, China’s Shanghai Composite index rose 0.1%, while Hong Kong’s Hang Seng index slipped 0.4%.
Overnight, major US stock indices rallied more than 1%, extending the market’s recent rebound, as investors snapped up beaten-down shares of chipmakers and big growth names and as oil prices dropped. The Dow Jones Industrial Average rose 349.44 points, or 1.02%, to 34,707.94, the S&P 500 gained 63.92 points, or 1.43%, to 4,520.16 and the Nasdaq Composite added 269.24 points, or 1.93%, to 14,191.84.
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