Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
Selling pressure came to the fore after 3 days of relief rally, as US Fed signalling further rate hike to tame inflation reignited worries of slowing growth. Also, the rising bond yields in the last few sessions are indicating that risk-off sentiment in equities will prevail going ahead and liquidity could tighten.
Technically, on daily charts, the Nifty has formed a long bearish candle which supports further weakness from the current levels.
For the bulls, 17,650 would act as an immediate resistance zone. Below the same, the index could slip till 17,500-17,450. On the flip side, above 17,650, minor intraday pullback rally could be seen till 17,700-17,750.
Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas
The Nifty opened on a positive note however as the day progressed selling pressure intensified, and the Nifty closed around the lows of the day down ~ 165 points. On the daily charts we can observe that the 40-day moving average (17,764) acted as a stiff resistance and the Nifty is facing selling pressure from the zone of 17,760 – 17,800.
The fall on the hourly charts is suggesting that it is corrective in nature and hence this fall is unlikely to result into a trend reversal. In terms of price pattern, the Nifty might be in the process of forming a Bullish flag pattern.
The daily momentum indicator has a positive crossover and hence this dip should be bought into. The fall today might appear aggravated on account of weekly expiry and we expect Nifty to bounce back. Overall, the range of consolidation is likely to be 17,500 – 17,925 from a short-term perspective.
Vinod Nair, Head of Research at Geojit Financial Services
The domestic market could hardly hold on to its previous gains as the Fed chair’s reaffirmation of his hawkish statement brought in more worries. In this backdrop, the upcoming US job data will have a substantial impact on the Fed’s policy decisions in its upcoming FOMC meeting. A stronger-than-expected jobs report will prompt the Fed to raise interest rates by 50 bps.
Rupee Close:
Indian rupee ended higher at 81.98 per dollar against previous close of 82.05.
Market Close:
Indian benchmark indices ended lower on March 9 with Nifty around 17,600.
At close, the Sensex was down 541.81 points or 0.90% at 59,806.28, and the Nifty was down 164.80 points or 0.93% at 17,589.60. About 1558 shares have advanced, 1858 shares declined, and 112 shares are unchanged.
Adani Enterprises, M&M, SBI Life Insurance, Reliance Industries and Adani Ports were among the biggest losers on the Nifty, while gainers included Tata Steel, Larsen and Toubro, Bharti Airtel, Apollo Hospitals and Axis Bank.
FMCG, Realty, auto and IT down 1 percent each, while buying was seen in the metal and power names.
The BSE midcap index shed 0.55 and smallcap index fell 0.2 percent.
Jefferies View On Metals
-Buy call on Tata Steel, target at Rs 145 per share
-Buy rating on Hindalco, target at Rs 570 per share
-Tata Steel is top pick followed by Hindalco
-China economic data is showing signs of recovery
-After 23 percent fall in CY22, China export steel price is up 14 percent in 2023 so far
-Asian steel spreads are still 10 percent below long-term average though
-Indian metal stocks have underperformed most global peers CYTD
-See this as a buying opportunity in metal stocks
Oil slips for third day as recession fears mount
Oil fell for a third day on Thursday as fears over the economic impact of rising interest rates offset a surprise drop in U.S. crude inventories and hopes for Chinese demand.
U.S. Federal Reserve Chair Jerome Powell's comments this week on the likelihood that interest rates will need to be raised more than previously expected in response to recent strong data continued to weigh on oil and other risk assets because of the potential impact on economic and demand growth.
Brent crude fell by 34 cents, or 0.4%, to USD 82.32 a barrel by 0902 GMT while US West Texas Intermediate (WTI) crude slipped by 11 cents to USD 76.55. Both benchmarks declined between 4% and 5% over the previous two days.
Saumil Gandhi, Senior Analyst - Commodities, HDFC Securities:
Gold prices traded marginally up on Thursday, with spot gold prices at Comex were trading higher by 0.03% at USD 1816 per ounce. Gold April future contract at MCX were trading up by 0.05% at Rs 54940 per 10 grams by noon session.
Gold prices fluctuated in lower range as traders waited for fresh cues for further direction. Before the Federal reserve March meeting investor focus will now be on two important macro data US job market report due on tomorrow and next week US CPI inflation data which could influence Fed rate hike decision.
We expect gold prices are going to remain sensitive to incoming data from US. Meanwhile, ETF holdings continue to plummet with gold holdings yesterday shedding 226,383 ounces for a 6th straight daily declined.
We expect Comex Gold prices likely to consolidate in range of USD 1805 to USD 1833 for the day. Comex Spot Gold having resistances at USD 1824/USD 1840 per ounce and supports at USD 1805/USD 1788 per ounce. MCX Gold April future has resistance at Rs 55170 per 10 grams and supports place at Rs 54580 per 10 grams.
CLSA View On Bharti Airtel:
-Buy rating, target at Rs 1,015 per share
-Have been tariff hikes & latest increase comes 14 months before general elections
-57 percent hike for its entry plans in 19 of 22 circles can boost ARPU by 3 percent
-CEO Sunil Mittal expects more hikes by mid-2023
-Acceleration in post-paid subscriber gains, which will also boost ARPU
-On track for nationwide 5G rollout by March 2024
-Forecast 15/23 percent consolidated/India mobile EBITDA CAGR to FY25
Dollar holds near three-month highs on rates outlook
The dollar held near a three-month high on Thursday, underpinned by Federal Reserve Chair Jerome Powell's message that interest rates would have to go higher and possibly faster.
The yuan weakened after the government reported unexpectedly low inflation.
The U.S. dollar index edged 0.05% lower to 105.57, and remained near a three-month peak of 105.88 hit on Wednesday.
Market at 3 PM
Benchmark indices extended the selling and trading near the day's low.
The Sensex was down 503.23 points or 0.83% at 59,844.86, and the Nifty was down 148 points or 0.83% at 17,606.40. About 1470 shares advanced, 1779 shares declined, and 119 shares unchanged.
Saji John, Research analyst at Geojit Financial Services:
Increase in cost of the vehicle due to regulatory changes and lower rural participation on account of rising inflation and weak export dragging the overall outlook of the auto industry.
Slow ramp up in electric mobility owing to a shortage in semi-conductors is further dampening the sector for new capacity expansion. We have a neutral stand on the sector, with a favourable outlook on CVs and tractors.
| Company | CMP | Chg(%) | Volume |
|---|---|---|---|
| M&M | 1,250.75 | -3.04 | 2.67m |
| Balkrishna Ind | 1,985.00 | -3.02 | 271.90k |
| TVS Motor | 1,086.25 | -2.12 | 741.49k |
| Tube Investment | 2,742.20 | -1.85 | 51.70k |
| Eicher Motors | 3,148.20 | -1.75 | 340.83k |
| Maruti Suzuki | 8,552.00 | -1.63 | 319.66k |
| Tata Motors | 432.70 | -1.5 | 4.33m |
| Hero Motocorp | 2,445.00 | -1.33 | 200.34k |
| MRF | 85,755.10 | -1.15 | 4.09k |
| Bosch | 18,568.30 | -0.83 | 42.52k |
PSP Projects bags orders of Rs 123.38 crore
PSP Projects is in receipt of work orders worth Rs 123.38 crore in institutional, industrial and residential categories.
CLSA view On Cholamandalam Investment and Finance Company
-Buy rating with a target price of Rs 875
-If Chola buys Aptus, it will be ROA accretive but EPS/BVPS dilutive
-Merger will catapult Chola 2-3 years forward with its foray into affordable housing finance
-ROA would expand by 20-30 bps without any merger synergies
-Due to lower balance sheet leverage, RoE would decline by 70 bps
-Transaction would be marginally EPS dilutive for Chola
-Would be neutral towards a merger
Cholamandalam Investment and Finance Company was quoting at Rs 765.95, down Rs 1.80, or 0.23 percent.
| Index | CMP Chg(%) | YTD(%) 1 Week(%) | 1 Month(%) 1 Year(%) |
|---|---|---|---|
| NIFTY AUTO | 12800.45 -1.68 | 17.04 0.48 | -2.94 30.19 |
| NIFTY IT | 29773.40 -0.97 | -23.07 0.19 | -3.93 -15.99 |
| NIFTY PHARMA | 11693.05 -0.49 | -17.79 -0.58 | -4.95 -10.46 |
| NIFTY FMCG | 45311.95 -0.9 | 20.57 1.07 | -0.79 31.39 |
| NIFTY PSU BANK | 3950.85 -0.95 | 56.14 4.89 | 1.21 53.57 |
| NIFTY METAL | 5684.30 0.09 | 2.94 3.85 | -3.34 -5.65 |
| NIFTY REALTY | 403.20 -0.95 | -16.72 -0.68 | -1.48 -3.74 |
| NIFTY ENERGY | 22708.15 -0.78 | 0.34 3.69 | 0.93 -7.16 |
| NIFTY INFRA | 5171.90 -0.57 | 4.48 2.42 | 2.13 9.84 |
| NIFTY MEDIA | 1746.85 -0.74 | -21.27 1.07 | -6.83 -17.81 |
Longer maturity debt to be part of Rs 25,000 crore green bonds plan
:
India may sell as much as 250 billion rupees ($3 billion) of green bonds in the next fiscal year and plans to include longer maturity debt to the offering, according to people familiar with the matter.
There is a demand for papers of 30- to 40-year tenor, particularly from insurance companies, to fund projects with a longer gestation period, the people said, asking not to be identified as the government is yet to take a final call.
India offered green bonds in five-year and 10-year tenors, totaling 160 billion rupees, in the current year that ends March 31. While the finance ministry has assumed green issuances at 1.6% of the overall borrowing of 15.43 trillion rupees next year, the officials said that the actual offering would depend on demand. read more
European Markets Updates
Market update at 2 PM
Sensex was down 455.45 points or 0.75% at 59,892.64, and the Nifty was down 138.10 points or 0.78% at 17,616.30.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services:
Normally an inversion of the yield curve is regarded as an indicator of imminent recession. But this correlation between yield curve inversion and recession is found only in developed countries, not developing countries like India.
The inversion happened here due to higher-than-expected cut offs on treasury bills sales, which in turn, was triggered by deficit in the liquidity in the banking system. This declining trend in liquidity and inversion of the yield curve is likely to continue for some more time. But this is not going to impact India’s GDP growth in FY24.
Gold prices move in narrow range as investors await US jobs data
Gold prices traded in a tight range on Thursday as some investors stayed on the sidelines ahead of U.S. jobs data that could influence the Federal Reserve's monetary policy path.
Spot gold was flat at $1,813.20 per ounce, as of 0716 GMT, trading in a $5 range, after hitting its lowest since Feb. 28 on Wednesday. U.S. gold futures eased 0.1% to $1,816.70.
BSE Auto index slipped 1 percent dragged by M&M, Balkrishna Industries, TVS Motor
| Company | CMP | Chg(%) | Volume |
|---|---|---|---|
| M&M | 1,256.65 | -2.6 | 59.32k |
| Balkrishna Ind | 2,001.20 | -2.31 | 4.81k |
| TVS Motor | 1,090.65 | -1.75 | 11.07k |
| Tube Investment | 2,745.50 | -1.74 | 3.46k |
| Eicher Motors | 3,154.50 | -1.55 | 4.76k |
| Tata Motors | 432.95 | -1.48 | 342.94k |
| MOTHERSON | 82.39 | -1.41 | 494.96k |
| Motherson SWI | 49.39 | -1.32 | 191.75k |
| Hero Motocorp | 2,445.25 | -1.3 | 3.25k |
| Maruti Suzuki | 8,603.95 | -1.03 | 5.00k |
HFCL collaborates with Microsoft to roll out Private 5G solutions for enterprises
HFCL has collaborated with Microsoft to create converged private 5G solutions that harness new-age technologies of IoT, Cloud, Edge Computing, AI and Analytics to transform industry verticals that include manufacturing, retail & warehouse, mining, education, defence, railways, smart city, etc.
HFCL was quoting at Rs 69.20, up Rs 1.46, or 2.16 percent.
Citi names Bhanu Vohra head of commercial banking in India
Citi today announced Bhanu Vohra as Head of Commercial Banking, India. Bhanu will be responsible for the Citi Commercial Bank (CCB) business in India, which addresses the banking and financial services needs of emerging large corporates and mid-market enterprises through Citi’s global footprint, international capabilities and innovative solution
G R Infraprojects lowest bidder for NHAI project of Rs 1,248 crore
G R Infraprojects has emerged as L‐1 bidder in Financial Bid Opening dated 9th March 2023 for the tender invited by National Highways Authority of India for “Construction of 6‐lane Greenfield Varanasi‐Ranchi‐Kolkata Highway from Anarbansalea village to Sagrampur village under Bharatmala Pariyojana in the state of Bihar on Hybrid Annuity Mode.
The project cost is Rs 1248.37 crore.
G R Infraprojects was quoting at Rs 1,035.95, up Rs 6.95, or 0.68 percent.
Morgan Stanley view On Life Insurance
February RWRP growth at 10 percent YoY for industry & 18 percent for private sector
HDFC Life (Including Exide) reported strong growth at 27 percent
ICICI Prudential Life sustained growth at 7 percent
SBI Life reported flat RWRP YoY versus 8 percent, lagging private sector
30 DMA
| Company | CMP | Chg(%) | 30 SMA |
|---|---|---|---|
| Mohit Ind | 14.3 | -4.03 | 14.9 |
| Rel Capital | 9.8 | -3.64 | 10.17 |
| TataTeleservice | 66.15 | -3.49 | 68.54 |
| AXISNIFTY | 184.44 | -2.22 | 188.62 |
| India Glycols | 624.1 | -1.99 | 636.76 |
| ABSLS&PBSESETF | 57.1 | -1.99 | 58.26 |
| Monarch Net | 237 | -1.77 | 241.27 |
| D. P. Abhushan | 309.85 | -1.75 | 315.37 |
| Vinny Overseas | 12.15 | -1.7 | 12.36 |
| ABSLNBANKETF | 40.45 | -1.58 | 41.1 |
Market at 1 PM
Indices were trading lower in the afternoon session with Nifty below 17700
The Sensex was down 262.58 points or 0.44% at 60,085.51, and the Nifty was down 80 points or 0.45% at 17,674.40. About 1589 shares advanced, 1616 shares declined, and 106 shares unchanged.
M&M shares decline after Motilal Oswal analysis lowers FY24 EPS outlook by 8%
Mahindra and Mahindra (M&M) share price shed over 2 percent intraday on March 9.
Domestic research and broking firm Motilal Oswal has maintained its 'buy' call on the stock and expects a compounded average growth rate of 20 percent in EPS and 2pp RoCE improvement over FY23-25, along with cheap valuations. It expects M&M to reach a target price of Rs 1,525 per share, an upside of 20 percent from current market price.
"We cut our FY24 EPS by 8 percent to factor in lower tractor and sports utility vehicle (SUV) volumes growth, and the adverse impact of losses from new businesses," it added.
HDFC Securities initiates rating Syrma SGS Technology with a 'buy' tag
Brokerage firm HDFC Securities has initiated coverage on Syrma SGS Technology Ltd with a 'buy' rating and increased the stock's target price to Rs 294.
HDFC Securities says the PCBAs business segment, which contributes 77 percent of the topline, is expected to average a compounded growth rate of 38.4 percent over FY22-26, and the company has announced expansion plans to double production capacity to 30 assembly lines by FY24.
Syrma SGS Technology was quoting at Rs 282.00, down Rs 2.15, or 0.76 percent.
CLSA View On Phoenix Mills
-Buy rating, target at Rs 1,711 per share
-Strong growth of 20 percent YoY in same-store consumption at its malls in Feb 2023
-Same-store consumption in Feb 2023 10 percent higher than pre-covid levels
-Expect strong rental growth in the medium term
Phoenix Mills was quoting at Rs 1,317.95, down Rs 3.70, or 0.28 percent on the BSE.
Nifty PSU Bank
| Company | CMP | Chg(%) | Volume |
|---|---|---|---|
| Indian Bank | 285.30 | -2.09 | 423.64k |
| Punjab & Sind | 28.40 | -1.73 | 909.13k |
| Bank of India | 78.75 | -1.5 | 8.98m |
| Bank of Baroda | 172.65 | -0.78 | 6.31m |
| Bank of Mah | 27.35 | -0.73 | 4.64m |
| PNB | 51.20 | -0.58 | 14.69m |
| SBI | 561.85 | -0.52 | 4.34m |
| UCO Bank | 27.10 | -0.37 | 4.75m |
| Union Bank | 73.30 | -0.14 | 4.47m |
iShares Core MSCI Emerging Markets ETF picks 0.64% stake in Jindal Stainless
iShares Core MSCI Emerging Markets ETF has bought 33.69 lakh equity shares (0.64% stake) in Jindal Stainless via open market transactions, at an average price of Rs 309.42 per share. These shares are worth Rs 104.3 crore
Jindal Stainless was quoting at Rs 317.00, up Rs 5.15, or 1.65 percent.
SBI raises Rs 3,717 crore via additional Tier 1 bond issuance
State Bank of India has raised Rs 3,717 crore through its third Basel III compliant additional Tier 1 bond issuance in FY23, at coupon rate of 8.25 percent. The proceeds of bonds will be utilized in augmenting additional Tier 1 capital and overall capital base of the bank and for strengthening capital adequacy.
Japanese cosmetic company signs partnership agreement with Shoppers Stop arm
Headquartered in Singapore, Shiseido Asia Pacific Pte Ltd signed a strategic distribution partnership agreement with Global SS Beauty Brands, a subsidiary of Shoppers Stop, to expand its brand footprint in India.
Through the partnership, Shiseido Group will launch its global make-up brand, NARS Cosmetics (headquartered in New York), in second half of 2023 in key cities in India. Japan-based Shiseido Company has skincare, make-up and fragrance brands including SHISEIDO, NARS, Drunk Elephant, Clé de Peau Beauté, Narciso Rodriguez, Issey Miyake and Serge Lutens, amongst others.
Shiseido established Shiseido Asia Pacific Pte Ltd in June 2015 in Singapore to enhance marketing in the asia pacific region.
Shoppers Stop was quoting at Rs 644.35, down Rs 0.65, or 0.10 percent.
Market at 12 PM
Benchmark indices were trading lower with Nifty around 17700.
The Sensex was down 171.08 points or 0.28% at 60,177.01, and the Nifty was down 56.40 points or 0.32% at 17,698. About 1736 shares advanced, 1392 shares declined, and 117 shares unchanged.
LT Foods completes acquisition stake in Daawat Foods from United Farmers Investment
LT Foods has completed the acquisition of 5,655,341 equity shares of Daawat Foods Limited from United Farmers Investment Company.
LT Foods was quoting at Rs 103.94, up Rs 2.17, or 2.13 percent on the BSE.
BSE Smallcap
| Company | 52-Week High | Day’s High | CMP |
|---|---|---|---|
| Usha Martin | 211.95 | 211.95 | 209.15 |
| Ganesh Benzo | 178.25 | 178.25 | 177.80 |
| Jindal Saw | 177.15 | 177.15 | 171.30 |
| Kirloskar Ind | 2448.00 | 2448.00 | 2,389.45 |
| CCL Products | 592.55 | 592.55 | 584.05 |
| PNB Housing Fin | 648.90 | 648.90 | 643.10 |
| NCC | 102.00 | 102.00 | 100.09 |
| Tega Industries | 706.25 | 706.25 | 694.55 |
| HG Infra Engg | 797.55 | 797.55 | 783.15 |
| Mahanagar Gas | 1006.00 | 1006.00 | 1,002.00 |
Sonata Software announces global partnership with Sinequa to scale enterprise search solutions
Sonata Software has signed a Global Gold Services partnership agreement with Sinequa, the leading enterprise search cloud company. This partnership enables Sonata to offer its customers a powerful intelligent search solution on which knowledge-intensive organizations can support enterprise-wide search and develop customized domain and situational applications
Sonata Software was quoting at Rs 819.50, up Rs 1.75, or 0.21 percent.
PTC India Financial Services gets pre-payment of loan for Patel Darah-Jhalawar Highway
PTC India Financial Services has received full pre-payment of its loan account of M/s Patel Darah-Jhalawar Highway for the four-laning of a 48.88km stretch in Rajasthan. The pre-payment of loan includes the recovery of entire dues, including interest and other applicable charges.
PTC India Financial Services was quoting at Rs 15.59, up Rs 0.39, or 2.57 percent.
Nifty Auto index fell 0.7 percent dragged by M&M, Tube Investment, Balkrishna Industries
| Company | CMP | Chg(%) | Volume |
|---|---|---|---|
| M&M | 1,263.05 | -2.09 | 1.20m |
| Tube Investment | 2,756.80 | -1.33 | 33.56k |
| Balkrishna Ind | 2,024.95 | -1.07 | 98.02k |
| Hero Motocorp | 2,458.00 | -0.81 | 84.39k |
| Tata Motors | 436.55 | -0.63 | 2.50m |
| Eicher Motors | 3,185.00 | -0.61 | 130.37k |
| MRF | 86,285.70 | -0.54 | 1.95k |
| TVS Motor | 1,104.85 | -0.45 | 390.79k |
| Bharat Forge | 831.20 | -0.4 | 616.33k |
| Maruti Suzuki | 8,670.00 | -0.27 | 142.90k |
Muthoot Finance
-Board approves fund raising up to Rs 6,500 crore via NCDs
-Appoints T M Saithumuhammedas Chief Compliance Officer Effective April 1
No plans to explore Platina or Pulsar electric in foreseeable future, says Bajaj Auto ED
The automaker is open to the idea in the long term if the market dynamics change, executive director Rakesh Sharma tells Moneycontrol amid a push by multiple EV startups to introduce e-motorcycles... Read More
CLSA On Cholamandalam Investment
-IfChola buys Aptus Value Housing, it’ll be RoA accretive but EPS dilutive
-Merger will catapult Chola 2-3 years forward with its foray into affordable housing finance
-RoA would expand by 20-30 bps without any merger synergies
-Due to lower balance sheet leverage, RoE would decline by 70 bps
-Transaction would be marginally EPS dilutive for Chola
-Would be neutral towards a merger
-Buy rating, target price of Rs 875
| Company | CMP | Chg(%) | Volume |
|---|---|---|---|
| Adani Enterpris | 1,944.00 | -4.69 | 7.39m |
| Adani Ports | 695.60 | -2.31 | 8.27m |
| M&M | 1,263.10 | -2.08 | 908.23k |
| Reliance | 2,382.25 | -1.45 | 2.91m |
| ITC | 388.10 | -1.1 | 3.08m |
Power Grid declared successful bidder for establishment of a 765kV D/c Transmission Line
Power Grid Corporation of India Limited has been declared as successful bidder under tariff based competitive bidding to establish inter-state transmission system for “Transmission System Strengthening Scheme for Evacuation of Power from Solar Energy Zones in Rajasthan (8.1 GW) under Phase-II Part-E” on Build, Own Operate and Maintain (BOOM) basis.
The Letter of Intent (LoI) has been received by Power Grid Corporation of India Limited on 7th March, 2023. The scope of the project comprises of establishment of a 765kV D/c Transmission Line along with associated Line Bays in the State of Rajasthan.
Power Grid Corporation of India was quoting at Rs 229.75, up Rs 1.80, or 0.79 percent.
Bharat Forge to start E-bike manufacturing facility via subsidiary Kalyani Powertrain, in Pune
Bharat Forge has announced its E-bike manufacturing facility at MIDC Chakan, Pune, through its wholly owned subsidiary Kalyani Powertrain.
The facility has a production capacity of 60,000 units per annum and scalable to 1 lakh units per annum, will undertake assembly of E-bikes for Tork Motors, wherein 64.29% owned by Kalyani Powertrain.
