The market is expected to open in the green as trends in the SGX Nifty indicate a positive opening for the broader index in India with a gain of 84 points.
The BSE Sensex dropped 361 points to 57,629, while the Nifty50 shed 112 points to 16,988 and formed a bearish candlestick pattern with long lower shadow which resembles a hammer kind of pattern on the daily charts, which is a bullish reversal pattern.
As per the pivot charts, the Nifty has support at 16,870, followed by 16,814 and 16,723. If the index moves up, the key resistance levels to watch out for are 17,052, followed by 17,108 and 17,199.
Stay tuned to Moneycontrol to find out what happens in the currency and equity markets today. We have collated a list of important headlines across news platforms which could impact Indian as well as international markets:
US Markets
US stocks jumped on Monday after a deal to rescue Credit Suisse and central bank efforts to bolster confidence in the financial system relieved investors, while participants also weighed the likelihood of a pause in rate hikes from the Federal Reserve this week.
The Dow Jones Industrial Average rose 382.6 points, or 1.2 percent, to 32,244.58, the S&P 500 gained 34.93 points, or 0.89 percent, to 3,951.57 and the Nasdaq Composite added 45.03 points, or 0.39 percent, to 11,675.54.
Asian Markets
Asia-Pacific markets are set to rise after markets on Wall Street staged a relief rally on the hopes that the banking crisis is easing, following the $3.2 billion takeover of Swiss bank Credit Suisse by rival UBS.
In Australia, the S&P/ASX 200 rose 1.07 percent higher, while South Korea’s Kospi was up 0.73 percent. Markets in Japan are closed for a holiday.
SGX Nifty
Trends in the SGX Nifty indicate a positive opening for the broader index in India with a gain of 84 points. The Nifty futures were trading around 17,109 levels on the Singaporean exchange.
Oil prices rebound after hitting lowest since 2021 on banking fears
Oil prices rebounded and rose over 1% on Monday after diving to their lowest levels in 15 months as the market worried that risks in the global banking sector could spark a recession that would sap fuel demand.
In volatile trade, Brent crude futures for May rose 82 cents, or 1.1 percent to $73.79 a barrel. US West Texas Intermediate crude futures for April gained 90 cents, or 1.4 percent, at $67.64 on the eve of the contract's expiry.
NPAs of public sector banks decline to 5.53% in December 2022: Finance Ministry
Bad loans of state-run banks declined from a peak of 14.6 percent in March 2018 to 5.53 percent in December 2022, the government said on March 20 citing official data. "Government implemented a comprehensive 4R’s strategy of Recognising NPAs transparently, Resolution and recovery, Recapitalising PSBs, and Reforms in the financial ecosystem," said Minister of state Finance, Bhagwat Karad in Parliament.
Further, all PSBs are in profit with aggregate profit being Rs. 66,543 crore in the financial year (FY) 2021-22, the minister said. "Profit continued with PSBs earning aggregate profit of Rs. 70,167 crore in first nine months of FY 2022-23," Karad added.
FII and DII data
Foreign institutional investors (FII) sold shares worth Rs 2,545.87 crore, whereas domestic institutional investors (DII) bought shares worth Rs 2,876.64 crore on March 20, the National Stock Exchange’s provisional data showed.
GDP to grow at 7%; inflation set to moderate: Finmin Report
Indian economy is expected to grow at 7 percent in FY23 despite global headwinds while retail inflation would moderate in line with wholesale inflation which fell to a 25-month low in January, the Finance Ministry said on Monday.
Supported by the gains from high services exports, the moderation in oil prices, and the recent fall in import-intensive consumption demand, India's current account deficit is estimated to fall in FY23 and FY24, providing a buffer to the rupee in uncertain times, Monthly Economic Review by the ministry said.
This will provide a much-needed cushion to India's external sector at a time when the Fed is likely to raise rates further and ensure that India's external finances are not a major cause of concern, it said.
With regard to growth, the report said, real GDP estimates for Q3 of 2022-23 reaffirm the ability of the Indian economy to grow on the strength of its domestic demand even as a rise in global uncertainties slows global output.
Gold drops from one-year peak
Gold prices retreated from their highest level in a year in volatile trading on Monday, as share markets and Treasury yields bounced back on central banks' efforts to shore up confidence in the financial sector.
Spot gold dipped 0.8 percent to $1,972.19 per ounce, after sliding over 1 percent, while US gold futures rose 0.2 percent to $1,976.80.
Dollar down as investors digest Credit Suisse rescue, eye US regional banks
The dollar slid on Monday as investors reacted to UBS' cut-price takeover of its beleaguered rival Credit Suisse. The US dollar index - which measures the currency against six major peers - was last down 0.501% at 103.270 the day after the merger was announced, touching its lowest level since February 15.
Stocks under F&O ban on NSE
The National Stock Exchange has added Biocon, and retained Indiabulls Housing Finance in its F&O ban list for March 21. Securities banned under the F&O segment include companies where derivative contracts have crossed 95 percent of the market-wide position limit.
With inputs from Reuters and other agencies
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