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Benchmarks end marginally higher in highly volatile trade on Monday
Mar-04-2024

Indian equity benchmarks trimmed initial gains to close marginally higher in a highly volatile trade on Monday. Markets made a slightly positive start and managed to keep their heads above water for the most part of the session as traders took some support with private report that Inflation in goods and services other than fuel and food is likely to remain low, around 3% in the near term, owing to weak rural demand, softness in housing inflation and lower input cost pressures. Some solace also came as Moody's raised India's growth forecast for 2024 calendar year to 6.8 per cent, from 6.1 per cent estimated earlier, on the back of 'stronger-than-expected' economic data of 2023 and fading global economic headwinds. 

However, gains remained capped as provisional data from the NSE showed foreign institutional investors (FIIs) net sold shares worth Rs 81.87 crore on March 2, 2024. Traders took a note of Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) member Ashima Goyal’s statement that the Indian economy has done well despite multiple external shocks, but counter-cyclical macroeconomic policy measures will be required to aid the economy's natural resilience as geopolitical situation remains fragile. Goyal further said inflation in the country has come down but it has not yet reached the target levels. 

On the global front, European markets were trading mostly in green as investors awaited cues from the U.K. Spring Budget, Fed Chair Jerome Powell's congressional testimony and the interest rate decision from the European Central Bank. Asian markets settled mostly higher on Monday as weak U.S. economic data released on Friday added to optimism about the Federal Reserve eventually cutting interest rates. 

Finally, the BSE Sensex rose 66.14 points or 0.09% to 73,872.29 and the CNX Nifty was up by 27.20 points or 0.12% to 22,405.60.

The BSE Sensex touched high and low of 73,990.13 and 73,747.01 respectively. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices ended mixed; the BSE Mid cap index rose 0.16%, while Small cap index was down by 0.78%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.88%, Energy up by 1.71%, Power up by 1.67%, PSU up by 1.49% and Utilities up by 1.45%, while IT down by 0.80%, Consumer Durables down by 0.62%, Healthcare down by 0.59%, TECK down by 0.58% and Basic Materials down by 0.56% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 3.50%, Power Grid Corporation up by 2.63%, Reliance Industries up by 1.03%, Axis Bank up by 0.90% and ICICI Bank up by 0.77%. On the flip side, JSW Steel down by 2.49%, Mahindra & Mahindra down by 1.75%, Tata Steel down by 1.32%, Ultratech Cement down by 1.32% and Infosys down by 1.05% were the top losers.

Meanwhile, Reserve Bank of India’s (RBI's) Monetary Policy Committee (MPC) member Ashima Goyal has said that the Indian economy has done well despite multiple external shocks, but counter-cyclical macroeconomic policy measures will be required to aid the economy's natural resilience as geopolitical situation remains fragile. Goyal further said inflation in the country has come down but it has not yet reached the target levels.

She said ‘Major contributing factors for good performance were India's rising economic diversity and the role of policy in smoothing shocks. Both these helped India do well despite multiple external shocks.’

The Reserve Bank has projected GDP growth for the next financial year at 7 per cent on the back of improved household consumption and upturn in the private capex cycle. Besides, Noting that the government has over-achieved its fiscal deficit target despite nominal income growth being less than what projected in the budget (since wholesale prices fell), she said higher growth and tax buoyancy gives room to reduce deficit and debt ratios while adequately raising absolute amounts of spending.

The CNX Nifty traded in a range of 22,440.90 and 22,358.30. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were NTPC up by 3.69%, HDFC Life Insurance up by 2.82%, Power Grid Corporation up by 2.70%, ONGC up by 2.68% and BPCL up by 2.67%. On the flip side, Eicher Motors down by 2.68%, JSW Steel down by 2.24%, SBI Life Insurance down by 2.06%, Mahindra & Mahindra down by 1.74% and Britannia Industries down by 1.68% were the top losers.

European markets were trading mostly in green; France’s CAC rose 4.99 points or 0.06% to 7,939.16 and Germany’s DAX gained 0.41 points or 0% to 17,735.48, while UK’s FTSE 100 decreased 22.73 points or 0.3% to 7,659.77.

Asian markets settled mostly higher on Monday tracking Wall Street’s gains last Friday as weak US manufacturing and consumer sentiment data reinforcing bets that the Fed will start cutting interest rates in June. Meanwhile, investors are awaiting cues from Federal Reserve Chair Jerome Powell's congressional testimony and the annual meeting of China’s National People's Congress in Beijing. Japan's Nikkei 225 average surpassed the crucial 40,000 level for the first time led by technology shares. Japan’s government is considering declaring a formal end to its battle against deflation in a move that paves the way for its central bank to cease negative interest rates for the first time in eight years. Seoul shares gained after data showed South Korea's industrial output rose for the third consecutive month in January.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,039.31

12.29

0.40

Hang Seng

16,595.97

6.53

0.04

Jakarta Composite

7,276.75

-35.16

-0.48

KLSE Composite

1,539.27

1.25

0.08

Nikkei 225

40,109.23

198.41

0.49

Straits Times

3,122.21

-13.55

-0.43

KOSPI Composite

2,674.27

31.91

1.19

Taiwan Weighted

19,305.31

369.38

1.91
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