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Market at day`s low, Nifty below 17,350 mark

Published on Apr 03, 2023 11:33

The benchmark indices traded with modest losses and hit the day`s low in mid-morning trade. The Nifty traded below the 17,350 mark after hitting the day`s high of 17,428.05 in early trade. Metal index witnessed profit booking after increasing in the past two trading session.

At 11:30 IST, the barometer index, the S&P BSE Sensex, was down 187.6 points or 0.32% to 58,803.92. The Nifty 50 index shed 45.60 points or 0.26% to 17,314.15.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index added 0.15% while the S&P BSE Small-Cap index gained 0.90%.

The market breadth was strong. On the BSE, 2,479 shares rose and 863 shares fell. A total of 150 shares were unchanged.

The Reserve Bank of India (RBI) monetary policy meeting begins today. The outcome of the meeting will be announced on April 6. The RBI`s monetary policy committee (MPC) may reportedly increase the repo rate by 25 basis points (bps) in order to combat rising inflation.

The gross GST revenue collected in March 2023 is Rs. 1,60,122 crore. The total gross collection for 2022-23 stands at Rs 18.10 lakh crore. The gross revenues in 2022-23 were 22% higher than that last year. This was the fourth time in the current financial year that the gross GST collection has crossed Rs 1.5 lakh crore, marking the second-highest collection ever.

India Manufacturing PMI:

The seasonally adjusted S&P Global India Manufacturing Purchasing Managers` Index (PMI) rose from 55.3 in February to 56.4 in March, signalling the strongest improvement in operating conditions in 2023 so far. That said the PMI average for the final fiscal quarter (55.7) came in below that recorded in the prior period (56.3 in Q3).

Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence, said: "Underlying demand for Indian goods remained strong in March, underscored by the quickest upturn in factory orders for three months. Hence, production continued to expand at a robust clip and firms stepped up their stock-building efforts.

"Companies reported abundant capacity among themselves and their suppliers. Pending workloads expanded only marginally in March, hindering job creation. As for supply chains, improved availability of raw materials among vendors resulted in shorter delivery times and retreating price pressures. Overall, input costs rose at the second-slowest rate since September 2020.

"Firms tried to benefit as much as possible from this moderation in inflation by acquiring additional raw materials and semi-finished items. This contributed to one of the strongest increases in input inventories in over 18 years of data collection.

"Although manufacturers were upbeat towards future new orders, they somewhat doubted that inflation would continue to recede. Such worries restricted optimism towards output prospects."

Buzzing Index:

The Nifty Metal index fell 0.81% to 5,452.95. The index witnessed profit booking after advancing 3.14% in two trading sessions.

Adani Enterprises (down 2.13%), JSW Steel (down 1.49%), Hindalco Industries (down 1.28%), APL Apollo Tubes (down 1.28%), Jindal Steel & Power (down 1.19%), Ratnamani Metals & Tubes (down 0.74%), Tata Steel (down 0.33%) edged higher.

On the other hand, Welspun Corp (up 2.37%) ,Vedanta (up 1.84%) and Steel Authority of India (up 0.97%) declined.

Stocks in Spotlight:

Mahindra & Mahindra (M&M) rose 0.79%. The auto major said that its overall auto sales for the month of March 2023 stood at 66,091 vehicles, registering a growth of 21% as against 54,643 vehicles sold in March 2022. On a sequential basis, M&M`s total auto sales rose 12.4% in March 2023 as against 58,801 units sold in February 2023.

Further, M&M`s Farm Equipment Sector (FES) announced its tractor sales numbers for March 2023. The company`s total tractor sales (domestic + exports) increased 17.6% YoY to 35,014 units in March 2023 from 29,763 units sold in March 2022.

Life Insurance Corporation of India gained 1.88% after the major life insurer announced that Tablesh Pandey has been appointed as the managing director of the corporation effective from 1 April 2023.

Bharat Electronics (BEL) shed 0.35. The company said that it has achieved a turnover of about Rs 17300 crore during the financial year 2022-23, against the previous year`s turnover of Rs. 15,044 crore, thereby registering a growth of 15% on YoY basis. BEL`s Order Book as on 1 April 2023, was around Rs 60,500 crore.

Global Markets:

Asian stocks traded mixed on Monday as investors further digested key manufacturing data in the region. Crude oil prices surged after OPEC+ members agreed to cut more than 1 million barrels per day to extend through the end of 2023.

China`s Caixin/Markit manufacturing Purchasing Managers` Index for March was 50. The reading for March fell from 51.6 seen in February. China`s official PMI for March stood at 51.9.

Japan`s factory activity showed a softer contraction in five months. The manufacturing purchasing managers index rose to 49.2% for March, higher than February`s figure of 47.7%, based on a private survey.

U.S. stocks rose Friday after the Federal Reserve`s preferred inflation gauge showed a cooler-than-expected increase in prices.

The Federal Reserve`s preferred inflation gauge climbed at a 0.3% monthly pace in February, marking a slight slowdown from the month before as pricing pressures show signs of gradually easing. The core personal consumption expenditures price index increased 4.6% in February from a year earlier, the Commerce Department reported Friday, compared to January`s 4.7% annual pace.

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