Market trades with decent gains; Nifty above 17,500 mark

The benchmark indices were trading with decent gains during morning trade. FMCG, financial services and auto stocks witnessed strong demand whereas pharma and IT scrips dragged the index pivotals lower. The Nifty index traded above 17,500 level. The March 2022 F&O contracts will expire today, 31 March 2022.

At 10:30 IST, the barometer index, the S&P BSE Sensex rose 76.63 points or 0.13% at 58,760.62. The Nifty 50 index gained 28.50 points or 0.16% at 17,526.75.

The S&P BSE Mid-Cap index added 0.37%. The S&P BSE Small-Cap index rose 0.64%.

The market breadth, indicating the overall health of the market, was strong. On the BSE, shares 1,913 rose and 1,155 shares fell. A total of 147 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 1,357.47 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,216 crore in the Indian equity market on 30 March 2022, provisional data showed.

Economy:

India Ratings and Research (Ind-Ra) stated that its FY23 Economic Outlook released in the month of January 2022, is unlikely to hold in view of the global geo-political situation arising out of the Russia-Ukraine conflict. Since the duration of Russia-Ukraine conflict continues to be uncertain, Ind-Ra has created two scenarios with respect to the FY23 economic outlook basis certain assumptions.

In Scenario 1, the crude oil price is assumed to be elevated for three months, and in Scenario 2, the assumption is for six months, both with a half cost pass-through into the domestic economy. Ind-Ra expects GDP to grow 7.2% Y-o-Y in Scenario 1 and 7% Y-o-Y in Scenario 2 in FY23, compared to its earlier forecast of 7.6%. However, the size of the Indian economy in FY23 will still be 10.6% and 10.8% lower than the FY23 GDP trend value in Scenario 1 and Scenario 2, respectively, the firm added.

Buzzing Index:

The Nifty FMCG index rose 0.80% to 36,146.85. The index added 1.42% in two trading sessions.

Procter & Gamble Hygiene & Healthcare (up 2,73%), Marico (up 2.45%), Radico Khaitan (up 1.23%), United Breweries (up 1.23%) and Dabur India (up 1.17%) were the top gainers in the FMCG segment.

Stocks in Spotlight:

Godrej Properties rose 0.35%. The real estate developer has acquired a 9 acres land parcel in the residential micro-market of Pimpri-Chinchwad in Pune. The development will primarily be for a group housing project. Based on the current business assumptions, the project will have a developable potential of approximately 1.7 million square feet of saleable area with an estimated revenue potential of approximately Rs 1,400 crore. Pimpri-Chinchwad is one of the established residential locations in Pune and has excellent connectivity to all major social and commercial hubs of Pune city, Godrej Properties said in a statement.

Axis Bank gained 1.21%. The private bank will pay a consideration upto Rs 12,325 crore to Citibank for acquiring its consumer businesses in India. The transaction comprises the sale of the consumer businesses of Citibank India, which includes credit cards, retail banking, wealth management and consumer loans. The deal also includes the sale of the consumer business of Citi`s non-banking financial company, Citicorp Finance (India), comprising the asset-backed financing business, which includes commercial vehicle and construction equipment loans, as well as the personal loans portfolio. The deal offers strategic advantages to Axis Bank, such as premiumization of its overall customer portfolio, increased opportunities to cross-sell its products and accelerated digital transformation. Post the acquisition, Axis Bank will have about 28.5 million savings accounts, 2.3 lakh+ Burgundy customers and 10.6 million Cards.

IIFL Wealth Management rallied 3.36%. Bain Capital agreed to acquire 24.98% equity stake in the company. Bain Capital has agreed to acquire 24.98% equity stake in IIFL Wealth Management ("IIFLWAM") from General Atlantic Singapore Fund and FIH Mauritius Investments, a wholly owned subsidiary of Fairfax India Holdings Corporation. BC Asia Investments X will acquire 2,21,55,000 equity shares of IIFLWAM, constituting 24.98% stake, at Rs 1,661 per share, aggregating to Rs 3679.94 crore. The share purchase agreement was executed on 30 March 2022. The transaction is subject to regulatory and other customary approvals.

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