India’s forex reserves jump $ 6.55 billion to $ 625.63 billion: Daily Market Update - 11 March 2024 | Globe Capital Market LTD.
India’s forex reserves jump $ 6.55 billion to $ 625.63 billion: Daily Market Update – 11 March 2024

India's forex reserves jumped USD 6.55 billion to USD 625.626 billion for the week ended March 1, the Reserve Bank of India said on Friday. It can be noted that in October 2021, the country's forex kitty had reached an all-time high of USD 645 billion. The reserves took a hit as the central bank deployed the kitty to defend the rupee amid pressures caused majorly by global developments since last year. For the week ended March 1, the foreign currency assets, a major component of the reserves, increased by USD 6.043 billion to USD 554.231 billion, the data said.

Overview and Outlook

Global Stock Market Today

  • US equity markets settled lower in range 0.18% to 1.53%.
  • Barring CAC, other European equity markets settled on a flat to negative note.
  • Asian equity markets are trading on a mix note.
  • GIFT Nifty is down by 80 points , Nifty futures is likely to open around 22625 levels (as on 8:30AM).


News highlights from across the globe

  • Asian equity markets are trading mix, taking cues from decline on Wall Street as investors assess Japan’s GDP data, and await U.S. CPI print.
  • U.S. stocks hit all-time highs in the run-up to the U.S. jobs report, with investors betting some of the world’s major central banks will start slashing interest rates as soon as June.
  • Brent crude was trading 0.38% lower at $81.77 a barrel.


Important news updates from the domestic front

  • Vedanta received warning related to publishing information relating to unlisted ultimate holding company from SEBI.
  • Inter Globe Aviation: Promoter Rakesh Gangwal will sell up to a 3.3% stake in the company worth at least Rs 3,729 crore, at a floor price of Rs 2,925 apiece.
  • GAIL, ONGC: GAIL, Oil and Natural Gas Corp and Shell Energy India signed a tripartite Memorandum of Understanding to explore opportunities for importing ethane and other hydrocarbons, as well as developing evacuation infrastructure at Shell Energy Terminal, Hazira.
  • Torrent Power received letter of award worth Rs 1,540 crore from Maharashtra state electricity distribution company for setting up 306 MW grid-connected solar PV projects.
  • Gujarat Gas and Bharat Petroleum signed an MoU on various fronts to streamline operations and improve service delivery. This MoU includes offering liquid fuels and BPCL’s allied petroleum products at select outlets of the company.
  • Rail Vikas Nigam received a letter of award from Madhya Pradesh Poorv Kshetra Vidyut Vitaran for a broad consideration of Rs 251 crore to supply, install, test and commission 11 KV Line associated works. The company received a LOA worth Rs 889 crore from the Himachal Pradesh state electricity board for the development of distribution infrastructure in the south zone of Himachal Prades
  • Titagarh Rail Systems received order worth of Rs 1,909 crore from the Railway Board for manufacture and supply of 4,463 BOSM wagons.
  • Exide Industries received approval from the NCLT for the scheme of amalgamation between its wholly owned subsidiaries, Exide Energy Solutions and Exide Energy.
  • Sonata Software has announced the integration of Sonata Harmoni.AI with Microsoft Azure AI service.
  • TVS Motor announces its presence in France. It will showcase its product range for Europe in Lyon, France up till Mar.10.


Nifty Overview & Outlook

Nifty index settled on flat to positive note and closed at new all time highest levels i.e.  22493 levels, added 19 points to its previous closing values.

Broader market settled on mix note as Midcap index ended on a flat note while Small cap index up nearly 1% against flat closing of frontline index leading to flat market breadth.

Majority of sectoral indices settled in  green. Amongst them, Nifty Media index was at the top of the tally, rose over 2.5% followed by Metal and FMCG index that settled higher by 1.38% and 0.98% respectively. On the other hand,  Nifty Oil & Gas index led the decline, down over 1%.

Technically, Nifty Index is well placed on multiple chart frames. Going ahead, we reiterate our bullish view on Nifty index till it is trading above 22200 levels on closing basis and expect it to test 22600 and higher levels in near term.


Derivatives Overview & Outlook

Last Thursday, no major changes were observed on price front in all three major index futures. On open interest front, Nifty and Banknifty futures open interest decreased by 3.9% and 2% respectively, whereas Finnifty futures open interest were increased by 4.7%.

On the sectoral front, fresh buildup was seen in Power, Metals, Chemicals and Realty shares, whereas Short buildup was seen in Automobile shares. Short covering was seen in FMCG, Finance and Capital Goods shares.

On options front, Nifty will start the new weekly contract of March series with maximum positions at 22400 PE and 22500 CE.

Institutional Trading Activity

Last week, FIIs bought stocks worth Rs 10081 Cr in the cash segment, sold stocks futures worth Rs 1690 Cr and bought index futures worth Rs 2087 Cr. DIIs were net buyer in the cash segment to the tune of Rs 10129 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22710-22790; Supports 22440-22370

Banknifty – Resistances 48300-48500; Supports 47700-47400

Finnifty – Resistances 21200-21270; Supports 20950-20800


F&O Securities in Ban Today  – MANAPPURAM, MGL, SAIL, TATACHEM, ZEEL.


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