Japan loses its spot as world's third-largest economy as it slips into recession : Daily Market Update -15 Feb 2024 | Globe Capital Market LTD.
Japan loses its spot as world’s third-largest economy as it slips into recession : Daily Market Update -15 Feb 2024

Japan’s economy unexpectedly slipped into recession after shrinking for a second quarter due to anemic domestic demand, prompting some central bank watchers to push back bets on when the nation’s negative interest rate policy will end. Gross domestic product contracted at an annualized pace of 0.4% in the final three months of last year, following a revised 3.3% retreat in the previous quarter, the Cabinet Office reported Thursday.

Overview and Outlook

Global Stock Market Today

  • Barring Dow, other US equity markets settled higher in range 0.5% to 1%.
  • European equity markets were up in range 0.38% to 0.74%.
  • Majority of Asian equity markets are trading in green.
  • GIFT Nifty is up by 70 points, Nifty futures are likely to open around 22000 levels (as on 8:30AM).


News highlights from across the globe

  • Asian markets are trading higher in early trade on Thursday as overnight recovery on Wall Street boosted sentiment.
  • Latest preliminary data from Japan’s Cabinet Office showed on Thursday, country’s GPD has contracted to 0.4% on year in last quarter of 2023, reported Nikkei Asia. This is the second contraction, technically indicating the economy has fell in to an recession.
  • Wall Street traders reeling from an unexpected pickup in U.S. inflation sent bonds higher on Wednesday.


Important news updates from the domestic front

  • NMDC Q3 FY24 (Consolidated, YoY) – Revenue up 45.42% at Rs 5,409.9 crore vs Rs 3,719.99 crore. Ebitda up 75.97% at Rs 2,007.17 crore vs Rs 1,140.62 crore . Margin expands 643 bps to 37.1% vs 30.66%. Net profit up 62.67% at Rs 1,483.93 crore vs Rs 912.23 crore.
  • Glenmark Pharma Q3 FY24 (Consolidated, YoY) – Revenue down 19.15% at Rs 2,506.7 crore vs Rs 3,100.2 crore (Bloomberg estimate: Rs 3,463.84 crore). Ebitda loss at Rs 208.7 crore vs profit of Rs 474 crore (Bloomberg estimate: Rs 577.93 crore). Net loss at Rs 330.8 crore vs profit of Rs 290.8 crore (Bloomberg estimate: Rs 247.58 crore). Exceptional gain of Rs 76.7 crore.
  • Muthoot Finance Q3 FY24 (Consolidated, YoY) – Total income up 19.06% at Rs 3,175.7 crore vs Rs 2,667.1 crore. Net profit up 13.92% at Rs 1,027.3 crore vs Rs 901.7 crore.
  • One 97 Communication clarified that it has been receiving notices from authorities including the Enforcement Directorate and that the Paytm Payments Bank does not undertake outward foreign remittances.
  • Hindustan Unilever plans to partner with the Andhra Pradesh government to produce palm oil in the state.
  • Container Corp of India signed a Memorandum of Understanding with the container company of Bangladesh to extend the existing agreement for running container trains between India and Bangladesh.
  • State Bank of India will keep MCLR-based lending rates unchanged for February.
  • West Coast Paper achieved the milestone by doubling capacity for optical fiber cable production.
  • Indian Railway Catering and Tourism Corp: The Ministry of Railways approved the appointment of Sanjay Kumar Jain as chairman and managing director on an immediate absorption basis with effect from Feb. 14.


Nifty Overview & Outlook

The benchmark Nifty index opened with a gap on downside. Smart recovery led by PSU Bank and Oil & Gas stocks helped the benchmark index to settle at day’s highs at 21840 levels, up nearly 100 points to its previous closing values.

Broader markets outperformed the benchmark as Small & Mid Cap index up were over 1.5% and 1% respectively against 0.5% advance of frontline index.

Majority of sectoral indices tracked at NSE settled higher. Amongst them, Nifty PSU Bank and Oil & Gas index was the top performer, up over 3% followed by Nifty Auto, Metal, Media and Realty index that settled higher in range 1% to 2.5%. On the other hand Nifty IT and Pharma index was down 1% each.

Technically, Nifty index rebound from an important supports of 21500 levels. Going ahead, we reiterate our sideways to bullish view on Nifty index till it is trading above 21500 levels.


Derivatives Overview & Outlook

Yesterday, short buildup was seen in Nifty, Banknifty and Finnifty futures with decrease in open interest by 1%, 5.2% and 8.6% respectively.

Most of the F&O sectors settled higher. Amongst them, Oil & Gas, Metal and Infra shares witnessed maximum addition of long positions whereas short covering was seen in Technology, Pharma and Cement stocks.

On options front, put writing was seen at multiple strikes and maximum positions are at 21500 PE and 22000 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 3930 Cr in the cash segment, sold stocks futures and index future worth Rs 645 Cr and Rs 87 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 2898 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22000-22140; Supports 21750-21580

Banknifty – Resistances 46440-46880; Supports 45400-45000

Finnifty – Resistances 20530-20670; Supports 20170-20050




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