FTSE index rebalancing to drive passive inflows worth $1.7 billion: Daily Market Update - 15 March 2024 | Globe Capital Market LTD.
FTSE index rebalancing to drive passive inflows worth $1.7 billion: Daily Market Update – 15 March 2024

The rejig of the FTSE index, which comes into effect from March 15, is expected to trigger passive inflows of around $1.7 billion, with the major chunk flowing into BFSI names like HDFC Bank, Kotak Mahindra Bank and Sundaram Finance, as estimated by Nuvama Alternative & Quantitative Research. A couple of more rejigs like that of the BSE Sensex and Bharat 22 indices also comes into effect from the next session.

Overview and Outlook

Global Stock Market Today

  • US equity markets settled on a flat to negative note.
  • Barring CAC, other European equity markets settled on a flat to negative note.
  • Asian equity markets are trading in red.
  • GIFT Nifty is trading at 22155, indicating a gap down opening for Nifty futures by around 100 points (as on 8:30AM).


News highlights from across the globe

  • Equity Markets in Asia-Pacific region are trading lower, tracking cues from overnight losses on Wall Street as investors look forward to release of U.S. PPI data.
  • U.S. Producer Price Index rose more than expected in February, echoing CPI report earlier in the week, which raised worries the Federal Reserve will not be in any rush to ease monetary condition.
  • Following the hotter-than-expected inflation data, U.S. Treasury yields witnessed sharp rise, dollar index strengthened, which pressured the riskier assets like emerging market equities.


Important news updates from the domestic front

  • FTSE and Sensex Rejig: Nuvama Institutional Equities expects that India will see an inflow of over $1.7 billion, mainly from the financial space. The FTSE rejig is set to happen on Friday.
  • Oil Marketing Companies: OMCs will cut petrol and diesel prices by Rs 2 per litre from Friday.
  • Wipro has been selected by Desjardins to transform their credit solutions for members and clients.
  • One 97 Communication: The National Payments Corporation of India has granted approval to the company to participate in UPI as a third-party application provider under the multi-bank model.
  • NHPC has received a letter of intent for a 200 MW solar power project at Khavda from Gujarat Urja Vikas Nigam.
  • TVS Motor’s Singapore arm will invest $5.5 million in Ion Mobility.
  • Tata Steel: The board is meeting on March 19 to approve fundraising.
  • Dr.Reddy’s Laboratories: The Mexican arm was fined Rs 28.8 crore in a tax litigation case.
  • KPI Green Energy received an order for a 50MW wind-solar hybrid power project from Gujarat Urja Vikas Nigam.
  • Tata Consumer Products will consider a share-based long-term incentive plan for the grant of performance share units to eligible employees.


Nifty Overview & Outlook

The benchmark Nifty index witnessed smart recovery from the days low and settled higher at 22146 levels after adding 150 points to its previous closing values.

Broader markets outperformed the benchmark as Small and Midcap index gained 3.5% & 1.77% respectively; resultant, strong market breadth.

All the sectoral indices, barring Banking and financial pack, tracked at NSE settled higher. Amongst them, Nifty Oil & Gas index was the top performer, up 2.5% while rest of sectoral indices were up in range 1% to 2% each.

Going ahead, we expect Nifty index to trade with sideways to negative bias till it is trading below 22300 levels on closing basis and expect it to test 21800 levels in immediate near term.


Derivatives Overview & Outlook

Yesterday, long buildup was seen in Nifty futures with increase in open interest by 4.5%. No significant changes was seen in BankNifty and Finnifty futures on price front, whereas on open interest front, Banknifty futures open interest increased by 1.3% and Finnifty open interest decreased by 3.1%.

Most of the F&O sectors settled higher. Amongst them Infrastructure, Telecom, Media and Chemicals shares rose on short covering, whereas long buildup was seen in Capital Goods stocks.

On options front, Nifty will start the new weekly contract with maximum positions at 23000 CE and 22000 PE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 1356 Cr in the cash segment, bought stocks futures worth Rs 2138 Cr and sold index futures worth Rs 711 Cr. DIIs were net buyer in the cash segment to the tune of Rs 139 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22400-22500; Supports 22000-21970

Banknifty – Resistances 47400-47700; Supports 46700-46400

Finnifty – Resistances 20850-21020; Supports 20650-20500




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