World Bank projects Indian economy to grow at 7.5% in 2024 : Daily Market Update - 3 April 2024 | Globe Capital Market LTD.
World Bank projects Indian economy to grow at 7.5% in 2024 : Daily Market Update – 3 April 2024

The Indian economy is projected to grow at 7.5% in 2024, the World Bank has said, revising its earlier projections for the same period by 1.2%. Overall, growth in South Asia is expected to be strong at 6% in 2024, driven mainly by robust growth in India and recoveries in Pakistan and Sri Lanka, the World Bank said in its latest South Asia Development Update on Tuesday. “In India, which accounts for the bulk of the region’s economy, output growth is expected to reach 7.5% in FY23/24 before returning to 6.6% over the medium term, with activity in services and industry expected to remain robust,” the bank said in its report. In Bangladesh, output is expected to rise by 5.7% in FY24/25, with high inflation and restrictions on trade and foreign exchange constraining economic activity.

Overview and Outlook

Global Stock Market Today

  • US equity markets ended in lower in range 0.72% to 1%.
  • European equity markets also settled lower in range 0.2% to 1%.
  • Asian equity markets are trading lower.
  • GIFT Nifty is trading down by 100 points, Nifty futures is likely to open around 22450 levels (as on 8:30AM).


News highlights from across the globe

  • Asian equity markets are trading  lower after data showed number of new jobs in the U.S. remained largely unchanged in February, indicating strength of the labour market.
  • The strong U.S. Job Openings and Labor Turnover Survey data for February compelled market participants to scale down the number of rate cuts they were expecting in 2024. This pushed the U.S. Treasury yield higher, which also weighed on the emerging market equities.
  • Stocks and bonds dropped around the world as solid economic readings and a rally in commodities spurred speculation that major central banks would keep rates higher for longer, Bloomberg said.


Important news updates from the domestic front

  • UltraTech Cement will invest Rs 32,400 crore towards ongoing capex over the next three years. It has commissioned two new units in Chhattisgarh and Tamil Nadu to surpass 150 MTPA capacity.
  • Bharti Airtel approved the allotment of 1.38 crore shares to foreign currency convertible bondholders at a conversion price of Rs 518 per share.
  • HCLTech’s arm completed the divestment of a 49% stake in JV with US-based State Street. The arm received proceeds worth $172.5 million for stake divestment, termination of services, and settlement of contractual commitments.
  • Biocon has completed the transaction of the transfer of the business of Biocon Biologics to Eris Lifesciences on a ‘slump sale’ basis for Rs 1,242 crore, including working capital adjustments.
  • Zee Entertainment Enterprises: MD and CEO Punit Goenka takes the decision to implement a voluntary 20% reduction in personal remuneration.
  • Jammu and Kashmir Bank signed an agreement with New India Assurance for servicing and soliciting their insurance products through the company’s branch network.
  • Hindustan Zinc reported mined metal output at 2.99 lakh tonne, down 1% YoY and silver output at 6.1 million ounces, up 4% YoY for Q4.
  • PC Jeweller: Karur Vysya Bank has accepted a one-time settlement proposal submitted by the company to settle outstanding dues.
  • Moil achieved production and sales in FY24, with a 35% increase in production and a 30% increase in sales year-on-year.


Nifty Overview & Outlook

Benchmark Nifty index settled on a flat note at 22453 levels after a lackluster trading session.

Broader markets outperformed the benchmark as Mid and Small cap index settled higher by 1% each.

Performance on the sectoral front was mix. Amongst them, Nifty Consumer Durable and media index were the top gainers, rose nearly 2% followed by Nifty Auto, Metal, Realty and Oil & Gas indices that settled higher in range 1% to 1.5%. On the other hand, Nifty IT index led the decline, down by 0.7%.

Going ahead, we reiterate our bullish view on Nifty index till it is trading above 22000 levels on closing basis. Crossover and sustenance above 22550 will open the doors for 22800 levels in near term.


Derivatives Overview & Outlook

Yesterday, No significant activity was seen in Nifty, Banknifty and Finnifty futures on the price front, whereas on open interest front, all three added around 1.4%, 1.3% and 13.8% of open interest respectively.

Majority of F&O sectors settled higher. Amongst them, Cement, Capital Goods and Metal stocks witnessed maximum addition of long positions.

On options front, call writing along with put writing was seen at multiple strikes and maximum positions are at 22300 PE and 22500 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 1623 Cr in the cash segment, sold stocks futures worth Rs 1610 Cr and bought index futures worth Rs 678 Cr. DIIs were net buyers in the cash segment to the tune of Rs 1953 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22590-22650; Supports 22270-22200

Banknifty – Resistances 47800-48100; Supports 47300-47000

Finnifty – Resistances 21210-21300; Supports 21020-20950


F&O Securities in Ban Today  – HINDCOPPER


Globe Capital Market Limited (“GCML”) is a Stock Broker registered with BSE, NSE, MCX, NCDEX, ICEX and MSEI in all the major segments viz. Capital, F & O and CDS segments. GCML is also a Depository Participant and registered with both the Depositories viz. CDSL and NSDL. Further, GCML is a SEBI registered Portfolio Manager and Research Analyst. GCML includes subsidiaries, group and associate companies, promoters, directors, employees and affiliates.

Globe Commodities Limited, Globe Derivatives and Securities Limited & Globe Fincap Limited are subsidiaries of GCML. Rolex Finvest Private Limited, A to Z Consultants Private Limited, A to Z Venture Capital Limited, M. Agarwal Stock Brokers Private Limited, A M Share Brokers Private Limited, Shri Adinath Advertising Company Pvt. Ltd., Orient Landbase Private Limited, Bolt Synthetic Private Limited, Price ponder Private Limited and Lakshya Impex Private Limited  are associates of GCML.

This report has been prepared by GCML and published in accordance with the provisions of Regulation 19 of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014, for use by the recipient as information only and is not for general circulation or public distribution. This report is not to be altered, transmitted, reproduced, copied, redistributed, uploaded, published or made available to others, in any form, in whole or in part, for any purpose without prior written permission from GCML. The projections and the forecasts described in this report are based on estimates and assumptions and are inherently subject to significant uncertainties and contingencies. Projections and forecasts are necessarily speculative in nature, and it can be expected that one or more of the estimates on which the projections are forecasts were based may not materialize or may vary significantly from actual results and such variations will likely increase over the period of time. This report should not be construed as an offer to sell or the solicitation of an offer to buy, purchase or subscribe to any securities, and neither this report nor anything contained therein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. It does not constitute a personal recommendation or take into account the particular investment objective, financial situation or needs of any individual in particular. The research analysts of GCML have adhered to the code of conduct under Regulation 24 (2) of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. The recipients of this report must make their own investment decisions, based on their own investment objectives, financial situation or needs and other factors. The recipients should consider and independently evaluate whether it is suitable for its/ his/ her/their particular circumstances and if necessary, seek professional / financial advice as there is substantial risk of loss. GCML does not take any responsibility thereof.

Any such recipient shall be responsible for conducting his/her/its/their own investigation and analysis of the information contained or referred to in this report and of evaluating the merits and risks involved in securities forming the subject matter of this report. The price and value of the investment referred to in this report and income from them may go up as well as down, and investors may realize profit/loss on their investments. Past performance is not a guide for future performance. Actual results may differ materially from those set forth in the projection.

This report has been prepared by GCML based on the information available in the public domain and other public sources believed to be reliable. Though utmost care has been taken to ensure its accuracy and completeness, no representation or warranty, express or implied is made by GCML that such information is accurate or complete and/or is independently verified. The contents of this report represent the assumptions and projections of GCML and GCML does not guarantee the accuracy or reliability of any projection, assurances or advice made herein. Nothing in this report constitutes investment, legal, accounting and/or tax advice or a representation that any investment or strategy is suitable or appropriate to recipients’ specific circumstances.

Since GCML or its associates are engaged in various financial activities, they might have financial interest or beneficial ownership in various companies including subject company/companies mentioned in the report. GCML or its associates have not received any compensation for investment banking or merchant banking from the subject company in the past 12 months.  GCML or its associates might have received any compensation including brokerage services and for products or services other than investment banking or merchant banking from the subject company in the past 12 months. It is confirmed that GCML or research analyst or its associates have not managed or co-managed public offering of securities for the subject company in the past 12 months.

Research analyst or GCML or its relatives’/associates’ have no material conflict of interest at the time of publication of this report. Neither research analyst nor GCML are engaged in market making activity for the subject company. It is confirmed that research analysts do not serve as an officer, director or employee of the subject company. It is also confirmed that research analyst have not received any compensation from the subject company in the past 12 months. GCML or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report.

No material disciplinary action has been taken on GCML by any regulatory authority impacting Equity Research Analysis activities.

The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. This information is subject to change, as per applicable law, without any prior notice. GCML reserves the right to make modifications and alternations to this statement, as may be required, from time to time.

Research analyst or GCML or its relatives’/associates’ do not have actual/beneficial ownership of 1% or more in securities of the subject company, at the end of the month immediately preceding the date of publication of the document.

Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.