IMF raises India’s FY25, FY26 GDP growth forecasts to 6.5% :Daily Market Update -31 Jan 2024 | Globe Capital Market LTD.
IMF raises India’s FY25, FY26 GDP growth forecasts to 6.5% :Daily Market Update -31 Jan 2024

The International Monetary Fund (IMF) has raised its 2024-25 GDP growth forecast for India by 20 basis points to 6.5 percent, although it continues to trail expectations of Indian authorities. At 6.5 percent, the multilateral agency's revised growth forecast for next year is 20 basis points lower than its estimate of 6.7 percent for 2023-24. One basis point is a hundredth of a percentage point.

Overview and Outlook

Global Stock Market Today

  • Barring Dow, other US equity markets settled on a negative note.
  • European equity markets ended higher in range of 0.18% to 0.50%.
  • Majority of Asian markets are trading lower.
  • GIFT Nifty is little changed, Nifty futures are likely to open around 21620 levels (as on 8:30AM).


News highlights from across the globe

  • Asian markets are trading in red in early trade on Wednesday, as Japan’s industrial production missed estimates despite rebounding in December 2023.
  • Japan’s factory output increased 1.8% in December sequentially, missing 2.5% rise estimated by analysts in a Bloomberg survey, reported Bloomberg. The Nikkei 225 was trading 286.04 points or 0.79% lower at 35,779.82 as of 06:23 a.m.
  • Just a day before the Federal Reserve decision, a hotter-than-estimated reading on the U.S. labor market spurred a slide in bonds, with traders dialing back their projections for interest rate cuts.


Important news updates from the domestic front

  • L&T Q3 Earnings FY24 (Consolidated, YoY) Revenue from operations rose 18.83% to Rs 55,127.8 crore. Ebitda, or operating profit, increased 13.52% to Rs 5,759 crore. Ebitda margin fell 48 bps to 10.44% vs 10.93 a year ago. Net profit surged 17.24% to Rs 3,594.51 crore
  • Dr Reddy’s Q3 Earnings FY24 (Consolidated, YoY) Revenue up 6.6% at Rs 7,236.8 crore vs Rs 6,789.8 crore. Ebitda up 4.4% at Rs 2,023.1 crore vs Rs 1,938.5 crore. Margin down 59 bps at 27.95% vs 28.55% . Net profit up 11% at Rs 1,380.9 crore vs Rs 1,243.9 crore
  • SRF Q3 Earnings FY24 (Consolidated, YoY) Revenue down 12.01% at Rs 3,053.04 crore vs Rs 3,469.66 crore. Ebitda down 32.11% at Rs 565.83 crore vs Rs 833.52 crore. Margin down 548 bps at 18.53% vs 24.02%  20.5%). Net profit down 50.39% at Rs 253.43 crore vs Rs 510.9 crore
  • Voltas Q3 Earnings FY24 (Consolidated, YoY) Revenue up 30.9% at Rs 2,625.7 crore vs Rs 2,005.6 crore. Ebitda is down 63% at Rs 28.3 crore vs Rs 76.39 crore. Margin down 273 bps at 1.07% vs 3.8%. Net loss at Rs 27.6 crore vs loss of Rs 110.5 crore
  • Tata Consultancy Services signed a new 15-year contract with Aviva Plc, expanding on its near-two-decade alliance to service millions of customers of the U.K.’s biggest insurer and pensions provider.
  • Bharti Airtel announced that it has launched seven new, next-gen company-owned stores in the city of Ahmedabad.
  • Glenmark Pharmaceuticals collaborated with biotech subsidiary Ichnos Sciences to accelerate new drug discovery in cancer treatment.
  • Paras Defense and Space Technologies signed a licensing agreement for the transfer of technology with the Instrument Research & Development Establishment and will acquire the technology of a remote-controlled border defense system.
  • KPI Green Energy: The company’s unit received a new domestic order for a 5 MW solar plant under the captive power producer segment.


Nifty Overview & Outlook

Benchmark Nifty index settled lower at 21522 levels, down over 200 points after a lackluster trading session.

Broader markets outperformed the benchmark as Small cap ended on a positive note while Mid cap index settled lower, down 0.5% against 1% decline in the benchmark.

Majority of sectoral index settled on a negative note. Among them, Nifty Consumer Durable, FMCG and Pharma index led the decline, down in range 0.87% to 1.61%. On the other hand, PSU Bank index was at the top of the tally, up nearly 1%.

Technically, Nifty index is consolidating around an important supports of 21500 levels. On the higher side, resistance is placed around 21800 levels. Crossover and sustenance above 21800 levels might take it towards 22000 level in immediate near term.


Derivatives Overview & Outlook

Yesterday, long unwinding was seen in Nifty and Finnifty futures with decrease in open interest by 8.5% and 15.9% respectively, whereas Banknifty future remained almost unchanged on price as well as on open interest front.
On the sectoral front, short buildup was seen in Chemicals, Capital goods, FMCG and Finance stocks, whereas long buildup was seen in Media stocks.

On options front, call writing was seen at multiple strikes and maximum positions are at 21000 PE and 22500 CE closely followed by 21700 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 1971 Cr in the cash segment, sold stocks futures and index future worth Rs 382 Cr and Rs. 228 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 1003 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 21740-21900; Supports 21500-21400

Banknifty – Resistances 46050-46400; Supports 45260-44780

Finnifty – Resistances 20500-20680; Supports 20200-20020


F&O Securities in Ban Today  – ZEEL.




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