Fitch affirms India at 'BBB-', with stable outlook : Daily Market Update Equity 17 Jan 2024 | Globe Capital Market LTD.
Fitch affirms India at ‘BBB-‘, with stable outlook : Daily Market Update Equity 17 Jan 2024

India's rating is underpinned by a robust medium-term GDP growth outlook and sound external finances, which remain intact as the country has navigated a fraught external environment in the past few years, according to a press release issued by the ratings agency on Tuesday. It forecasts India's GDP growth at 6.9% in FY24, as compared with a previous forecast of 6% in May 2023. In FY25, GDP growth is estimated to ease to 6.5%. India is poised to remain one of the fastest-growing countries globally in the next few years as the robust economic momentum is proving resilient, the ratings agency said.

Overview and Outlook

Global Stock Market Today

  • US equity markets ended lower in range 0.19% to 0.62%.
  • European equity markets settled on a flat to negative note.
  • Asian equity markets are trading lower
  • GIFT Nifty is down by 200 points, Nifty futures are likely to open around 21830 levels (as on 8:30AM).


News highlights from across the globe

  • Asian markets are trading lower on Wednesday as investors await China’s GDP figure, scheduled for release later today.
  • Chinese economy is expected to grow at 5.3% annual rate, compared to 4.9% pace recorded in the preceding quarter.
  • U.S. bond yields rose and stocks fell on speculation. Wall Street’s bets on aggressive Federal Reserve rate cuts have gone too far, according to Bloomberg.


Important news updates from the domestic front

  • HDFC Bank Q3 FY24 (Standalone, QoQ) NII at Rs 28,471.3 crore vs Rs 27,385.2 crore, up 4%. Net profit at Rs 16,372.5 crore vs Rs 15,976.11 crore, up 2.48%. Gross NPA at 1.26% vs 1.34%. Net NPA at 0.31% vs 0.35%.
  • Adani Energy Solutions reported an over 14% jump in sales and a pipeline of 2.1 crore smart metres with a contract value of Rs 25,100 crore in the third quarter of FY24.
  • L&T Technology Services approves the re-appointment of Amit Chadha as CEO and MD for 3 years w.e.f. April 1.
  • Indian Renewable Energy Development Agency joined hands with Indian Overseas Bank for co-lending and loan syndication for a diverse spectrum of renewable energy projects across the nation.
  • Rail Vikas Nigam has formed a 49:51 joint venture with Jakson Green for solar projects outside India. The company incorporated a new subsidiary company, RVNL Infra, in South Africa.
  • G R Infraprojects through its arm, executed the concession agreement with the National Highways Authority of India for highways in Uttar Pradesh. The project cost is Rs 1,085 crore.
  • PNC Infratech received a letter of award for a road construction project worth Rs. 1,174 crore in Bhopal from Madhya Pradesh Road Development Corp.
  • DCB Bank: The Reserve Bank of India approved the appointment of Praveen Achuthan Kutty as managing director and chief executive officer.
  • Godrej Properties has acquired an additional one-acre land parcel in Yeshwanthpur, Bengaluru, with a developable potential of approximately 1.40 lakh square feet of saleable area.
  • CICI Lombard General Insurance Q3 FY24 Net profit at Rs 431.5 crore vs Rs 352.5 crore, up 22.4% YoY. Net premium income at Rs 4,304.8 crore vs Rs 3,792.1 crore, up 13.5% YoY. Solvency ratio at 2.57 vs 2.45 YoY. Combined ratio at 103.6% vs 104.4% YoY.


Nifty Overview & Outlook

Benchmark Nifty index ended on a flat to negative note at 22032 levels after hitting new all-time highs i.e. 22124 levels.

Broader markets underperformed the frontline index as Small cap and Midcap indices were down nearly 0.5% each; resultant, flat market breadth.

Performance on the sectoral front was mix. Amongst them, Nifty Metal index was at the top of the tally, rose 1%. On the other hand, Nifty IT, Pharma and Realty index ended lower in range 1% to 1.66%.

Technically, Nifty Index is well placed on multiple chart frames. However, possibility of some profit taking can not be ruled out at this juncture. Going ahead, we reiterate our bullish view on Nifty index till it is trading above 21440 levels on closing basis and expect it to test 22250 and higher levels in near term. Hence, we suggest traders to maintain buy on dips trading strategy till it is trading above the said levels.


Derivatives Overview & Outlook

Yesterday, no significant activity was seen in Nifty and Banknifty futures on price as as well as on open interest front whereas Finnifty futures shed around 1% of open interest as long unwinding.

On the sectoral front, long buildup was observed in Metals and Textile stocks, whereas short buildup was seen among Telecom and Finance stocks.

On options front, call writing was seen at multiple strikes and maximum positions are at 22000 PE and 22500 CE closely followed by 22100 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 657 Cr in the cash segment, sold stocks futures and index future worth Rs 1166 Cr and Rs. 135 Cr respectively. DIIs were net seller in the cash segment to the tune of Rs 369 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22110-22220; Supports 21850-21715

Banknifty – Resistances 48460-48800; Supports 47850-47500

Finnifty – Resistances 21600-21760; Supports 21315-21170






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