Indian economy likely to grow 7% in FY25, inflation to ease further: RBI Governor: Daily Market Update Equity 18 Jan 2024 | Globe Capital Market LTD.
Indian economy likely to grow 7% in FY25, inflation to ease further: RBI Governor: Daily Market Update Equity 18 Jan 2024

RBI Governor said that amidst a challenging global macroeconomic environment, India presents a picture of growth and stability. Speaking at a CII session on 'High growth, low risk: The India story' here during the World Economic Forum Annual Meeting, Das said recent information on the global economic front has been reassuring with inflation falling, though growth remains low. "Chances of soft landing have improved and markets have reacted positively. However, geopolitical risks and climate risks remain matters of concern," he said.

Overview and Outlook

Global Stock Market Today

  • US equity markets ended lower in range 0.25% to 0.69%.
  • European equity markets also settled down in range 0.85% to 1.50%.
  • Asian equity markets are trading lower
  • GIFT Nifty is down by 200 points, Nifty futures are likely to open around 21400 levels (as on 8:30AM).


News highlights from across the globe

  • Markets in Australia traded lower as investors await for the unemployment number, scheduled for release later today, for further cues about the Reserve Bank of Australia’s monetary policy going forward.
  • Investors pulled back their rate cut expectation from the U.S. Federal Reserve after the world’s largest economy reported better-than-expected retail sales numbers for December, which weighed on risk appetite.
  • Retail sales in U.S. increased 0.6% in December 2023, from 0.3% increase recorded in November. The numbers are higher than 0.4% estimated by economists.


Important news updates from the domestic front

  • LTIMindtree Q3 FY24 (Consolidated, QoQ) Revenue at Rs 9,016.6 crore vs Rs 8,905.4 crore, up 1.24% (Bloomberg estimates Rs 9,076.7 crore). EBIT at Rs 1,385.9 crore vs Rs 1,423.1 crore, down 2.62% (Bloomberg estimate: Rs 1,458 crore). Margin at 15.37% vs 15.98% (Bloomberg estimate: 15.9%). Net profit up 0.6% at Rs 1,169.3 crore vs Rs 1,162.3 crore (Bloomberg estimate: Rs 1,191.3 crore)
  • ICICI Prudential Life Insurance Q3 FY24 (Consolidated, YoY) Net premium income at Rs 9,928.8 crore vs Rs 9,464.5 crore, up 4.9%. Net profit at Rs 226.92 crore vs Rs 221.56 crore, up 2.4%. VNB at Rs 436 crore vs Rs 618 crore, down 29.4%. VNB margin at 22.8% vs 33.9% YoY. AUM at Rs 2.8 lakh crore vs Rs 2.5 lakh crore, up 12%.
  • NHPC: The government to sell up to 3.5% stake via offer for sale on Jan. 18 and 19. The floor price of the offer for sale was set at Rs 66 per share, indicating a discount of 9.6% to the current market price.
  • Adani Enterprises has signed a Memorandum of Understanding with the Maharashtra government to set up a 1-gigawatt hyperscale data center at an investment of Rs 50,000 crore over the next 10 years.
  • Shriram Finance raised $750 million through social bonds from international bond markets.
  • Indiabulls Housing Finance approved raising up to Rs 5,000 crore via an equity issue.
  • Natco Pharma invested $2 million in the Delhi-based biotech startup Cellogen Therapeutics.
  • RailTel Corp received an order worth Rs 82.41 crore from South Central Railway in the Secunderabad Division.
  • Balaji Amines received BIS certification for the product Morpholine from the Bureau of Indian Standards.

Nifty Overview & Outlook

The benchmark Nifty index opened with a gap on downside, kept on sliding throughout the day and settled near day’s lows at 21571 levels after a cut of 460 points from its previous closing values.

The broader markets performed slightly better than the benchmark as Mid & Small cap index settled down over 1% each against 2% decline of the frontline index.

All the sectoral indices, barring Nifty IT index, tracked at NSE settled in red. Amongst them, Banking & Financial pack were the worst performers tumbled over 4% each followed by Nifty Auto, Metal, Realty and PSU Bank indices that settled down in range 1.42% to 3%.

Nifty index moved in line with our expectation of some profit taking as mentioned in our previous post. Going ahead, we expect it to trade with a negative bias. Cross and sustenance below 21440 levels might take it towards 21000 and lower levels in immediate near term.


Derivatives Overview & Outlook

Yesterday, long unwinding was seen in Nifty future with decrease in open interest by 6.3%, whereas short buildup
was seen in Banknifty and Finnifty future with increase in open interest by 29% and 13.4% respectively.

On the sectoral front, short buildup was observed in Banking, Metals and Telecom stocks, whereas long unwinding was seen among Automobile, Oil & Gas and Textile stocks.

On options front, call writing was seen at multiple strikes and maximum positions are at 21000 PE and 21800 CE closely followed by 22000 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 10578 Cr in the cash segment, sold stocks futures and index future worth Rs 6012 Cr and Rs. 5048 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 4006 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 21720-21880; Supports 21470-21270

Banknifty – Resistances 47285-47650; Supports 45555-45070

Finnifty – Resistances 20960-21190; Supports 20300-20030





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