Daily Market Update- Equity 23 March 2023 | Globe Capital Market LTD.
Daily Market Update- Equity 23 March 2023

US Fed raises rates by quarter point to fight inflation despite banking sector crisis

Overview and Outlook

Global Market Update

  • US equity markets ended lower by over 1.5%
  • European equity markets settled on flat to positive note
  • Majority of Asian equity markets are trading in green
  • SGX Nifty is little changed  (as on 8:25 AM)


News highlights from across the globe

  • Asian markets declined following a slump on Wall Street as the Federal Reserve pushed back against bets for interest rate cuts this year while Treasury Secretary Janet Yellen rattled bank shares.
  • Treasury Secretary Janet Yellen told lawmakers that the government wasn’t considering “blanket” deposit insurance to stabilize the banking system while Fed chief Jerome Powell said he was prepared to keep raising rates until inflation shows signs of cooling.
  • The yield on 10-year treasuries were trading at 3.46%. Crude prices were trading around $76-mark.


Important news updates from the domestic front

  • Hindustan Aeronautics: The central government will sell up to 3.5% stake in the company via offer for sale route on March 23 and March 24 at a price of Rs 2,450 per share.
  • Hero MotoCorp: The company will hike prices for certain motorcycles and scooters from April 1 to cover cost increases on account of transition to On-Board Diagnostic II. The price hike will be around 2% and vary by specific models and markets.
  • Larsen & Toubro: The company signed an agreement with France-based McPhy Energy for a long-term partnership where the latter will grant an exclusive manufacturing license of its pressurised alkaline electrolyser technology to the former, including future product upgrades.
  • Reliance Industries: Reliance Consumer Products, the FMCG arm of the company’s retail subsidiary Reliance Retail Ventures, expanded its FMCG portfolio with the launch of personal and home care products.
  • Power Grid Corporation of India: The company acquired six special-purpose vehicles from REC Power Development and Consultancy for a cumulative consideration of Rs 80.23 crore. The SPVs have been mostly formed for the construction of Transmission Projects in Khavda region of Gujarat.
  • Coromandel International: The board approved the company’s foray into contract development and manufacturing organisation business and speciality and industrial chemicals. The board also approved scaling up the company’s crop protection chemicals business.
  • Chalet Hotels: The company will acquire 100% stake of Sonmil Industries for 74.65 crore and 82.28% stake in The Dukes Retreat. Sonmil owns the land in Khandala where The Dukes Retreat runs a property.


Nifty Outlook

The benchmark Nifty index ended on a flat note at 17151 levels after adding 44 points to its previous closing values after a lackluster trading session ahead of the FOMC meet on interest rates.

Small-cap Index outperformed the benchmark as it’s up by 0.54% while the Midcap index performed in line with the benchmark. The market breadth was inclined towards the positive side as 1387 advances were recorded against 824 declines at NSE.

Majority of sectoral indices tracked at NSE settled in green. Pharma and PSU Bank index were at the top of the tally, gained 1.04% and 0.83% respectively.

On Thursday, traders are likely to be on their toes as markets are likely to be volatile. Initially, it will react to US Fed outcome on interest rates and later in will move on scheduled weekly derivatives expiry.


Derivatives Overview & Outlook

Yesterday, Nifty, Banknifty and Finnifty futures remained almost unchanged on the price front whereas on open interest front Nifty and Banknifty futures added around 3.5% of open interest each and Finnifty futures shed around 3% of open interest.

On the sectoral front, long buildup was seen among Finance, Cement and Pharma stocks whereas some short buildup was seen among Media, Metal and Realty stocks.

On options front, put writing was seen at 17150 & 17050 strikes along with call writing at multiple strikes and maximum positions are at 17000 PE and 17500 CE followed by 17300 CE.


FII & DII Trading Activity

Yesterday, FIIs bought stocks worth Rs 62 Cr in the cash segment, bought stocks futures worth Rs 488 Cr and sold index futures worth Rs 101 Cr. DIIs were net buyers in the cash segment to the tune of Rs 384 Cr.


Nifty Futures & Bank Nifty Futures Key Levels

Nifty – Resistances 17260-17350; Supports 17080-16960

Banknifty – Resistances 40400-40700; Supports 39800-39450


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