Indian equity markets will begin a truncated week of trading on Tuesday with a potential impact from fresh geopolitical concerns.
Asian markets were trading mixed after a pause in the Wall Street rally. Oil has risen and is not comforting after Ukraine hit Russia's oil refinery along with other geopolitical tensions.
The automobile sector is amongst the favourite sectors to trade upsides, according to dealers that NDTV Profit has spoken to. Meanwhile, there could be an extended bearishness in information technology stocks despite currency weakness.
The equity markets have recovered well from the lower levels, and the charts indicate that the NSE Nifty 50 can snap the resistance level, according to Nagaraj Shetti of HDFC Securities Ltd. The benchmark had seen a sharp downtrend in the previous week, but it has bounced back well from the 21,700 level, the senior technical research analyst told NDTV Profit.
Shetti highlighted that Nifty was showing the potential to break the resistance level of 22,200/300 in the near term. Given the current momentum, he is long on the market.
The GIFT Nifty, an early indicator of the Nifty 50 Index’s performance in India, was up 30 or 0.13% at 22,315 as of 08:01 a.m.
Markets On Friday
The benchmark equity indices ended higher on Friday, extending gains for a third straight day as ITC Ltd., Larsen & Toubro Ltd. and ICICI Bank Ltd. led the advance.
The NSE Nifty 50 closed 84.80 points or 0.39%, higher at 22,096.75, while the S&P BSE Sensex ended 190.75 points or 0.26%, up at 72,831.94.
During the day, the Nifty rose as much as 0.77% higher to 22,180.70 and the Sensex jumped 0.65% to 73,115.62.
The benchmark indices reversed losses from the past week, with the Nifty 50 gaining 0.33% and the BSE Sensex rising 0.26% in the week.
Major Stocks In News
Adani Ports: The company will buy 95% stake in Gopalpur Ports at an enterprise value of Rs 3,080 crore. It signed definitive agreements to buy 56% stake from SP Group, a 39% stake from Orissa Stevedores.
Mankind Pharma: Beige will sell up to 2.9% stake via block deal on March 26 at a price of Rs 2,103-2,214 per share, marking a discount of 0-5% against the March 22 closing price. At lower range, the offer size stands at Rs 2,456 crore.
JSW Energy: The company's step-down unit is in a pact with Reliance Power to acquire a 45 MW wind power project in Maharashtra for Rs 132 crore.
Top Brokerage Calls
Citi Research On Indian Oil
Citi maintains 'buy' on Indian Oil, with a target price of Rs 195.
Raise FY25/26 gross refining margin estimated to $9.5/9.5
Margin forecasts raised on refining demand and supply balances
Lower FY25E gross marketing margin on petrol & diesel to Rs1.8 per liter
Gross marketing margins lowered on price cuts
Recent price cuts to affect first quarter of FY25 margins
Citi has change FY25/26 EBITDA estimates by 1%/4%
Citi Research On InterGlobe Aviation
Citi Research maintains 'buy' on InterGlobe Aviation, with a target price of Rs 3,700
FY24 guidance achieved; FY25 guidance encouraging
Supply growth, demand acceleration likely to double Indian aviation passengers over FY24-FY30E
Low cost aids profitability, healthy on time performance and low cancellation rates support market share
Addition of A321 XLRs to expand serviceable radius, aid further passenger growth
Expect some increase in salary expense from regulatory changes effective Jun. 1
Incremental regulatory cost is likely to be passed on to flyers
Key risks — higher ATF prices from rising crude prices; higher cost pressures from depreciating Indian rupee.
CLSA On Tata Motors
CLSA maintains 'outperform' rating on Tata Motors, with a target price of Rs 1,133
Jaguar Land Rover retail volumes up 4.5% year-on-year in Feb 2024
Volume growth was muted mainly due to a 46% year-on-year drop in Chinese volumes
Chinese JLR volumes declined by 5% year-on-year in Jan-Feb 24 combined
Discounts on Jaguars increased in Feb, declined for Land Rovers
Expect JLR profitability to remain strong; Tata Motors to gain market share in domestic PV.
Global Cues
Stocks in the Asia-Pacific region were mixed in early trade after their U.S. peers took a breather following a record-breaking rally.
The Nikkei 225 was trading 70.07 points or 0.17% higher at 40,484.19, and the S&P ASX 200 was trading 2.14 points or 0.03% lower at 7809.80.
The rally in U.S. stocks paused on Monday, with the market still heading towards its best week in 2024 amid speculation the Federal Reserve will be able to cut interest rates as soon as June, according to Bloomberg.
The S&P 500 index and Nasdaq Composite fell by 0.31% and 0.27%, respectively, as of Monday. The Dow Jones Industrial Average ended 0.41% lower.
Brent crude was trading 0.09% higher at $86.84 a barrel. Gold was higher by 0.10% at $2,174.05 an ounce.
FII And DII Activity
Overseas investors remained net sellers of Indian equities for the third consecutive day on Friday.
Foreign portfolio investors offloaded stocks worth Rs 3,309.8 crore and domestic institutional investors remained net buyers for the fifth day and mopped up equities worth Rs 3,764.9 crore, the NSE data showed.
Rupee Update
The Indian rupee depreciated to its lowest closing against the U.S. dollar on Friday amid a renewed rally in the greenback.
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