Crude Oil Prices Surge, but Inflation Concerns Dampen Sentiment

At the close, the Nifty 50 was at 17,398.05 up by 0.22%

Nifty 50 started trading on the day with an upward momentum and closed in positive territory with a gain of 0.22 percent. The closing level of the Nifty 50 was near 17400.

On 03 April 2023, the global stock markets faced a set of challenges that impacted their performance. The primary issues were concerns about inflation and OPEC’s decision to cut more production, which limited the gains for benchmarks. This occurred just as the market was starting to recover from fears of a contagion in the global banking sector.

Inflation is a persistent concern among investors, as it can lead to higher interest rates and reduce the profitability of companies. Similarly, OPEC’s decision to cut production can impact oil prices, which can in turn have a ripple effect across various sectors of the economy. These factors combined resulted in the capping of gains for the benchmarks, which had just begun to regain strength after the global banking scare.

The sentiment in the market turned negative due to concerns about inflation that arose following a sharp increase in crude oil prices subsequent to the announcement of a surprise production cut by Saudi Arabia and other oil-exporting countries over the weekend.

Bank Nifty: Up by 0.50%

Bank Nifty and the BSE Sensex also showed positive movements in the Indian stock market. The Bank Nifty, which is an index of the top 12 banking and financial services companies listed on the NSE, opened in the green and closed with a gain of 0.50 percent at 40,813.05. Similarly, the BSE Sensex, which is a broader index of the top 30 companies listed on the BSE, opened higher and closed in positive territory with a gain of 0.19 percent at a high of 59,106.44.

Out of the 13 major sectoral indexes, nine showed gains, with auto stocks leading the way with a rise of 1.5 per cent, thanks to robust sales figures for March. SML Isuzu, a passenger vehicle manufacturer, saw a significant jump of 20 per cent after reporting that its sales had more than tripled in March.

Bank Nifty

The Nifty Banking sector had some gainers and some losers for the day.

The gainers included Bandhan Bank with a 4.60% increase, Punjab National Bank with a 1.61% increase, IndusInd Bank with a 1.10% increase, IDFC First Bank with a 1.00% increase and ICICI Bank with a 0.83% increase. On the other hand, the biggest losers in the sector included AU Bank with a 2.37% decline. These results suggest that some banking stocks performed better for the day.

Buzzing

Monday saw a decline in the majority of Adani Group’s stocks as India’s market regulator launched an investigation into the conglomerate’s dealings with at least three offshore entities connected to the brother of group founder Gautam Adani. The investigation centers around a possible violation of “related party” transaction regulations.

Coal India Ltd’s shares closed more than 3 percent higher on April 3, after the release of data that showed a significant increase in the company’s production and offtake in March.

According to the data, production by Coal India and its subsidiaries rose by 4 percent YoY in March. In the fiscal year 2022-23, the output increased by 12.9 percent to 703.2 million tonnes. The company also reported that it exceeded its annual production target of 700 million tonnes, marking the first time it has surpassed its goal since the fiscal year that ended in March 2006.

Advance Decline Ratio

Today, the advance-decline ratio was 3.40, and the market breadth was positive. The volatility index India Vix decreased by 2.70 percent to settle at 12.59 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1783
Decliners – 525
52Wk High –  56
52Wk Low – 58
High Band Hitters – 208
Low Band Hitters – 43
200d SMA – 17481
50d SMA – 17542
20d SMA – 17218

Top Gainers and Losers Stocks

The top gainers were Hero MotoCorp (+3.48%), Coal India (+3.11%), Bajaj Auto (+2.71%), Maruti (+2.60%), and Divi’s Laboratories (+2.01%).

The top losers were BPCL (-4.08%), Adani Enterprises (-1.85%), Apollo Hospitals (-1.81%), Infosys (-1.26%), and ITC (-1.12%).

Top Gainers and Losers Sector

The top gainers sectors were Auto (+1.49%), Realty (+0.90%), Consumer Durables (+0.69%), Media (+0.68%), and Financial Services (+0.59%).

The top losers sectors were Oil & Gas (-0.44%), FMCG (-0.36%), Metal (-0.36%), and IT (-0.23%).

The Nifty Midcap 50 was up by 0.37 percent, while the Nifty Small Cap 50 was up by 0.66 percent on the day.

The Nifty Midcap 50 index currently closed at 8,497.75, while the Nifty Small Cap 50 index currently closed at 4,124.65.

SECTORS – NOTABLE ACTION
AUTO +1.49%
REALTY +0.90%
CONSUMER DURABLES +0.69%
OIL & GAS -0.44%
FMCG -0.36%
METAL -0.36%

Stocks Ban List

The Securities and Exchange Board of India (SEBI) Futures and Options (F&O) ban list has not included any stocks on the ban list for today.

A stock enters the Ban List if its MWPL is above 95%. Implying that, Ban List shows the Futures and Options (FnO ) stocks whose combined open interest in all FnO contracts for a given period crosses 95% of Market-Wide Position Limit.

Daily Pivots

As per the above pivots data, 17320 to 17460 is the Nifty 50 trading range.

Read previous -Daily Insights- here
Indian Market: Nifty50 Gains Over 2% to End Three-Week Losing Streak
FY23 Concludes on a Positive Note as Nifty Surpasses 17,300
Late Surge Lifts Nifty Index Above 17,100 after Trading in Narrow Range

This article is only for educational purposes and is not an investment advice.