GDP Data and Monthly Expiry Weigh on Indian Equity Benchmarks, Closing Over 1% Lower

At the close, the Nifty 50 was at 21,951.15 down by 1.11%

On February 28, the NSE Nifty 50 commenced on a brief positive note but swiftly turned bearish, marking a significant decline of 1.11% and closing in the red. The benchmark index closed below the crucial 22,000 mark, settling at 21,951.15 after dipping to 21,918.85, reflecting a substantial loss of 247.20 points, its largest drop in five weeks. This downward trajectory was exacerbated by broad-based selling across sectors, particularly impacting small and midcaps, as investors braced for the monthly expiry and awaited the release of GDP data.

Global market jitters, driven by apprehensions surrounding key US economic indicators like personal consumption expenditure, contributed to the cautious sentiment. Additionally, concerns over a potential delay in the Fed rate cut due to optimistic forecasts further fueled uncertainty. The ongoing turmoil in China’s property sector also weighed heavily on Asian markets, influencing investor sentiment.

In the domestic scenario, profit booking intensified amidst apprehensions regarding India’s Q3 GDP growth, which is anticipated to decelerate to 6.6% from 7.6% in Q2. This, coupled with selling pressure from foreign institutional investors (FIIs), particularly impacted rate-sensitive sectors, exacerbating the broader market’s underperformance.

Overall, the sharp decline in Indian equity markets underscores the prevailing global economic uncertainties and domestic growth concerns, necessitating a cautious approach from investors amid heightened volatility.

Bank Nifty: Down by 1.34%

On the trading day, the Bank Nifty commenced with a brief surge, opening in the green, but ultimately succumbed to bearish pressure, marking a notable decline of 1.34% and closing in the red at 45,963.15. Likewise, the BSE Sensex, mirroring a similar trend, experienced a downturn of 1.08%, concluding the session in the red at a low of 72,304.88.

Despite the initial positive momentum, both indices faced selling pressure, resulting in their downward trajectory by the end of the trading session. These declines reflect the prevailing market sentiment characterized by volatility and uncertainty.

On the sectoral front, the current market trends reveal significant losses in various sectors, with Media and Realty bearing the brunt. Media companies, in particular, have experienced a downturn, with a notable decline of 3.46%. Among them, Zee Entertainment Enterprises Ltd. recorded a substantial loss of -6.44%, while Hathway Cable & Datacom Ltd. also suffered a setback of -3.44%. Similarly, the Realty sector has seen a downturn of 2.11%. Godrej Properties Ltd. faced a notable decline of -5.62%, while Swan Energy Ltd. experienced a loss of -4.26%. These developments indicate a challenging period for investors in these sectors.

FIIs/FPIs recorded a buy value of Rs. 11,058.91 crore and a sell value of Rs. 12,938.14 crore, resulting in a net value of -Rs. 1,879.23 crore. This indicates a net selling position by FIIs/FPIs during the specified period. Conversely, DIIs displayed a buy value of Rs. 10,124.97 crore and a sell value of Rs. 8,297.52 crore, leading to a net value of Rs. 1,827.45 crore. This reflects a net buying stance by DIIs in the market during the same period.

Bank Nifty

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

No gains have been observed in the Bank Nifty today. On the other hand, the biggest losers in the sector included AU Bank with a 3.68% decline, IDFC First Bank with a 3.48% decline, Bank of Baroda with a 3.24% decline, IndusInd Bank with a 3.15% decline, and Federal Bank with a 2.63% decline. These results suggest that most of the banking stocks not performed better for the day.

Rupee Slides Marginally Amidst Bearish Equities and Month-End Demand

The Indian rupee saw a marginal decline of 3 paise against the US dollar, closing at 82.92 (pro) on Wednesday. This dip was influenced by bearish trends in equity markets and an outflow of foreign funds, compounded by heightened month-end demand for the US currency. However, the rupee found some support from softer crude oil prices, which helped cushion its fall against a stronger dollar.

Investor sentiment remained cautious, with anticipation building around the release of domestic GDP data scheduled for Thursday and US GDP numbers expected on Wednesday. Such economic indicators often sway currency markets, prompting traders to tread carefully in their positions.

In interbank foreign exchange dealings, the rupee commenced trading at 82.90 and touched an intra-day low of 82.95 against the dollar before settling at 82.92 (pro), marking a modest loss of 3 paise compared to its previous close of 82.89 on Tuesday.

The dollar index, reflecting the greenback’s strength against major currencies, climbed by 0.37% to reach 104.21. Concurrently, Brent crude futures, a key determinant for currency movements, dipped by 0.92% to $82.88 per barrel, further influencing market dynamics.

Overall, the rupee’s performance underscores the interplay of various global and domestic factors, highlighting the need for investors to stay informed and responsive to market fluctuations.

Stocks Highlights

Hindustan Unilever Ltd. (HUL): The share price of Hindustan Unilever Ltd. witnessed a modest increase of 0.77%, closing at Rs 2,423.85 from its previous close of Rs 2,405.30. Notably, intraday trading sessions have historically seen minimal gains exceeding 5%. Recent bullish signals include a 14-day moving average crossover, with an average price gain of 2.21% within 7 days, and a 10-day moving average crossover on Feb 26, 2024, with an average gain of 2.04% within 7 days. Moreover, the company’s expenditure on interest and employee costs remains relatively low, reflecting financial prudence.

Power Grid Corporation of India Ltd. (POWERGRID): In contrast, the share price of Power Grid Corporation of India Ltd. experienced a decline of -4.22%, closing at Rs 280.15 from its previous close of Rs 292.50. Despite occasional bullish signals, such as a recent daily MACD crossover, historical data indicates limited gains exceeding 5% in intraday trading sessions. Notably, the company allocates a significant portion of its operating revenues towards interest expenses (21.14%) and employee costs (5.5%), which may impact its financial performance and investor sentiment.

Advance Decline Ratio

Today, the advance-decline ratio was 0.19, and the market breadth was negative. The volatility index India Vix increased by 3.83 percent to settle at 16.33 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 402
Decliners – 2149
52Wk High –  82
52Wk Low – 30
High Band Hitters – 58
Low Band Hitters – 184
200d SMA – 20024
50d SMA – 21733
20d SMA – 21946

Top Gainers and Losers Stocks

The top gainers were Hindustan Unilever (+0.77%), Bharti Airtel (+0.16%), Infosys (+0.14%), and TCS (+0.13%).

The top losers were Power Grid (-4.22%), Bajaj Auto (-3.82%), Apollo Hospitals (-3.77%), Eicher Motors (-3.57%), and IndusInd Bank (-3.15%).

Top Gainers and Losers Sector

The top losers sector were Media (-3.46%), Realty (-2.11%), Oil & Gas (-2.08%), Auto (-2.00%), and Metal (-1.88%).

SECTORS – NOTABLE ACTION
MEDIA -3.46%
REALTY -2.11%
OIL & GAS -2.08%

Stocks Ban List

(SEBI) F&O ban list (INDUSTOWER open at -240.50 and close at +244.65), (SAIL open at +125.50 and close at -121.75), (ABFRL open at +229.20 and close at +230.90), (CANBK open at -574.50 and close at -550.45), and (ZEEL open at +173.90 and close at -162.00) are not currently on the stock exchange.

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.

GMRINFRA, IDEA, PNB, BANDHANBNK, NMDC, HINDCOPPER, NATIONALUM, BHEL, BIOCON, TATACHEM, and VEDL stocks has the possibilities of entrance in the ban list.

ABFRL, CANBK, and ZEEL stocks have the possibility of exit from the ban list.

Daily Pivots

As per the above pivots data, 21800 to 22200 is the Nifty 50 trading range.

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NSE Nifty 50 Sees Volatility Amid Cautionary Market Sentiment

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