Indian Stock Market Witnesses Volatility Amid Global Economic Indicators

At the close, the Nifty 50 was at 22,335.70 up by 0.01%

On March 12, the NSE Nifty 50 commenced on a positive note, engaging in a day-long play of buy and sell activities until the closing bell, ultimately ending with a marginal increase of 0.01%. Despite volatility, the Nifty settled in the green, closing just below the 22,350 mark.

Investors closely monitored the impending release of US inflation data, seeking insights into the Federal Reserve’s potential rate cut cycle initiation. Throughout the day, the market experienced fluctuations, witnessing swings of approximately 200 points intraday, though managing to close with a marginal gain of about 3 points.

Selective buying in frontline stocks contributed to the positive closure, contrasting with broad-based selling, particularly in realty, media, metal, power, and capital goods sectors. The market’s focus remains on the forthcoming inflation readings from the US and India, with hopes for further moderation to potentially pave the way for Fed rate adjustments.

Despite challenges and sector-specific declines, the day’s trading session demonstrated resilience, with key benchmarks ending on a positive note. The market’s reaction to upcoming economic data releases is anticipated to shape investor sentiment and market dynamics in the near term.

Bank Nifty: Down by 0.10%

On the trading day in focus, the Bank Nifty commenced with a downward trend, opening in the red and marking a decline of 0.10%. This trend persisted throughout the day, resulting in the Bank Nifty closing in the red zone at 47,282.40.

In contrast, the BSE Sensex exhibited a different trajectory, starting the day with a positive momentum. It rose by 0.22% and concluded the trading session in the green, reaching a high of 73,667.96. This positive performance of the Sensex stands in contrast to the relative weakness observed in the Bank Nifty.

In the sectorial front, the Information Technology (IT) sector has shown promising growth, surging by 0.64%. Notably, LTIMindtree Ltd. registered a significant gain of 1.80%, followed closely by Tata Consultancy Services Ltd. with a rise of 1.75%. Conversely, the Real Estate (REALTY) sector experienced a downturn, declining by 3.71%. Within this sector, Swan Energy Ltd. faced a substantial loss of -20.00%, while Macrotech Developers Ltd. observed a downturn of -5.67%.

Foreign Institutional Investors (FIIs/FPIs) engaged in buying and selling activities, with a buy value of Rs. 15,474.80 crore and a sale value of Rs. 15,401.68 crore. This resulted in a net value of Rs. 73.12 crore.

Conversely, Domestic Institutional Investors (DIIs) participated in the market with a buy value of Rs. 10,478.38 crore and a sale value of Rs. 8,120.20 crore, leading to a net value of Rs. 2,358.18 crore.

Bank Nifty

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

The gainers included HDFC Bank with a 2.31% increase. On the other hand, the biggest losers in the sector included Federal Bank with a 2.45% decline, Punjab National Bank with a 2.25% decline, Bank of Baroda with a 1.91% decline, State Bank of India with a 1.90% decline, and Bandhan Bank with a 1.67% decline. These results suggest that most of the banking stocks not performed better for the day.

Indian Rupee Marginally Weakens Against US Dollar

On Tuesday, the Indian rupee experienced a slight decline, settling 3 paise lower at 82.78 (pro) against the US dollar. This consolidation within a narrow range reflects market caution preceding the release of crucial macroeconomic data.

The rupee’s marginal decline can be attributed to the positive performance of the US dollar and the rebound in crude oil prices. However, domestic market optimism and consistent inflows of foreign funds in the past three sessions provided support to the local currency, mitigating some of the downward pressure.

In trading sessions, the rupee oscillated between an intra-day low of 82.78 and a high of 82.72 against the greenback, opening at 82.74 at the interbank foreign exchange market. Ultimately, it settled at 82.78 (pro), marking a minor loss of 2 paise compared to its previous close.

The previous day, the rupee experienced a setback of 8 paise, closing at 82.75 against the US dollar. Concurrently, the dollar index, measuring the dollar’s strength against a basket of currencies, exhibited marginal weakness, trading at 102.85. Market attention remains focused on forthcoming inflation data from the US, influencing currency market sentiments.

Stocks Highlights

HDFC Bank Ltd. Shows Resilience Amidst Market Volatility

HDFC Bank Ltd.’s stock demonstrated a robust performance, witnessing a significant increase of 2.31% from its previous close, reaching Rs 1,460.75. Notably, the bank’s intraday fact check reveals a rarity, with only 0.73% of trading sessions in the last 19 years experiencing intraday declines higher than 5%.

The company’s loan book growth remains impressive, surpassing its 5-year compounded annual growth rate (CAGR) with a year-on-year (YoY) increase of 16.96%. Furthermore, HDFC Bank Ltd. exhibited stellar annual revenue growth of 22.05%, outperforming its 3-year CAGR of 11.52%.

However, recent market trends indicate a potential sell signal, as bears regain momentum with a 20-day moving crossover. Historical data suggests an average price decline of -2.16% within 7 days following this signal over the past 5 years.

Adani Enterprises Ltd. Faces Market Downturn

In contrast, Adani Enterprises Ltd. experienced a downturn, with its share price decreasing by -2.63% from its previous close to Rs 3,122.90. The intraday fact check highlights a relatively higher occurrence of intraday declines exceeding 5% over the last 19 years, at 3.89%.

Despite this setback, the company showcased remarkable annual revenue growth of 96.18%, surpassing its 3-year CAGR of 45.79%. However, concerns arise regarding its expenditure, with 2.9% of operating revenues allocated towards interest expenses and 1.37% towards employee costs in the fiscal year ending March 31, 2023.

Advance Decline Ratio

Today, the advance-decline ratio was 0.19, and the market breadth was negative. The volatility index India Vix decreased by 2.55 percent to settle at 13.64 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 414
Decliners – 2182
52Wk High –  29
52Wk Low – 98
High Band Hitters – 29
Low Band Hitters – 396
200d SMA – 20207
50d SMA – 21883
20d SMA – 22198

Top Gainers and Losers Stocks

The top gainers were HDFC Bank (+2.31%), LTIM (+1.80%), TCS (+1.75%), Maruti (+0.93%), and Infosys (+0.84%).

The top losers were Adani Enterprises (-2.63%), Grasim (-2.36%), Cipla (-2.21%), Adani Ports (-2.12%), and SBIN (-1.90%).

Top Gainers and Losers Sector

The top gainers sector were IT (+0.64%), and Financial Services (+0.17%).

The top losers sector were Realty (-3.71%), Media (-1.85%), Metal (-1.73%), Pharma (-1.27%), and Consumer Durables (-1.11%),.

SECTORS – NOTABLE ACTION
IT +0.64%
FINANCIAL SERVICES +0.17%
REALTY -3.71%
MEDIA -1.85%
METAL -1.73%

Stocks Ban List

(SEBI) F&O ban list (SAIL open at -134.55 and close at -129.75), (TATACHEM open at -1165.00 and close at -1143.65), (ABFRL open at -220.40 and close at -213.35), (HINDCOPPER open at -269.05 and close at -256.10), (MANAPPURAM open at -169.40 and close at +169.55), (MGL open at -1275.50 and close at +1304.30), and (ZEEL open at -156.90 and close at +156.35) 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.

PEL, GNFC, NATIONALUM, RBLBANK, BHEL, PVRINOX, BANDHANBNK, IDEA, BALRAMCHIN, BIOCON, and INDUSTOWER stocks has the possibilities of entrance in the ban list.

Daily Pivots

As per the above pivots data, 22200 to 22500 is the Nifty 50 trading range.

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