Daily market review India

Indian stock markets closed higher for the second consecutive session on Friday, boosted by buying in realty, metal, and banking stocks, as well as a strengthening rupee and lower crude prices in international markets. Markets opened strongly, influenced by a statement from rating agency Crisil that India’s economy is likely to grow at 6% next fiscal year, in line with consensus estimates, driven by increased private sector capital expenditure. However, markets turned volatile in the afternoon amid reports that the Reserve Bank of India (RBI) is likely to raise interest rates in its next monetary policy committee meeting in April, due to India’s high headline inflation rate and uncertainty in the US markets. Traders also took note of the advice from Chief Economic Advisor V Anantha Nageswaran that fiscal, corporate, and savings account planning should incorporate margins of safety due to rising global uncertainty. Despite this, markets regained traction in the late afternoon, helped by positive cues from European markets, which were trading higher due to multi-billion-dollar lifelines for troubled US and European banks, easing investor fears of potential contagion. Asian markets also closed higher, as worries about a crisis in the US and European banking sector eased and investors looked forward to a smaller rate hike from the Federal Reserve next week. Foreign institutional investors sold shares worth Rs 282.06 crore on March 17, according to provisional data from the NSE.

Upon returning home, attention was given to the thermal power industry stocks as the Central Electricity Authority reported that monitored thermal power plants had 33.5 million tonnes of coal stock, enough to sustain them for 12 days at 85% capacity utilization. The pharmaceutical sector's stocks were also watched as ICRA predicted that the domestic pharmaceutical industry would experience a revenue growth of 6-8% in FY24. The BSE Sensex rose by 355.06 points or 0.62% to 57,989.90 and the CNX Nifty increased by 114.45 points or 0.67% to 17,100.05. The broader indices finished in the green, with the BSE Mid cap index rising by 0.29% and the Small cap index increasing by 0.69%. The top sectoral gainers on the BSE were Realty, Metal, Bankex, IT, and Industrials, while Auto, Healthcare, and FMCG were among the few losing indices. On the Sensex, HCL Technologies, Ultratech Cement, Nestle, Tata Steel, and Kotak Mahindra Bank were the top gainers, while ITC, Maruti Suzuki, NTPC, Asian Paints, and Sun Pharma were the top losers. Chief Economic Advisor V Anantha Nageswaran expressed concern over rising global uncertainty and recommended that governments, businesses, and individuals should prioritize 'margins of safety' in their fiscal, corporate, and savings account planning. European and Asian markets were trading higher, and investors were awaiting interest rate decisions from the US Fed.