Daily Market Commentary - March 20, 2023 - Bonanza Portfolio

Mr. Rajesh Sinha, Sr. Research Analyst, BONANZA PORTFOLIO LTD

Indian indices opened on negative note with Nifty below 17,000. At the time of closing, the Sensex was down 360.95 points or 0.62% at 57,628.95, and the Nifty was down 111.60 points or 0.65% at 16,988.40.

During the day, India's forex reserves fell by $2.39 billion to a three-month low of $560.003 billion for the week to March 10, RBI. On an annualised basis, the reserves are down by $47.31 billion during the week under review while on a fiscal year basis, the same plunged by $62.23 billion. With this erosion, the forex kitty is at its lowest since early December. February aviation data: Domestic airline traffic up 51.3% YoY and down 3.3% MoM at 121 lakh. In which Market share for Indigo is at 55.9%, SpiceJet at 8.1%, Vistara at 8.7% and Air India at 8.9%. Gold rose above $2,000 an ounce for the first time in more than a year after banking crises in the US and Europe triggered a return to haven buying.

UBS Group AG, Switzerland's largest banking group, has agreed to acquire the crisis-hit Credit Suisse Group AG in a $3.23-billion historic, government-brokered deal. A liquidity backstop by the Swiss central bank failed to end a market drama that threatened to send clients or counterparties fleeing, with potential ramifications for the broader industry. European banks slide 4.8% as Credit Suisse and UBS fall on takeover deals. The UBS shares slide 14% and Credit Suisse craters 63% after the takeover deal. First Republic Bank saw its credit ratings downgraded deeper into junk status by S&P Global, which said the lender's recent $30 billion deposit infusion from 11 big banks may not solve its liquidity problems. On the sectoral front, Barring FMCG, all other sectoral indices ended in the red with realty, IT, metal and PSU Bank down 1-2%.

Nifty 50 top gainers are HUL, BPCL, ITC, Grasim Industries, and Nestle India while Bajaj Finserv, Adani Enterprises, Bajaj Finance, Hindalco Industries, and Wipro were among the top losers.

Source : Equity Bulls

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