Daily Market Commentary - March 23, 2023 - Bonanza Portfolio

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

Indian indices opened on a negative today with Nifty below 17,100. At the time of closing, Sensex was down 289.31 points or 0.50% at 57,925.28, and NIFTY was down 75 points or 0.44% at 17,076.90.

During the day, the government of India said the export of biofuel from special economic zones and export-oriented units is allowed for fuel as well as non-fuel purposes without any restriction if the biofuel is produced by using imported feedstock. Despite the uncertainties and recognized potential risks associated with the global economic slowdown, India's banking sector is standing strong with a positive outlook. As Indian banking stocks have witnessed a correction amid concerns like a declaration of loan growth, the contraction cycle of net interest margin (NIM), weak operating profit growth, and potential risks to asset quality. The Government of India is going to sell up to 1.75% equity shares of Hindustan Aeronautics via an offer for sale. Having an option to additionally sell 1.75% equity shares of the company, which is an oversubscription option. RBI to meet on March 27 to decide on H1 borrowing calendar FY24.

The Government of India's CAPEX plans are positive for the economy. Still, a lot of infrastructure is required and the Government can only help with the significant increase in CAPEX. If FY24 growth comes below the estimated forecast of 6.2%, it can create a lot of pressure on the revenue side. The US Federal Reserve on March 22 announced a quarter point-hike in interest rates, refusing to lower guard on persistently high inflation but assured markets battered by a banking crisis that it has enough firepower to avert contagion. The Fed increased its fund's target rate to a range of 4.75-5%, a level last seen prior to the 2007-08 global financial crisis. On the sectoral front, a mixed trend has been seen, with realty, bank, IT and PSU banks down 0.5% -1%, while buying saw in the metal, FMCG, and power names.

Nifty 50 top gainers are Hindalco Industries, Nestle India, Bharti Airtel, Maruti Suzuki, and JSW Steel while State Bank of India, Asian Paints, HCL Technologies, Kotak Mahindra Bank, and Adani Enterprises were among the top losers.

Source : Equity Bulls

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