Daily Market Commentary - March 27, 2023 - Bonanza Portfolio

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

Indian indices opened with marginal gains today amid mixed global cues. At the time of closing, The Sensex was up 126.76 points or 0.22% at 57,653.86, and the Nifty was up 40.70 points or 0.24% at 16,985.70.

During the day, India's forex kitty rose by USD 12.798 billion to USD 572.801 billion in the week ended March 17, RBI. The board of the National Stock Exchange (NSE) stated that it has decided to roll back the 6% increase in transaction charges on the equity cash and derivatives segment, with effect from April 1. In January 2021, the charges were increased by 6% partly, to augment the investor corpus in view of certain market exigencies due to broker defaults. After hours of confusion regarding the quantum of STT (securities transaction tax) hike on the sale of options, the Finance Ministry finally clarified that it will be hiked to Rs. 6,250 on a turnover of Rs. 1 crore, indicating a 25% increase. The Board of Directors of HDFC granted its approval for the issuance of unsecured redeemable non-convertible debentures under a Shelf Placement Memorandum, aggregating Rs. 57,000 crores, in various tranches, on a private placement basis.

India's market capitalization has dipped below $3 trillion for the first time in nine months, primarily due to persistent selling pressure caused by the instability of banks in the US and Europe. The element of uncertainty in global markets continues. The sharp cut of 4.6% in the European bank index, despite the assertion by authorities that the European banking system is resilient, is a reflection of the fear in the market. Actions by US authorities have brought near-term stability to the US banking system. The changes proposed in the taxation of debt funds will make them less attractive for investments made after 1st April 2023. Asian shares struggled while U.S. and European stock futures edged higher on hopes authorities were working to ring-fence stress in the global banking system, even as the cost of insuring against default neared dangerous levels. On the sectoral front, auto, capital goods, power and realty are down 0.5-2%, while Pharma index is up 1%.

Nifty 50 top gainers are Grasim, Reliance, Cipla, Sun Pharma, and Divis Lab while Adani Ports, Adani Enterprises, Mahindra & Mahindra, Axis Bank, and Powergrid were among the top losers.

Source : Equity Bulls

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