Daily Market Commentary - March 29, 2023 - Bonanza Portfolio

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

Indian indices opened on a positive note amid mixed global cues. At the time of closing, the Sensex was up 346.37 points or 0.60% at 57,960.09, and the Nifty was up 129 points or 0.76% at 17,080.70.

During the day, the National Payments Corporation of India (NPCI) has suggested that Prepaid Payment Instrument (PPI) charges be applied from April 1 for merchant transactions made using the Unified Payments Interface (UPI). As per the circular, using PPIs on UPI will attract interchange at 1.1% of the transaction value for transactions worth over Rs 2,000. It is expected that The Reserve Bank of India will raise its main interest rate by 25 basis points on April 6 and then pause for the rest of the year. South Indian Bank sees biggest drop in 2 years as CEO plans exit. As Bank informed that the board has considered the request of Mr. Murali Ramakrishnan, Managing Director & CEO, not to offer himself for re-appointment. COMEX Gold rose more than 1% on Tuesday and closed at USD 1,973.5 per troy ounce, amid a decline in the US dollar on prospects of a Fed pivot amid the backdrop of recent financial turmoil.

Consumer confidence inched up in March after two straight monthly declines, even as persistent inflation, bank collapses and anxiety over a possible recession weighed on American households. The safe-haven U.S. dollar remained on the back foot on Wednesday following two days of losses as global financial markets regained a measure of stability on hopes a full-blown banking crisis can be averted. The dollar index, which tracks the currency against six major peers, was flat in early Asian trading, following drops of about 0.3% in each of the past two sessions. The weakness comes despite a rise in U.S. Treasury yields, which is also the result of ebbing demand for the safest assets. Money markets are expecting Fed to pause rates during the May FOMC meeting, with less than 10 bps of hikes prices in for the same. On the sectoral front, auto, FMCG, PSU Bank, capital goods, realty % metal indices up 1-3%.

Nifty 50 top gainers are, Adani Enterprises, Adani Ports, JSW Steel, Eicher Motors and HCL Technologies while UPL, Bharti Airtel, Reliance Industries, ICICI Bank and Asian Paints were among the top losers.

Source : Equity Bulls

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