Daily Market Commentary - April 3, 2023 - Bonanza Portfolio

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

Indian equity indices opened on a positive note with Nifty above 17,400. At the time of closing, Sensex was up 114.92 points or 0.19% at 59,106.44, and Nifty was up 38.20 points or 0.22% at 17,398.

During the day, monthly collection of Data under Goods & Service Tax (GST) regime jumped 13% YoY to Rs. 1.60 Lakh Crores. This is the second highest mop up since the roll out of indirect taxation regime in July 2017. India March Manufacturing PMI at 56.4 versus 55.3 in February. In the absence of the indexation benefit, other investments like the AIF looks to be more attractive in the long term, especially for big ticket size investors, due to better capital appreciation and parity in the tax treatments. Oil prices jumped about $5 a barrel and U.S. dollar started the week higher as fears over inflation resurfaced after a surprise announcement by major oil producers to cut production further.

Saudi Arabia and other OPEC+ oil producers on Sunday announced further oil output cuts of around 1.16 million barrels per day. The pledges bring the total volume of cuts by OPEC+, which groups the Organization of the Petroleum Exporting Countries with Russia and other allies, to 3.66 million bpd, equal to 3.7% of global demand. China's factory activity growth stalled in March, weighed down by slowing production and weaker global demand and adding to uncertainty about a post-COVID recovery. The Caixin/S&P Global manufacturing purchasing managers' index (PMI) fell to 50.0 in March. On sectoral front, auto and PSU Bank indices gained 1% each and realty index up nearly 1%, while selling was seen in the FMCG, metal, power, oil & gas and information technology stocks.

Nifty 50 top gainers are Hero MotoCorp, Coal India, Bajaj Auto, Maruti Suzuki and Eicher Motors while BPCL, Apollo Hospitals, Adani Enterprises, ITC and Infosys were among the top losers.

Source : Equity Bulls

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