Weekly Market View – 5th March, 2022

Indian Market Outlook:

The Key benchmark indices fell over 2 percent during the week led by escalation of Russia and Ukraine War, continuous FII Selling and rising crude Oil prices. Nifty ended the week with 2.48 percent lower at 16245.35 points while the Sensex ended with 2.73 percent lower at 54,333.81 points. Maruti Suzuki, Asian Paints, Eicher, Hero MotoCorp, M&M were the top Nifty losers. Broader market fell less than the key benchmark indices. BSE Midcap index ended 2.35 percent lower, while the BSE Small cap index fell 0.62 percent. Bank Nifty fell more than 5%, biggest weekly fell in 18 months. Foreign Institutional Investors were the net sellers during the week; sell equities worth Rs. 14932 crores while the DIIs were the net buyers of Rs. 12003 crores.  Skyrocketing inflation is what people fear and the best hedge for that is energy and industrial metals which led the rally in metal and energy stocks during the week. India’s GDP grew by a lesser-than-expected 5.4 per cent in the third quarter, while the growth estimate for the year as a whole was revised downward to 8.9 per cent from 9.1 per cent earlier. Going forward, the final phase of voting for Assembly polls in Uttar Pradesh is scheduled for March 7 after which the elections for the five poll-bound states will be finally concluded on 10^th March, 2022. Rising crude oil prices is expected to push India’s domestic prices of petrol and diesel by Rs 15-22 per litre. OMCs expected to revise the current prices on or after March 7. Besides this, developments in the Russo-Ukrainian war will also be key for the markets. We advise investors to invest in quality stocks with any further dip.

Latest Spot Price (in US $)

 

Source: Investing, NDTV, BSE, CNBCTV18, Moneycontrol,

Economic News:

• India’s forex reserves declined by USD 1.425 billion to USD 631.527 billion for the week ended in February 25 due to a dip in currency assets, according to the Reserve Bank data released on Friday. The overall reserves had increased by USD 2.762 billion to USD 632.952 billion in the previous reporting week. Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.

• Export demand for Indian wheat, corn and spices has shot up after Russia launched a military operation against Ukraine, forcing the international trade of agricultural commodities to shift sourcing to India since supplies from the two nations have come to a grinding halt. “The prices of wheat at the Kandla port have increased from ₹2,200 per quintal to ₹2,350-2,400 per quintal in the last four days.

Industry News:

• India’s agriculture sector is expected to face the heat from hostilities between Russia and Ukraine which are expected to push up prices and availability of — Potash — a key component used in the manufacturing of fertilisers. At present, Belarus and Russia are key suppliers of Potash in the global market. On the other hand, India is a major importer of Potash, which is used in the manufacture of fertilisers. At an overall level, Russia, Ukraine and Belarus contribute 10-12 per cent of India’s total fertiliser imports. Besides, other Potash miners mostly based in Canada are not willing to raise production, thereby, keeping the prices at an elevated level.

• RBI’s revised norms led to a 1.50 per cent jump in the non-bank lenders’ reported gross non-performing assets to 6.80 per cent in the December quarter, a credit ratings agency said on Friday. If not for the revised norms, the improvement in economic activity would have led to a 0.30 per cent improvement in GNPAs during the December quarter to 5.3 per cent, Crisil said. The GNPAs for the NBFCs (non-banking finance companies) are, however, expected to reduce going ahead as the players have bolstered their collection processes and economic activity is also improving, Crisil said in a note.

• India’s state-run fuel retailers are increasing their ethanol storage capacity by 51% as the nation targets to double the biofuel’s blending with gasoline to 20% by 2025, a director at the country’s top refiner Indian Oil Corp said on Friday. India is the world’s third biggest oil importer and relies on foreign suppliers to meet more than 80% of its demand.

 Company News:

• Reliance Industries on Friday announced the opening of India’s largest convention centre at Jio World Centre in Mumbai. The convention centre has three exhibition halls spanning over an area of more than 1.61 lakh square feet and two convention halls of 1.07 lakh square feet. The convention centre has “hybrid and digital experiences enabled by 5G network”, Reliance Industries Ltd (RIL) said in a statement. RIL also dedicated Dhirubhai Ambani Square and ‘Fountain of Joy’ to the city of Mumbai at the Jio World Convention Centre.

• NTPC Limited on Friday said it will start commercial operations of 74.88 megawatt capacity (MW) of its 296 MW Fatehgarh solar project in Rajasthan from midnight. With this, the commercial capacity of NTPC and NTPC Group will reach 54,452.18 MW and 67,907.18 MW respectively, the power giant said in a statement.

• MG Motor, owned by China’s SAIC Motor Corp, is planning to raise $350-500 million (Rs 2,650-3,800 crore) in private equity in India to fund its future needs, including expansion in electric vehicles (EVs). The maker of the Hector and Astor SUVs is seeking to tap the local market because of a delay in getting government approval for new investment from the Chinese parent.

• Mahindra & Mahindra Ltd on Friday said it has partnered with CSC Grameen eStore, a government of India initiative, to deepen connections with over 7 lakh villages in India. The partnership will harness CSC Grameen’s digital platform to facilitate Mahindra vehicle enquiries and real-time online lead transfer to M&M from deep rural pockets, the company said in a statement.

Global News

• S. hiring boomed in February while wage growth slowed, showing a robust labor market that likely keeps the Federal Reserve on track to raise interest rates this month and offering some respite from strong inflationary pressures. Nonfarm payrolls increased 678,000 last month — the most since July — after upward revisions in the prior two months, a Labor Department report showed Friday.

• Russia is on course for an economic collapse that will rival or even eclipse the size of the 1998 slump which followed its debt default, although the financial fallout may be less than then. Days after President Vladimir Putin ordered troops into Ukraine, economists are starting to publish forecasts for what is currently the world’s eleventh largest economy, even though they warn the outlook is opaque and subject to revision.

(Source:Bloomberg Quint, Economic Times, BusinessToday,Business Standard, Financial Express,Investing, Moneycontrol, livemint)

Forthcoming Corporate Actions – 7^th March – 12^th March

Source: BSE, Elite wealth Research

Source: BSE, Elite wealth Research

Major Economy Indicators

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