Concerns about global economic growth continue to mount as the US debt crisis drags on. This has triggered volatility across markets. Wall Street ended lower on March 20, with key indices swinging sharply throughout the session. Asian markets opened mixed this morning, reflecting uncertainty. Despite Indian markets displaying strong bullish sentiment yesterday, today’s opening may be subdued.
Foreign investors have shown increased interest in Indian government bonds, driven by expectations that the Reserve Bank of India may cut the repo rate next month.
In the derivatives market, GIFT Nifty closed at 23,201. It rose to 23,236 this morning before retreating, hinting at a flat-to-positive start for Indian equities.
European markets closed in the red yesterday. After several days of strong gains, Germany’s index and defence sector stocks saw declines for a second consecutive day.
In the US, markets witnessed high volatility. The Dow Jones swung by over 560 points before ending with a minor loss. Uncertainty around economic growth is being cited as the main reason. On Thursday, the Dow fell 11.31 points (0.03%) to close at 41,953.32. The S&P 500 lost 12.40 points (0.22%) to end at 5,662.89, while the Nasdaq Composite dropped 59.16 points (0.33%) to settle at 17,691.63.
However, US futures were trading higher this morning — the Dow was up 0.07%, the S&P 500 rose 0.14%, and the Nasdaq gained 0.20%.
Asian markets were trading in different directions. Indices in Japan and Australia rose, while South Korea and China slipped. Rising retail inflation in Japan has raised concerns that interest rates there could increase soon.
On Thursday, Indian equities rallied steadily and closed near record highs. The Nifty crossed 23,000, the Sensex surpassed 76,000, and the Bank Nifty moved above 50,000. Mid- and small-cap indices, which had previously led the rally, posted smaller gains. All major sectors ended in the green.
Foreign investors turned buyers once again, while domestic institutional investors booked profits. Overseas funds invested more than ₹3,000 crore in government bonds and ₹3,239.14 crore in equities. Meanwhile, domestic funds sold ₹3,136.02 crore worth of shares.
The Nifty surged 283.05 points (1.24%) to close at 23,190.65. The Sensex jumped 899.01 points (1.19%) to 76,348.06, and the Bank Nifty rose 360.25 points (0.72%) to 50,062.85. The Midcap index climbed 0.64% to 51,144.40, and the Smallcap index gained 0.70% to close at 15,858.05.
Market breadth remained strong. On the BSE, 2,395 stocks advanced while 1,630 declined. On the NSE, 1,759 stocks gained compared to 1,143 losers.
Sentiment remains bullish. Technical analysts say the Nifty, having rallied 860 points in four sessions, may target 23,400 today. Key support is expected between 23,100 and 23,000. Immediate support zones are seen at 23,035 and 22,980, with resistance expected at 23,220 and 23,280.
Shares of IT services firm Accenture fell 7.26% in the US market after it disclosed a drop in government contracts and lowered its revenue guidance. Infosys and Wipro ADRs fell nearly 3% in New York trading, though they recovered about half a percent after the market closed. This could weigh on Indian IT stocks today.
US-based private equity firm Bain Capital is set to acquire an 18% stake in Kerala-headquartered Manappuram General Finance. The deal, valued at ₹4,385 crore, will be executed via preferential allotment at ₹236 per share — 30% higher than the six-month average price. Bain will later launch an open offer to acquire an additional 26%. Promoter V.P. Nandakumar’s family will retain a 28.9% stake, and the company will be jointly controlled.
Bain had previously acquired IIFL Wealth and rebranded it as 360 One. Manappuram currently operates 5,357 branches with over 50,000 employees.
After Kumar Mangalam Birla’s UltraTech Cement announced its entry into the electric cable and wire sector in February, Gautam Adani has now followed suit. Shares of companies in this sector took a hit on both occasions. Yesterday’s announcement by Adani led to another round of selling — shares of Polycab fell 20%, KEI lost 12%, and Havells declined by 8%.
Gold prices hit a record of $3,055 per ounce after the US Federal Reserve’s policy decision, but profit booking brought prices lower. Gold ended Thursday down $3.10 at $3,045.20. This morning, prices slipped further to around $3,042.
In Kerala, jewellery gold rose by ₹320 per sovereign (8g) to touch a new high of ₹66,640.
Silver dropped to $33.50 per ounce.
The US Dollar Index strengthened to close at 103.85 and remains firm this morning.
The Indian Rupee, after showing early gains, settled marginally higher on Thursday. The dollar touched ₹86.24 but closed at ₹86.37. On Friday morning, it briefly rose before closing 13 paise lower at ₹86.44 — the rupee has now gained for seven straight sessions. The Chinese Yuan slipped to 7.25 per dollar.
US bond yields remained volatile following the Fed’s decision. The yield on 10-year Treasuries fell to 4.174% before recovering to 4.233%, amid mixed opinions on the future of interest rates.
Crude oil prices rose by around 2% after the US announced fresh sanctions against Iran. Brent crude jumped from $70.86 to $72.26 per barrel and climbed further to $72.39 this morning. WTI crude traded at $68.26, while UAE’s Murban crude touched $74.88.
Cryptocurrencies, which had rallied on hopes of two US rate cuts this year, saw a pullback. Bitcoin dropped 2% to $83,950, while Ethereum fell 3% to around $1,970.
Industrial metals moved in mixed directions. Copper declined by 0.29% to $9,885.36 per tonne. Aluminium rose 0.25% to $2,674.60. Nickel and lead fell 1.76% and 1.94% respectively, while zinc and tin rose by 0.27% and 0.32%.
Sensex: 76,348.06 (+1.19%)
Nifty 50: 23,190.65 (+1.24%)
Bank Nifty: 50,062.85 (+0.72%)
Midcap 100: 51,144.40 (+0.64%)
Smallcap 100: 15,858.05 (+0.70%)
Dow Jones: 41,953.32 (-0.03%)
S&P 500: 5,662.89 (-0.22%)
Nasdaq: 17,691.63 (-0.33%)
US Dollar: ₹86.37 (↓ ₹0.07)
Gold (oz): $3,045.20 (↓ $3.10)
Gold (8g): ₹66,640 (↑ ₹320)
Brent Crude: $72.26 (↑ $1.40)
