Market Today
The benchmark Sensex and Nifty indices are likely to open higher on March 7 as trends in the GIFT Nifty indicate a positive start for the broader index with a gain of 55.50 points.
The market staged a remarkable recovery to gain a percent from the day’s low and hit new highs on March 6, as the 30-pack Sensex went past 74,000 points for the first time.
At close, the Sensex was up 408.86 points, or 0.55 percent, at 74,085.99, and the Nifty was up 117.70 points, or 0.53 percent, at 22,474, there best closing ever.
The Sensex and Nifty hit highs of 74,151.27 and 22,497.20. The pivot point calculator indicates that the Nifty may face resistance at 22,503, followed by 22,567 and 22,671 levels. On the lower side, the index is likely to take immediate support at 22,294, followed by 22,230 and 22,126.
Stay tuned to Moneycontrol to find out what happens in the currency and equity markets today. We have collated a list of important headlines across news platforms, which could impact Indian as well as international markets.
GIFT Nifty
Trends in the GIFT Nifty indicate a positive start for the broader index in India, with a gain of 55.50 points or 0.25 percent. The Nifty futures were trading around the 22,646.50 level.
Trade setup for today: Top 15 things to know before the opening bell
US Markets
Wall Street followed world shares to a higher close on Wednesday and the benchmark US Treasury yield dipped to a one-month low after Federal Reserve Chair Jerome Powell reassured investors that while inflation is not quite tamed rate cuts can be expected this year.
The Dow Jones Industrial Average rose 75.86 points, or 0.2 percent, to 38,661.05, the S&P 500 gained 26.11 points, or 0.51 percent, to 5,104.76 and the Nasdaq Composite added 91.96 points, or 0.58 percent, to 16,031.54.
Asian Markets
Japan’s Nikkei 225 index hit a fresh record high Thursday, with investors awaiting trade data from Australia and China.
The Nikkei 225 opened 0.8% higher, breaching its previous record of 40,314.64.
DGGI initiates action on ITC, Prataap Snacks, others for alleged tax evasion
In a significant move targeting several major players in the fast-moving consumer goods (FMCG) sector, the Directorate General of GST Intelligence (DGGI) has initiated actions against FMCG companies including ITC, Prataap Snacks, PepsiCo, Balaji Wafers, RP Sanjiv Goenka Group, and others for alleged tax evasion.
Sources told CNBC-TV18 that the DGGI has escalated its crackdown on nearly 10-12 FMCG companies, citing issues related to classification leading to alleged tax evasion. “The DGGI has sent notices and investigation intimation letters to FMCG companies for paying a lower rate of Goods and Services Tax (GST) on products coming under the head of — extruded snacks and fried pellet snacks,” sources said.
The government had, in 2023, clarified that any snacks that have been prepared by extrusion process should attract 18% and not 12% as is being paid by the industry currently. Extrusion is a technique to create ready-to-eat puffed snacks.
Adani Ent’s Dubai arm acquires France-based Le Marche for 5,000 euros
Adani Enterprises on March 6 informed the bourses that its Dubai-based arm, Ospree International FZCO, has acquired a 100 percent stake in France-based Le Marche Duty Free SAS (LMDF) for 5,000 euros.
LMDF was incorporated in France on February 7, 2024, for the purpose of operating duty free business in the country. The company is yet to commence operations.
Atul Ahuja, who is promoter of Flemingo Group, is the owner of LMDF. Adani said it has acquired 5,000 shares of LMDF having a nominal face value of one euro each from Ahuja, who is the sole shareholder.
The acquisition is of “strategic nature” in the interest of Mumbai Travel Retail Private Ltd (MTRPL), a step-down subsidiary of Adani Enterprises, the exchange filing added.
Govt likely to sell up to 7% stake in NLC India via OFS to raise up to Rs 2,100 cr
Government is likely to sell up to 7 percent stake in NLC India through offer for sale (OFS) to raise up to Rs 2,000 crore-Rs 2,100 crore, sources told CNBC-Awaaz on March 6.
The channel reported that government is looking to sell up to 5 percent stake in the state-owned firm with an option to exercise greenshoe option to sell an additional 2 percent stake.
Department of Investment and Public Asset Management and government officials will soon take a decision regarding this, said CNBC-Awaaz.
Powell reiterates Fed needs more confidence on inflation to cut
Federal Reserve Chair Jerome Powell reiterated to lawmakers that the US central bank is in no rush to cut interest rates until policymakers are convinced they have won their battle over inflation.
In prepared testimony to a House panel Wednesday, the Fed chief said it will likely be appropriate to begin lower borrowing costs “at some point this year,” but made clear they’re not ready yet.
The remarks echoed a consistent message from nearly every Fed official in recent weeks: The economy and labor market are strong, meaning policymakers have time to wait for more evidence that inflation is headed back to their goal before cutting interest rates.
India’s FY24 GDP growth could be ‘very close’ to 8%, says RBI Governeor
The Indian economy’s GDP growth in the current fiscal year ending in March could be “very close” to 8 percent, Reserve Bank of India (RBI) governor Shaktikanta Das said in an interview with television channel ET Now on Wednesday.
India’s economy grew at 8.4 percent, its fastest pace in 18 months, in the final three months of 2023, led by strong manufacturing and construction activity. Following this data, the government revised its growth estimate for the 2024 fiscal year to March 31 to 7.6 percent from 7.3 percent.
“Our sense and understanding of the high frequency indicators and the momentum of economic activity tells us that this 5.9 percent growth (expected) in Q4 could be exceeded and when that happens, obviously, the (full year) growth will be more than 7.6 percent,” Das said.
“And I think there is quite a good chance of the growth, GDP number for the current year, being very close to 8 percent.”
Das said rural demand had been improving and was much stronger than a year ago, while urban demand continued to be very strong.
Oil prices climb 2% on small build in US crude stocks, Fed rate cut seen
Oil prices climbed about 2 percent on Wednesday on a smaller-than-expected build-up in US crude inventories, a big withdrawal from distillate and gasoline stockpiles and remarks by the Federal Reserve chief that he still expects US interest rate cuts this year.
Lower interest rates could increase demand for oil by boosting economic growth.
Brent futures rose $1.65, or 2 percent, to $83.69 a barrel. US West Texas Intermediate (WTI) crude rose $2.07, or 2.7 percent, to $80.22.
Brent was on track for its first daily rise in five days.
Gold extends record run as rate cut bets gain ground
Gold rallied to a fresh record on Wednesday, building on stellar momentum driven mostly by bets for US monetary easing, while autocatalyst palladium popped back above the $1,000 mark for the first time since January 12.
Spot gold gained 0.6 percent to $2,139.39 per ounce after hitting an all-time high of $2,148.99 earlier in the session. US gold futures rose 0.3 percent to $2,147.60. Silver added 1.2 percent to $23.97.
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 2,766.75 crore, while domestic institutional investors (DIIs) purchased Rs 2,149.88 crore worth of stocks on March 6, provisional data from the NSE showed.
Stock under F&O ban on NSE
The NSE has added Manappuram Finance, and Mahanagar Gas to the F&O ban list for March 7, while retaining Zee Entertainment Enterprises on the said list.
With inputs from Reuters and other agencies
