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Benchmarks likely to make flat-to-positive start; IIP, CPI data eyed

Indian markets ended higher for the third session in a row on Wednesday, tracking a rebound in broader Asian markets as easing in bond yields calmed investors jitter globally. Indian stock markets remained closed on Thursday on account of Mahashivratri. Today, the markets are likely to make flat-to-positive start following positive global cues and investors are looking ahead for industrial production data for January and CPI inflation data for February that are slated to be released today. Sentiments will get a boost with PHD Chamber of Commerce and Industry report showing that as economic activities gather pace and investor sentiments revive, GDP growth is likely to enter a double-digit growth trajectory and may grow at more than 11 per cent in the next financial year. Some support will come with Commerce Secretary Anup Wadhawan’s statement that the country's exports are steadily recovering and it is expected to record a healthy growth rate in March. Traders may take note of report that the Reserve Bank said it will conduct simultaneous purchase and sale of government securities for Rs 10,000 crore each under Open Market Operations (OMOs) on March 18, 2020. Besides, the Centre said Bharat Biotech's indigenously developed Covaxin is out of the clinical trial mode and that it has now been granted the restricted emergency use authorisation. However, traders will be concerned as India reported 21,668 fresh Covid-19 cases on Thursday pushing the overall tally to 11,305,979, according to Worldometer. The death toll from the deadly infection jumped to 158,326. The country continues to be second-most-affected globally, and ranks 11th among worst-hit nations by active cases. There may be some cautiousness with SBI report stating that India’s combined federal and states’ budget gap in the current fiscal year will reach 12.7% on increased healthcare spending and a collapse in revenues amid the pandemic. There will be some buzz in healthcare industry stocks with a report that the cabinet approved the Pradhan Mantri Swasthya Suraksha Nidhi (PMSSN) as a single non-lapsable reserve fund for healthcare in India. Insurance industry stocks will be in focus with report that the Union cabinet has approved changes to the Insurance Act for increasing the foreign direct investment (FDI) limit to 74 per cent from the present 49 per cent. There will be some reaction in aviation stocks as rating agency ICRA has a negative credit outlook on Indian aviation industry, reflecting a view that financial performance of airlines is likely to remain weak in near-to-medium term amid weak air traffic. Meanwhile, Anupam Rasayan’s Rs 760 crore initial public offering (IPO) will open for subscription today. The company is looking to sell shares in the price band of Rs 553-555 per share. Investors can bid for a minimum of 27 equity shares and in multiples thereafter, translating to a minimum investment of Rs 14,985.

The US markets ended higher on Thursday as President Biden signed off on the $1.9 trillion stimulus package. Asian markets are trading mostly in green on Friday as a further retreat in bond yields eased concerns about rampant inflation, restoring appetite for battered tech stocks.

Back home, Indian equity benchmarks extended their gains for the third straight session on Wednesday, with Metal, IT and TECK stocks trading firm throughout the session amid positive global cues. The benchmarks staged a gap up opening, as the Organization for Economic Co-operation and Development (OECD) in its interim economic outlook has raised the projection for India’s economic growth rate by 4.7 percentage points at 12.6 per cent for 2021-22. That would enable India to retain its earlier tag of the fastest growing large economy in the world. Sentiments remained positive as Crisil in its report stated that the production-linked incentive (PLI) scheme that seeks to push domestic manufacturing in as many as 14 sectors has the potential to generate additional revenue worth Rs 35-40 lakh crore over the next five years. However, the benchmarks came off intraday highs in noon deals on the back of weakness in index heavyweights like ONGC, Kotak Mahindra Bank, ITC and HDFC Bank. Traders got cautious amid reports that a majority of CFOs interviewed see the long-term and financial impact of the global pandemic as one of their top challenges over the next three years. According to a survey, the most pressing issue at hand for CFOs (chief financial officers) is long-term business and financial impact of global pandemic, with almost 80 per cent of respondents listing this as their top challenge over the next three years.  But, key indices regained traction to end higher, as traders found some solace with Minister of State for Finance Anurag Thakur’s statement that banks have sanctioned loans worth Rs 2.46 lakh crore to about 92 lakh accounts under the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme for the MSME sector. Finally, the BSE Sensex rose 254.03 points or 0.50% to 51,279.51, while the CNX Nifty was up by 76.40 points or 0.51% to 15,174.80. 

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