IGI Logo

Indian markets ended higher on Tuesday propelled by market heavyweight RIL, ITC, banking and IT shares amid positive global cues. Today, markets are likely to get negative start tracking weakness in the global peers. Trading sentiments continue to remain subdued amid concerns over rising inflation in the country. However, foreign fund inflows likely to support domestic sentiments. Foreign institutional investors (FII) bought shares worth Rs 1,305.30 crore on February 14, according to the provisional data available with NSE. Some support will come as India's foodgrain production is estimated at an all-time high of 323.55 million tonnes in the current crop year ending June, driven by the projection of a record output of rice, wheat and pulses. Traders may take note of Vivek Johri, CBIC Chairman’s statement that the Central Board of Indirect Taxes and Customs (CBIC) will use the data of electric meters and property tax to increase the base of goods and services tax (GST). Meanwhile, amid stakeholders facing glitches in submitting forms under the companies law through the MCA21 portal, Union minister Nirmala Sitharaman asked the corporate affairs ministry to form a special team to address public grievances on a priority basis. Banking stocks will be in focus with a private report stating that public-sector banks (PSBs) in Q3FY23 wrote off bad loans worth Rs 29,000 crore, up from Rs 23,000 crore in the same quarter a year ago, as part of a clean-up exercise. There will be some buzz in the auto stocks with rating agency Icra’s report that the commercial vehicle industry volume is expected to grow in the range of 7-10 per cent in the next financial year. It noted that the volume growth would be on account of government infrastructure spending, replacement demand, back-to-school and office scenarios and e-commerce expansion.

The US markets ended mostly in red on Tuesday after the release of US inflation data that came in hotter-than-expected. Asian markets are trading lower on Wednesday following a largely lower close on Wall Street.

Back home, Indian equity benchmarks snapped their two-day losing run to end nearly a per cent higher on Tuesday, as supportive global cues and healthy buying in heavyweights lifted sentiment. Equity benchmarks made a positive start and traded in fine fettle in early deals as the data with the BSE showing that Foreign Portfolio Investors (FPIs) remained net buyers on Monday, purchasing shares worth Rs 1,322.39 crore. Traders got encouragement after India’s inflation based on wholesale price index (WPI) eased further to 4.73% for the month of January 2023 against 4.95% recorded in December 2022. Decline in the rate of inflation in January is primarily contributed by mineral oils, chemicals & chemical products, textiles, crude petroleum & natural gas, textiles, and food products. The wholesale inflation was 5.85% in November 2022.  Sliding crude oil prices in the international markets also bolstered sentiment. Sentiments remained up-beat in late afternoon deals, even as the government data showing that India's retail inflation breached the RBI's comfort zone and rose to a three-month high of 6.52 per cent in January 2023, mainly on account of a spike in food prices. The inflation rate based on the Consumer Price Index (CPI) stood at 5.72 per cent in December and 6.01 per cent in January 2022. Meanwhile, Commerce and industry minister Piyush Goyal has urged member countries of the IPEF group to focus on early deliverables which can benefit all the nations. Indo-Pacific Economic Framework (IPEF) was launched by the US and other partner countries of the Indo-Pacific region on May 23 last year in Tokyo. The 14 partner countries represent 40 per cent of global GDP and 28 per cent of global goods and services trade. Finally, the BSE Sensex rose 600.42 points or 0.99% to 61,032.26 and the CNX Nifty was up by 158.95 points or 0.89% to 17,929.85.

Above views are of the author and not of the website kindly read disclaimer