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• Equity benchmarks Nifty and Sensex closed slightly lower amid concerns over global growth, with declining Asian and European markets and a drop in US index futures pulling the market down from its intra-day highs. Additionally, traders booked profits ahead of the long holiday tomorrow (due to the Holi festival), while awaiting the US Producer Price Index (PPI) data release and amidst concerns about a potential global trade war. The Nifty ended 0.34% lower, dropping 73 points to close at 22,395, after reaching an intra-day high of 22,558.

• Broader markets also ended in the red, with the Nifty Smallcap and Midcap 100 indices falling by nearly 1% each. The advance-decline ratio for Nifty 500 stocks was 1.5:3.5. Domestic inflation for February cooled to a 7-month low of 3.61%, and US inflation dropped to a 4-month low of 2.8%, but the market struggled to maintain its gains due to trade war concerns and uncertainty surrounding global growth.

• Key losers included the Nifty Metal, IT, Real Estate, and Auto indices, which declined between 1-2%. However, defense stocks saw fresh buying interest, driven by strong government orders and increasing export orders. The Nifty Defense Index rose over 1%, supported by gains in companies like BEL, Data Patterns, Mazagon Dock, Bharat Dynamics, and Solar Industries, which gained between 1-4%.

• Oil and gas stocks also saw gains after the government passed legislation to encourage exploration, aiming to meet the country’s energy needs. On the global front, both Asian and European markets fell by up to 1%, as concerns about the world’s largest economy intensified due to fluctuating trade policies and geopolitical tensions.

Technical Outlook:

• Nifty Index opened positive but cascaded right from the start of the session and witnessed a fall of 180 points. It has been consolidating in a arrange of 350 points in the entire week and formed a small bodied bearish candle on weekly frame.

• It formed a bearish candle and an inside bar on daily frame indicating that pressure is intact at higher zones. Now it has to hold above 22330 zones for an up move towards 22650 then 22800 zones while supports can be seen at 22300 then 22222 zon

Derivative Outlook:

• Nifty future closed negative with losses of 0.41% at 22437 levels. Positive setup seen in Dmart, CAMS, Solar Industries, Oil India, VBL, Kotak Bank, BEL, MCX, Adani Green, Unites Spirits and IOC while weakness in PB Fintech, Bharat Forge, Crompton, Sonacoms, Motherson, Ramco Cements, Paytm, Exide Industries, Tata Technologies, Dalmia Bharat, and Aarti Industries.

• On option front, Maximum Call OI is at 23000 then 22500 strike while Maximum Put OI is at 22000 then 22400 strike. Call writing is seen at 22700 then 22500 strike while Put writing is seen at 22000 then 22400 strike. Option data suggests a broader trading range in between 21800 to 22800 zones while an immediate range between 22200 to 22600 levels.

• Polycab India wins $344M Bharat Net Project order from BSNL – Company has won an order worth as much as 30.03 billion rupees ($344 million) from Bharat Sanchar Nigam. Project Implementation Agency (PIA) for the design, supply, construction, installation, upgradation, operation, and maintenance of the middle-mile network under the BharatNet initiative in Bihar Telecom Circle.

• Government approves legislation to boost oil and gas exploration - Government has passed legislation intended to encourage oil and gas exploration to help meet its energy needs.

• IIFL Finance - Company approves enhancement of issue size for re-issuance of previously issues NCDs. It will raise up to Rs 700 crore via NCDs via private placement basis.

• L&T – Company won order in the range of Rs 2,500 crore and Rs 5,000 crore for desalination plant in Saudi Arabia. It also won an order in the range of Rs 2,500 crore and Rs 5,000 crore along with its joint venture partner Lantania, Spain.

• Power Finance Corp (PFC) - Company has received government approval to raise up to Rs10000cr through a rarely used corporate bond structure.

• Angel One – Company approve interim dividend of Rs11 a share.

• Satin Creditcare – Company announced that it has raised $100mn social loan via forex loans.

• HPL Electric - Company has won smart meter orders worth ?369.90 crore (inclusive of tax) from its regular leading customers.

• Dalmia Bharat - company expects Tamil Nadu Limestone Tax to have an impact of Rs 130 crore per year.

Global Market Update

• European Market - European stocks edged lower as tariff tensions continued to rise and investors awaited US data for clues on the path of interest rates. Both France and Germany’s DAX declined 0.5% each.

• Asian Market - Asian equities declined from intra-day high amid a broad risk-off mood, as traders largely looked past weaker-than-expected US inflation data. Sentiment turned sour as worries mounted about the health of the world’s largest economy amid on-again, off-again trade policies and geopolitical tensions. TSMC was the biggest drag on the gauge, with Taiwan’s benchmark Index (down 1.4%) as the central bank warned of currency risks from stock outflows. Japan, Australia and South Korea Index marginally declined.

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