Opening Bell : Benchmarks likely to make gap-down start amid weak global cues
Indian equity markets are likely to make gap-down start on Thursday amid weak global cues and rising geopolitical tensions, which have pushed crude oil prices sharply higher. Besides, sentiments may remain cautious as Foreign Institutional Investors (FIIs) turned net sellers on March 11, selling equities worth Rs 6,267.31 crore. Moreover, investors are likely to remain on side-lines ahead of India's retail inflation data, due to be release later in the day.
Some of the key factors to be watched:
India's real GDP growth likely to moderate to 7.1 per cent in FY27: Crisil Intelligence report stated that conflict in West Asia, if prolonged, could pose a downside risk to India's economic outlook due to its impact on crude oil and commodity prices. In its base case, the report expects India's real GDP growth to moderate to 7.1 per cent in FY27, which is still healthy and slightly above potential.
RBI announces Rs 50,000 crore OMO purchase: The Reserve Bank of India (RBI) said it will inject Rs 50,000 crore into the banking system through Open Market Operation (OMO) purchases of government securities on March 13.
Niti Aayog urges states to stick to FRBM norms, strengthen fiscal discipline: Government think tank Niti Aayog urged state governments to adhere to fiscal deficit norms under the FRBM Act through disciplined expenditure management, broadening the GST base, and enhancing their own tax capacity.
Indian fuel retailers face margin, cash-flow pressure: Moody’s Ratings said state-owned fuel retailers Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) absorbing the impact of elevated global energy prices will lead to heightened margin and cash-flow volatility. The three firms control nearly 90 per cent of retail fuel outlets in the country.
Govt fully geared to meet coal demand surge amid West Asia crisis: The government said that it is fully prepared to meet any unprecedented surge in coal demand, with overall coal stocks at about 210 million tonne -- adequate for around 88 days amid escalating tensions in West Asia threatening global energy supplies.
On the global front: The US markets ended mostly in red on Wednesday as U.S. consumer price index climbed by 0.3 percent in February after rising by 0.2 percent in January. Asian markets are trading mostly in red on Thursday following weak cues from wall street overnight.
Back home, Indian equity benchmarks ended over one and half percent lower on Wednesday after a day's breather following a spike in crude oil prices amid growing tensions in West Asia. Besides, sustained foreign fund outflows and selling in blue-chip bank stocks also drove the markets lower. Finally, the BSE Sensex fell 1342.27 points or 1.72% to 76,863.71 and the CNX Nifty was down by 394.75 points or 1.63% to 23,866.85.
Some of the important factors in trade:
Middle East conflict may pose downside risks to India's FY27 GDP growth: The rating agency ICRA said escalating conflict in West Asia could pose downside risks to India's economic growth outlook if the conflict persists. It expects India's real GDP growth to be around 7.1% in FY27, slightly lower than the 7.6% estimated for FY26.
India remains engaged with US government: Minister of State for Commerce and Industry Jitin Prasada has said that the government is studying all the tariff-related developments in the US for their implications and remains engaged with America.
Fiscal deficit as percentage of GDP revised upwards for FY23 to FY25 after GDP base revision: The government said that the fiscal deficit as a percentage of GDP for three financial years till 2024-25 has been revised upwards following the revision in base year for calculation of GDP.
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