Back in the green

Nifty50: 17,450 ▲ 146 (+0.8%)
Sensex: 59,411 ▲ 448 (+0.7%)

Hi there!

All that buzz was true after all. 

The smashing Telugu hit ‘Naatu Naatu’ will be performed live at the Oscars this year! Singers Rahul Sipligunj and Kaala Bhairava will present this crazy-viral song in front of the who’s who of showbiz.

ICYDK, ‘Naatu Naatu’ is in the running for Best original song at the Oscars. And after that historic Golden Globe win, the collective hope of Indians has never been higher.

Even markets gave us some hope of recovery today after the mayhem in the last 8 sessions.

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• The markets snapped their eight-day losing streak.
• Of the Nifty50 universe, 45 stocks made gains.
• Broad-based buying witnessed in the markets.

All the Nifty sectoral indices ended in the green with Metal (+3.9%) and PSU Bank (+2.8%) being the top gainers.

What’s trending

⭐ Metal stocks shine 

Metal stocks, which have been facing selling pressure for the past two months, started March with a bang. The Nifty Metal (+3.9%) was the top sectoral gainer today. The index heavyweights like Tata Steel, JSW Steel, Hindalco and Adani Enterprises rose in the range of 1.6% to 15.7% 

A sharp drop in the price of coking coal (-9%), a key raw material for making steel, in the past two weeks and high domestic demand are two big positives for the metal industry. 

⭐ Auto sales zooms 

Maruti Suzuki’s domestic passenger vehicle (PV) sales rose over 10% YoY to 1.4 lakh units in February. This was despite the shortage of electronic components. Meanwhile, Tata Motors’ PV sales rose 7% YoY. SUV maker Mahindra & Mahindra also reported a 10% rise in its PV sales. The M&M management said it is monitoring the supply chain scenario.

⭐ RIL forays into commercial properties

The company (+0.9%) has incorporated a new subsidiary – Reliance SOU – which will develop properties for commercial use. Reliance Industries has made an initial investment of ₹1 lakh in the new subsidiary.  

⭐ Tata Power subsidiary gets equity boost 

Tata Power Renewable Energy has received investment of ₹2,000 crore from GreenForest. The subsidiary of Tata Power (+0.9%) has garnered investments worth ₹4,000 crore till now. This capital infusion will be used to fund aggressive growth plans, including a portfolio of 20 GW of renewable assets in the next five years.

In Focus

5 reasons why India is resilient amid global gloom

In 2023, the Indian markets are down around 4% as concerns over global slowdown and geopolitical conflicts are mounting. In fact, the benchmark index – Nifty 50 – was on a eight-day losing streak till yesterday. 

But, the latest macro data releases suggest that the Indian economy continues to remain robust.

1. Industrial recovery

In January, India’s eight core sectors (key industries in the economy) grew 7.8% – a four-month high. This expansion in industrial activity was led by fertilisers, coal, and electricity. And experts believe this recovery will continue. They observe that the government’s large capex or infrastructure push will provide support to core sectors like cement and steel.    

2. Infra thrust

The optimism of experts is evident in the government’s capex numbers for January. The government’s spending on infrastructure was up 29% year-on-year. Also, it has allocated ₹10 lakh crore to the infra sector for the next financial year to spur economic growth.  

3. Credit boost 

It’s not just the government. There seems to be an appetite for spending among companies and individuals too. In January, banks’ overall credit growth zoomed 16.7%, driven by demand for industrial, home, and vehicle loans. 

4. New orders

India’s manufacturing sector also sustained its growth momentum in February, supported by output and new orders. The Purchasing Manager’s Index (PMI) Manufacturing, which is an indicator of sentiments in the sector, was at 55.3% in February. ICYDK, a reading above 50 signals expansion. Experts observed that companies were confident in the resiliency of demand and continued to add to their inventories. 

5. Economic growth

In the December quarter, India’s economic growth slowed down to 4.4% compared to 6.3% in September quarter. This can be attributed to the high base of the same quarter last year. Experts also point out that the economic growth was up 11.6% compared to pre-covid levels. Also, the Indian economy remains on track to achieve 7% growth in this fiscal year, making it one of the fastest growing economies in the world.  

While the global challenges are making investors jittery, the latest data may provide a glimmer hope.

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