Bears overpower bulls

Nifty50: 16,972 ▼ 71 (-0.4%)
Sensex: 57,555 ▼ 344 (-0.5%)

Dear reader,

Still can't fathom how big the menace of pollution is? Then read on.
Only 13 countries and territories had a healthy air quality in 2022, according to the Swiss firm IQAir's list. The air pollution in 90% of the countries was above the World Health Organisation’s guidelines. And India was ranked the eighth most polluted country in the world.

Now moving on to markets. We advise investors to take deep breaths as the stock markets continue to remain volatile.

• The markets pared gains and ended below the 17,000-mark.
• Of the Nifty50 stocks, 28 declined.
• Weak global cues dented sentiments.

Among the Nifty sectoral indices, Metal (+1.8%) and Pharma (+0.3%) were the top gainers, while Media (-1.2%) and PSU Bank (-1.2%) were the top losers.

What’s trending

⭐ Crude ▼ Paint stocks ▲

Oil prices dropped over 5.7% this week amid rising global uncertainties. The US banking crisis has triggered concerns of a severe economic slowdown. This could lead to lower demand for oil.

On the other hand, shares of the Indian paint companies rose as the oil prices declined. Shares of Asian Paints, Berger Paints India and Indigo Paints rose in the range of 3% to 6% intraday as crude oil is a key raw material for paint companies.

⭐ Metal stocks shines 

The Nifty Metal index (+1.8%) was among the top gainers today, reversing the loss of the last three trading sessions. Heavyweights like Tata Steel (+2.1%), JSW Steel (+1.3%) and Hindalco (+0.6%) gained traction. Experts believe that revival of the Chinese economy will drive demand for metals. China’s manufacturing PMI, the barometer for sentiments of the sector, was at an eight-month high in February 2023. The industrial production also rose 2.4% YoY last month.

⭐ Railway ancillary stocks on the roll 

The consortium of Ramkrishna Forgings (+6.2%) and Titagarh Wagons (+1.3%) has emerged as the lowest bidder for manufacturing and supply of forged wheels to Indian Railways. Both these companies will supply over 1.5 million wheels to railways over a period of 20 years.

⭐ Coforge clarifies on US banks exposure  

Shares of the IT company (+0.5%) snapped their five-day losing streak today. This comes after the company clarified that its exposure to the US regional banks is limited and the current market events won’t impact its performance.

In Focus

DIIs are pouring money into Indian equities

From rising inflation to the US banking crisis – a plethora of concerns are impacting the global markets. Despite these challenges, domestic investors have shown that they have unwavering faith in Indian equities. 

Increasing appetite 

In March, the Indian markets have been volatile, tumbling 6.2% till now. But this hasn’t deterred domestic investors. Seizing the opportunity, domestic institutional investors (DIIs) including insurance companies, mutual funds and pension funds have bought shares worth ₹10,469 crore on a net basis. They were net buyers of Indian equities in February too, acquiring more than ₹19,000 crore shares. 

In fact, DIIs have been consistently investing in the Indian markets. Out of the 11 months of FY23, they have been net buyers for nine months. 

Retail boost

Retail or individual investors have also been flocking towards equities. For instance, the SIP (investing a fixed amount of money monthly) contribution has risen to ₹1.41 lakh crore in FY23 (till February 2023) from ₹1.24 lakh crore in FY22. Also, the monthly SIP contributions have remained above the ₹13,000 crore mark between October 2022 and February 2023.

Equity pull 

Equity-oriented mutual fund schemes’ AUM (assets under management) has risen by 16% YoY to ₹15 lakh crore. In the same period, 1.8 crore folios (accounts) have been added, taking the total to 14.4 crore. 

With domestic investors continuing to lap up Indian equities, the Indian markets have been able to battle global volatility.

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Phrase of the day

Going Long

When you buy a stock, futures or an option contract with the hope that its price will rise, it is called going ‘long’.  When should you go long, find out from this chapter What does going Long mean? 

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