Dear Trader…
Indian equity benchmarks danced between gains and losses for most of the day and ended flat with a negative bias for second straight session on Wednesday on the back of weak cues from global equities. After making cautious start, markets dived deep into the red during the afternoon session, as traders got anxious with Fitch Ratings’ statement that India continues to lag way behind in COVID vaccination, and the negative outlook on sovereign rating signifies the rising debt-to-GDP ratio. In April 2021, Fitch affirmed India's sovereign rating at 'BBB-' with a negative outlook. The outlook was changed to 'negative' from 'stable' in June last year on grounds that the pandemic had significantly weakened the country's growth outlook and exposed the challenges associated with a high public-debt burden.
However, the headline indices rebounded from lows in the dying hour of trade, taking support from report by India Ratings and Research (Ind-Ra) in which it has maintained a stable outlook on the banking sector for 2021-22 supported by the continuing systemic support that has helped manage the system-wide COVID-19 linked stress. While, it expects an increase in stressed assets in retail and MSME segments by end-March. It also estimates gross non-performing assets (GNPA) of the banking sector to be at 8.6 percent and stressed assets at 10.3 percent for fiscal 2021-22.
Nifty futures opened at 17375.80 points against the previous close of 17397.90 and opened at a low of 17276.25 points. Nifty Future closed with an average movement of 124.85 points and a rise of around 10.45 points and 17386.25 points...!!!
On the NSE, the midcap 100 index will rise 0.41% and smallcap 100 index is closing rise 1.09. Speaking of various sectoral indices the NSE saw gains in Bank, Private Bank, PSU Bank, Financial Services and Metal stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, October gold opened at Rs.46961, fell from a high of Rs.47140 points to a low of Rs.46960.00 with a rise of 84 points, a trend of around Rs.47023 and September Silver opened at Rs.64621, fell from a high of Rs.64914 points to a low of Rs.64375, with a decline of 78 points, a trend of around Rs.64543.
Meanwhile, India Ratings and Research (Ind-Ra) has maintained a stable outlook on the banking sector for 2021-22 supported by the continuing systemic support that has helped manage the system-wide COVID-19 linked stress. While, it expects an increase in stressed assets in retail and MSME segments by end-March. It also estimates gross non-performing assets (GNPA) of the banking sector to be at 8.6 percent and stressed assets at 10.3 percent for fiscal 2021-22.
According to the report, banks will continue to strengthen their financials by raising capital and adding to provision buffers which have already seen a sharp increase in the last three to four years. It said its stable outlook on large private banks indicates their continued market share gains both in assets and liabilities, while competing intensely with public sector banks (PSBs). Most have strengthened their capital buffers and proactively managed their portfolio.
Technically, the important key resistances are placed in Nifty future are at 17404 levels, which could offer for the market on the higher side. Sustainability above this zone would signal opens the door for a directional up move with immediate resistances seen at 17417 – 17430 levels. Immediate support is placed at 17303 – 17272 levels.
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