Dear Trader…
Indian equity benchmarks suffered sharp losses for the fourth straight day in a row, dragging the Sensex and Nifty below critical levels of 52,900 and 15,900, respectively. Concerns about the Russia-Ukraine conflict, as well as rising crude oil prices, drove the markets lower. The markets started the week with a huge downside gap, as sentiments got hit as Jayanth R Varma, who is a member of the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI), has said the Russia-Ukraine conflict is likely to have adverse effects on both economic growth as well as inflation and policy makers must remain alert and ready to respond rapidly to the emerging situation.
Key indices continued to trade in deep red in the late afternoon session as overseas investors withdrew as much as Rs 17,537 crore from the Indian markets in just three trading sessions of March as investors’ sentiment was dented by the uncertainty caused by the Russia-Ukraine war and rising crude oil prices.
Nifty futures opened at 15900.00 points against the previous close of 16258.95 and opened at a low of 15711.15 points. Nifty Future closed with an average movement of 246.95 points and a decline of around 365.95 points and 15893.00 points...!!
On the NSE, the midcap 100 index will decline 2.37% and smallcap 100 index is closing decline 2.74%. Speaking of various sectoral indices, the NSE saw gains in only Metal stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, April gold opened at Rs.53266, fell from a high of Rs.54010 points to a low of Rs.53266 with a rise of 915 points, a trend of around Rs.53474 and March Silver opened at Rs.70297, fell from a high of Rs.71251 points to a low of Rs.69826, with a rise of 1292 points, a trend of around Rs.70452.
Meanwhile, credit ratings agency Crisil has said that the Reserve Bank of India’s (RBI) revised norms led to a 1.50 per cent jump in the non-banking finance companies’ (NBFCs) reported gross non-performing assets (GNPAs) to 6.80 per cent in the December quarter (Q3FY22). If not for the revised norms, it said the improvement in economic activity would have led to a 0.30 per cent improvement in GNPAs during the December quarter to 5.3 per cent. However, it said the GNPAs for the NBFCs are expected to reduce going ahead as the players have bolstered their collection processes and economic activity is also improving.
The report stated that for the December quarter, two provisions of an RBI circular had a significant impact -- change in recognition of NPAs to a daily due date basis versus month-end basis followed earlier by many NBFCs, and the increased stringency in the upgradation of NPAs, which is now to be linked to the clearing of all overdues by borrowers. It noted that the impact of the circular varies across segments, pointing out that the gold loans segment continues to be resilient.
Technically, the important key resistances are placed in Nifty future are at 16006 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 16180 – 16272 levels. Immediate support is placed at 15770 – 15707 levels.
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