Dear Trader…
Indian equity benchmarks ended volatile session in red on Tuesday. After a cautious start, markets traded volatile, as ICRA Ratings said the economic growth may have slowed to 3.5 per cent in fourth quarter of 2021-22 from 5.4 per cent in the previous three-month period due to the impact of higher commodity prices on margins, decline in wheat yields and on higher base. The agency said the hiccups in the recovery of the contact-intensive services attributable to the third wave of COVID-19 in the country may have also affected the economic growth in the quarter.
In early afternoon deals, key indices managed to trade in green terrain for a little time. Domestic sentiments were positive, as capital markets regulator Sebi allowed mutual funds to launch passively managed Equity-Linked Savings Schemes (ELSS). But again, markets came back in red in the last hours of the trade to end on a lower note, amid a private report stating that the Centre's decision to cut excise duty on petrol and diesel will put pressure on the fiscal deficit which has been estimated at 6.4 per cent of GDP for the current financial year.
Nifty futures opened at 16150.00 points against the previous close of 16183.35 and opened at a low of 16034.05 points. Nifty Future closed with an average movement of 201.95 points and a decline of around 60.35 points and 16123.00 points...!!
On the NSE, the midcap 100 index will decline 0.65% and smallcap 100 index is closing decline 1.26%. Speaking of various sectoral indices, the NSE saw gains in only Financial Services, Bank, PVT Bank and Auto stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, June gold opened at Rs.50940, fell from a high of Rs.51150 points to a low of Rs.50880 with a rise of 147 points, a trend of around Rs.51054 and May Silver opened at Rs.61349, fell from a high of Rs.61899 points to a low of Rs.61060, with a rise of 403 points, a trend of around Rs.61706.
Meanwhile, credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has maintained a neutral outlook for the overall infrastructure sector for FY23, amid likelihood of a stable operating performance for majority of the projects, long-term visibility of revenue under concession agreements and power purchase agreements, and expected improved cargo and traffic volumes.
The rating agency further noted that internal liquidity, adequacy of operations and maintenance, mitigation of cost overrun and strength of sponsors are critical monitorables. Ind-Ra also underlined headwinds for the sector such as a downward revision in the economic outlook, elevated commodity prices, rising interest rate, land acquisitions delays, construction stage risks and counterparty risks.
According to the report, there is a continued preference for infrastructure investment trusts and pooled financing structures. Refinancing is generally focused on establishing pooled structures to raise funds, elongating the tenor and/or releasing of some sponsor investments. The consequence of rising interest rates is also a key monitorable.
Technically, the important key resistances are placed in Nifty future are at 16202 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 16272 – 16303 levels. Immediate support is placed at 16006 – 15808 levels.
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