Dear Trader…
Extending gaining streak for second straight session, Indian equity benchmarks made healthy gains on Thursday, with the help of strong buying support in Mahindra & Mahindra, Maruti Suzuki and Bajaj Finserv amid positive global cues. After a fabulous start, key indices remained under grip of bulls throughout the session, as Managing Director of the International Monetary Fund Kristalina Georgieva said a high growth rate for India, as projected in the latest World Economic Outlook, is not only healthy for the country but also positive news for the world.
Markets remained strong during second half of the session, taking support from Union minister Nitin Gadkari’s statement that the PM Gati Shakti National Master Plan (NMP), aimed at improving multi-modal connectivity and last-mile connectivity across the country, is important for achieving the prime minister's dream of making India a $5 trillion economy by 2024-25. The street was also positive with retirement fund body EPFO said it added 14.12 lakh subscribers in February 2022, 14 per cent more than 12.37 lakh enrolled in the same month a year ago.
Nifty futures opened at 17239.95 points against the previous close of 17162.70 and opened at a low of 17222.00 points. Nifty Future closed with an average movement of 217.00 points and a rise of around 251.30 points and 17414.00 points...!!
On the NSE, the midcap 100 index will rise 1.07% and smallcap 100 index is closing rise 1.55%. Speaking of various sectoral indices only Media stocks were seen selling on the NSE, while all other sectoral indices closed higher.
At the start of intra-day trading, April gold opened at Rs.52658, fell from a high of Rs.52649 points to a low of Rs.52144 with a decline of 219 points, a trend of around Rs.52409 and March Silver opened at Rs.68217, fell from a high of Rs.68307 points to a low of Rs.67095, with a decline of 851 points, a trend of around Rs.67555.
Meanwhile, dismissing the contention that currency devaluation encourages exports, Commerce and Industry Minister Piyush Goyal has said weakening of the rupee would not be in the nation's interest in the long run. He also said it is important for India to expand exports significantly and encourage investments to increase foreign exchange inflows into the country.
He said ‘there is a large pool of thought which believes that you need to devalue your currency so that you become competitive in export market...’ He added ‘I can assure you from my own experience and my engagements with large sections of industry across the board confirms that rupee devaluation or weakening our currency is actually detrimental to our nation's interest, to our growth story and to our ability to be competitive in the long run.’
The minister also said that devaluation increases cost of imports, brings inflation into the country, pushes up interest cost and makes products uncompetitive as India is import-dependent for raw materials. He added that healthy exports, investments and remittances help in growing foreign exchange reserves, which stand at over $600 billion. He noted that export helps in earning precious foreign exchange and keeps the rupee stable.
Technically, the important key resistances are placed in Nifty future are at 17474 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 17505 – 17575 levels. Immediate support is placed at 17303 – 17232 levels.
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