Dear Trader…
Indian equity benchmarks wiped out all the initial gains and ended marginally lower for the sixth straight day on Wednesday, dragged by Energy, Capital Goods and Auto stocks. Markets opened higher as traders took encouragement with the commerce ministry data showed that the country’s merchandise exports rose by 26.4 per cent to $25.33 billion this month till February 21 on account of healthy performance by sectors including gems and jewellery, engineering, textiles and chemicals. The exports during February 1-21 last year stood at $20.04 billion.
Key indices trimmed some gains in morning deals, However, benchmark indices failed to hold on to their gains in late hour of trading session and ended lower, as traders turned cautious with Finance Minister Nirmala Sitharaman’s statement that the Russia-Ukraine crisis and the ensuing jump in global crude prices are a challenge to financial stability in India. Sitharaman said ‘It is difficult to say how it (crude prices) will go. Even today, in the FSDC, when we were looking at the challenges which are posed for the financial stability, crude was one of the things’.
Nifty futures opened at 17170.00 points against the previous close of 17073.60 and opened at a low of 17043.30 points. Nifty Future closed with an average movement of 175.35 points and a decline of around 5.75 points and 17067.85 points...!!
On the NSE, the midcap 100 index will rise 0.64% and smallcap 100 index is closing rise 1.16%. Speaking of various sectoral indices only Auto, Financial Services and IT stocks were seen selling on the NSE, while all other sectoral indices closed higher.
At the start of intra-day trading, February gold opened at Rs.50389, fell from a high of Rs.50389 points to a low of Rs.49951 with a decline of 288 points, a trend of around Rs.50040 and March Silver opened at Rs.64223, fell from a high of Rs.64253 points to a low of Rs.63818, with a decline of 370 points, a trend of around Rs.63975.
Meanwhile, India Ratings and Research (Ind-Ra) in its latest report has revised upwards its outlook on the microfinance sector to 'neutral' from 'negative' for the next financial year (FY23), on the back of a revival in growth that could clip at 30 per cent. It expects the sector to grow 20-30 per cent in both FY22 and FY23 in comparison to the below 10 per cent AUM (assets under management) growth in the previous two years. Given the yield limitations, mid- and small-MFIs have not seen comparable growth.
According to the report, while large MFIs will continue with their normal disbursement trends and new customer acquisitions as normalisation happens in FY22 and FY23, small- and mid-ones will ramp up their activities once the harmonisation guidelines are implemented. The agency see that the impact of the pandemic on credit cost has been largely absorbed by now, and there is a likelihood of normalised growth for these small lenders. Also, their collections, especially those disbursed after the pandemic, have recovered and refinance has become relatively easy now.
Technically, the important key resistances are placed in Nifty future are at 17130 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 17177 – 17303 levels. Immediate support is placed at 17007 – 17960 levels.
Note :- Before Act please refer & agree Terms & conditions, Disclaimer, privacy policy & agreement on www.nikhilbhatt.in
