Dear Trader…
Indian equity benchmarks swung between gains and losses throughout the session and ended marginally lower on Wednesday, as investors’ monitored situation between Russia and Ukriane. Key gauges made positive start, as traders took some support with SBI research report stated that India can add $20 billion to its Gross Domestic Product (GDP) if the country can reduce by 50 per cent the dependence on imports from China by leveraging the production linked incentive schemes. However, indices turned choppy and extended losses in morning deals, as traders turned cautious with government data showing that exports from special economic zones (SEZs) grew at a slower pace as compared to the growth of overall outbound shipments from the country during the first eight months of the current fiscal year.
After the initial fall, the benchmark tried to inch higher in afternoon deals, taking support from the Finance Ministry's Monthly Economic Review stated that the Indian economy is poised to grow at the quickest pace among the league of large nations on the back of various initiatives taken by the government in Budget 2022-23. However profit taking in the final hours pared all the gains and pushed the indices lower.
Nifty futures opened at 17390.00 points against the previous close of 17360.65 and opened at a low of 17240.15 points. Nifty Future closed with an average movement of 254.85 points and a decline of around 62.75 points and 17297.90 points...!!
On the NSE, the midcap 100 index will decline 0.29% and smallcap 100 index is closing rise 0.75%. Speaking of various sectoral indices, the NSE saw gains in only Realty, Pharma and FMCG stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, February gold opened at Rs.50151, fell from a high of Rs.50325 points to a low of Rs.49230 with a decline of 575 points, a trend of around Rs.49341 and March Silver opened at Rs.63019, fell from a high of Rs.63369 points to a low of Rs.62868, with a decline of 28 points, a trend of around Rs.62961.
Meanwhile, SBI research in its Ecowrap report has stated that India can add $20 billion to its Gross Domestic Product (GDP) if the country can reduce by 50 per cent the dependence on imports from China by leveraging the production linked incentive schemes. As per the report, in terms of imports, India continued to reduce its trade deficit with China in FY21. However, share of China in India’s total merchandise imports has been steadily increasing to 16.5 per cent currently. In FY21, out of the $65 billion of imports from China, around $39.5 billion were commodities and goods where PLI scheme has been announced (textile, agri, electronics goods, pharmaceuticals & chemicals).
The report said ‘If, because of the PLI scheme, we can reduce our dependence on China even to the extent of 20 per cent, then we can add around $8 billion to our GDP. Over time, if our dependence is further reduced by 50 per cent, we can add $20 billion to GDP’. In FY22 April-December period, there were 6,367 products with a total value of $68 billion (or 15.3 per cent of the total imports) imported by India from China. The report said it estimated the import dependence of each product on China by checking the share of Chinese imports in India’s overall imports of these categories.
Technically, the important key resistances are placed in Nifty future are at 17373 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 17404 – 17474 levels. Immediate support is placed at 17077 – 17007 levels.
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