Dear Trader…
Indian equity benchmarks staged sharp recovery in early afternoon deals, with both Sensex and Nifty trading near neutral lines, aided by positive cues from other Asian markets and heavy buying at Metal and Realty counters. Traders took support with Economic Advisory Council member Sanjeev Sanyal’s statement that India is capable of sustaining an economic growth of 9 per cent for many years, even as he asserted that a high sustained GDP growth rate is key for the world to achieve the 2030 Sustainable Development Goals (SDGs). He said India has a per capita income of only $2,200 and that has been achieved after several years of very high growth rate.
Adding more relief among traders, the government is mulling exempting early stage startups from complying with norms under proposed Digital Personal Data Protection bill. The exemption may be for a limited period to assist startups in developing their business models and to ensure that innovation is not stifled due to compliance burden. Besides, a private report stated that Foreign investors have upgraded India as a dedicated allocation in their investment portfolios given the strong economy, stable government and significant reforms undertaken over the last eight years.
Nifty futures opened at 18798.90 points against the previous close of 18812.55 and opened at a low of 18710.45 points. Nifty Future closed with an average movement of 145.95 points and a rise of around 8.70 points and 18821.25 points…!!
On the NSE, the midcap 100 index will rise 0.25% and smallcap 100 index is closing rise 0.43%. Speaking of various sectoral indices IT, Auto, Pharma And FMCG 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.53949 fell from a high of Rs.54228 points to a low of Rs.53941 with a rise of 221 points, a trend of around Rs.54071 and March Silver opened at Rs.67022, fell from a high of Rs.67394 points to a low of Rs.66690, with a rise of 457 points, a trend of around Rs.66906.
Meanwhile, ICRA Ratings in its latest report said that Capital expenditure (capex) of 18 states has risen just 2.2 per cent in the first half of the current fiscal (H1FY23) even as their combined revenue deficit has narrowed to more than one-fourth from the year-ago period. These states have budgeted a combined capital outlay of Rs 6.2 lakh crore for this fiscal.
The report stated that this means that to use the budgeted outlay their spending will have to jump by 57 per cent (or by 4.6 lakh crore) in the second half of the fiscal to meet the 37.8 per cent increased capex, which looks ambitious and thus the states are going to miss the capital outlay target by a sizeable extent. But these states have collectively spent only Rs 1.59 lakh crore so far this fiscal, which is just about a growth of 2.2 per cent annualised.
Technically, the important key resistances are placed in Nifty future are at 18878 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 18909 – 18939 levels. Immediate support is placed at 18676 – 18606 levels.
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