Weak trade continued over the Dalal Street in today deals, with both Sensex and Nifty trading lower, on the back of negative cues from other Asian markets. Heavy selling at Consumer Durables and Metal counters kept indices down, while Titan fell the most on BSE. Sentiments remained downbeat, as credit rating agency Crisil in its latest report has said that as much as 43% of India’s micro, small and medium enterprises (MSME) universe by value is expected to remain below the pre-pandemic (fiscal 2020) level in terms of earnings before interest, tax, depreciation and amortisation (EBITDA) margin this fiscal (FY23) because of inability to completely pass on the high prices in some commodities as well as an unfavourable exchange rate.
Nifty futures opened at 18400.00 points against the previous close of 18451.85 and opened at a low of 18346.10 points. Nifty Future closed with an average movement of 127.50 points and a decline of around 94.75 points and 18357.10 points…!!
On the NSE, the midcap 100 index will decline 0.40% and smallcap 100 index is closing decline 0.34%. Speaking of various sectoral indices only Speaking of various sectoral indices, the NSE saw gains in only PSU Bank and Realty stocks, while all other sectoral indices closed lower.
At the start of intra-day trading, December gold opened at Rs.52950, fell from a high of Rs.52993 points to a low of Rs.52801 with a decline of 90 points, a trend of around Rs.52972 and December Silver opened at Rs.61760, fell from a high of Rs.61810 points to a low of Rs.60919, with a decline of 769 points, a trend of around Rs.61228.
Meanwhile, Credit rating agency Crisil in its latest report has said that as much as 43% of India’s micro, small and medium enterprises (MSME) universe by value is expected to remain below the pre-pandemic (fiscal 2020) level in terms of earnings before interest, tax, depreciation and amortisation (EBITDA) margin this fiscal (FY23) because of inability to completely pass on the high prices in some commodities as well as an unfavourable exchange rate.
The report stated that almost all the MSMEs, however, are expected to cross the pre-pandemic level of revenue. It said assessing the pandemic’s impact on MSMEs has been a challenge because of information asymmetry and lack of high-frequency data points in this space. The report plugs this hole by covering 69 sectors and 147 clusters that logged aggregate revenue of Rs 56 lakh crore, representing 20-25% of India’s gross domestic product (implying coverage of two-thirds of the MSME universe).
According to the report, sectors such as chemicals and construction roads are expected to witness EBITDA margin contraction to the tune of 250-300 basis points (bps) and 200-250 bps respectively this fiscal compared with the pre-pandemic levels on account of rise in crude prices. Agriculture-based sectors such as milk & dairy and packaged foods are expected to witness EBITDA margin contraction of 50-100 bps on account of rising milk prices.
Technically, the important key resistances are placed in Nifty future are at 18505 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 18575 – 18606 levels. Immediate support is placed at 18373 – 18303 levels.