Mr. Deepak Jasani, Head of Retail Research, HDFC Securities
Nifty snapped an 8 day fall on Mar 01 helped by positive Asian cues. Encouraging macro numbers in terms of manufacturing (highest M-o-M improvement in a decade), services and home sales growth (rising for the first time in 20 months) from China boosted investor sentiments across the globe and helped to revive sentiment following concerns over a prolonged period of U.S. interest rate hikes. At close, Nifty was up 0.85% or 146.9 points at 17450.9. Broad market indices rose more than the Nifty even as the advance decline ratio rose to 3.25:1.
Moody's Investors Service on Wednesday raised India's economic growth estimate for 2023 to 5.5% from 4.8% pegged earlier, on the back of a sharp increase in capital expenditure in the Budget and a resilient economic momentum. It however revised downwards India's growth estimate for 2022 to 6.8% from 7% pegged in November last year.
India's manufacturing activity continued to maintain growth momentum in February. The Manufacturing Purchasing Managers' Index standing at 55.3 in February, little changed from 55.4 in January. This figure was well above the long run average of 53.7. The February data pointed to a 12th consecutive hike in manufacturing production, attributed to sustained increases in new orders, favourable underlying demand and technological progress.
Nifty ended the short term downtrend on expected lines and rose well on Mar 01. Nifty could rise first towards 17610 in the near term while 17299-17353 band could offer support.