Mr. Mitul Shah - Head of Research at Reliance Securities.
Indian equities gave up their gains and ended flat with the Nifty ending just 0.2% higher compared to the 0.9% gain earlier in the day. Broader markets underperformed with the Nifty Midcap and Nifty Smallcap ending lower by 0.5% and 1.6% respectively. Nifty Realty was the biggest laggard, down 1.2%. Nifty Auto also ended 0.7% lower. Nifty Pharma was the biggest gainer, up 1.1% while Nifty IT, Nifty FMCG, Nifty Bank and Nifty Metal ended flat.
U.S. stocks rose on Friday after a volatile trading session. Although Friday began with fears that the banking crisis was spilling over to Deutsche Bank, the markets rebounded to end the week on a higher note. The Dow Jones gained 0.4%. The S&P 500 rose 0.6%, while Nasdaq ticked up 0.3%. The major indices all had a winning week, with the Dow gaining 0.4%, while the S&P 500 and Nasdaq gained 1.4% and 1.6%, respectively. The 10 yr yield ended at 3.37%. Concerns related to Deutsche Bank eased after ECB President Christine Lagarde tried to ease concerns, saying euro zone banks are resilient with strong capital and liquidity positions. Lagarde said the ECB could provide liquidity if needed. Geopolitical tensions have resurfaced after Russia announced that it will station tactical nuclear weapons in Belarus which borders Ukraine.
The markets will closely follow global cues and the developments in the US and European banking system in absence of domestic cues in a truncated week. Auto sector would be in limelight with monthly volume performance expected on 1st April.