Mr. Mitul Shah - Head of Research at Reliance Securities.
Indian equities ended the day flat after a volatile session. Nifty failed to hold on to its early morning gains for the 2nd consecutive day, closing lower by 0.2%. Broader markets continued to be weak. Nifty Midcap and Nifty Smallcap declined 0.4% and 0.9% respectively. Majority of the sectoral indices ended in red. Nifty Realty was the major laggard, down 1.2%. Other losers included Nifty Auto (-0.9%), Nifty IT (-0.8%), Nifty Metal (-0.7%) and Nifty FMCG (-0.4%). Financial stocks recovered with the Nifty Bank and Nifty Financial Services up 0.4% each.
U.S. stocks ended mixed on Monday. While the Dow Jones rallied 0.6%, the S&P 500 ended flat, up 0.2%. The tech heavy Nasdaq ended 0.5% lower. Shares of regional banks rose after First Citizen Bank acquired the beleaguered Silicon Valley Bank. Further, news reports suggested that the U.S. authorities were considering expanding an emergency lending program for banks. This led to the US 10-yr yield rising to 3.55% from 3.4% on Friday. Brent crude prices surged 4.5% overnight to above $78/barrel as Turkey halted ~450,00 bpd of oil supply following a dispute with Iraq.
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. Automobile sector would remain in limelight ahead of March volume performance announcement on 1st April 2023.