The Bears Have Taken a Pause the Bulls are Looking for an Opportunity

Indian markets are expected to open higher as European and US banking systems are stabilising. SGX Nifty is trading at 84 points higher at 17131 as we write.

Europe and US markets bounced back after a volatile session as the European Central bank hiked interest rates by 50bps. European banking stocks had rallied in the morning before extending losses as ECB announced rate hikes but closed 1.2% higher.

US markets followed suit and closed in the green discounting the fear of aggressive rate hikes by the Fed. US regional banks bounced back with renewed hope as news of big banks contemplating a rescue plan came in. First Republic which was down 30% shot up to 8% post the news flashed.

Local

Rating agency CRISIL expects India’s gross domestic product (GDP) growth to moderate to 6% in 2023-24 (FY24), from 7% as expected earlier in its latest India Outlook Report.

Covid– Centre writes to six states, Maharashtra, Tamil Nadu, Karnataka, Kerala, Telangana, and Gujarat to be on alert and take steps to control the sudden increase in the number of cases.

Stocks to watch

TCS CEO & MD Rajesh Gopinathan resigns and K Krithivasan takes charge as the new TCS CEO-designate effective March 16, 2023. The stock may react as the news is perceived as sentimentally negative however TCS has always promoted many internal candidates who have performed well.

GlaxoSmithKline Pharma says the impact of the National List of Essential Medicine will be low single digits in the next financial year as the company works on multiple mitigations.

Glenmark Pharma unit receives acceptance from USFD. Glenmark can now go ahead with phase 1 / 2 of the first-in-human, clinical study for the treatment of patients with advanced solid tumours and lymphomas.

NTPC gets an offer of Rs.3800 crore from Malaysia’s Petronas for a 20% stake in its green energy arm.

Adani Enterprises, Adani Power, and Adani Wilmar will be moved out of the short-term additional surveillance mechanism framework with effect from today. The stocks were moved into this framework due to extreme volatility.

Eris Lifesciences acquires 9 dermatology brands from Dr Reddy for Rs.275 cr. With this acquisition, Eris will become the third largest player in this segment with a 7% market share.

Restaurant Brand Burger King– Everstone Capital is said to be in talks with General Atlantic to sell a 40.9% stake in the company

Voltas subsidiary Universal MEP Projects bags project orders worth Rs 1770 crores for Power Distribution and Solar Projects

Zee Entertainment Says report of the company to repay Indusind $10m Speculative. It is exploring several ways to resolve including settlement.

IDBI Bank– Centre may defer $4 bn privatization plan

Tug of war between bulls and bears
In the last five trading sessions, the bears have had their way. For the first time, the bulls have resisted it strongly as markets recovered from the lows. Nifty is finding its crucial support at 16800. Bank Nifty also is holding 38600. The tug of war is evenly poised. The bulls are awaiting some positive news while the bears are waiting for a negative trigger.