DAILY EQUITY MARKET ANALYSIS 16/03/2015

The Indian Rupee depreciated by 0.9 percent on Friday after downbeat inflation data, Indian markets closed on a negative note as investors raised concerns about interest rate cuts. Also, weakness in the local equities and Asian currencies market coupled with demand from importers for the Greenback exerted pressure on the Rupee. However, IMF ups India growth forecast to 7.2% for current fiscal along with hopes of Insurance Bill passage in Parliament boosted sentiments. The currency touched a weekly low of 63.11 and closed at 63.08 on Friday. Inflation rate for the month of February rose to 5.37 percent as compared to 5.19 percent in January thereby diminishing hope of another rate cut by RBI. There has been a decline in Indian exports which may risk the economy in the long run. For the month of March 2015, FII outflows in equities totaled at Rs.9138.74 crores ($1475.38 million) as on 13th March 2015. Year to date basis, net capital inflows stood at Rs.33533.24 crores ($5431.89 million) as on 13th March 2015.

Perspective: From the intra-day perspective, Indian Rupee is expected to trade sideways today ahead of WPI data release. However, cautious stance in Asian equities along with strength in the DX will keep a check on gains.

ECONOMY ANALYSIS

• Sensex bleeds 427 pts, Nifty ends at 8648
• SAT quashes SEBI order against DLF; stock rises 9%
• DIPP gives more clarity on construction FDI norms
• Bajaj Auto slips 2%, CLSA retains underperform & cuts EPS
• Precision Camshafts files draft papers with Sebi for IPO
• Intel cuts revenue forecast as desktop demand weakens

MARKET ANALYSIS

• The world's unluckiest day spooked the Sensex, which slipped by as much as 427 points in trade, weighed down by banking stocks after data showed that consumer inflation has edged up. The numbers raised concerns about rate cuts and sent bond yields higher.

• The S&P BSE index closed 1.48 percent lower or 427.11 points at 28,503.30 after gaining as much as 0.9 percent earlier in trade today. However, on a weekly basis the benchmark index recorded a fall of 945 points or 3.2 per cent from its closing value of 29448.95 recorded on 5th March 13, 2015.

• The 50-share Nifty index finally closed at 8647.75, down 1.4 per cent or 128.25 points. For the week, the index posted a loss of 290 points or 3.24 percent, from its closing value of 8937.75 recorded on 5 March 2015.

• The benchmark index has already slipped as much as 1521 points from its record high of 30024.74 hit earlier in the month of March. Pressure on rupee, concerns over key bills and sooner-than-expected interest rate hike by the US Federal Reserve made investors cautious.