News Shots

US President Joe Biden has announced a $2.3 trillion plan to reengineer his country’s infrastructure over the next 8 years in what he referred to as “a once in a generation investment in America”. A lot of emphasis has been given to Electric Vehicles and related infrastructure development. A detailed article on the plan will be written soon. The whole plan is to be funded with higher corporate taxes, which is likely to face upset Congress and Wall Street.

NIIT has said its buyback offer for Rs 237 crore  will open on April 12. The buyback price is Rs 240/share.

The government has pumped in Rs 14,500 crore to improve their financial health, mainly into banks that are under the RBI’s prompt corrective action framework. Rs 4,800 crore has been provided to Central Bank of India, Rs 4,100 crore to Indian Overseas Bank and UCO Bank has got Rs 2,600 crore.

Adani Enterprises has incorporated a wholly-owned subsidiary, Vizag Tech Park Ltd (VTPL), to develop data centres and business parks.

Godrej Properties has increased its stake in Godrej Realty to 100% from 51% by acquiring remaining shares from HDFC Property Fund. Godrej Realty deals with construction and development of land in Pune.

Vedanta plans to set up a coastal copper smelter plant in India for Rs 10,000 crore. Has been nearly three years since its plant in Tamil Nadu was shut on environmental concerns, also copper prices are on the rise globally.

Bharat Petroleum Corporation Ltd has acquired partner OQ’s entire stake in the Bina refinery project in Madhya Pradesh for Rs 2,400 crores.

Drug majors Dr Reddy’s Laboratories and Cipla have entered into a partnership agreement with ABCD Technologies LLP which is to be renamed as IndoHealth Services LLP.

Axis Bank is selling its UK subsidiary.

Indraprastha Gas, India’s largest CNG retailer, has signed a long-term agreement to supply CNG to Delhi Transport Corporation buses.

Adani Ports clarified it won the Yangon International Terminal project in Myanmar last year through a global competitive bid. The company is trying to clarify allegations of paying $30 million to Myanmar military-controlled firm for the deal.

Wipro has announced acquisition of Australia-based Ampion for a cash consideration of $117 million.

What to expect today?

Yesterday, NIFTY consolidated with a negative bias and closed just below 14,700. HDFC Bank had major weakness which dragged down the markets. You can read all about yesterday’s movements here.

Bank Nifty broke many supports yesterday to take final support at 33,150 (last Friday’s low) and then moved up to close above 33,300. 

NIFTY IT and BANK NIFTY were extremely weak yesterday not letting the market continue the up move.

The European markets moved down towards the closing and closed in the red. The US markets generally moved up yesterday with NASDAQ closing more than 1.5% up. But there was weakness in all US indices just before their close.

Joe Biden’s speech was after the markets closed in the US. The plan aims in developing the nation and making it future ready, also generating employment at the same time. But a lot of citizens are skeptical about the high spend on the plan. Also, if corporate taxes are to be restored to 28% from 21%, Wall Street might take a huge hit.

Each Asian market is in the green. US Futures are mixed. SGX Nifty is currently trading higher at 14,834 indicating a gap up opening in the Indian market. 

NIFTY has strong resistances at 14,900, 15,000 and 15,100. NIFTY has to cross at least 14,900 to gain back upwards momentum.

The next supports for NIFTY are at 14,750, 14,650, 14,600 and 14,500 while for Bank Nifty, they are at 33,400, 33,300 and 33,000.

Foreign institutional investors (FIIs) net sold worth Rs 1685 crores, and domestic institutional investors (DIIs) net bought shares worth Rs 2100 crores in the Indian equity market.

There is good put OI buildup at 14,000 followed by 14,500. Similarly, the largest call option buildup is at 15,000 followed by 15,100.

The exact reaction to Biden’s plan is not out yet. Let’s see how our market, European markets and the US markets react to it.

Auto sales data is to be out today. YoY numbers would not mean anything as last March did not have much sales. We should focus on MoM numbers which are expected to come lower.

I repeat what I said yesterday, I expect market to consolidate between 14,750 and 15,000 for a period before making a move.