Stock Market Today: Indian indices opened with marginal gains on March 27 amid mixed global cues. Domestic markets opened higher in Monday’s trade, amid mixed global cues. Index-heavyweights lent support to overall markets as shares of Bajaj Twins, Asian Paints, Reliance Industries, Bharti Airtel, Hindustan Unilever, among others surged up to 1 per cent.
Key indices Nifty50 gained 40 points or 0.2 per cent to trade above 16,950 levels, whereas the S&P BSE Sensex gained over 100 points or 0.1 per cent to trade around 57,634 levels.
Broader markets, however, underperformed benchmark indices as Nifty Midcap 100 and Nifty Smallcap 100 indices slipped up to 0.3 per cent. Volatility gauge, India VIX, meanwhile, jumped over 2 per cent.
Sectorally, Nifty Metal, and Nifty Pharma indices drove gains as it rose up to 0.5 per cent. On the flipside, Nifty Auto, and Nifty FMCG indices declined up to 0.4 per cent.
Among individual stocks, shares of Bharat Electronics rose 1 per cent after it bagged Rs 3,000 crore work order for the Indian Army.
Besides, shares of Karur Vysya Bank tumbled over 4 per cent after the Reserve Bank of India imposed Rs 30 lakh penalty.
“The element of uncertainty in global markets continues. The sharp cut of 4.6% in the European bank index last Friday, despite the assertion by authorities that the European banking system is resilient, is a reflection of the fear in the market. Actions by US authorities have brought near-term stability in the US banking system; but we don’t know what lies ahead. Investors should remain cautious till stability returns. The changes proposed in the taxation of debt funds will make them less attractive for investments made after 1st April 2023. So, the next few days before April 1st will give opportunities for investors to invest in these funds, including international funds, for the long-term. Interest rates in India are likely to decline towards the end 2023 after, perhaps, one more 25 bp rate hike in the next MPC meet. Declining interest rate scenario is favourable for debt funds," said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Global Cues
Asian shares followed US stock futures higher on Monday on hopes authorities were working to ring fence stress in the global banking system, even as the cost of insuring against default neared dangerous levels.
Tokyo shares opened higher Monday, despite signs of trouble at another major European lender that renewed fears over the health of the global financial system.The benchmark Nikkei 225 index rose 0.19 percent, or 51.92 points, to 27,437.17 at the open, while the broader Topix index climbed 0.30 percent, or 5.86 points, to 1,961.18.
US stocks closed higher on Friday, marking the end of a tumultuous week as Federal Reserve officials calmed investor fears over a potential liquidity crisis in the banking sector.
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