Kotak Securities has revised its ratings for Canara Bank and Punjab National Bank, downgrading Canara Bank to “Reduce” and Punjab National Bank to “Sell.” In contrast, the brokerage firm maintains a “Buy” rating for the State Bank of India, which it considers the preferred stock among PSU banks. Bank of Baroda and Union Bank retain an “Add” rating, as per Kotak’s latest assessment.

Expressing an optimistic outlook for the banking sector, Kotak Securities notes increased profitability among banks attributed to lower provisions and heightened revenue recovery from bad loan resolutions. The brokerage sees this trend as supportive of asset quality for PSU banks, instilling confidence in their performance. Notably, the Tier-2 PSU banks have seen a decline in their net NPA ratio to 1%, indicating reduced set-asides and an expected increase in profitability. Kotak Securities anticipates a substantial decrease in credit costs in FY2025E based on these developments.

The revised fourth-quarter 2023 U.S. gross domestic product figures released yesterday indicated a 3.2% year-on-year growth, slightly lower than the initial 3.3% reading. Despite this, the GDP data had a limited impact on the markets as the numbers closely aligned with expectations.

This week’s focal point in U.S. economic data is expected to be Thursday’s release of the personal income and outlays report for January, a key measure of inflation favored by the Federal Reserve. The latest U.S. inflation data has shown a slightly higher-than-expected trend.

Open interest has decreased, indicating the closure of old positions. With 62400 acting as immediate resistance, a breach above could drive prices to the range of 63000-63500. Conversely, strong support is observed at 61000 in MCX and $2000 in COMEX. A significant sell-off is deemed probable only if COMEX gold sustains below $2000.

Tata Steel, L&T, JSW Steel, Titan, and Hindlaco were the top gainers in the Nifty 50. While Dr Reddy’s Laboratories, Sun Pharma, HCL Technologies, Infosys, and LTIMindtree were the key laggards in the Nifty 50 on March 01.

In February 2024, Tata Motors reported sales of 86,406 vehicles in both domestic and international markets, as opposed to 79,705 units in the same month of 2023. The company’s stock is currently trading at Rs 975.75 on the NSE, reflecting a 2.69% increase.

Commenting on the 45-day payment rule to MSMEs Roshan Shah, Co-founder & CEO, VoloFin said,The recent amendment introducing the 45-day payment rule reflects a strategic change in the government’s stance toward supporting MSMEs. By linking tax deductions to prompt payments, it not only addresses the issue of delayed payments but also provides a crucial boost to liquidity.

“The phased implementation, starting with disclosure requirements and progressing to tax disallowance, reveals a carefully considered regulatory strategy. The proposed addition of Clause (h) in Section 43B is a testament to the government’s intent to strengthen the MSME ecosystem gradually. This evolving approach underscores the government’s unwavering dedication to fortifying the economic backbone, emphasizing ongoing support for sustainable growth,” added Shah.

Larsen & Toubro has secured a contract from the Ministry of Defence valued between Rs 5,000 and Rs 10,000 crore for the provision of High Power Radars to the Indian Air Force. Following this announcement, the company’s stock experienced a surge of 4.15% on the NSE, reaching a trading price of Rs 3,621.85.

Tata Steel, JSW Steel, L&T, Hindalco, and ICICI Bank were the top gainers in the Nifty 50. On the other side, Sun Pharma, HCL Technologies, Britannia, Cipla, and Infosys were the major laggard in the Nifty 50 on March 01.

Reliance Industries and ICICI Bank contributed the most to the index.

H.G. Infra Engineering Limited has secured the position of the L-1 bidder for the construction of a double line track in the Gaya-Son Nagar section in the DDU Division of East Central Railway in Bihar. The contract holds a value of ₹709.11 crore. Notably, HG Infra’s stock has risen by 2.99% on the NSE and is currently trading at Rs 907.35.

Analyzing the technical aspects of Nifty, Anand James, Chief Market Strategist at Geojit Financial Services, remarked, “Yesterday’s initial recovery attempts faced resistance near 22000. Despite the positive momentum, the market may witness a few more upward movements to eventually breach the 22000 mark. While these developments align with our expectations, we also highlighted that a failure to close above 22070 might sustain the decline to 21800. We are now optimistic about further upward movements today, setting a downside marker near 21943. However, it’s crucial to monitor whether the market can sustain levels above 22070-100 after the initial positive momentum, as a failure to do so could be indicative of a weakening signal.”

As the market scales to an all-time high Tata Steel, JSW Steel, BPCL, L&T, and Hindalco Industries are the top gainers on NSE Nifty 50, whereas the top losers include Cipla, Britannia Industries, HCL Tech, Apollo Hospitals, and LTI Mindtree.

The NSE Nifty 50 was up 300 points or 1.36% at 22,281.95. While the 30-stock BSE Sensex was up more than 1000 points or 1.38% at 73,497.40.

On Friday, the financial markets soared to unprecedented heights as the BSE Sensex experienced a remarkable surge of over 1000 points, achieving a historic milestone at 73,574. Simultaneously, the Nifty 50 also demonstrated significant strength by gaining over 300 points, reaching 22,304, thereby marking a new all-time high. This surge in both benchmark indices reflects robust investor confidence and positive market sentiment.

Tata Steel, JSW Steel, BPCL, L&T, and Hindalco were the top gainers in the Nifty 50. While Cipla, Apollo Hospitals, Sun Pharma, Infosys, and Dr Reddy’s Laboratories were the key losers in the Nifty 50 on March 01.

The Oil & Gas index movers on March 01. The index was up 2.2% to the intraday high of 11,705.25.

The NTPC stock has witnessed a 1.09% increase on the NSE, reaching Rs 339.25. This surge is attributed to the announcement from NTPC Ltd, stating that the 660 MW capacity unit-2 at its North Karanpura Super Thermal Power Project (3 x 660 MW) has successfully concluded trial operations and has been officially incorporated into the company’s installed capacity.

Mahindra & Mahindra Ltd. recorded a 24% increase in overall auto sales for February 2024, with a total of 72,923 vehicles, including exports. The stock is currently trading at ₹1,954.15 on the NSE, reflecting a 1.13% increase.

Commenting on the Dollar-Rupee outlook Anand James, Chief Market Strategist at Geojit Financial Services said that, we Continue to expect 82.94, despite the lack of momentum. For directional breakout, watch out for penetration of 82.78- 83.1 range.

The stock of One97 Communication, parent of Paytm, rose 5% to hit the upper band of Rs 423.45 after the company decided to pare off business with Paytm Payments Bank.

Japanese investment behemoth, SoftBank Group Corporation, has reportedly diminished its stake in the beleaguered Indian fintech unicorn Paytm by 2.17 percent, as per Reuters. The disclosure of this stake sale surfaced through an exchange filing on February 29, unveiling SoftBank’s ongoing divestment in the ownership of the Indian payments startup.

From holding a 17.5 percent stake in Paytm in September 2022, SoftBank’s current ownership has dwindled to 2.83 percent, down from 5.01 percent. This gradual reduction in stake has been unfolding for over a year, with the latest cut disclosed in January 2024.

In a BSE filing, One 97 Communications, the parent company of Paytm, reported, “SVF India Holdings (Cayman) Ltd has disposed of an aggregate of 13,784,787 equity shares of One 97 Communications Ltd in a series of disposals undertaken between January 23, 2024, and February 26, 2024, with the disposal on February 26, 2024, breaching the 2 percent threshold specified in SEBI Takeover Regulation.”

Read More: Paytm share gains over 3% intra-day; SoftBank cuts 2.17% stake in One 97 Communications

In February 2024, Escorts Kubota Ltd witnessed a 17 percent decrease in overall tractor sales, totaling 6,481 units, compared to the 7,811 tractors sold in February 2023. The domestic tractor sales also saw a decline, reaching 6,041 units, down from 7,245 units in February 2023. The stock is currently trading at Rs 2,864.65 on the NSE, reflecting a 0.29% increase.

The sectoral index was trading highest among its peers. It gained 2.1% to the intraday high of 8,091.25 points.

Shares of Tata Steel rose 3.2% to Rs 145.40. The stock was the top gainer in the Nifty 50 on March 01. The stock hit the 52-week high of Rs 147.40 on February 07. It has an upper band of Rs 154.90.

Commenting on the 45-day payment rule to MSMEs Karan Desai Founder of Interface Venture said, the Finance Act 2023 addresses the challenges faced by Small- and Micro-enterprises in the MSME ecosystem due to prolonged payment cycles. Section 43(B) now mandates that payments overdue by more than 45 days to such enterprises will be eligible for tax deduction only upon actual payment, effective from April 1, 2024.

“However, some, including members of the Clothing Manufacturers Association of India, have requested a one-year deferment or an extension of the 45 days to April 1, 2025. Advocates argue that while the provision safeguards smaller businesses, its implementation should be phased to allow sufficient adjustment time for all stakeholders,” added Desai

BPCL, Tata Steel, ONGC, Hindalco, and Bajaj Auto were the top gainers in the Nifty 50. Apollo Hospital, Sun Pharma, Hindustan Unilever, Infosys, and Nestle India were the major laggards in the Nifty 50 on March 01.

The NSE Nifty 50 opened 0.30% higher at 22,048.30, while the BSE Sensex opened 0.15% higher at 72,606.31.

“The main factor influencing the market today is likely to be the better-than-expected Q3 GDP growth number which has come at an impressive 8.4 %. However, it is important to note that the GVA has come on expected lines at 6.5%. The difference between GDP growth and GVA is due to the excellent 32 % growth in net indirect taxes. Significant internals from the GDP numbers are the 11.6 % growth in manufacturing, the 9.5% growth in construction and 10.6 % growth in capital formation. The impressive GDP numbers provide the fundamental support to the bull market. Large caps like RIL, Bharti Airtel, L&T and ICICI Bank have the potential to lead the rally. Tepid private consumption numbers will be a drag on consumer staples stocks like HUL. The broad trend of the market, going forward, will be the outperformance of large caps over the broader market,” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.