Equities Hit A Hat-Trick; Gilt Yields Ease on Fresh OMOs

Highlights 
• GR Infraprojects shares jumps on LoA for ₹42.63 billion project
• Marksans Pharma gains nearly 3% as UK arm secures approval for muscle relaxant tablets
• NBCC shares surge after selling units in Greater Noida worth ₹23.53 billion 
• Bajaj Healthcare shares rally nearly 10% as firm gets SEC-CDSCO nod for clinical trials of anti-seizure drug
• SEBI likely to raise intraday gross limit in index options: Sources

The benchmark equity indices gained for the third consecutive session today, with the Nifty Midcap index jumping 2.6%, outpacing the Nifty 50’s 0.3% gain.

Index heavyweights HDFC Bank, ICICI Bank, and Reliance Industries were the biggest contributors to the Nifty’s rise, while IT stocks remained under pressure on growth concerns. Tech Mahindra, TCS, and Infosys were the top Nifty losers.

SECTORAL PERFORMANCE 
Barring IT and FMCG, all sectoral indices ended in the green with Consumer Durables, Capital Goods, Realty, Oil & Gas, Media, Metal, Power, PSU Bank up 1.0-2.8%.

Top Gainers	% Change	Top Losers	% Change
NIFTY REALTY	2.80%	NIFTY IT	-1.08%
NIFTY PSU BANK	1.98%	NIFTY FMCG	-0.55%
NIFTY CONSUMER DURABLES	1.53%
NIFTY HEALTHCARE INDEX	1.28%
NIFTY METAL	1.27%

Yields on 10-year government bonds eased further today to its lowest level in six weeks after the Reserve Bank of India announced an open market bond purchase auction for the last week of the financial year.

The RBI said it will buy bonds worth ₹500 billion on March 25.

The central bank has already bought bonds worth ₹1 trillion in the last four sessions, and most traders were not expecting further purchases this month.

Tenure	Today	Previous
10-year Gilt	6.66%	6.67%
5-year gilt	6.57%	6.59%
5-year OIS	5.94%	5.95%

The Indian Rupee ended at new two months high of 86.4425 against the US dollar as banks cut long positions based on lower buying from FPIs, lower oil prices, some selling by exporters.

It was also reported by Bloomberg that RBI had asked banks to cut arbitrage positions thus resulting in cutting of longs positions.
Inflows related to repatriation of corporate profits are usual in March. Such inflows have aided the rupee over recent trading sessions.

Unit	Today	Previous
Dollar/Rupee	84.44	86.57
Dollar Index	103.31	102.89
1-year Dollar/rupee premium (%)	2.14%	2.15%

OUTLOOK
Indian equity markets are expected take cues from Wall Street, as investors are awaiting Federal Reserve policy decision later tonight.  The US Fed is expected to avoid rate cuts due to global uncertainty, but markets are keenly awaiting policymakers’ views on the economy and possibly the future path of interest rates.

The rupee is likely to stay supported on year-end dollar sales by exporters. The expected trading range for Thursday is 86.25–86.50. Movement in US dollar post outcome of the US FOMC meeting will also drive the domestic currency tomorrow.

Key Events & Data Due Thursday
Economic Data:
- US Weekly Initial Jobless Claims Data
- US Oct-Dec Current Account Data
- US February Existing Home Sales Data
- Philadelphia Fed March Manufacturing Index

Corporate Actions:
 - Mishra Dhatu Nigam board to consider dividend
 - TVS Motors Co board to consider dividend
 - Indian Bank board to discuss fundraising plans
 - Ugra Capital board to discuss fundraising plans
 - Manappuram Finance board to discuss fundraising plans

Policy:
- European Union Leaders Summit
- European Central Bank President Lagarde Speaks
- European Central Bank's Lane Speaks