Indian markets expected to open lower, Adani Group prepays loans, L&T bags new contract

Opening Bell:

SGX Nifty is down by 131.5 points in the early morning trade, indicating a negative opening for Indian stock market.

A gauge of Asian stocks declined Wednesday after hawkish rhetoric from Jerome Powell rattled risk sentiment and drove the dollar higher against all of its major peers
The Japanese Nikkei is up by 0.21 percent. Hong Kong’s Hang Seng is down by 2.16 percent and South Korea’s Kospi is down by 1.11 percent in early morning deals.

U.S. stock indexes closed sharply lower on Tuesday after Federal Reserve Chair Jerome Powell told Congress the central bank will likely need to raise interest rates more than previously expected as it seeks to rein in stubbornly high inflation. The S&P 500 declined 1.53 percent and Nasdaq Composite was down 1.25 percent, respectively.

Stocks News:

?Adani group has prepaid loans worth Rs 7,374 crore, which were taken against company shares as collateral, ahead of the maturity as the conglomerate tries to assuage investor concerns over its ability to manage debt obligations.

?In another development, NSE has removed 4 Adani Group stocks from the Nifty Alpha 50 index with effect from March 31. These are Adani Enterprises, Adani Green Energy, Adani Transmission, and Adani Total Gas, according to the release by NSE Indices.

?Larsen & Toubro bags contract worth Rs 3,100 crore for supply of three cadet training ships, from Defence Ministry. Ministry of Defence has signed Rs 3,100-crore contract with Larsen & Toubro for procurement of three cadet training ships. The ships will cater to the training of officer cadets at sea after their basic training to meet the future requirements of the Indian Navy.

?Aeronautics: Hindustan Aeronautics bags contract worth Rs 6,800 crore for supply of 70 HTT-40 basic trainer aircraft for Indian Air Force. Ministry of Defence has signed contract with Hindustan Aeronautics for procurement of 70 HTT-40 basic trainer aircraft at a cost of Rs 6,800 crore.

?Foreign portfolio investors (FPIs) have remained net buyers at Rs 721 crore on Monday. DIIs, on the other hand, bought shares worth Rs 757 crore.

Domestic and International Events

• Oil prices steadied in early Asian trade on Wednesday as industry data showed a draw in U.S. crude oil inventories, after the market tumbled in the previous session on fears more aggressive U.S. interest rate hikes would hit demand.
• The Federal Reserve will likely need to raise interest rates more than expected in response to recent strong data and is prepared to move in larger steps if the “totality” of incoming information suggests tougher measures are needed to control inflation, Fed Chair Jerome Powell told US lawmakers on Tuesday.
• The dollar extended gains against a basket of currencies on Tuesday after Federal Reserve Chairman Jerome Powell said that the US central bank will stay the course until the job is done, adding that the ultimate level of interest rates is likely to be higher than previously anticipated.
• India’s thermal plant load factor (PLF) improved to 64 percent in FY2023 from 58.9 percent in FY2022, driven by a strong recovery in electricity demand growth in the country, rating agency ICRA said on March 6. The agency has now revised its outlook for the country’s thermal power sector to ‘stable’ from ‘negative’, even as the power distribution segment sustained a ‘negative’ rating.

Key Equity Indices