This week in a nutshell (March 8th to March 12th)

Technical talks

• NIFTY opened the week on 8th March at 15,002 and closed on 12th March at 15,031. As expected the index traded in a range with no clear trend. The index is trading above its 20DMA of 15,015, which might act as a support. On the upside, the recent all-time of 15,432 might act as resistance. The index might trade in the range of the above-mentioned levels before making a strong move on either side.

Weekly highlights

• Markets continued to rise for the first three days of the week before falling off to end the holiday-shortened week on a flat note. IT (2.6%) and Bank (0.6%) led the indices higher while Realty (-2.3%), Auto (-1.3%) and Bank (-1.2%) ended the week with most losses.
• India’s life insurance sector registered a strong new business premium (NBP) growth of 21% in February, bucking its recent trend where it registered either tepid growth or a decline since November. The latest data from the Insurance & Regulatory Development Authority of India (IRDAI) indicated that the NBP, which is a key metric to gauge the performance of life insurers grew to Rs 224 bn in February for India’s 24 life insurers, compared with Rs 185 bn a year ago. 
• The US markets hit a new closing high as investors cheered on the passage of the $1.9 trillion American Rescue Plan. President Biden signed the bill and the IRS will begin sending payments out as soon as 14th March. 
• Brent crude futures jumped above $70 a barrel during the week for the first time since the COVID-19 pandemic began; while WTI crude touched its highest in more than two years, following reports of attacks on Saudi Arabian oil facilities. The front-month WTI price touched $67.86 a barrel earlier, the highest since October 2018.
• The government, which owns 54% in BEML, invited expressions of interest for the stake sale in the defense equipment maker, along with the transfer of management control. At least six companies, including Tata Motors, Mahindra and Mahindra, and Ashok Leyland, are looking to buy a 26% stake in BEML Ltd. 
• Wholesale dispatches from auto OEMs reported mixed volume performance in February 2021. Dispatches of passenger vehicles (PV) increased by 17.9% YoY in February 2021, according to the data released by SIAM (Society of Indian Automobile Manufacturers) on 10th March 2021. This is the seventh time in a row that PV wholesale dispatches were positive. Total sales in the two-wheelers segment witnessed a YoY growth of 10.2%. 
• The trend in FII flows continued as they pumped in Rs 11280 mn while DIIs turned net buyers with Rs 12,390 mn purchases during the week.

Things to watch out

• The Wholesale Price Index (WPI) inflation and Manufacturing data along with Export-Import data for the month of February are expected to be released in the next week.