Morning Alerts Federal Reserve meeting outcome

Morning Alert..
Rupee slides 43 paise on risk aversion ahead of Budget, Fed statement
The rupee weakened sharply versus the dollar on Tuesday, as investors turned risk averse and sought the safety of the US currency ahead of two crucial events on Wednesday – the Union Budget and the Federal Reserve’s monetary policy statement. The domestic currency settled at 81.93 per dollar against 81.50 on Monday. Intraday, the rupee weakened past the psychologically significant 82 per dollar mark, hitting a low of 82.07 per dollar. Government bond yields declined ahead of the Budget statement as traders were of the view that the fall in prices over the past week had been overdone, dealers said. Yield on the 10-year benchmark bond settled six basis points lower at 7.34 per cent. Bond prices and yields move inversely. In the previous week, the 10-year bond yield had climbed to its highest levels since early November as the market braced for heavy supply of debt in the coming year.

India’s April-Dec fiscal deficit touches 60% of full-year target: Govt data
India’s fiscal deficit for the nine months through December touched 9.93 trillion rupees ($121.22 billion), nearly 60% of annual estimates, government data showed on Tuesday. Net tax receipts rose to 15.56 trillion rupees while total expenditure was 28.18 trillion rupees, the data showed. Finance Minister Nirmala Sitharaman will present the budget for the next financial year on Wednesday, where she is widely expected to say that India would meet its fiscal deficit target of 6.4% for the current year.

Sugar production to fall 5% to 34 mn tonnes in 2022-23 marketing year: ISMA
India’s sugar production is estimated to fall 5 per cent during 2022-23 marketing year ending September to 340 lakh tonnes as more quantity of sugarcane juice is being diverted for production of ethanol, according to industry body ISMA. Sugar production stood at 358 lakh tonnes in the 2021-22 marketing year (October-September). In a statement, Indian Sugar Mills Association (ISMA) said sugar production in 2022-23 is estimated at around 340 lakh tonnes after diversion of 45 lakh tonnes of sweetener towards ethanol manufacturing. Sugarcane juice/syrup and B-molasses are being diverted to ethanol making. In the previous 2021-22 marketing year, 32 lakhs tonnes of sweetener were diverted towards manufacturing of ethanol for blending with petrol.

Commodity play
Gold – Rs 56740/10gm, Silver – Rs 67533/kg, Brcrude – Rs 6352/barrel, Degumsyoil – Rs 1296/10kg, Copper – Rs 773/kg.

Corporate News
Shriram Finance Q3 net up 161% to Rs 1,777 cr on higher net interest income.

Vi to issue debentures worth Rs 1,600 cr to ATC after condition waiver.

Adani group tops up collateral on $1 billion loan after stock rout.

SGX Nifty indicates positive start to Indian markets trading at 17836 levels up by 84 points or 0.47%. Doe Jones also ended yesterday`s session in green up by 1.09% at close.

Sector in focus – Fertilizers, Power, Banks & Automobiles.

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