Indian stock indices were little changed on Tuesday, February 28, as market participants were waiting for the country’s GDP data for 3Q ended in December to be released at 12:00 GMT today. According to the consensus forecast, the reading may have slowed down to 6.4% y-o-y in fiscal Q2 vs. the previous 7.3% y-o-y. In addition, investors are taking a cautious stance ahead of Donald Trump’s congressional testimony.
M&M, banking and telecom equities outperformed the broader market, while O&G and energy names were out of favor.
Recapping the benchmarks, the Nifty 50 dipped 0.19% to 8,879.60, and the BSE Sensex eased 0.24%, settling at 28,743.32.
By 10:45 GMT, the USD/INR pair eased 0.01% to 66.741, while EUR/INR was 0.18% higher at 70.7407. The 10-year Indian government bond yield stood at 6.902%.
As noted above, banking names were well bid. Specifically, Punjab National Bank and State Bank of India gained 1.25% and 0.35%, respectively.
Meanwhile, telecom player Bharti Airtel saw 2.66% added to its market cap after saying it will stop charging subscribers for domestic roaming from April 1.
On the daily chart below, the BSE Sensex continues to trade within a rising band, while the Slow Stochastic Oscillator has just left overbought territory. Given the above, we expect to see the index head towards the lower end of the band in the short term.