Stock Market Today: Sensex, Nifty Close At Five-Month Low; Banks, Autos Drag
S&P BSE Sensex fell 1.52% to 58,237.85, while Nifty 50 closed 1.49% lower at 17154.30.
KEY HIGHLIGHTS
FPIs Stay Net Sellers For The Third Straight Day
Overseas investors in Indian equities remained net sellers for the Third day in a row on Monday.
Foreign portfolio investors offloaded equities worth Rs 1,546.86 crore, according to data from the National Stock Exchange.
Domestic institutional investors were net buyers for the third day in a row and mopped up stocks worth Rs 1,418.58 crore.
Foreign institutions have remained net sellers of Rs 22,371 crore worth of Indian stocks so far in 2023, according to NSDL.
Yield On The 10-Year Declines
The yield on the 10-year bond closed 6 bps lower at 7.36% on Monday. It closed at 7.42% on Friday.
Source: Bloomberg
Rupee Depreciates Against The U.S. Dollar
The local currency weakened by 8 paise to close at 82.13 against the greenback.
Source: Bloomberg
Closing Bell: Sensex, Nifty Close At Five-Month Low
Indian benchmarks closed at a five-month low on Monday dragged by banking, telecom and automobile stocks.
S&P BSE Sensex fell 1.52% to close at 58,237.85, while Nifty 50 closed 1.49% lower at 17154.30.
Benchmark Nifty 50 has fallen below 17,255- the lowest level since Feb.28, 2023. The index was dragged by Nifty Bank, which was the worst performing index with a decline of 2.27% to 39,564.70. The Nifty Bank index also ended near its lowest level of 39,490.50, clocked in February.
Of the 50 Nifty 50 constituents, 4 advanced and 45 declined. Meanwhile, one stock remained unchanged.
Tech Mahindra and Apollo Hospitals Enterprise were the only gainers of Nifty 50 index, while IndusInd Bank, State Bank of India, Tata Motors, Mahindra & Mahindra, Eicher Motors were the top losers of the index.
The broader indices underperformed the benchmarks. BSE MidCap fell 1.82% and BSE SmallCap declined 2.08%.
The market breadth was skewed in favour of the bears. On the BSE, about 772 stocks rose, 2,829 declined, and 156 remained unchanged.
Nifty 50 Falls Below February Low Levels; Bank Nifty Drags
Benchmark Nifty 50 has fallen below 17,255- the lowest level since Feb.28, 2023.
The index was dragged by Nifty Bank, which was the worst performing index with a decline of 2.10% to 39,633.60. The Nifty Bank index is trading near its lowest level in February, which was 39,490.50.
Nifty 50 down 361 points from day's high, while Nifty Bank is down 1,056 points from day's high.
Source: Bloomberg
European Markets Trade Lower
Sensex, Nifty Trading Near Day's Low
Indian benchmarks were trading near the day's low. The S& P BSE Sensex declined 1.12%, while the Nifty 50 traded 1.04% lower.
Elgi Equipments Up After Unit Inks Acquisition Deal
Elgi Equipments Ltd. shares were trading higher on Monday after its U.S. unit inked pact to acquire some stake in CS Industrial Services.
The company's unit, Elgi Compressors USA Inc., has entered into an operating agreement for acquisition of 33.33% in the share capital of CS Industrial Services on March 9, 2023.
The stock gained 3.4% to Rs 484.95. Total traded volume so far in the day stood at 2.8 times the 30 day average.
Out of four analysts tracking the stock, one maintained 'buy', one suggested 'hold' and two recommended 'sell'.
The return potential of the stock implies a downside of 10.8% over the next 12 months.
Source: Bloomberg, Exchange filing
Nifty 50 Trading Below 17,300 Mark
As of 1:11 p.m., Nifty 50 was trading below the 17,300-mark, declining 0.75% to 17,281.50.
It had fallen to an intraday low of 17,257.40.
HSBC Buys Silicon Valley Bank UK Unit
HSBC has bought Silicon Valley Bank UK, says UK Chancellor of the Exchequer Jeremy Hunt
-- The UK Government and Bank of England facilitated a private sale of Silicon Valley Bank UK to HSBC
Source: Statement from Jeremy Hunt, UK's Chancellor of the Exchequer
Midday Market Update
Indian benchmarks reversed all gains and were trading lower dragged by declines in auto, telecom and consumer discretionary stocks.
As of 12:34 p.m., Sensex fell 0.58% to 58,793.35, while the Nifty 50 traded 0.59% lower at 17,309.95.
Out of the 50 Nifty 50 constituents, 10 advanced, while 40 stocks declined. Tech Mahindra, Adani Enterprises, ONGC, JSW Steel and Hindalco Industries were the top gainers of the index.
Meanwhile, IndusInd Bank, Mahindra & Mahindra, Tata Motors, Infosys and SBI Life Insurance were the top laggards.
The broader indices underperformed Sensex and Nifty 50. BSE MidCap fell 1.09% while BSE SmallCap traded 1.36% lower.
The market breadth was tilted towards the declines. About 2,553 stocks declined while 884 advanced. About 175 remained unchanged.
Shilpa Medicare Falls After USFDA Inspection
Shares of Shilpa Medicare Ltd. were trading lower after the U.S. drug regulator flagged two observations at Shilpa Medicare's analytical services division in Hyderabad.
U.S.FDA had conducted the inspection on company's analytical services division at Unit 7, Nacharam, Hyderabad.
The inspection took place from March 8 to March 10. The company said that the inspection was closed with two minor observations.
They are related to improvements in existing procedures and are addressable.
The company will be submitting responses to the U.S. regulator within stipulated timelines and implement corrective actions.
The stock declined 4.34% to Rs 256.6.
Source: Bloomberg, Exchange filing
Tata Power Unit Signs Hybrid Project Deal
Tata Power Renewable Energy Ltd. inked a power purchase agreement for 510 megawatts hybrid project with Tata Power Delhi Distribution Ltd.
The project will save on an average of 1540 MUs of carbon dioxide emissions annually for Tata Power DDL, a joint venture between Tata Power and Govt. of Delhi.
This agreement has the capacity bifurcation of 170 MW solar & 340 MW wind power.
It will be commissioned within 24 months from the execution date.
Shares of Tata Power were trading 1.22% lower. Out of the 23 analysts tracking the stock, 12 maintained 'buy', three suggested 'hold' while 8 recommended a 'sell'. The return potential of the stock is 11.3% over the next 12 months.
Source: Bloomberg, Exchange filing
New-Age Stocks Trading Mixed
Hindustan Aeronautics Gains On Order Win
The shares of Hindustan Aeronautics Ltd. gained 1.02% to Rs 2,878.4 apiece on Monday after order win from the Defence Ministry.
The Ministry of Defence will procure six Dornier-228 aircraft for the Indian Air Force from the company for Rs 667 crore.
The total traded quantity stood at 1.8 times the 30-day average volume. The relative strength index stood at 73, indicating the stock may be overbought.
Of the 10 analysts, 9 maintained 'buy', while one recommended 'sell'. the return potential of the stock implies an upside of 11.3%.
Source: Bloomberg
Mahindra CIE Automotive Shares Fall After Large Trade
Mahindra CIE Automotive Ltd. shares fell 5.34% at Rs 372.25 on Monday after a large trade.
According to Bloomberg, as much as 2.32 crore equity shares, or 6.1% equity changed hands in at least one bunched trade.
The stock was trading 18.8 times its 30-day volume. The relative strength index stood at 41.
Of the 6 analysts tracking the stock, 5 maintained 'buy' and 1 recommended 'sell'. The return potential of the stock implies a downside of 21.7%.
Source: Bloomberg
Adani Group Stocks Trading Mixed
Tech Mahindra Surges After Naming New MD, CEO
The shares of Tech Mahindra Ltd. were trading 8.39% higher at Rs 1,150.25 on Monday.
The company named Mohit Joshi as managing director and chief executive officer of the company for a period of five years with effect from Dec.20, 2023.
Total traded volume so far in the day stood at 9.6 times the 30-day average. The relative strength index stood at 64.
Of the 44 analysts tracking the stock, 23 maintained 'buy', 15 suggested 'hold' and 6 recommended 'sell'. The return potential of the stock implies a downside of 0.1%.
Source: Bloomberg
Sensex, Nifty Gains After Opening Flat
Indian stock benchmarks opened flat on Monday, tracking declines in Asian markets.
The S&P BSE Sensex opened at 59,033.77, while Nifty 50 started the day at 17,421.90.
The benchmarks, however, quickly surged after opening flat led by gains in metals, utilities and power stocks.
Among the Nifty 50 constituents, Tech Mahindra, Adani Enterprises, Hindalco Industries, Adani Ports SEZ, and HCL Technologies were the top gainers.
While, IndusInd Bank, SBI Life Insurance, Bharat Petroleum, Nestle India, Titan Company and Hindustan Unilever were the top laggards.
The broader indices BSE MidCap and BSE SmallCap were underperforming the indices. BSE Midcap was trading flat and BSE SmallCap was trading 0.27% lower.
The market breadth was skewed in favour of declines. About 1417 stocks fell, 1337 stocks advance and 140 remained unchanged.
10-Year Bond Yield Falls
-Yield on the 10-year bond fell 4bps to 7.37% in early trade on Monday.
-It closed at 7.41% on Friday.
Source: Bloomberg
Rupee Appreciates Against The U.S. Dollar.
-Indian rupee strengthened by 30 paise to open at 81.75 against the greenback on Monday.
- It closed at 82.05 on Friday.
Source: Bloomberg
Trade Setup
Global Cues
U.S. Dollar Index at 104.11
U.S. 10-year bond yield at 3.73%
Brent crude up 0.48% at $83.18 per barrel
Nymex crude at $77.09 per barrel
SGX Nifty rose 0.18% to 17,469 as of 8:20 a.m.
Bitcoin up 5.18% to $22,604.88
Insider Trades
Jindal Saw: Promoter group Abhyuday Jindal sold 35 lakh shares and Virtuous Tradecorp bought 35 lakh shares on March 6.
Som Distilleries & Breweries: Promoter Jagdish Kumar Arora bought 19,000 shares on March 10.
Zydus Wellness: Promoter Zydus Family Trust bought 11,291 shares between March 8-9.
Gallantt Ispat: Promoter group Maanaav Dineshkumar Agarwal bought 1,353 shares on March 9.
Kirloskar Oil Engines: Promoter group Ambar Gautam Kulkarni sold 64.92 lakh shares, Jyotsna Gautam Kulkarni sold 1.29 crore shares and Nihal Gautam Kulkarni 66.52 lakh shares on March 8.
Trading Tweaks
Price Band Revised From 20% To 10%: Olectra Greentech
Move Into of Short-Term ASM Framework: Mangalore Chemicals & Fertilisers
Stocks To Watch: Hindustan Aeronautics, ICICI Bank, Lupin, M&M In Focus
Hindustan Aeronautics: The Ministry of Defence will procure six Dornier-228 aircraft for the Indian Air Force from the company for Rs 667 crore.
ICICI Bank/ ICICI Lombard General Insurance Company: The RBI granted ICICI Bank time till Sept. 9, 2024, to reduce its stake in ICICI Lombard General Insurance Company to the required 30%.
Canara Bank: The bank raised its lending rates by 10-45 basis points across tenors with effect from March 12.
IndusInd Bank: The RBI approved reappointment of Sumant Kathpalia as MD and CEO of the bank for two more years, effective March 24.
Lupin: The U.S. FDA completed a pre-approval and GMP inspection of its API manufacturing inspection in Visakhapatnam, India, from March 6-10, with no observations.
Ujjivan Financial Services: The company announced an interim dividend of Rs 5 per share of Rs 10 each. The record date for the dividend is March 20.
Godrej Industries: The board approved issuance of 1 lakh non-convertible debentures aggregating to Rs 1,000 crore on private placement basis.
Aster DM Healthcare: Aster Pharmacies Group, a material subsidiary of the company, has incorporated a joint venture Aster Arabia Trading Company in Riyadh establish, manage and operate pharmacy chain across the Kingdom of Saudi Arabia.
Authum Investment & Infrastructure: The board appointed Deepak Dhingra as the chief financial officer of the company with effect from March 10 after the resignation of Amit Dangi from the post.
JSW Steel: The company’s subsidiary JSW Steel Coated Products has completed the acquisition of 31% stake in Ayena Innovation.
Lumax Auto Technologies: The company has completed the acquisition of 75% shareholding in IAC International Automotive India through its wholly owned subsidiary namely Lumax Integrated Ventures.
Mahindra & Mahindra: Production, sales and exports figures for February
-The company produced 56,997 units across categories, 14% higher year-on-year.
-Sales figures grew 9.5% on-year to 56,551 units.
-Exports dropped 20% to 2,250 units.
Stocks To Watch: Hindustan Aeronautics, ICICI Bank, Ujjivan Financial Services, IndusInd Bank, Lupin
SGX Nifty Indicates A Positive Start For Benchmark Indices
The Indian benchmarks, the S&P BSE Sensex and the NSE Nifty 50, are set to open higher on Monday, as indicated by the SGX Nifty.
At 8:47 a.m., the Singapore-traded SGX Nifty -- an early barometer of India's benchmark Nifty 50 -- gained 0.22% to 17,476.
SGX Nifty, at 7:03 a.m. was trading 0.41% lower before it reversed losses.
Asian stocks fell, U.S. stock futures surged, and the dollar retreated after American financial regulators took steps to shore up the financial sector with a new lending program in the wake of Silicon Valley Bank’s failure.
Australian and Japanese shares also declined. Investors will be monitoring how Chinese markets react to the news that central bank governor Governor Yi Gang was kept in his post, as have the finance and commerce ministers. The continuity may be welcomed by investors, who have grown sensitive to policy risks from Beijing.
Crude oil prices rose 1.4%, while gold prices increased 1.8% with the rout in equity and bond markets. Bitcoin dived 1.4% to trade below the $20,000 level.
Both Indian benchmark indices tanked on Friday—the Sensex closed 1.12% lower while the Nifty dipped 1%—as PSU, banking, and financial stocks dragged on account of weak global cues.
The Indian rupee closed lower against the U.S. dollar as the domestic unit tracked weak Asian peers amid fears of faster rate hikes by the U.S. Federal Reserve.