Stock Market Today: Sensex, Nifty Snap Eight-Day Losing Run; Metals, Banks Lead Advance; All Adani Stocks Up

Overseas investors in Indian equities remained net sellers for the sixth day in a row on Wednesday.

Foreign portfolio investors offloaded equities worth Rs 424.88 crore, according to data from the National Stock Exchange.

Domestic institutional investors were net buyers for the sixth day in a row and mopped up stocks worth Rs 1,498.88 crore.

Foreign institutions have remained net sellers of Rs 52,980.21 crore worth of Indian stocks so far in 2023.

The yield on the 10-year bond closed 4 basis points lower at 7.39% on Wednesday. It closed at 7.43% on Tuesday.

Source: Bloomberg

The local currency strengthened by 16 paise to 82.51 against the greenback at close on Wednesday. It closed at 82.67 on Tuesday.

Source: Bloomberg

Indian equity benchmarks ended its eight day fall and advanced in trade on Wednesday, led by banks and metals.

Most Asian markets advanced, while the European stocks also ticked higher as a recovery in China helped offset a growing realization that policy makers are likely to stay hawkish for the coming months. Futures for the S&P 500 and Nasdaq 100 also erased earlier losses and climbed.

The S&P BSE Sensex closed up 449 points or 0.76% at 59,411.08 while the NSE Nifty 50 was 147 points or 0.85% higher at 17,450.90.

Adani Enterprises Ltd., Hindalco Industries Ltd., UPL Ltd., State Bank of India, Axis Bank Ltd. were the top gainers in the gauge.

Whereas, Britannia Industries Ltd., Power Grid Corp of India Ltd., Cipla Ltd., BPCL Ltd., and SBI Life Insurance Co. were the top losers amongst the NSE Nifty 50 constituents.

The broader market indices outperformed the larger peers; S&P BSE MidCap was up 1.35% whereas S&P BSE SmallCap was higher by 1.38%.

All the 19 sectors compiled by BSE advanced with S&P BSE Metals, and S&P BSE Commodities gaining the most.

The market breadth was tilted in the favour of buyers. About 2,453 stocks rose, 1,040 declined, and 133 remained unchanged on the BSE.

• Gross GST revenue collected in February for transactions in January at Rs 1,49,577 crores (12% YoY growth).

• February is a shorter month and witnesses lower collections usually. Last month's collections were at Rs 1,55,922 crore.

• GST revenues have remained above Rs 1.4 lakh crore in the past 12 months.

Source: PIB

• Total sales rose 24.5% to 7,289 units

• Domestic sales grew 33.5% to 6,799 units

• Exports fell 53.8% to 301 units.

Source: Exchange filing

• Passenger vehicle sales rose 10% to 30,358 units

• Tractor Sales grew 26% to 25,791 units

• Sales of medium capacity light commercial vehicles rose 12% to 17,241

• Three wheeler sales jumped 40% to 5,350 units

• Exports fell 20% to 2,250 units

Source: Exchange filing

Shares of metal companies advanced in trade on Wednesday and the headline index NSE Nifty 50 was higher by 0.76% in trade.

The NSE Metal Index was up 3.57% in trade. Forteen out of the 15 constituents compiled by the gauge advanced, while only Ratnamani Metals and Tubes Ltd. declined in trade.

Adani Enterprises Ltd., APL Apollo Tubes Ltd., National Aluminium Co., Hindustan Copper Ltd., Jindal Steel and Power Ltd., Hindalco Industries Ltd., Vedanta Ltd., and SAIL Ltd. declined nearly 3% in trade.

Source: NSE

• Total domestic sales rose 6% to 78,006 units

• Commercial vehicle sales fell 3% to 36,565 units

• Passenger vehicle sales rose 7% to 43,140 units

Source: Exchange filing

The crisis-ridden Adani Group is moving an investor roadshow to Hong Kong Tuesday, continuing its charm offensive to ease concerns about its financial health and corporate governance induced by a short-seller’s allegations.  

All Adani Group company stocks rose in trade on Wednesday.

Adani Enterprises Ltd. rose nearly 15% intraday.

• Total sales rose 27% to 18,571 units

• Medium and heavy commercial vehicle sales grew 35% to 12,668 units

• Light commercial vehicle sales rose 12% to 5,903 units\

Source: Exchange filing

• Total sales rose 5% to 1,72,321 units

• Sales in mini and compact segment grew 4.4% to 1,01,773 units

• Utility vehicles sales jump 32.3% to 33,550 units

• Exports decline 28.4% to 17,207 units

Source: Exchange filing

Shares of Cipla Ltd. declined in trade by 0.97% to Rs 897.65, paring losses after hitting a 52-week low earlier in trade.

The U.S. drug regulator has flagged quality and procedural lapses at Cipla Ltd.'s manufacturing facility in Pithampur, Madhya Pradesh.

The United States Food and Drug Administration conducted a current good manufacturing practises inspection at the sterile and non-sterile drug manufacturing facility in Pithampur from Feb. 6 through Feb. 17, the company said in an exchange filing on Feb. 18. "On conclusion of the inspection, the company has received eight inspectional observations in Form 483."

Form 483 is issued when investigators have observed any condition that, in their judgment, may constitute a violation of the Federal Food, Drug, and Cosmetic Act and related acts.

"The company will work closely with the U.S. FDA and is committed to addressing these comprehensively within the stipulated time," the company had said.

The stock declined as much as 1.15% to Rs 896 apiece intraday, falling the most in 52-week.

Total traded volume stood at 2.5 times its 30-day average. The relative strength index was at 19, implying that the stock must be oversold.

Out of the 42 analysts tracking the company, 30 maintain a 'buy' rating, nine recommend a 'hold' and three suggest to 'sell' the stock.

The return potential as calculated by the consensus of analyst estimates, stand at an upside of 28.7% over the next 12 months.

Source: Bloomberg, Exchange filing

Indian equity benchmarks rose in trade through midday on Wednesday after declining for eight straight days in over four years on Tuesday.

Stocks and currencies rallied in Asia, led by a surge of more than 3% in Hong Kong’s benchmark index, as China’s manufacturing posted its biggest improvement in more than a decade.

The futures for S&P 500, the Nasdaq 100 and Euro Stoxx 50 all pared losses following a report showing the world’s second-biggest economy is rebounding strongly after Covid restrictions were lifted.

As of 12:12 p.m., the S&P BSE Sensex was up 360 points or 0.61% at 59,322.56 while the NSE Nifty 50 was 105 points or 0.61% higher at 17,409.25.

Adani Enterprises Ltd., Hindalco Industries Ltd., Axis Bank Ltd., Mahindra and Mahindra Ltd., and State Bank of India were the top gainers in the gauge.

Whereas, Power Grid Corp of India Ltd., Britannia Industries Ltd., Cipla Ltd., SBI Life Insurance Co., and Tata Consumer Products Ltd. were the top losers amongst the NSE Nifty 50 constituents.

The broader market indices traded higher; S&P BSE MidCap was up 1.05% whereas S&P BSE SmallCap was higher by 1.25%.

All the 20 sectors compiled by BSE advanced with S&P BSE Metals, S&P BSE Realty and S&P BSE Commodities gaining the most.

The market breadth was tilted in the favour of buyers. About 2,361 stocks rose, 948 declined, and 130 remained unchanged on the BSE.

Shares of real estate companies advanced in trade on Wednesday and the headline index NSE Nifty 50 was higher by 0.70% in trade.

The NSE Realty Index was up 1.97% in trade. Nine out of the 10 constituents compiled by the gauge advanced, while only Bridage Enterprises Ltd. declined in trade.

Macrotech Developers Ltd., Phonenix Mills Ltd., Indiabulls Real Estate Ltd., Godrej Properties Ltd., Sunteck Realty Ltd., Oberoi Realty Ltd., DLF Ltd., Prestige Estate Projects Ltd., and Sobha Ltd., advanced in trade.

Source: NSE

Manufacturing PMI at 55.3 in February, from 55.4 in January.

Source: S&P Global

Stocks of innerwear companies like Rupa and Company Ltd., Dollar Industries Ltd., and Lux Industries Ltd. advanced in trade.

Source: Bloomberg

Shares of Adani Enterprises Ltd. rose 12.92% intraday, to Rs 1,540 a piece in trade.

Source: Bloomberg

• GDP growth estimate for 2023 revised to 5.5%, from 4.8% estimated in November 2022

• The upward revisions additionally incorporate the sharp increase in capital expenditure budget allocation to Rs 10 trillion for FY24, up from Rs 7.5 trillion for FY23.

• Moody's forecasts G-20 global economic growth will downshift to 2% in 2023 from 2.7% in 2022, and then to improve to 2.4% in 2024.

Source: Moody's statement

• Total sales fell 11% to 2,80,226 units

• Two-wheeler sales fell 16% to 2,35,356 units

• Commercial vehicle sales jumped 22% to 44,870 units

• Exports fell 38% to 1,26,935 units

• Domestic sales rose 36% to 1,53,291 units

Source: Exchange filing

Shares of Delhivery Ltd. declined in trade by 0.61% to Rs 343.5 apiece after 2.8 crore shares or 3.8% equity changed hands in a bunch.

Soft Bank is planning to sell shares worth Rs 600 crore in the company via block deals, Bloomberg reported on Wednesday. Citi Bank is likely to broker the deal.

The stock fell as much as 2.47% intraday to Rs 337.05 apiece, falling the most since Feb. 27, 2023. The relative strength index was at 60.

Out of the 19 analysts tracking the company, 13 maintain a 'buy' rating, four recommend a 'hold' and two suggest to 'sell' the stock.

The return potential, as calculated by the consensus of analyst estimates, stands at an upside of 18.5% over the next 12 months.

• As the Adani Group's investor roadshow enters its third day in top Asian financial hubs, the Adani Group company stocks advanced in trade.

• Adani Enterprises Ltd., Adani Green Energy Ltd., Adani Power Ltd., and Adani Wilmar Ltd. advanced the most in trade.

Source: Bloomberg

The broader market indices traded higher; S&P BSE MidCap was up 0.50% whereas S&P BSE SmallCap was higher by 0.42%.

All the 20 sectors compiled by BSE advanced except S&P BSE Realty.

The market breadth was tilted in the favour of buyers. About 1,619 stocks rose, 767 declined, and 105 remained unchanged on the BSE.

Source: BSE

Adani Enterprises Ltd., Adani Ports and SEZ Ltd., Mahindra and Mahindra Ltd., Hindalco Industries Ltd., and Tata Steel Ltd. were the top gainers in the gauge.

Whereas, Britania Industries Ltd., Apollo Hospitals Enterprise Ltd., SBI Life Insurance Co., HDFC Life Insurance Co., and Tata Consumer Products Ltd. were the top losers amongst the NSE Nifty 50 constituents.

Source: Bloomberg

Indian equity benchmarks rose in early trade on Wednesday after declining for eight straight days in over four years on Tuesday.

Asian markets trimmed a few losses after the U.S. equities closed lower, rounding out a turbulent month that saw global stocks drop about 3%.

The S&P 500 and Nasdaq 100 both dropped in February while an index of dollar strength had its first monthly gain since September as investors recalibrated for a higher likely peak in US interest rates. The dollar held little changed in early Asian trading.

At pre-open, the S&P BSE Sensex opened up 171 points or 0.29% at 59,132.85 while the NSE Nifty 50 was 56 points or 0.32% higher at 17,360.10.

The S&P BSE Sensex opened up 171 points or 0.29% at 59,132.85 while the NSE Nifty 50 was 56 points or 0.32% higher at 17,360.10.

Source: Bloomberg

The yield on the 10-year bond opened flat at 7.43% on Wednesday.

Source: Bloomberg

The local currency strengthened by 20 paise to 82.47 against the greenback at open on Wednesday. It closed at 82.67 on Tuesday.

Source: Bloomberg

• Total cost of acquisition stands at Rs 11,603 crore, which is subject to adjustments and changes in the business position over the last month.

• About Rs 12,325 crore of value was disclosed in an earlier filing, which has now been cut.

• Axis Bank acquired Citibank’s India Consumer Business from Citibank N.A. and e NBFC Consumer Business from Citicorp Finance, India.

Source: Exchange filing

• U.S. Dollar Index at 104.9

• U.S. 10-year bond yield at 3.94%

• Brent crude up 1.75% to $83.89 per barrel

• Nymex crude at $76.65 per barrel

• SGX Nifty down 0.21% at 17,363 as of 7:20 a.m.

• Bitcoin up 0.43% to $23,247.50

• Uflex Ltd.: Promoter group Flex International created a pledge of 2.90 lakh shares on Feb. 27.

• Aurobindo Pharma Ltd.: Promoter group RPR Sons Advisors and P Suneela Rani jointly created a pledge of 86 lakh shares and Axis Clinicals, Trident Chemphar and RPR Sons jointly revoked a pledge of 37.50 lakh shares between Feb 23-24.

• Jindal Steel & Power Ltd.: Promoter group Siddeshwari Tradex released a pledge of 14.75 lakh shares on Feb 24.

• Biocon Ltd.: Integrated Core Strategies (Asia) bought 80.62 lakh shares (0.67%) at Rs 229.26 apiece.

• Suryoday Small Finance Bank Ltd.: Geeta Chetan Shah bought 10.5 lakh shares (1%) at Rs 97.38 apiece.

• Divgi TorqTransfer Systems: The auto ancillary player will open its IPO on March 1, which will continue till March 3. The price band for the issue has been fixed at Rs 560-590 per share. The issue comprises of fresh issue of shares worth Rs 180 crore and an offer for sale of 39.34 lakh shares. The company is looking to raise around Rs 412 crore through its maiden share sale to fund its capex plans. A day before the IPO opened, Divgi raised Rs 185 crore from 12 anchor investors.

• One97 Communications Ltd.: The parent company of Paytm told the exchanges that it is not part of any negotiations where major stakeholders are planning to offload shares of the company in the open market.

• Vedanta Ltd.: In a filing to Singapore Stock Exchange, Vedanta Resources, which owns a majority stake in the company, assured that it is capable of meeting its upcoming maturities in the quarter ending June 2023. The company said it is in an advanced stage to secure a fresh loan of $1 billion, as well as close to finalise $750 million bilateral facilities with various relationship banks.

• Adani Enterprises Ltd.: The company's subsidiary Mundra Aluminium has been granted the Kutrumali bauxite block located in Kalahandi and Rayagada districts of Odisha. The mineral block has 128 million tonnes of bauxite reserves.

• Adani Ports and Special Economic Zone Ltd.: S&P Global affirmed its 'BBB-' rating for Adani International Container Terminal Pte. Ltd., a 50:50 joint venture of the company with Terminal Investment Ltd. The outlook is stable.

• Reliance Industries Ltd.: The company incorporated a wholly owned subsidiary named Reliance SOU to develop properties for commercial use.

• Aditya Birla Capital Ltd.: The company collaborated with the National Payments Corporation of India to develop and promote digital payment methods through subsidiaries for its customers.

• Zydus Lifesciences Ltd.: The company received final approval from US FDA for 2.5 mg and 5 mg variations of Apixaban tablets. The company also received US FDA approval for Olmesartan Medoxomil and Hydrochlorothiazide tablets.

• Tech Mahindra Ltd.: The company said in a statement that it has expanded its partnership with Microsoft as an Azure Operator Nexus Ready Systems Integrator. The collaboration will allow telecom operators and enterprises to build, host and operate LTE and 5G networks by using virtualised or containerised network functions leveraging Azure Operator Nexus.

• Bank of India: The bank will hike its lending rates for 1-month, 3-month, 6-month, 1-year and 3-year tenors by 10 basis points from March 1.

• HDFC Ltd.: The company’s subsidiary HDFC Investments will sell 34,146 shares (2.05% shareholding) of Softcell Technologies Global Pvt. Ltd. for Rs 2.05 crore to an undisclosed buyer, bringing down its shareholding to 9.95%. The housing finance NBFC increased its retail prime lending rate on housing loans by 25 basis points, effective March 1, 2023.

• Tata Power Ltd.: The board of subsidiary Tata Power Renewable Energy approved the allotment of 20 crore compulsorily convertible preference shares worth Rs 2,000 crore on a preferential basis to GreenForest New Energies Bidco.

• Max Ventures and Industries Ltd.: The NCLT has approved the resolution plan submitted by the company’s real estate arm Max Estates for development of a commercial plot measuring 34,697 square meters in Noida under the project name Delhi One. Max Estates also received the completion certificate for Max Square, a Grade A+ greenfield development in Sector 129, Noida with net leasable area of 6.7 lakh square feet.

• NTPC Ltd.: The company completed transfer of 15 renewable energy assets to subsidiary NTPC Green Energy. The power company also transferred 100% shareholding in subsidiary NTPC Renewable Energy to NTPC Green Energy.

• Bharat Electronics Ltd.: The defence PSU signed a frame supply agreement with Nagpur-based Thales Reliance Defence Systems for the manufacture and supply of transmit/receive modules, radar line replaceable units and micro modules.

• State Bank of India: The bank concluded a $1-billion syndicated social loan, with $500 million of primary issue and another $500 million in greenshoe option. This is the first social loan raised by the bank.

• Hathway Cable and Datacom Ltd.: Rajan Gupta resigned as the managing director of the company, effective March 9, 2023.

• Power Grid Corp.: The company has been declared a successful bidder to establish an inter-state transmission system for Khavda Pooling Station-3 in Khavda RE Park on build, own, operate and transfer basis.

• Vodafone Idea Ltd.: The board of the company allotted 4,000 optionally convertible debentures of face value of Rs 10 lakh each to ATC Telecom Infrastructure. This completes the entire transaction of issuance and allotment of 16,000 OCDs to ATC Telecom.

• Samvardhana Motherson International Ltd.: The Company completed the acquisition of frame manufacturing and assembly assets from Daimler India Commercial Vehicles.

• Seamec Ltd.: The company entered a charter party with HAL Offshore for charter hire of its vessel ‘Seamec Paladin’ for an ONGC contract for five years at a rate of $35,000 per day.

Asian markets were mixed after the U.S. equities closed lower, rounding out a turbulent month that saw global stocks drop about 3%.

The S&P 500 and Nasdaq 100 both dropped in February while an index of dollar strength had its first monthly gain since September as investors recalibrated for a higher likely peak in US interest rates. The dollar held little changed in early Asian trading.

Meanwhile, the yield on 10-year Treasuries advanced to 3.94%. Crude prices were trading around $83-mark, while Bitcoin was trading below 23,500-level.

At 7:20 a.m., the Singapore-traded SGX Nifty, an early indicator of India's benchmark Nifty 50, was down 0.21% at 17,363.

The domestic benchmark indices continued their downward trend to close in the red for the eighth day in a row after erasing marginal gains from opening trade.

Rupee snapped its two-day decline against the U.S. dollar to close higher over hopes of RBI intervention and a pause in the greenback’s rally.

Overseas investors in Indian equities remained net sellers for the fifth day in a row on Tuesday. Foreign portfolio investors offloaded equities worth Rs 4,559.21 crore, while the domestic institutional investors were net buyers for the fifth day in a row and mopped up stocks worth Rs 4,609.87 crore.