Stock Market Today: Sensex, Nifty Falls The Most In Two Weeks As HDFC Twins, Axis Bank, ICICI Bank Drag
The S&P BSE Sensex closed down 671 points or 1.12% at 59,135.13 while the NSE Nifty 50 was 177 points or 1% lower at 17,412.90.
KEY HIGHLIGHTS
FPIs Stay Net Sellers For The Second Straight Day
Overseas investors in Indian equities remained net sellers for the second day in a row on Friday.
Foreign portfolio investors offloaded equities worth Rs 2,061.47 crore, according to data from the National Stock Exchange.
Domestic institutional investors were net buyers for the second day in a row and mopped up stocks worth Rs 1,350.13 crore.
Foreign institutions have remained net sellers of Rs 20,153 crore of Indian stocks so far in 2023.
Yield On The 10-Year Bond Flat
The yield on the 10-year bond closed flat at 7.42% on Friday. It closed at 7.43% on Thursday.
Source: Bloomberg
Rupee Weakens Against The U.S. Dollar
The local currency weakened by 7 paise to close at 82.05 against the greenback. It closed at 81.98 on Thursday.
Source: Bloomberg
Sensex, Nifty Decline For Second Consecutive Day Following Weak Global Cues
Indian equity benchmarks extended declines following weak global cues and tumbled in trade on Friday. The indices fell the for the second straight day closing at the lowest level in over two weeks since Feb. 22, 2023.
On a weekly basis, the headline indices declined following a week of gains.
Asian markets tumbled and treasuries rallied as worries about the health of the U.S. banking system caused a sharp selloff in global markets.
Europe’s Stoxx 600 equity gauge dropped more than 1.5%, with an index of bank stocks sliding the most since June. Credit Suisse Group AG shares tumbled as much as 6.1% to a record low, and HSBC Holdings was down more than 5%.
Futures on the S&P 500 lost about half a percent after the underlying benchmark hit a seven-week low on Thursday as banking stocks plunged.
Silicon Valley-based lender SVB Financial Group was at the center of the storm on Thursday, losing 60% after taking steps to shore up its capital position, stoking concern that soaring interest rates are eroding balance sheets.
The S&P BSE Sensex closed down 671 points or 1.12% at 59,135.13 while the NSE Nifty 50 was 177 points or 1% lower at 17,412.90.
HDFC Bank Ltd., HDFC Ltd., Axis Bank Ltd., ICICI Bank Ltd., State Bank of India, Larsen and Toubro Ltd., Reliance Industries Ltd., Infosys Ltd., Kotak Mahindra Bank Ltd., and TCS Ltd were dragging the index.
Adani Group company shares ended mixed in trade as Adani Green Energy Ltd., Adani Transmission Ltd., Adani Power Ltd. and Adani Total Gas Ltd. advanced in trade, while the other stocks retreated.
Adani Ports and SEZ Ltd. was unchanged in trade as it rose by 0.08%.
The headline indices declined this week following a week of gains. Nifty logged weekly loss of 1.03%, whereas Sensex declined 1.13% in trade this week.
Indices ended higher in trade last week, Sensex advanced 0.58%, and Nifty was up 0.74%.
All the sectors declined in trade this week with Nifty Realty, Nifty PSU Bank and Nifty Bank being the top losers.
Nifty Midcap 100 was flat as it rose 0.1% this week.
The broader market indices were trading lower; S&P BSE MidCap was down 0.69% whereas S&P BSE SmallCap was lower by 0.59%.
Fourteen out of 19 sectors compiled by BSE declined while five advanced in trade.
The market breadth was skewed in the favour of the bears. About 1,406 stocks rose, 2,099 declined, and 106 remained unchanged on the BSE.
HUL Appoints Rohit Jawa As MD & CEO Succeeding Sanjiv Mehta Effective June 27
Rohit Jawa, currently the chief of transformation at Unilever, will serve as whole-time director from April 1 to June 26, 2023 at HUL.
Company also appointed Ranjay Gulati is as an Independent Director for five years effective from April 1, 2023.
Source: Exchange filing
SIP Contribution At Rs 13,686.28-Crore In February
SIP contribution was at Rs 13,686.28 crore in February vs Rs 13,856.18 crore in January.
Number of SIP accounts reach 6.28 crore compared to 6.21 crore in January.
Source: AMFI call
PSU Banking Stocks Fall
Shares of PSU banking companies declined in trade on Friday and the headline index NSE Nifty 50 was lower by 1.1% in trade.
The NSE PSU Bank Index was down 2.70% in trade. All the 12 constituents compiled by the gauge declined.
Canara Bank, Bank of India, Bank of Baroda, Union Bank of India, Punjab and Sind Bank, Indian Bank, Punjab National Bank, Indian Overseas Bank, State Bank of India, Central Bank of India, Bank of Maharashtra, and UCO Bank advanced in trade.
Source: NSE
Auto Domestic Wholesale Sales In Feb (YoY):
Total auto sales rose 9.8% to 14.7 lakh units
Passenger vehicle sales grew 11% to 2.92 lakh units
Two-wheeler sales rose 7.6% to 11.3 lakh units
Three-wheeler sales jumped 86% to 50,382 units
Source: SIAM
Vedanta Declines As Moody's Downgrades Corporate Family Rating
Shares of Vedanta Ltd. declined 2.94% to Rs 277.1 apiece in trade on Friday. The headline index NSE Nifty 50 was trading lower by 1.11%.
Moody’s Investors Service has downgraded Vedanta Resources’ corporate family rating to Caa1 from B3, according to a statement.
It also downgraded the rating to Caa2 from Caa1 on the senior unsecured bonds issued both the firm and wholly owned subsidiary Vedanta Resources Finance II Plc, which are guaranteed by Vedanta
The stock fell as much as 4.54% intraday, rising the most in seven trading sessions since Feb. 28, 2023. Total traded volume stood at 1.2 times its 30-day average. The relative strength index was at 35.7.
Out of the 16 analysts tracking the company, 10 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, stand at an upside of 32.7% over the next 12 months.
Source: Bloomberg, Moody's statement
KNR Construction Receives Rs 690.30-Crore Worth Of Order
KNR Constructions receives Rs 690.30-crore order from Karnataka government for the construction of access controlled four lanes.
The construction period for the project is 24 months, with an operational timeline of 15 years.
The mode of construction will be hybrid annuity.
Source: Exchange Filing
European Markets Trade Lower
Industry Posts Total Net Inflow Of Rs 9,575.17-Crore Versus Inflow Of Rs 11,373.21-Crore In January
Equity mutual funds see inflow of Rs 15,685.57 crore in February versus an inflow of Rs 12,546.5 crore in January.
Debt mutual funds see outflow of Rs 13,815.23 crore in February versus an outflow of Rs 10,316.15 crore in January.
Hybrid mutual funds see inflow of Rs 460.32 crore versus an inflow of Rs 4,491.97 crore in January.
Source: AMFI
Midcap I.T. Services Shares Decline
Shares of midcap information technology services companies declined in trade on Friday and the headline index NSE Nifty 50 was lower by 1.01% in trade.
Intellect Design Ltd., Sonata Software Ltd., Zensar Technologies Ltd., Persistent Systems Ltd., Tata Elxi Ltd., Happiest Minds Technologies Ltd. and Cyient Ltd. declined in trade.
Source: Bloomberg
Sensex, Nifty Drop As Banking, Auto Stocks Decline
Indian equity benchmarks extended declines following weak global cues and tumbled through midday on Friday. The indices had snapped three-day gains, closing at the lowest level in over two weeks on Thursday.
Asian markets slumped and treasuries rallied on Friday amid concern that pockets of trouble in the U.S. banking sector could portend broader dangers as higher interest rates start to bite.
Silicon Valley-based lender SVB Financial Group was at the center of the storm on Thursday, losing 60% after taking steps to shore up its capital position, stoking concern that soaring interest rates are eroding balance sheets.
As of 12:38 p.m., the S&P BSE Sensex was down 778 points or 1.30% at 59,028.12 while the NSE Nifty 50 was 206 points or 1.17% lower at 17,383.40.
HDFC Bank Ltd., Reliance Industries Ltd., ICICI Bank Ltd., HDFC Ltd., Infosys Ltd., Axis Bank Ltd., Larsen and Toubro Ltd., State Bank of India, Kotak Mahindra Bank Ltd., and TCS Ltd were dragging the index.
Adani Group company shares were mixed in trade as Adani Green Energy Ltd., Adani Transmission Ltd., and Adani Total Gas Ltd. advanced in trade, while the other stocks retreated.
The broader market indices were trading lower; S&P BSE MidCap was down 0.94% whereas S&P BSE SmallCap was lower by 0.56%.
Sixteen out of 20 sectors compiled by BSE declined while four advanced in trade.
The market breadth was skewed in the favour of the bears. About 1,220 stocks rose, 2,106 declined, and 137 remained unchanged on the BSE.
Midcap Pharma Stocks
Shares of midcap pharma companies declined in trade on Friday and the headline index NSE Nifty 50 was lower by 0.98% in trade.
Granules India Ltd., Gland Pharma Ltd., Shilpa Medicare Ltd., td., Laurus Labs Ltd., Natco Pharma Ltd., Alkem Laboratories Ltd., Torrent Pharma Ltd., declined in trade.
Source: NSE
Ajanta Pharma Board Approves Buyback Of 2.59% Equity For Rs 315-Crore
Company will buyback 22,10,500 shares or 2.59% equity of face value Rs 2 each at Rs 1,425 apiece.
The buyback size does not exceed the statutory limit of 10% of the total paid-up equity capital.
The buyback operations will be conducted via the Tender Offer route.
Source: Exchange filing
Dredging Corporation Gains After Winning Rs 64-Crore Project
Shares of Dredging Corporation Of India Ltd. advanced 2.55% to Rs 350.1 apiece in trade on Friday. The headline index NSE Nifty 50 was trading lower by 0.97%.
The company received maintenance dredging contract of the naval channel frokm Southern Naval Command in Kochi worth Rs 64 crore.
The stock rose as much as 5.36% intraday, rising the most in ten weeks since Dec. 30, 2022. Total traded volume stood at 12 times its 30-day average. The relative strength index was at 55.1.
Source: Bloomberg, Exchange filing
Sugar Companies Advance
Shares of sugar companies advanced in trade on Friday and the headline index NSE Nifty 50 was lower by 0.99% in trade.
Shree Renuka Sugars Ltd., EID Parry India Ltd., Balrampur Chini Mills Ltd., Triveni Engineering and Industries Ltd., Dalmia Bharat Sugar and Industries Ltd., Bajaj Hindusthan Sugar Ltd., Ugar Sugar Ltd. and Avadh Sugar Ltd. advanced in trade.
Source: Bloomberg
Tata Motors Rises As It Plans To Offload Stake In Tata Technologies Via IPO
Shares of Tata Motors Ltd. advanced 0.91% to Rs 436.15 apiece in trade on Friday. The headline index NSE Nifty 50 was trading lower by 0.93%.
Tata Technologies has filed draft papers with SEBI for an IPO and Tata Motors will be offloading 20% stake in it. IPO Alpha TC Holdings and Tata Capital will also offload 2.40% and 1.20% stake, respectively.
In total, the offer for sale will see the issue of 95,708,984 equity shares by the stakeholders.
The stock rose as much as 1.30% intraday, rising the most in two trading sessions since March 6, 2023. Total traded volume stood at 12.4 times its 30-day average. The relative strength index was at 53.2.
Out of the 34 analysts tracking the company, 27 maintain a 'buy' rating, four 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 17.8% over the next 12 months.
Source: Bloomberg, Exchange filing
PNC Infratech Rises The Most In Two Trading Sessions
Shares of PNC Infratech Ltd. advanced 3.61% to Rs 296.8 apiece in trade on Friday. The headline index NSE Nifty 50 was trading lower by 1.11%.
The company has been selected as the lowest bidder for two hybrid annuity highway projects for a cumulative bid project cost of Rs 2,004.43 crore.
The stock rose as much as 4.24% intraday, rising the most in two trading sessions since March 6, 2023. Total traded volume stood at 12.4 times its 30-day average. The relative strength index was at 46.9.
Nineteen analysts tracking the company maintain a 'buy' rating.
The return potential as calculated by the consensus of analyst estimates, stand at an upside of 40.2% over the next 12 months.
Source: Bloomberg, Exchange filing
NBCC Rises After Rs 229.81-Crore Project Win
Shares of NBCC India Ltd. advanced 1.48% to Rs 37.6 apiece in trade on Friday. The headline index NSE Nifty 50 was trading lower by 1.20%.
The company has received order to construct new campus for Indian Institute of Foreign Trade at Kakinada for Rs 229.81 crore.
The stock rose as much as 2.02% intraday. Total traded volume stood at 3.8 times its 30-day average. The relative strength index was at 65.8.
Out of the four analysts tracking the company, one maintains a 'buy' rating, two recommend a 'hold' and one suggests to 'sell' the stock.
The return potential as calculated by the consensus of analyst estimates, stand at a downside of 8.5% over the next 12 months.
Source: Bloomberg, Exchange filing
Reliance Industries Shares Drag Benchmarks
Shares of Reliance Industries Ltd. declined 1.34% to Rs 2,327.65 apiece in trade on Friday. The headline index NSE Nifty 50 was trading lower by 1.27%.
Reliance Consumer Products, the consumer goods arm of Reliance Retail Ventures, announced in a filing that it will relaunch the iconic beverage brand Campa with a fresh look. Also, Reliance Polyester, formerly known as Reliance Petroleum Retail, completed the acquisition of polyester business of Shubhalakshmi Polyesters and Shubhlaxmi Polytex.
The stock declined as much as 1.63% intraday. It was dragging the benchmark index NSE Nifty 50 by 25 points. The relative strength index was at 42.1.
Out of the 37 analysts tracking the company, 32 maintain a 'buy' rating, two 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 22.7% over the next 12 months.
Source: Bloomberg, Exchange filing
Equitas SFB Declines After Listing Of New Securities
Shares of Equitas Small Finance Bank Ltd. declined 10.92% to Rs 65.25 apiece in trade on Friday.
The bank on Thursday announced that their new securities, comprising of 78,95,35,166 equity shares of Rs. 10/- each, have been listed and are now permitted for trading on the Exchange, effective from Friday, March 10, 2023. These shares were issued after Equitas Holdings Ltd. and Equitas Small Finance Bank Ltd. signed the Scheme of Amalgamation.
The stock declined as much as 13.24% intraday, falling the most in over nine months since May 20, 2022. Total traded volume stood at 7.5 times its 30-day average. The relative strength index was at 49.5.
Sixteen analysts tracking the company maintain a 'buy' rating on the stock.
The return potential as calculated by the consensus of analyst estimates, stand at an upside of 15.9% over the next 12 months.
Source: Bloomberg, Exchange filing
Top Contributors To The Nifty 50 Index Change
HDFC Bank Ltd., HDFC Ltd., ICICI Bank Ltd., Reliance Industries Ltd., Infosys Ltd., Larsen and Toubro Ltd., TCS Ltd., Adani Enterprises Ltd., Axis Bank Ltd., and State Bank of India were dragging the index.
Source: Bloomberg
Broader Markets Decline In Trade
The broader market indices were trading lower; S&P BSE MidCap was down 1.05% whereas S&P BSE SmallCap was lower by 0.69%.
Seventeen out of 19 sectors compiled by BSE declined while S&P BSE Power and S&P BSE Utilities advanced in trade.
The market breadth was skewed in the favour of the bears. About 726 stocks rose, 1,762 declined, and 110 remained unchanged on the BSE.
Source: BSE
Adani Group Company Stocks Decline
Shares of most Adani Group company stocks declined in trade. Adani Enterprises Ltd., Adani Wilmar Ltd., Adani Power Ltd., Adani Ports and SEZ Ltd., ACC Ltd., Ambuja Cements Ltd. and NDTV Ltd., declined in trade.
While Adani Green Energy Ltd., Adani Transmission Ltd., and Adani Total Gas Ltd., advanced in trade
Sensex, Nifty Fall Over 1% At Open
Indian equity benchmarks extended declines and tumbled at the opening bell on Friday after the indices snapped three-day gains, closing at the lowest level in over two weeks on Thursday.
Asian markets slumped in trade, following a sharp decline on the Wall Street amid concern that pockets of trouble in the U.S. banking sector could portend broader dangers.
Treasuries extended their rally while the yen weakened as the Bank of Japan kept policy unchanged.
Silicon Valley-based lender SVB Financial Group was at the center of the storm on Thursday, losing 60% after taking steps to shore up its capital position, stoking concern that soaring interest rates are eroding balance sheets.
At pre-open, the S&P BSE Sensex opened down 547 points or 0.91% at 59,259.83 while the NSE Nifty 50 was 146 points or 0.83% lower at 17,443.80.
Sensex, Nifty Tumble At Pre-Open
The S&P BSE Sensex opened down 547 points or 0.91% at 59,259.83 while the NSE Nifty 50 was 146 points or 0.83% lower at 17,443.80.
Source: Bloomberg
Yield On The 10-Year Bond Declines
The yield on the 10-year bond declines by 4 bps to 7.39% at open on Friday. It closed at 7.43% on Thursday.
Source: Bloomberg
Rupee Weakens Against The U.S. Dollar
The local currency weakened by 16 paise to open at 82.14 against the greenback on Friday. It closed at 81.98 on Thursday.
Source: Bloomberg
Rate Sensitives May Remain Under Pressure: Trade Setup:
Tata Technologies Files For Draft Papers For An IPO
Tata Motors will offload 20% stake in subsidiary Tata Technologies.
Alpha TC Holdings and Tata Capital to offload 2.40% and 1.20% stake, respectively.
In total, the offer for sale will see the issue of 95,708,984 equity shares by the stakeholders.
Further IPO details, including amount to be raised, price band, etc., weren't disclosed.
As on Dec. 31, 2022, Tata Technologies had a total revenue of Rs 3,052 crore.
Source: Tata Technologies DRHP
Global Cues
U.S. Dollar Index at 105.1
U.S. 10-year bond yield at 3.87%
Brent crude up 0.12% to $81.69 per barrel
Nymex crude at $75.75 per barrel
SGX Nifty down 0.99% at 17,443 as of 8:05 a.m.
Bitcoin down 0.74% to $20,075.94
Pledged Share Details
MTAR Technologies: Promoter Kavitha Reddy Gangapatnam invoked a pledge of 12,614 shares between March 6-8.
Trading Tweaks
Ex-Date Bonus issue: Rhetan TMT
Record Date Bonus issue: Rhetan TMT
Ex-Date Stock split: Rhetan TMT
Record Date Stock split: Rhetan TMT
Move Out of Short-Term ASM Framework: Olectra Greentech, Uflex
Bulk Deals
Gokaldas Exports: Aditya Birla Sun Life Mutual Fund bought 7.69 lakh shares (1.27%R) at Rs 390 apiece, Ashoka India Equity Investment Trust bought 3.6 lakh shares (0.59%) at Rs 390.51 apiece, Goldman Sachs Collective Trust bought 7.21 lakh shares (1.19%) at 391.68 apiece, Clear Wealth Consultancy Services sold 60 lakh shares (9.9%) at Rs 390.91 apiece.
Home First Finance Company: Fidelity Funds bought 4.94 lakh shares (0.56%) at Rs 685 apiece, The Nomura Trust and Banking Company bought 7 lakh shares (0.8%) at Rs 685 apiece, Bessemer India Capital Holdings II sold 68.11 lakh shares (7.75%) at Rs 686.07 apiece.
Stocks To Watch: Adani, Reliance, Bank of Baroda, Jubilant FoodWorks In Focus
Reliance Industries: Reliance Consumer Products, the consumer goods arm of Reliance Retail Ventures, will relaunch the iconic beverage brand Campa with a fresh look. Also, Reliance Polyester, formerly known as Reliance Petroleum Retail, completed the acquisition of polyester business of Shubhalakshmi Polyesters and Shubhlaxmi Polytex.
Bank of Baroda: The board of the bank approved divestment of 49% stake in its wholly owned cards subsidiary BOB Financial Solutions.
Jubilant FoodWorks: Sameer Batra joined the company as president and chief business officer–Domino’s India with effect from March 9. He will be responsible for steering Domino's Pizza India to its next phase of growth.
Ujjivan Small Finance Bank: The bank has received observation letters from BSE and NSE for the merger of Ujjivan Financial Services, enabling it to proceed with filing the scheme of amalgamation with the NCLT.
REC: The board has approved raising Rs 1.2 lakh crore from various debt instruments for the financial year 2023-24.
Wipro: The company has been selected by Menzies Aviation, the world’s largest aviation services company, to transform its air cargo management services.
Welspun Corp.: Welspun DI Pipes, a wholly owned subsidiary of the company, received the ‘Kitemark’ certificate from British Standards Institution, U.K. for size range of 100 to 1,000 DN against EN 545 and ISO 2531 standards. These are the international standards for ductile iron pipes used for transportation of potable water.
NBCC (India): The company has received order to construct new campus for Indian Institute of Foreign Trade at Kakinada for Rs 229.81 crore.
PNC Infratech: The company has been selected as the lowest bidder for two hybrid annuity highway projects for a cumulative bid project cost of Rs 2,004.43 crore.
Zydus Lifesciences: The company received final approval form the U.S. FDA for Erythromycin tablets, which are used to prevent and treat infections in many different parts of the body.
Infosys: The company collaborated with mobility specialist ZF to revamp its multi-echelon supply chain with SAP Integrated Business Planning and Infosys Cobalt.
IRB Infrastructure Developers: The company reported Rs 35.175 crore as toll collection revenue for February, up 27% year-on-year.
Glenmark Life Sciences: The board will meet on March 16 to consider and declare interim dividend for the current fiscal.
PSP Projects: The company has received work orders worth Rs 123.38 crore in institutional, industrial and residential categories based in Ahmedabad, Gujarat.
SGX Nifty, Weak Global Cues Signal Lower Open
Asian markets traded lower following the sharpest decline in U.S. equities in two weeks after a rout in bank shares picked up steam.
The S&P 500 on Thursday fell to its lowest level since Jan. 19, with financial companies in the index also plunging. Banks came under fire after the collapse of Silvergate Capital Corp. amid growing scrutiny in Washington.
Silicon Valley-based lender SVB Financial Group lost 60% after taking steps to shore up its capital position, stoking concern that soaring interest rates are eroding balance sheets.
The yield on the 10-year Treasury note advanced to 3.87%. Crude oil prices were trading around the $81 mark, while Bitcoin was trading around the $20,000 level.
At 8:05 a.m., the Singapore-traded SGX Nifty, an early indicator of India's benchmark Nifty 50, was down 0.99% at 17,443.
Both Indian benchmark indices—Sensex and Nifty—declined almost 1%, registering their worst fall in more than two weeks amid fears of faster rate hikes.
The Indian rupee strengthened against the U.S. dollar ahead of the release of U.S. jobs data and its impact on the Federal Reserve's rate hike decision.
Foreign investors in Indian equities turned net sellers on Thursday, ending a four-day buying streak. Foreign portfolio investors offloaded equities worth Rs 561.8 crore, while domestic institutional investors turned net buyers after a day and bought stocks worth Rs 42.4 crore. They snapped a nine-day buying streak and turned sellers on March 8.