Stock Market Today: Sensex, Nifty Drop For Fourth Session As I.T., PSU Banks Drag

Overseas investors in Indian equities remained net sellers for the fourth day in a row on Tuesday.

Foreign portfolio investors offloaded equities worth Rs 3,086.96 crore, according to data from the National Stock Exchange.

Domestic institutional investors were net buyers for the fourth straight day and mopped up stocks worth Rs 2,121.9 crore.

Foreign institutions have remained net sellers of Rs 19,362 crore worth of Indian stocks so far in 2023, according to the National Securities Depository Ltd.

The yield on the 10-year bond closed flat at 7.37% on Tuesday.

Source: Bloomberg

The local currency weakened by 36 paise to close at 82.49 against the greenback. It closed at 82.13 on Monday.

Source: Bloomberg

Indian equity benchmarks declined through the second half of the trading session after swinging amid volatility in the early trade on Tuesday. The indices fell for the fourth straight session in trade on Tuesday.

The headline indices ended at their lowest levels since October 2022. NSE Nifty 50 declined the most since Oct. 13, when it closed at 57,235.33 points. Whereas, S&P BSE Sensex closed lowest since Oct. 13, when it was at 17,014.35 points.

Futures of the S&P 500 and Nasdaq 100 rose about 0.5% as regional banking stocks rallied in premarket trading. Europe’s Stoxx 600 equity benchmark edged higher after falling the most since December yesterday. A gauge of European bank stocks was steady, though Credit Suisse Group AG slipped.

The fallout from SVB’s collapse prompted President Joe Biden to promise stronger regulation of U.S. lenders, while reassuring depositors that their money is safe.

The S&P BSE Sensex closed down 338 points or 0.58% at 57,900.19 while the NSE Nifty 50 was 111 points or 0.65% lower at 17,043.30.

TCS Ltd., Infosys Ltd., Kotak Mahindra Bank Ltd., Adani Enterprises Ltd., and ITC Ltd., were negatively contributing to the index NSE Nifty 50.

Whereas, BPC Ltd., Titan Co., Larsen and Toubro Ltd., Bharti Airtel Ltd., and ICICI Bank Ltd. were adding positively to the index.

All Adani Group company stocks ended lower in trade, with Adani Enterprises Ltd. declining 7.27%.

The broader market indices were trading lower; S&P BSE MidCap was down 0.46% whereas S&P BSE SmallCap was lower by 0.84%.

All 19 sectors compiled by BSE declined while S&P BSE Capital Goods advanced in trade.

The market breadth was skewed in the favour of sellers. About 1,188 stocks rose, 2,336 declined, and 106 remained unchanged on the BSE.

Shares of Bajaj Finance Ltd. declined 1.79% to Rs 5,729.4 apiece in trade on Tuesday. The headline index NSE Nifty 50 was trading lower by 0.67%.

Scrip fell for the fifth consecutive session in trade by 6.05%. The stock declined as much as 2.01% intraday, falling the most since March 10. The relative strength index was at 29.6.

Out of the 33 analysts tracking the company, 23 maintain a 'buy' rating, three recommend a 'hold' and seven suggest to 'sell' the stock.

The return potential as calculated by the consensus of analyst estimates, stand at an upside of 22.6% over the next 12 months.

Source: Bloomberg

As of 2:53 p.m., the benchmark indices NSE Nifty 50 declined 3.20%, whereas Sensex fell 3.25%, since the SVB collapse.

Source: Bloomberg

Shares of Reliance Industries Ltd. declined 0.45% to Rs 2,274.75 apiece in trade on Tuesday. The headline index NSE Nifty 50 was trading lower by 0.72%.

The stock declined as much as 0.68% intraday, falling the most in 52-weeks to Rs 2,269.05 apiece. Scrip hit 52-week low on Monday as well, as it declined by 2% to Rs 2,275 apiece. The relative strength index was at 36.4.

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 25.6% over the next 12 months.

Source: Bloomberg

• Earlier the Managing Director, Siddhartha Mohanty takes charge as the Chairperson of Life Insurance Corporation of India.

• Formerly the Executive Director, Central Office, Mumbai, Tablesh Pandey will be taking over as the Managing Director of the company.

• Also, B.C. Patnaik will assume the charge of the Central Office, Mumbai on ot after April 1, 2023 to the date of his his superannuation.

• He has been working at LIC since 1985, he has previously served as COO and CEO of LIC Housing Finance Ltd. and held various other positions in the company, prior to MD.

Source: Exchange filing

Shares of PSU banking companies declined in trade on Tuesday and the headline index NSE Nifty 50 was lower by 0.42% in trade.

The NSE PSU Bank Index was down 1.62% in trade. Out of the 12 constituents compiled eleven declined while Punjab and National Bank advanced.

Indian Bank, Bank of India, Union Bank of India, Punjab & Sind Bank, Indian Overseas Bank, Central Bank of India, Bank of Maharashtra, UCO Bank, Canara Bank, State Bank of India and Bank of Baroda declined in trade.

Source: NSE

• WPI eased from 4.73% in January.

• Inflation in manufactured products fell to 1.94% in February, compared with 2.99% in January.

• The month over month change in WPI for the month of February stood at 0.20% as compared to January.

• WPI eased to the lowest in over 25 months since January 2021, when it was at 2.51%.

Source: PIB

Indian equity benchmarks declined through midday after opening mixed amid volatility at open on Tuesday.

Asian equities extended declines led by weakness in financial stocks as the collapse of Silicon Valley Bank continued to reverberate across global markets.

The S&P 500 closed on Monday down 0.2%, after bouncing between gains and losses amid a rout in bank shares while the policy-sensitive Nasdaq climbed 0.8%, the most in over a week. The fallout from SVB’s collapse prompted President Joe Biden to promise stronger regulation of US lenders, while reassuring depositors that their money is safe.

As of 12:19 p.m., the S&P BSE Sensex opened down 278 points or 0.48% at 57,959.83 while the NSE Nifty 50 was 90 points or 0.52% lower at 17,064.65.

Adani Enterprises Ltd., State Bank of India, Kotak Mahindra Bank Ltd., Adani Ports and SEZ Ltd., and Bajaj Finance Ltd., were negatively contributing to the index NSE Nifty 50.

Whereas, Reliance Industries Ltd., Larsen and Toubro Ltd., HDFC Bank Ltd., Bharti Airtel Ltd., and Power Grid Corp of India Ltd. were adding positively to the index.

Shares of Adani Group companies declined in trade except for Adani Green Energy Ltd. which rose 2.23%.

The broader market indices were trading lower; S&P BSE MidCap was down 0.60% whereas S&P BSE SmallCap was lower by 0.86%.

Eighteen out of 19 sectors compiled by BSE declined while S&P BSE Metal advanced in trade.

The market breadth was skewed in the favour of sellers. About 973 stocks rose, 2,354 declined, and 123 remained unchanged on the BSE.

Shares of Tube Investments of India Ltd. advanced 1.30% to Rs 2,740.05 apiece in trade on Tuesday. The headline index NSE Nifty 50 was trading lower by 0.48%.

The company signed a deal with N Govindarajan to incorporate a subsidiary to foray into the contract development and manufacturing operations business. The company will invest Rs 285 crore, and Govindarajan will invest Rs 15 crore in the form of equity and compulsorily convertible preference shares.

The stock gained as much as 1.63% intraday, rising the most since March 8, 2023. Total traded volume stood at 7.6 times its 30-day average. The relative strength index was at 41.2.

Out of the fice analysts tracking the company, three maintain a 'buy' rating, one recommends a 'hold' and one suggests to 'sell' the stock.

The return potential as calculated by the consensus of analyst estimates, stand at an upside of 3.9% over the next 12 months.

Source: Bloomberg, Exchange filing

Shares of information technology services companies declined in trade on Tuesday and the headline index NSE Nifty 50 was lower by 0.58% in trade.

The fallout from SVB’s collapse prompted President Joe Biden to promise stronger regulation of U.S. lenders, while reassuring depositors that their money is safe.

The NSE IT Bank Index was down 1.52% in trade. All the 10 constituents compiled by the gauge declined.

Coforge Ltd., Mphasis Ltd., Persistent Systems Ltd., Tech Mahindra Ltd., LTIMindtree Ltd., Wipro Ltd., Infosys Ltd., and TCS Ltd. declined in trade.

Source: NSE

• Shares of Divgi Torqtransfer listed at Rs 600 per share on BSE, a premium of 1.69% to its IPO price of Rs 590.

• The shares listed at Rs 620 on NSE, a premium of 5.08% to IPO price.

Source: BSE, NSE

Shares of Sona BLW Precision Forgings Ltd. advanced as Blackstone has successfully sold its 20.5% stake in the company.

This stake sale happened via bulk deals in the open market. Marquee investors like the Government of Singapore, Fidelity, FMR, ICICI Prudential Life Insurance, and HDFC MF bought shares from Blackstone in the bulk deal.

Aureus Investment and Blackstone held 33% and 20.5%, respectively, of Sona Comstar before this transaction.

Sona BLW Precision Forgings Ltd. along with Comstar Automotive Technologies Pvt. Ltd. combined is Sona Comstar. Sona Comstar is a traction motor and motor-controller supplier to electric two-wheelers. Sona Comstar was formed by the merger of Sona BLW and Comstar Automotive in 2019.

In a statement, Amit Dixit, Head of Blackstone Private Equity in Asia, said, "Blackstone is blessed to have been part of the Sona Comstar journey for the past five years. Sanjay Kapur has been a terrific partner to us and minority shareholders. The management team led by Vivek Vikram Singh has done an outstanding job in building one of India's largest electric vehicle component suppliers. 

Shares of Sona BLW Precision Forgings Ltd. advanced 4.99% to Rs 426.45 apiece in trade on Tuesday. The headline index NSE Nifty 50 was trading lower by 0.33%.

The stock gained as much as 5.37% intraday, rising the most in over seven weeks since Jan. 25, 2023. Total traded volume stood at 7.6 times its 30-day average. The relative strength index was at 41.2.

Out of the 15 analysts tracking the company, 10 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 27.3% over the next 12 months.

Source: Bloomberg, Exchange filing

Shares of Adani Group companies declined in trade except for Adani Green Energy Ltd. which rose 3.45%.

Source: Bloomberg

The broader market indices were unchanged; S&P BSE MidCap unchanged; whereas S&P BSE SmallCap was lower by 0.18%.

Eleven out of 19 sectors compiled by BSE advanced while eight declined in trade.

The market breadth was split between buyers and sellers. About 1,323 stocks rose, 1,518 declined, and 101 remained unchanged on the BSE.

Source: BSE

Kotak Mahindra Bank Ltd., Mahindra and Mahindra Ltd., Adani Enterprises Ltd., Bajaj Finance Ltd., and Tech Mahindra Ltd. were negatively contributing to the index NSE Nifty 50.

Whereas, Reliance Industries Ltd., HDFC Bank Ltd., Larsen and Toubro Ltd., HDFC Ltd., Bharti Airtel Ltd. were adding positively to the index.

Shares of Krsnaa Diagnostics Ltd. advanced 4.89% to Rs 401.9 apiece in trade on Friday. The headline index NSE Nifty 50 was trading lower by 0.13%.

The company operationalised 100 more pathology collection centres in Mumbai for BMC dispensaries and hospitals under the ‘Hinduhridaysamrat Balasaheb Thakeray Chikitsa’ project.

The stock gained as much as 8.46% intraday, rising the most in three trading sessions since March 8, 2023. Total traded volume stood at 12.9 times its 30-day average. The relative strength index was at 53.6.

Two analysts tracking the company maintain a 'buy' rating.

The return potential as calculated by the consensus of analyst estimates, stand at an upside of 111.1% over the next 12 months.

Source: Bloomberg, Exchange filing

Indian equity benchmarks were mixed at pre-open and swung between gains and losses at opening on Tuesday.

At 9:15 a.m., Sensex was at 58,207.29 points, whereas, Nifty opened at 17,147.45 points.

Asian markets extended declines led by weakness in financial stocks as the collapse of Silicon Valley Bank continued to reverberate across global markets.

The S&P 500 closed on Monday down 0.2%, after bouncing between gains and losses amid a rout in bank shares while the policy-sensitive Nasdaq climbed 0.8%, the most in over a week. The fallout from SVB’s collapse prompted President Joe Biden to promise stronger regulation of US lenders, while reassuring depositors that their money is safe.

At pre-open, the S&P BSE Sensex was down 70 points or 0.12% at 58,168.40 while the NSE Nifty 50 was 6 points or 0.04% higher at 17,160.55.

At pre-open, the S&P BSE Sensex opened down 70 points or 0.12% at 58,168.40 while the NSE Nifty 50 was 6 points or 0.04% higher at 17,160.55.

Source: Bloomberg

The local currency weakened by 13 paise to open at 82.26 against the greenback. It closed at 82.13 on Monday.

Source: Bloomberg

• U.S. Dollar Index at 103.9

• U.S. 10-year bond yield at 3.69%

• Brent crude down 0.37% to $80.47 per barrel

• Nymex crude at $74.50 per barrel

• SGX Nifty up 0.35% at 17,239 as of 8:15 a.m.

• Bitcoin up 0.85% to $24,441

• Funds affiliated with Blackstone have sold their balance, or 20.5% stake, in Sona BLW Precision Forgings Ltd.

• This stake sale happened via bulk deals in the open market.

• Marquee investors like the Government of Singapore, Fidelity, FMR, ICICI Prudential Life Insurance, and HDFC MF bought shares from Blackstone in the bulk deal.

• Aureus Investment and Blackstone held 33% and 20.5%, respectively, of Sona Comstar before this transaction.

• Sona Comstar is a traction motor and motor-controller supplier to electric two-wheelers.

• Sona Comstar was formed by the merger of Sona BLW and Comstar Automotive in 2019.

Source: Exchange Filing

• Mangalore Chemicals & Fertilisers: Promoter Zuari Agro Chemical released a pledge of 28 lakh shares on March 9.

• Emami: Promoter group Suraj Finvest created a pledge of one lakh shares and released a pledge of 14 lakh shares and promoter group Diwaker Finvest created a pledge of 13 lakh shares between March 9-10.

• Ex-Date Bonus issue: Astral

• Record Date Bonus issue: Astral

• Price Band Revised From 20% To 10%: GRM Overseas

• Move Into Short-Term ASM Framework: Seamec

• Divgi TorqTransfer Systems: The auto component maker will list its shares on the exchanges on March 14. The Rs 412-crore IPO was subscribed 5.44 times during its course from March 1 to 3, with institutional buyers leading demand. The QIB portion was subscribed 7.83 times, and the HNI portion was subscribed 1.4 times. The retail portion was subscribed 4.31 times.

• Mahindra CIE Automotive: Mahindra & Mahindra sold 2.3 crore shares (6.06%) at Rs 357.39 apiece, Societe Generale bought 64.53 lakh shares (1.7%) at Rs 357 apiece.

• Mahindra Logistics: First Sentier Investors ICVC-Stewart Investors Asia Pacific Sustainability Fund sold 6.04 lakh shares (0.84%) at Rs 366.11 apiece and 6.47 lakh shares (0.9%) at Rs 366.23 apiece.

• Sona BLW Precision Forgings: HDFC Mutual Fund bought 36.59 lakh shares (0.63%), ICICI Prudential Life Insurance Company bought 40.24 lakh shares (0.69%), Societe Generale bought 90.29 lakh shares (1.54%), BNP Paribas Arbitrage bought 72.55 lakh shares (1.24%), Fidelity Investment Trust Fidelity Series Emerging Markets Fund bought 39.66 lakh shares (0.68%), Fidelity Asian Values bought 74.06 lakh shares (1.27%), Government of Singapore bought 2.42 crore shares (4.14%), Monetary Authority of Singapore bought 57.86 lakh shares (0.99%) at Rs 410 apiece, Singapore VII Topco III sold 11.99 crore shares at Rs 410.04 apiece.

• Lupin: The U.S. FDA completed its inspection of the company’s bioresearch centre in Pune. The inspection was closed without any observations.

• Tata Chemicals: Fitch Ratings revised its outlook on the company’s long-term foreign-currency issuer default rating to 'positive' from 'stable', and affirmed the rating at 'BB+'.

• Sun TV Network: The company declared an interim dividend of Rs 2.5 per share of face value Rs 5 for the financial year ending March 2023.

• GAIL (India): The company declared an interim dividend of Rs 4 per share for the current fiscal. The record date for the dividend has been fixed for March 21.

• National Aluminium Co.: The company approved a second interim dividend of Rs 2.5 per share for each share of face value Rs 5. The record date for the dividend is March 21, and it will be paid to the shareholders on or before March 31.

• Krsnaa Diagnostics: The company operationalised 100 more pathology collection centres in Mumbai for BMC dispensaries and hospitals under the ‘Hinduhridaysamrat Balasaheb Thakeray Chikitsa’ project.

• CreditAccess Grameen: The NBFC saw the assets under its management cross Rs 20,000 crore, compared to Rs 17,786 crore as of Dec. 31, 2022.

• Tube Investments of India: The company signed a deal with N Govindarajan to incorporate a subsidiary to foray into the contract development and manufacturing operations business. The company will invest Rs 285 crore, and Govindarajan will invest Rs 15 crore in the form of equity and compulsorily convertible preference shares.

• Surya Roshni: The company has received an order of Rs 96.39 crore from Hindustan Petroleum Corporation for the supply of 3LPE-coated steel pipes in Rajasthan, Bihar, Jharkhand, and West Bengal.

• Axita Cotton: The company received an order worth $2.72 million (approximately Rs 22.48 crore) from Bangladesh-based Taraspinning Mills and Khadiza Sadek Spinning Mills for the supply of Indian raw cotton by April 30.

• NMDC: Additional charge of chairman and managing director of the company has been given to Director (Finance) Amitava Mukherjee for a period of three months till May 31 as Sumit Deb was relieved from the post.

Asian markets extended their decline on Tuesday while bonds rallied in early trading as the collapse of Silicon Valley Bank continued to reverberate across the globe.

The S&P 500 closed down 0.2% on Monday after bouncing between gains and losses amid a rout in bank shares, while the policy-sensitive Nasdaq climbed 0.8%, the most in over a week. The fallout from SVB’s collapse prompted President Joe Biden to promise stronger regulation of U.S. lenders while reassuring depositors that their money is safe.

The yield on the 10-year Treasury note declined to 3.69%. Crude oil prices were trading around the $80 mark, while Bitcoin was trading around the $24,000 level.

At 8:15 a.m., the Singapore-traded SGX Nifty, an early indicator of India's benchmark Nifty 50, was up 0.35% at 17,239.

Both Indian benchmark indices—Sensex and Nifty—closed around 1.5% lower as banking, telecom, and automobile stocks led the decline.

The Indian rupee closed lower against the U.S. dollar for the second day in a row on account of weak domestic equities due to a substantial outflow of foreign investors.

Overseas investors in Indian equities remained net sellers for the third day in a row on Monday. Foreign portfolio investors offloaded equities worth Rs 1,546.8 crore, while domestic institutional investors were net buyers for the third day in a row and mopped up stocks worth Rs 1,418.6 crore.