Stock Market Today: Sensex, Nifty Log Worst Losing Streak In Nearly Five Months; FPIs Remain Sellers
The S&P BSE Sensex closed down 139 points or 0.14% at 59,605.80 while the NSE Nifty 50 was 43 point or 0.25% lower at 17,511.25.
KEY HIGHLIGHTS
Rupee Strengthens Against The U.S. Dollar
Sensex, Nifty Decline For Fifth Consecutive Session
Infosys Partners With Microsoft To Accelerate Cloud Adoption Across Industry
Corporate Affairs Ministry Ssanctions Demerger Of Non-Core Assets Of Shipping Corp. Of India.
Zee Entertainment Insolvency: CEO Punit Goenka Approaches NCLAT Against Tribunal's Order
FPIs Stay Sellers For The Second Straight Day
Overseas investors in Indian equities remained sellers for the second day in a row on Thursday.
Foreign portfolio investors offloaded equities worth Rs 1,417.24 crore, according to data from the National Stock Exchange.
Domestic institutional investors were buyers for the second-straight day and mopped up stocks worth Rs 1,586.06 crore.
Foreign institutions have remained net sellers of Rs 44,503.26 crore of Indian stocks so far in 2023.
Yield On The 10-Year Declines
The yield on the 10-year bond closed 3 bps lower at 7.37% on Thursday. It closed at 7.40% on Wednesday.
Source: Bloomberg
Rupee Strengthens Against The U.S. Dollar
The local currency strengthened by 12 paise to 82.74 against the greenback at close on Thursday. It closed at 82.86 on Wednesday.
Source: Bloomberg
Sensex, Nifty Decline For Fifth Consecutive Session
Indian equity benchmarks struggled amid volatility through Thursday and ended the day marginally lower.
The indices declined for the fifth consecutive day, mirroring the losing streak last seen in the final week of September.
Nifty closed at its lowest in over four months since Oct. 18, 2022, whereas, Sensex's was down the most in three week since Feb. 1, 2023.
Asian markets were mixed, whereas European stocks and the U.S. equity-index futures rose after investors grew confident that the Federal Reserve’s peak interest rate would be within levels already priced in by markets.
The S&P BSE Sensex closed down 139 points or 0.14% at 59,605.80 while the NSE Nifty 50 was 43 point or 0.25% lower at 17,511.25.
Coal Inda Ltd., Axis Bank Ltd., Hindalco Industries Ltd., UPL Ltd., and ITC Ltd. were the top gainers in the gauge.
Whereas, Asian Paints Ltd., Larsen and Toubro Ltd., Divi's Laboratories Ltd., Adani Enterprises Ltd., and IndusInd Bank Ltd. were the top losers amongst the NSE Nifty 50 constituents.
The broader market indices were trading mixed; S&P BSE MidCap was down 0.40%. whereas S&P BSE SmallCap was higher by 0.06%.
Fourteen out of the 19 sectors compiled by BSE declined with S&P BSE Utilities, S&P BSE Power and S&P BSE Realty falling the most. On the other hand, nine sectors advanced in trade.
The market breadth was skewed in the favour of the bears. About 1,587 stocks rose, 1,856 declined, and 156 remained unchanged on the BSE.
Infosys Partners With Microsoft To Accelerate Cloud Adoption Across Industry
Infosys Cobalt and Microsoft Cloud solutions partner to help businesses uncover value and accelerate enterprise cloud transformation.
Infosys Cloud Radar forecasts that effective cloud adoption by enterprises can add up to $414 billion (approx Rs 3,426.31 crore) in net new profits annually.
Cloud adoption will also enrich employee experience and productivity by decentralising information within the organisation across all devices. An experiential app was used by three lakh Infosys employees to test this.
Source: Exchange filing
Corporate Affairs Ministry Ssanctions Demerger Of Non-Core Assets Of Shipping Corp. Of India.
The ministry sanctioned the demerger of non-core assets of Shipping Corporation of India into Shipping Corporation of India Land and Assets.
Source: Exchange filing
Zee Entertainment Insolvency: CEO Punit Goenka Approaches NCLAT Against Tribunal's Order
"Mr. Goenka is taking all the necessary steps as per law, to protect the interests of all stakeholders of Zee Entertainment Enterprises Ltd. and to achieve a timely completion of the proposed merger with Culver Max Entertainment Pvt. Ltd."
Source: Office of Punit Goenka
Most Adani Group Company Stocks Decline In Trade
Except Adani Ports and SEZ Ltd. and Ambuja Cements Ltd., all other Adani Group company stocks declined in trade on Thursday.
Source: Bloomberg
Zee Pares Losses After Hitting 52-Week Low
Shares of Zee Entertainment Enterprises Ltd. declined 2.96% to Rs 200.25 apiece in trade on Wednesday, whereas the NSE Nifty 50 Index was trading 0.09% higher.
The Mumbai bench of the National Company Law Tribunal on Wednesday allowed to initiate insolvency proceedings against Zee Entertainment Enterprises Ltd.
The court appointed Sanjay Kumar Jhalani as the interim resolution professional.
The order comes on a petition filed by IndusInd Bank Ltd. after the company failed to fulfill its obligation under a Debt Service Reserve Account Agreement between the bank and Siti Networks Ltd., to which Zee was also a party. Siti Networks is part of the Essel Group.
The stock hit a lower circuit at 9.98% intraday. Total traded volume stood at 22.9 times its 30-day average. The relative strength index was at 18, implied that stock maybe oversold.
Out of the 24 analysts tracking the company, 21 maintain 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 an upside of 52.4% over the next 12 months.
Source: Bloomberg, Exchange filing
Realty Stocks Decline
Shares of real estate companies declined in trade on Wednesday and the headline index NSE Nifty 50 was higher by 0.19% in trade.
The NSE Realty Index was up 1.01% in trade. Eight out of the 10 constituents compiled by the gauge advanced, while only Indiabulls Real Estate Ltd. and Phoenix Mills Ltd. declined in trade.
Prestige Estate Projects Ltd., Macrotech Developers Ltd., DLF Ltd., Oberoi Realty Ltd., Godrej Properties Ltd., Sobha Ltd., and Brigade Enterprises Ltd. declined in trade.
Source: NSE
European Markets Open Mixed
FMCG Stocks Advance
Shares of fast moving consumer goods companies advanced in trade on Wednesday and the headline index NSE Nifty 50 was higher by 0.03% in trade.
The NSE FMCG Index was up 1.05% in trade. Ten out of the 15 constituents compiled by the gauge advanced, while only five declined.
ITC Ltd., Radico Khaitan Ltd., Dabur India Ltd., United Spirits Ltd., Godrej Properties Ltd., United Breweries Ltd., Hindustan Unilever Ltd. advanced in trade.
Source: NSE
Sensex, Nifty Edge Higher As FMCG Stocks Gain; Realty And Media Stocks Drag Led By Zee
Indian equity benchmarks rose marginally through midday on Thursday after the headline indices fell the most in two weeks on Wednesday.
The headline indices reverse the morning losses to trade higher as the Asian markets were mixed in trade. Furthermore, the U.S. equity futures rose in a sign that the four-day run of declines for the S&P 500 is primed for a snapback.
The Fed minutes on Wednesday, showed that the officials expect further interest rate increases to tame inflation.
On the other hand, as per MPC minutes, the members from the RBI remained committed to bringing inflation within the target, while the external member Jayanth R Varma expressed the need to exercise caution amidst headwinds to growth.
As of 11:57 a.m., the S&P BSE Sensex was up 84 points or 0.14% at 59,828.81 while the NSE Nifty 50 was 23 point or 0.13% higher at 17,576.80.
ITC Ltd., UPL Ltd., Coal Inda Ltd., TCS Ltd., Tata Steel Ltd., and Tata Motors Ltd. were the top gainers in the gauge.
Whereas, Asian Paints Ltd., IndusInd Bank Ltd., HDFC Life Insurance Co., Titaan Co., and HDFC Bank Ltd. were the top losers amongst the NSE Nifty 50 constituents.
The broader market indices were trading mixed; S&P BSE MidCap was down 0.39%. whereas S&P BSE SmallCap was higher by 0.21%.
Ten out of the 19 sectors compiled by BSE declined, while nine sectors advanced in trade.
The market breadth was skewed in the favour of the bears. About 1,585 stocks rose, 1,674 declined, and 154 remained unchanged on the BSE.
Deep Industries Wins Rs 106-Crore From ONGC
Deep Industries Ltd. has received Letter of Award from Oil and Natural Gas Corporation Ltd. hiring of 1 of 1000 HP Mobile Drilling Rigs for Ahmedabad Asset for a period of 3 years.
The total estimated value of the said award is approximately $12.93 million equivalent to approximately Rs 106 crores.
Source: Exchange filing
Stocks In Focus: Tata Motors, Zee Entertainment, ONGC & More
ABSL AMC's Mahesh Patil On Rates, Indian Markets & Sectoral Winners: Talking Point
India’s Exports Expected To Show Tepid Growth In 2023: Finance Ministry
Growth of global trade is expected to be lower in 2023 on the back of slowing global output.
There is a likelihood of India's exports showing tepid growth as the major export markets of India are forecasted to decline sharply in 2023.
Source: Monthly Economic Review, January 2023, Department of Economic Affairs
Adani Power Recovers From Day's Low After 23.6 Lakh Shares Change Hands
Shares of Adani Power Ltd. declined 3.79% to Rs 156.3 apiece in trade on Tuesday after 23.6 lakh equity shares changed hands in two bunched trade.
About 10 lakh shares changed hands at 9:20 a.m., whereas 13.6 lakh shares changed hands 10:01 a.m.
The stock declined as much as 5% intraday to Rs 154.25 apiece. Total traded volume stood at 2.5 times its 30-day average. The relative strength index was at 30.6.
Source: Bloomberg
Delhivery Up As 25.10 Lakh Shares Change Hands
Shares of Delhivery Ltd. rose 2.04% to Rs 342.75 apiece in trade on Tuesday after 25.10 lakh equity shares changed hands in a bunched trade.
The stock rose as much as 2.40% intraday. Total traded volume stood at 3.6 times its 30-day average. The relative strength index was at 61.7.
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, stand at an upside of 18.7% over the next 12 months.
Source: Bloomberg
Sugar Stocks Decline In Trade
Shares of sugar companies declined in trade on Wednesday and the headline index NSE Nifty 50 was lower by 0.47% in trade.
Shree Renuka Sugars Ltd., Balrampur Chini Mills Ltd., Triveni Engineering and Industries Ltd., Dalmia Bharat Sugar and Industries Ltd., Ugar Sugar Ltd. and Avadh Sugar Ltd. declined in trade.
Source: Bloomberg
Zee Hits 52-Week Low As NCLT Admits It To Insolvency Proceedings
Shares of Zee Entertainment Enterprises Ltd. declined 9.98% to its 52-week low Rs 185.75 apiece in trade on Wednesday, whereas the NSE Nifty 50 Index was trading 0.30% lower.
The Mumbai bench of the National Company Law Tribunal on Wednesday allowed to initiate insolvency proceedings against Zee Entertainment Enterprises Ltd.
The court appointed Sanjay Kumar Jhalani as the interim resolution professional.
The order comes on a petition filed by IndusInd Bank Ltd. after the company failed to fulfill its obligation under a Debt Service Reserve Account Agreement between the bank and Siti Networks Ltd., to which Zee was also a party. Siti Networks is part of the Essel Group.
The stock hit a lower circuit at 9.98% intraday. Total traded volume stood at 22.9 times its 30-day average. The relative strength index was at 18, implied that stock maybe oversold.
Out of the 24 analysts tracking the company, 21 maintain 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 an upside of 52.4% over the next 12 months.
Source: Bloomberg, Exchange filing
Most Adani Group Stocks Decline In Trade
Except ACC Ltd. and Ambuja Cements Ltd., all other Adani Group company stocks declined in early trade on Thursday.
Source: Bloomberg
Top Nifty 50 Movers In Trade
HCL Technologies Ltd., JSW Steel Ltd., ONGC Ltd., Coal India Ltd., and Tata Steel Ltd. were the top gainers in the gauge.
Whereas, Adani Enterprises Ltd., Adani Ports and SEZ Ltd., Titan Co., Divi's Laboratories Ltd., and Asian Paints Ltd. were the top losers amongst the NSE Nifty 50 constituents.
Sensex, Nifty Rise At Opening Bell
Indian equity benchmarks rose at open on Thursday after the headline indices fell the most in two weeks on Wednesday.
Rising U.S. futures pulled Asian equities higher on Thursday in a sign that the four-day run of declines for the S&P 500 is primed for a snapback.
Equity benchmarks in Hong Kong, mainland China and South Korea all rose while Australian shares fell. European stock futures also climbed. Equities in Tokyo and Asia trading in Treasuries were closed due to a holiday in Japan.
The Fed minutes showed officials expect further interest rate increases to tame inflation.
On the other hand, as per Wednesday's MPC minutes, the members from the RBI remained committed to bringing inflation within the target, while the external member Jayanth R Varma expressed the need to exercise caution amidst headwinds to growth.
At pre-open, the S&P BSE Sensex opened up 33 points or 0.05% at 59,777.6 4 while the NSE Nifty 50 was 20 point or 0.12% higher at 17,574.65.
Sensex, Nifty Edge Higher At Pre-Open
At pre-open, the S&P BSE Sensex opened up 33 points or 0.05% at 59,777.6 4 while the NSE Nifty 50 was 20 points or 0.12% higher at 17,574.65.
Source: Bloomberg
Rupee Strengthens Against The U.S. Dollar
The local currency strengthened against the greenback by 9 paise to 82.77 at open on Thursday. It closed at 82.86 on Wednesday.
Source: Bloomberg
Private Sector Banks Join Public Sector Banks In Sell-Off: Trade Setup
Global Cues
U.S. Dollar Index at 104.4
U.S. 10-year bond yield at 3.92%
Brent crude up 0.26% to $80.81 per barrel
Nymex crude at $74.22 per barrel
SGX Nifty up 0.33% to 17,614.5 as of 7:31 a.m.
Bitcoin up 1.68% to $24,205.38
Pledge Share Details
Chambal Fertilisers & Chemicals: Promoter Zuari Industries created a pledge of 3 lakh shares on Feb. 17.
Block Deals
Inox Green Energy Services: ICM Finance bought 33 lakh shares (1.13%), Pilot Consultants sold 33 lakh shares (1.13%) at Rs 42.9 apiece.
Bulk Deals
Delhivery: Internet Fund III sold 1.24 crore shares (1.7%) at Rs 335.06 apiece.
Patel Engineering: Bank of Baroda sold 29.8 lakh shares (1.16%) at Rs 0.25 apiece.
Earnings Fineprint
Mahindra CIE Automotive Q4 CY2022 (Consolidated, YoY)
Revenue up 34.6% at Rs 2246.84 crore (Bloomberg estimate: Rs 2,818.85 crore)
Ebitda up 62.19% at Rs 292.40 crore (Bloomberg estimate: Rs 357.15 crore)
Ebitda Margin at 13.01% vs 10.8% (Bloomberg estimate: 12.7%)
Net loss of Rs 657.81 crore vs net profit of Rs 80.23 crore (Bloomberg estimate: Rs 196.45 crore profit)
The company recorded a loss of Rs 923.37 crore on fair valuation of assets and liabilities of discontinued operations during the quarter under review.
Q3 Earnings Results Today
Enkei Wheels (India), KSB, Sanofi India
Stocks To Watch: Biocon, Tata Steel, Lemon Tree, Wipro
Biocon: Kotak Special Situations Fund invested Rs 1,070 crore in the company, which will be utilised by the latter’s subsidiary—Biocon Biologics—to fund its acquisition of the biosimilars business of its partner Viatris.
Tata Steel: The company acquired 4.69 crore shares of its indirect subsidiary of Neelachal Ispat Nigam at Rs 64 apiece, aggregating to Rs 300 crore in the first tranche of investment in the equity shares of the latter.
Orient Cement: The non-binding MoU between the company and Adani Power Maharashtra for establishing a cement grinding unit at Tiroda, Maharashtra stands terminated as the latter could not obtain the required MIDC clearances for sub-leasing the land required for the facility.
Ugro Capital: The board of the company will meet on Feb. 25 to consider and approve raising funds via issuance of non-convertible debentures and/or commercial papers on private placement basis.
HG Infra Engineering: The company has been declared as the preferred bidder by Rail Vikas Nigam, Chandigarh for a project for construction of foundations, sub-structure and superstructure along the Bhanupali-Bilaspur-Beri new railway line in Bilaspur district of Himachal Pradesh. The company had placed a bid of Rs 466.11 crore for the project.
Gujarat Gas/Gujarat State Fertilisers & Chemicals: The Gujarat government has state’s Chief Secretary Raj Kumar as chairman of the boards of both companies with effect from Feb. 21, 2023.
Lemon Tree Hotels: The company signed a licence agreement for a 47-room property in Bhopal, Madhya Pradesh, which is expected to become operations by December 2023 and will be operated by subsidiary Carnation Hotels.
Hero MotoCorp: The company, through its electric mobility brand Vida, initiated operations of its public charging infrastructure in Bengaluru, Delhi and Jaipur.
Wipro: The company launched Decentralised Identity and Credential Exchange ID to make digital identification and credential verification faster, easier and more secure.
Sarda Energy and Minerals: The South Eastern Coalfields has issued letter of acceptance to the company against its bid for re-opening, salvaging, rehabilitation, development and operation of Kalyani underground mines in Chhattisgarh on revenue sharing of 4.5%.
SGX Nifty Signals Higher Opening For Benchmarks
Asia markets were mixed in trade after the U.S. shares fell, weighed down by Federal Reserve meeting minutes that underscored the central bank’s hawkish outlook and prompted investors to increase forecasts for interest rate hikes.
The S&P 500 closed down 0.2% for its fourth consecutive decline while the Nasdaq 100 managed to edge into positive territory in the final minutes of Wall Street’s Wednesday session.
A rally in Treasuries moderated after the Fed minutes were released. The Fed minutes showed officials expect further interest rate increases to tame inflation.
On the other hand, as per Wednesday's MPC minutes, the members from the RBI remained committed to bringing inflation within the target, while the external member Jayanth R Varma expressed the need to exercise caution amidst headwinds to growth.
RBI Governor, Shaktikanta Das said, "we must remain unwavering in our commitment to bring down inflation, while being mindful of growth."
Meanwhile, the yield on 10-year Treasuries advanced to 3.91%. Crude prices were trading around $80-mark, while Bitcoin was trading above 24,000-level.
At 7:31 a.m., the Singapore-traded SGX Nifty, an early indicator of India's benchmark Nifty 50, was up 0.33% at 17,614.5.
Benchmark indices Sensex and Nifty extended their decline for the fourth consecutive session as they crashed 1.5% each—the most in two weeks—tracking weakness in the global markets.
Rupee closed lower against the U.S. dollar for the second day in a row as the greenback and U.S. yields surged on hopes of more Fed hikes.
Overseas investors in Indian equities turned net sellers after a day on Wednesday. Foreign portfolio investors offloaded equities worth Rs 579.82 crore, while the domestic institutional investors turned net buyers and bought 371.56 crore worth of equities.