Stock Market Today: Sensex, Nifty Log Worst Losing Streak In Nearly Four Years; FPIs Remain Net Sellers
The S&P BSE Sensex closed down 326 points or 0.55% at 58,962.12 while the NSE Nifty 50 was 89 points or 0.51% lower at 17,303.95.
KEY HIGHLIGHTS
FPIs Stay Net Sellers For Fifth Straight Day
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, according to data from the National Stock Exchange.
Domestic institutional investors were net buyers for the fifth day in a row and mopped up stocks worth Rs 4,609.87 crore.
Foreign institutions have remained net sellers of Rs 52,555.33 crore worth of Indian stocks so far in 2023.
Yield On The 10-Year Bond Flat
The yield on the 10-year bond closed flat at 7.43% on Tuesday.
Source: Bloomberg
Rupee Strengthens Against The U.S. Dollar
The local currency strengthened by 18 paise to 82.67 against the greenback at close on Tuesday. It closed at 82.85 on Monday.
Source: Bloomberg
Sensex, Nifty Decline For Eighth Consecutive Session
Indian equity benchmarks declined through the day after opening with marginal gains on Tuesday, extending its losing streak to eight consecutive sessions.
The markets last saw a nine-day losing streak nearly four years or 33 months ago, from April 30, 2019 to May 13, 2019.
The headline index, S&P BSE Sensex closed at its lowest level since in over four months since Oct. 18, 2022. On the other hand, NSE Nifty 50 fell declined the most around the same period since Oct. 14, 2022.
Asian markets dropped as the dollar and treasury yields climbed, with investors reassessing the global economy’s outlook given expectations for higher interest rates.
US contracts were rangebound following a 0.3% advance for the S&P 500 and a 0.7% gain for the tech-heavy Nasdaq 100 on Monday.
The S&P BSE Sensex closed down 326 points or 0.55% at 58,962.12 while the NSE Nifty 50 was 89 points or 0.51% lower at 17,303.95.
Adani Enterprises Ltd., Adani Ports and SEZ Ltd., Asian Paints Ltd., Britannia Industries Ltd., and Mahindra and Mahindra Ltd. were the top gainers in the gauge.
Whereas, Cipla Ltd., Hindalco Industries Ltd., Dr. Reddy's Laboratories Ltd., ONGC Ltd., and Tata Steel Ltd. were the top losers amongst the NSE Nifty 50 constituents.
The broader market indices outperformed the larger peers; S&P BSE MidCap was up 0.60% whereas S&P BSE SmallCap was higher by 0.40%.
Eight out of the 20 sectors compiled by BSE declined while 12 advanced in trade.
The market breadth was split between the buyers and sellers. About 1,732 stocks rose, 1,720 declined, and 138 remained unchanged on the BSE.
Adani Stocks Rebound As Roadshow Continues In Asian Financial Hubs
Shares of the crisis-ridden Indian conglomerate Adani Group rebound sharply in trade on Tuesday as it continues to host an investor roadshow at Asian financial hubs.
While the shares of Adani Enterprises Ltd. jumped 16.62% to Rs 1,391.85 apiece, intraday. Other group company stocks like Adani Ports and SEZ Ltd. and Ambuja Cements Ltd. rose to an intraday high of 9.33% and 7.14%, respectively.
Adani Power Ltd., Adani Green Energy Ltd., Adani Wilmar Ltd., and NDTV Ltd. also hit an upper circuit of 5% each during the trading day.
Adani stock rout began after Jan. 24, when the U.S.-based Hindenburg Research released a report and accused the company of accounting fraud and stock manipulation.
Adani group stocks have fallen heavily since the release of the report. While Adani Total Gas Ltd. has fallen the most, Adani Transmission Ltd., Adani Green Energy Ltd., and Adani Enterprises Ltd., declined over 60% since Jan. 24, 2023.
Vedanta Shares Decline Amid Challenges With Asset Sale To Hindustan Zinc
Shares of Vedanta Resources Ltd. declined 5.85% to Rs 270.55 apiece in trade on Tuesday.
As per a S&P Global Ratings report, if Vedanta Resources is unable to advance the $2 billion fundraising exercise or the sale of its international zinc assets to Hindustan Zinc Ltd. in the near future, the company's credit rating will face immediate strain.
The stock fell as much as 8.84% intraday to Rs 261.95 apiece, falling the most in over eight months since June 20, 2022.
Total traded volume stood at 6.8 times its 30-day average. The relative strength index was at 21, implying that the stock must be oversold.
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 36.5% over the next 12 months.
Source: Bloomberg, S&P Global Ratings Report
SBI Concludes First $1 Billion Syndicated Social Loan
The deal is the largest ESG loan by a commercial bank in the Asia Pacific and the second largest social loan globally.
The issuance saw participation from banks across Taiwan, Japan, China, and the Middle East .
The facility was arranged through MUFG Bank, and Taipei Fubon Commercial Bank Co. Ltd.
Source: SBI statement
SEBI Approves IPO Plans Of Lohia Corp, IRM Energy And First Meridian.
SEBI has issued observation letters for the IPOs of Lohia Corp., IRM Energy and First Meridian Business Services.
Lohia's IPO will be a pure offer for sale, IRM Energy will only issue fresh shares, while First Meridian will include both fresh issue and offer for sale in its IPO.
Source: SEBI website
Adani Enterprises At Day's High, Jumps 14% In Tarde
Shares of Adani Enterprises Ltd. rose 14.61% to Rs 1,367.9 apiece in trade on Tuesday. It rose the most in three weeks since Feb, 8, 2023.
Source: Bloomberg
Only, Adani Total Gas Ltd., and Adani Transmission Ltd., declined in trade.
SAIL Shares Down After 14.1 Lakh Shares Change Hands
Shares of Steel Authority of India Ltd. declined 1.08% to Rs 82.1 apiece in trade on Tuesday after 14.1 lakh shares changed hands in a bunched trade.
The stock fell as much as 1.45% intraday to Rs 81.8 apiece. Total traded volume stood at 0.9 times its 30-day average. The relative strength index was at 39.8.
Out of the 27 analysts tracking the company, 12 maintain a 'buy' rating, seven recommend a 'hold' and eight suggest to 'sell' the stock.
The return potential as calculated by the consensus of analyst estimates, stand at an upside of 12.5% over the next 12 months.
Source: Bloomberg
Energy Stocks Decline The Most In Trade
Shares of energy companies declined in trade on Tuesday and the headline index NSE Nifty 50 was lower by 0.06% in trade.
The NSE Oil & Gas Index was down 0.98% in trade. Ten out of the 15 constituents compiled by the gauge advanced, while only five advanced in trade.
Adani Total Gas Ltd., BPCL Ltd., Reliance Industries Ltd., GAIL Ltd., ONGC Ltd., Indian Oil Corporation Ltd., Oil India Ltd., Indraprastha Gas Ltd., Castrol India Ltd., and Petronet LNG Ltd declined in trade.
Source: NSE
Sensex, Nifty Reverse Early Gains To Decline In Trade
Indian equity benchmarks declined through midday on Tuesday after opening higher in trade.
Asian markets erased earlier gains as the dollar and treasury yields climbed, with investors reassessing the global economy’s outlook given expectations for higher interest rates.
U.S. future contracts were rangebound following a 0.3% advance for the S&P 500 and a 0.7% gain for the tech-heavy Nasdaq 100 on Monday.
As of 11:55 a.m., the S&P BSE Sensex was down 42 points or 0.07% at 59,246.80 while the NSE Nifty 50 was 9 points or 0.05% lower at 17,384.70.
Adani Enterprises Ltd., Adani Ports and SEZ Ltd., Mahindra and Mahindra Ltd., Asian Paints Ltd., and Bajaj Auto Ltd. were the top gainers in the gauge.
Whereas, Cipla Ltd., Hindalco Industries Ltd., Coal India Ltd., ITC Ltd., and Reliance Industries Ltd. were the top losers amongst the NSE Nifty 50 constituents.
The broader market indices outperformed the larger peers; S&P BSE MidCap was up 0.49% whereas S&P BSE SmallCap was higher by 0.31%.
Six out of the 19 sectors compiled by BSE declined while 13 advanced in trade.
The market breadth was split between the buyers and sellers. About 1,654 stocks rose, 1,579 declined, and 152 remained unchanged on the BSE.
Paytm Parent One 97 Communications Declines In Trade
Shares of Paytm parent, One 97 Communications Ltd. declined 6.75% to Rs 592.2 apiece in trade on Tuesday.
The stock fell as much as 7.72% intraday to Rs 586.1 apiece, declining the most in 11 days since Feb. 10, 2023.
Total traded volume stood at 0.9 times its 30-day average. The relative strength index was at 47.8.
Out of the 12 analysts tracking the company, nine maintain a 'buy' rating and three recommend a 'hold' on the stock.
The return potential as calculated by the consensus of analyst estimates, stand at an upside of 56.9% over the next 12 months.
Source: Bloomberg
Most Adani Group Company Stocks Advance In Trade
Most Adani Group company stocks advanced in trade on Monday, reversing their early declines.
Benchmark NSE Nifty 50, which was trading higher by 0.16%.
Adani Total Gas Ltd., Adani Green Energy Ltd., Adani Transmission were trading lower amidst all the group company stocks.
Adani Enterprises Ltd., on the other hand, advanced nearly 5% in trade.
Source: Bloomberg
Ramesh Damani's Top Investing Rules
Indiabulls Real Estate Down After Changes In The Top Management
Shares of Indiabulls Real Estate Ltd. declined 4.93% to Rs 57.9 apiece in trade on Tuesday after the company appointed president Sachin Chittaranjan Shah as executive director of the company for a tenure of five years, effective Feb. 27, 2023.
Shyamm Mariwala, Javed Faizullah Tapia and Tarana Suresh Lalwani have been appointed as additional independent directors.
The stock fell as much as 6.90% intraday to Rs 56.7 apiece, declining the most since Feb. 14, 2023.
Total traded volume stood at 3.2 times its 30-day average. The relative strength index was at 40.
Source: Bloomberg, Exchange filing
Mastek Shares Gain After A Deal With Netail To Optimise Digital Consumer Experience
Shares of Mastek Ltd. rose 1.193% to Rs 1,667 apiece in trade on Tuesday after the company announced strategic partnership with Netail to help e-commerce and omni-channel retailers optimise their retail value-chain in order to attract, convert, and retain digital consumers.
The stock gained as much as 3.63% intraday to Rs 1,694.7 apiece, rising the most since Feb. 23, 2023.
Total traded volume stood at four times its 30-day average. The relative strength index was at 54.
Out of the five analysts tracking the company, three maintain a 'buy' rating and two suggest to 'sell' the stock.
The return potential as calculated by the consensus of analyst estimates, stand at an upside of 24.8% over the next 12 months.
Source: Bloomberg, Exchange filing
Morgan Stanley Maintains "Overweight" On Bajaj Auto
Shares of Bajaj Auto Ltd. rose 1.16% to Rs 3,698.5 apiece in trade on Tuesday as the automotive stocks advanced in trade.
The stock gained as much as 2.83% intraday to Rs 103.15 apiece, rising the most since Jan. 27, 2023.
Total traded volume stood at 2.6 times its 30-day average. The relative strength index was at 42.3.
Out of the 51 analysts tracking the company, 34 maintain a 'buy' rating, 13 recommend a 'hold' and four suggest to 'sell' the stock. According to a latest note by Morgan Stanley, it maintains an 'overweight' rating on the stock with a target price of Rs 4,449.
The return potential as calculated by the consensus of analyst estimates, stand at an upside of 14.6% over the next 12 months.
Morgan Stanley On Bajaj Auto
Maintains an 'overweight' rating on the stock with a price target of Rs 4,449 and a potential upside or downside of 16% to the target, depending on risks.
Brokerage cites media reports on Bajaj Auto, pegging the March production to be in between 2.5-2.7 lakh as compared to the last three-month average production of 2.8 lakh units.
Brokerage expects dispatches to Nigeria, that forms around 15%+ of exports and 7% of total volumes, to be very low in February and March as the country is going through general elections.
Exports to have low near-term visibility but with high medium to long term growth potential.
Borkerage estimates 25% YoY decline in FY23 exports, flat growth in FY24 and 2.1 million exports in FY25, which would be higher by 15% as compared to 2.5 million exports in FY22.
Source: Bloomberg, Brokerage Note
Zee Rises As Exchanges Reverse Exclusion From Derivates Segment
Shares of Zee Entertainment Enterprises Ltd. rose 7.73% to Rs 197.1 apiece in trade on Tuesday after the exchanges reverted surveillance actions against the company.
NCLAT stayed the insolvency proceedings against Zee. With this, the exclusion of Zee from futures and options segment stands withdrawn and F&O contracts with May 2023 expiry will be made available from Tuesday, Feb. 28.
The stock gained as much as 7.93% intraday to Rs 197.45 apiece, rising the most in 11 months since March 14, 2022.
Total traded volume stood at 6.1 times its 30-day average. The relative strength index was at 34.8.
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 42.7% over the next 12 months.
Source: Bloomberg, Exchange filing
Auto Stocks Trade Higher After A Day Of Fall
Shares of automotive companies advanced in trade on Wednesday and the headline index NSE Nifty 50 was higher by 0.24% in trade.
The NSE Auto Index was down 1.17% in trade. Thirteen out of the 15 constituents compiled by the gauge advanced, while only Balkrishna Industries Ltd. and Bharat Forge Ltd. declined in trade.
Mahindra and Mahindra Ltd., Samvardhana Motherson International Ltd., Bajaj Auto Ltd., Ashok Leyland Ltd., Bosch Ltd., Eicher Motors Ltd, Hero MotoCorp Ltd and Sona BLW Precision Forgings Ltd. advanced nearly 1% in trade.
Source: NSE
Adani Group Company Stocks Decline In Trade
All Adani Group company stocks declined in trade on Monday, trailing the gains on benchmark NSE Nifty 50, which was trading higher by 0.16%.
Adani Total Gas Ltd., Adani Green Energy Ltd., Adani Transmission Ltd., Adani Wilmar Ltd., and Adani Power Ltd. were locked in a lower circuit of 5% in trade.
Adani Enterprises Ltd., on the other hand declined nearly 7.2% in trade.
Source: Bloomberg
Broader Market Trade Higher
The broader market indices were trading higher; S&P BSE MidCap was up 0.27% whereas S&P BSE SmallCap was higher by 0.30%.
Seven out of the 19 sectors compiled by BSE declined while 12 advanced in trade.
The market breadth was in favour of the buyers. About 1,497 stocks rose, 913 declined, and 113 remained unchanged on the BSE.
Top Nifty 50 Index Movers
Bajaj Auto Ltd., Mahindra and Mahindra Ltd., Hero MotoCorp Ltd., Tata Motors Ltd., and Eicher Motors Ltd. were the top gainers in the gauge.
Whereas, Adani Enterprises Ltd., Cipla Ltd., Hindalco Industries Ltd., HCL Technologies Ltd., and JSW Steel Ltd. were the top losers amongst the NSE Nifty 50 constituents.
Sensex, Nifty Open Marginally Lower In Trade
Indian equity benchmarks opened marginally lower in trade on Tuesday after closing at a four-month low on Monday.
Stocks in Asia edged higher tracking similar gains in the U.S. as investors continued to weigh the potential for a soft landing given expectations for higher interest rates.
Shares climbed in Japan, South Korea and Australia, while equity futures for U.S. contracts ticked higher following a 0.3% advance for the S&P 500 and a 0.7% gain for the tech-heavy Nasdaq 100 on Monday. The rebound comes after recent selloffs sparked by rate-hike fears.
At pre-open, thhe S&P BSE Sensex was up 58 points or 0.10% at 59,346.61 while the NSE Nifty 50 was 10 points or 0.05% lower at 17,383.25.
Sensex, Nifty Mixed At Pre-Open
At pre-open, thhe S&P BSE Sensex was up 58 points or 0.10% at 59,346.61 while the NSE Nifty 50 was 10 points or 0.05% lower at 17,383.25.
Source: Bloomberg
Yield On The 10-Year Bond Flat
The yield on the 10-year bond opened flat at 7.41% on Tuesday. It closed at 7.42% on Monday.
Source: Bloomberg
Rupee Strengthens Against The U.S. Dollar
The local currency strengthened by 17 paise to 82.68 against the greenback at open on Tuesday. It closed at 82.85 on Monday.
Source: Bloomberg
Telecom, Select Banking Stocks Make A Comeback: Trade Setup
Global Cues
U.S. Dollar Index at 104.7
U.S. 10-year bond yield at 3.92%
Brent crude down 0.85% to $82.45 per barrel
Nymex crude at $75.76 per barrel
SGX Nifty unchanged at 17,487.5 as of 6:05 a.m.
Bitcoin up 0.51% to $23,503.70
Insider Trades
Gallantt Ispat: Promoter group Maanaav Dineshkumar Agarwal bought 10,200 shares on Feb. 24.
Sobha: Promoter Puthan NC Menon bought 20,000 shares on Feb. 24.
Who’s Meeting Whom
HEG: To meet investors and analysts on Feb. 28.
Arvind SmartSpaces: To meet investors and analysts on Feb. 28.
Century Textiles and Industries: To meet investors and analysts on March 2.
UltraTech Cement: To meet investors and analysts on Feb. 28.
Stocks To Watch: Wipro, Zee, Infosys, Voda Idea, NHPC, Tata Steel
Wipro: The company announced four strategic global business lines—Wipro FullStride Cloud, Wipro Enterprise Futuring, Wipro Engineering Edge, and Wipro Consulting— to deepen alignment to evolving client needs.
NHPC: The Cabinet approved Rs 1,600 crore for pre-investment activities and various clearances for the Dibang Multipurpose Project being developed by the company in Arunachal Pradesh.
Zee Entertainment Enterprises: The exchanges reverted surveillance actions against the company after NCLAT stayed insolvency proceedings against it. With this, the exclusion of Zee from futures and options segment stands withdrawn and F&O contracts with May 2023 expiry to be made available from Feb. 28.
Infosys: The company rolled out private 5G-as-a-Service for enterprise clients worldwide.
Vodafone Idea: The board allotted 12,000 optionally convertible debentures of the face value of Rs 10 lakh each, aggregating to Rs 1200 crore, to ATC Telecom Infrastructure.
Godrej Industries: The company appointed Vishal Sharma as the CEO-designate of the chemicals business of Goderej Industries, with effect from March 1, 2023.
Tata Steel: The committee of directors approved allotment of 2.15 lakh non-convertible debentures at 8.03% fixed coupon rate, amounting to Rs 2,150 crore to identified investors on private placement basis for a tenor of five years.
Mastek: The company announced strategic partnership with Netail to help e-commerce and omni-channel retailers optimise their retail value-chain in order to attract, convert, and retain digital consumers.
Indiabulls Real Estate: The company appointed president Sachin Chittaranjan Shah as executive director of the company for a tenure of five years, effective Feb. 27, 2023. Shyamm Mariwala, Javed Faizullah Tapia and Tarana Suresh Lalwani have been appointed as additional independent directors.
Vesuvius India: The company appointed Rohit Baheti as the chief financial officer, effective Feb. 27, 2023.
Balrampur Chini Mills: The board approved allotment of 14,000 non-convertible debentures on private placement basis to raise Rs 140 crore.
Tanla Platforms: The company unveiled its phishing protection platform Wisely ATP at the ongoing Mobile World Congress 2023 in Barcelona.
Adani Ports and Special Economic Zones: The company incorporated a subsidiary PU Agri Logistics to develop and operate the silo complex at 26 locations in Punjab.
Mahindra Logistics: Chief financial officer Yogesh Patel has resigned from his position, and will be relieved of his duties with effect from close of business on March 10, 2023.
Dr. Reddy’s Laboratories: The company entered into a definitive agreement to acquire the U.S. generic prescription product portfolio of Australia-based Mayne Pharma.
Satin Creditcare Network: The board will meet on March 2 to consider fresh fundraising via non-convertible debentures on private placement basis and amend the terms of an issue approved on Feb. 16, 2023.
CSB Bank: The bank will hike its lending rates across tenors by 10 basis points with effect from March 1, 2023.
Jyothy Labs: The NCLT has approved the merger of subsidiary Jyothy Fabricare Services with Jyothy Labs.
Laxmi Organic Industries: Satej Nabar has resigned as the executive director and chief executive officer to pursue his personal interests, effective close of business hours on April 2, 2023. Rajan Venkatesh has been appointed as managing director and chief executive officer of the company for five years, effective April 3, 2023. Ravi Goenka will step down as the managing director of the company and will be re-designated as the chairman, with effect from April 3.
Jammu and Kashmir Bank: The compensation committee of the bank will meet on March 4 to consider and approve J&K Bank Employee Stock Purchase Scheme, 2023 including determination of issue price.
SGX Nifty Signals A Flat Open For Benchmarks
Asian markets edged higher on Tuesday, tracking similar gains in the U.S. as investors continued to weigh the potential for a soft landing given expectations for higher interest rates.
Shares climbed in Japan, South Korea and Australia, while equity futures for Hong Kong rose. The U.S. future contracts ticked higher following a 0.3% advance for the S&P 500 and a 0.7% gain for the tech-heavy Nasdaq 100 on Monday.
Meanwhile, the yield on 10-year Treasuries advanced to 3.93%. Crude prices were trading around $82-mark, while Bitcoin was trading below 23,500-level.
At 7:23 a.m., the Singapore-traded SGX Nifty, an early indicator of India's benchmark Nifty 50, was up 0.01% at 17,489.5.
India’s benchmark indices Sensex and Nifty ended down for the seventh straight day and hit a four-month low on Monday as metals, I.T., and auto stocks fell.
Rupee continued to decline against the U.S. dollar amid speculations of further Fed rate hikes.
Overseas investors in Indian equities remained net sellers for the fourth day in a row on Monday. Foreign portfolio investors offloaded equities worth Rs 2,002.52 crore, while the domestic institutional investors were net buyers for the fourth day in a row and mopped up stocks worth Rs 2,231.66 crore.