Indices end with modest losses; Nifty holds 16,950; VIX spurts over 8%.

 

The key equity barometers ended a volatile session with moderate losses on Monday. The Nifty settled below the 17,000 level. FMCG and media shares advanced while metal, PSU bank and IT stocks saw a bit of selling pressure.

As per provisional closing data, the barometer index, the S&P BSE Sensex declined 360.95 points or 0.62% to 57,628.95. The Nifty 50 index lost 111.65 points or 0.65% to 16,988.40.

In the broader market, the S&P BSE Mid-Cap index slipped 1.12% while the S&P BSE Small-Cap index fell 0.99%.

The market breadth was weak. On the BSE, 1,155 shares rose and 2,467 shares fell. A total of 130 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 8.39% to 16.01.

Investors reacted negatively to news of a Credit Suisse bailout by its bigger rival UBS. Credit Suisse shares tumbled 60% while UBS was down 8%.

On Sunday, Switzerland's biggest bank, UBS, agreed to buy Credit Suisse in an emergency rescue deal aimed at stemming financial market panic unleashed by the failure of two American banks earlier this month, media reports stated.

UBS is paying 3 billion Swiss francs ($3.25 billion) for Credit Suisse in an all-share deal, about 60% less than the amount the bank was worth when markets closed on Friday, the reports added. Credit Suisse investors will reportedly get one UBS share for every 22.48 Credit Suisse shares held.

Meanwhile, caution prevailed ahead of the US Federal Reserve's meeting outcome due later this week. Investor will keep an eye on the actions of the American Central Bank to see how it will proceed in its fight against inflation in light of the shakeup in the banking sector.

Stocks in Spotlight:

HDFC Bank fell 0.64% and HDFC declined 0.02%. HDFC Bank announced that the National Company Law Tribunal (NCLT) on Friday approved the proposed merger scheme of Housing Development Finance Corporation (HDFC) with the bank. HDFC had announced its merger with HDFC Bank on 4 April 2022. According to the merger scheme, HDFC Bank will become 100% owned by public shareholders and existing shareholders of HDFC will own 41% of HDFC Bank.

Tata Steel slipped 2.20%. The company announced that it has acquired 1,55,34,738 equity shares of its wholly owned subsidiary, Tata Steel Advanced Materials (TSAML) for an amount aggregating to approximately Rs 19.90 crore.

Bharat Petroleum Corporation (BPCL) jumped 2.32%. The company said that it allotted 93,561 non-convertible debentures (NCD's) aggregating to Rs 935.61 crore on a private placement basis.

Separately, BPCL announced the appointed Krishnakumar Gopalan as the chairman & managing director (C&MD) of the company with effect from 17 March 2023. The appointment is until Gopalan's superannuation or “until further orders”, the Ministry of Petroleum and Natural Gas said. Gopalan replaces Arun Kumar Singh, who retired as chairman in October 2022.

Glenmark Pharmaceuticals added 0.71%. The pharma company said that it has received final approval by the United States Food & Drug Administration (US FDA) for Prochlorperazine Maleate tablets, the generic version of Compazine tablets of GlaxoSmithKline. Prochlorperazine is used in the treatment of nausea, vomiting, and migraine caused by various conditions.

Rail Vikas Nigam (RVNL) gained 2.85% after TTIPL-RVNL consortium emerged as the lowest bidder (L1) for a National Highway Authority of India (NHAI) project. The cost of the project is Rs 1,271.99 crore in which Tracks & Towers Infratech (TTIPL) share stands at 51% while the remaining 49% remains with RVNL.

Meanwhile, the civil construction company on Friday announced that it emerged as the lowest bidder (L1) for composite contract package in connection with new BG Railway Line of Haryana Orbital Rail Corporation (HORC) project. The cost of the project is Rs 1,088.49 crore and it is expected to be executed within 1,460 days.

Navin Fluorine International added 0.41% after the firm announced that it's wholly owned subsidiary, Navin Fluorine Advanced Sciences, board approved a capital expenditure of Rs 450 crore for setting up a new 40,000 tonnes per annum hydrofluoric acid capacity at Dahej.

Cochin Shipyard advanced 3.21% after the firm bagged an international order from NAVSHUTTLE 1 AS and NAVSHUTTLE 2 AS, Lysaker Norway, for the construction of two zero emission feeder container vessels with an option for two more vessels. NAVSHUTTLE 1 and 2 AS are part of the Samskip Group, headquartered in the Netherlands. The total project cost is approximately Rs 550 crore and the first vessel is to be delivered in 28 months and the second to be within 34 months.

Numbers to Watch:

The yield on India's 10-year benchmark federal paper advanced to 7.337 from 7.354 in previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.63, compared with its close of 82.5950 during the previous trading session.

MCX Gold futures for 5 April 2023 settlement gained 0.20% to Rs 59,503.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.07% to 103.63.

The United States 10-year bond yield declined 0.39% to 3.384.

In the commodities market, Brent crude for May 2023 settlement slipped $2 or 2.74% to $70.97 a barrel.

Global Markets:

The Dow Jones futures were down 54 points, indicating a negative opening in the US stock market today.

Shares in Europe and Asia tumbled on Monday after UBS agreed to buy its banking rival Credit Suisse in a $3.2 billion takeover over the weekend.

The People's Bank of China left the loan prime rates for 1-year and 5-year unchanged, after cutting the reserve requirement ratio for almost all banks by 0.25 percentage points last week. The 1-year LPR stayed at 3.65% while the 5-year LPR remained at 4.3%, both unchanged since August last year.

UBS Group AG, Switzerland's largest banking group, has agreed to acquire the crisis-hit Credit Suisse Group AG in a $3.23-billion deal. Swiss regulators played a key role in facilitating the deal in an effort to quell a contagion threatening the banking sector. Under the deal, Credit Suisse shareholders will receive one UBS share for every 22.48 Credit Suisse shares. The combined bank will have $5 trillion of invested assets, according to UBS.

Wall Street closed lower on Friday as investors pulled back from positions in bank shares amid lingering concerns over the state of the U.S. banking sector.

Benchmarks off day's low; Sensex down 544 pts; PSU banks slide.

The key equity indices came off the day's low but traded with significant losses in mid-morning trade. Negative global cues dented investors sentiment. The Nifty traded below the 16,950 mark. PSU banks snapped its two days rising streak.

The barometer index, the S&P BSE Sensex, was down 544.37 points or 0.94% to 57,445.53. The Nifty 50 index lost 168.40 points or 0.98% to 16,931.65.

In the broader market, the S&P BSE Mid-Cap index fell 1.31% while the S&P BSE Small-Cap index slipped 0.87%.

The market breadth was weak. On the BSE, 1,058 shares rose and 2,285 shares fell. A total of 147 shares were unchanged.

Investors are cautious ahead of the US Federal Reserve's meeting outcome later this week, to see how the central bank will proceed in its fight against inflation in light of the shakeup in the banking sector.

Buzzing Index:

The Nifty PSU Bank index slipped 1.77% to 3,616.65. The index advanced 1.40% in previous two trading sessions.

Bank of Maharashtra (down 3.78%), UCO Bank (down 2.41%), Indian Overseas Bank (down 2.17%), Punjab & Sind Bank (down 2.13%), Bank of India (down 2.08%), Punjab National Bank (down 1.88%), Canara Bank (down 1.74%), State Bank of India (down 1.74%), Central Bank of India (down 1.64%) and Union Bank of India (down 1.47%) declined.

Stocks in Spotlight:

Rail Vikas Nigam (RVNL) rose 1.97% after the company said that it emerged as the lowest bidder (L1) for composite contract package in connection with new BG Railway Line of Haryana Orbital Rail Corporation (HORC) project. The cost of the project is Rs 1,088.49 crore and it is expected to be executed within 1,460 days.

SKF India added 0.43%. The company said that it has signed share purchase agreement with Clean Max Enviro Energy Solutions to acquire 2,600 equity share capital of Cleanmax Taiyo.

HDFC Bank fell 0.76% and HDFC declined 0.24%. HDFC Bank announced that the National Company Law Tribunal (NCLT) on Friday approved the proposed merger scheme of Housing Development Finance Corporation (HDFC) with the bank. HDFC had announced its merger with HDFC Bank on 4 April 2022. According to the merger scheme, HDFC Bank will become 100% owned by public shareholders and existing shareholders of HDFC will own 41% of HDFC Bank.

Global Markets:

Asian stocks declined across the board on Monday after UBS agreed to buy its banking rival Credit Suisse in a $3.2 billion takeover over the weekend.

The People's Bank of China left the loan prime rates for 1-year and 5-year unchanged, after cutting the reserve requirement ratio for almost all banks by 0.25 percentage points last week. The 1-year LPR stayed at 3.65% while the 5-year LPR remained at 4.3%, both unchanged since August last year.

UBS Group AG, Switzerland's largest banking group, has agreed to acquire the crisis-hit Credit Suisse Group AG in a $3.23-billion deal. Swiss regulators played a key role in facilitating the deal in an effort to quell a contagion threatening the banking sector. Under the deal, Credit Suisse shareholders will receive one UBS share for every 22.48 Credit Suisse shares. The combined bank will have $5 trillion of invested assets, according to UBS.

Wall Street closed lower on Friday as investors pulled back from positions in bank shares amid lingering concerns over the state of the U.S. banking sector.

Sensex gains 355 pts, Nifty ends at 17,100, VIX slumps 9%.

Domestic benchmark indices ended with modest gains on Friday. Realty, metal and bank stocks were in demand. On the other hand, media, pharma and healthcare stocks declined.

The Nifty 50 index opened higher at 17,111.80, and hit the day's high of 17,145.80 in early trade. However, the index pared gains as the session proceeded and briefly slipped into the negative terrain to hit the day's low of 16,958.15 in afternoon trade. The Nifty paved its way back into the positive zone to settle at 17,100 level.

As per provisional closing data, the barometer index, the S&P BSE Sensex, was up 355.06 points or 0.62% to 57,989.90. The Nifty 50 index added 114.45 points or 0.67% to 17,100.05.

In the broader market, the S&P BSE Mid-Cap index rose 0.29% while the S&P BSE Small-Cap index gained 0.69%.

The market breadth was positive. On the BSE, 2,058 shares rose and 1,448 shares fell. A total of 128 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, dropped 8.94% to 14.77.

Risk sentiments took a back seat after a consortium of major US private banks announced a $30 billion rescue package for embattled lender First Republic Bank. The package announced by JPMorgan Chase, Morgan Stanley and nine other giants consisted of $30 billion uninsured deposits.

Investors will look ahead to the US Federal Reserve's meeting next week to see how the central bank will proceed in its fight against inflation in light of the shakeup in the banking sector.

The European Central Bank on Thursday announced a further rate hike of 50 basis points despite of recent turmoil in the banking sector.

Buzzing Index:

The Nifty Realty index rose 3.03% to 399. The index jumped 4.18% in two trading sessions.

Prestige Estates Projects (up 4.86%), DLF (up 4.15%), Macrotech Developers (up 3.45%), Brigade Enterprises (up 3.37%), Sobha (up 2.69%), Phoenix Mills (up 2.01%), Godrej Properties (up 1.79%), Oberoi Realty (up 1.15%), Indiabulls Real Estate (up 0.17%) and Sunteck Realty (up 0.1%) advanced.

Stocks in Spotlight:

Housing Development Finance Corporation (HDFC) rose 1.75%. The housing finance major said that its board will meet on Monday, 27 March 2023, to consider raising of funds through issuance of non-convertible debentures in various tranches aggregating to Rs 57,000 crore, on private placement basis.

Tata Consultancy Services (TCS) shed 0.41%. After a successful stint as managing director & CEO during the last 6 years, Rajesh Gopinathan has decided to step down from Tata Consultancy Services (TCS) to pursue his other interests. Gopinathan will continue with the company till 15 September 2023 to provide transition and support to his successor.

The board has nominated K. Krithivasan as the CEO designate with effect from 16 March 2023. Krithivasan will go through a transition with Rajesh Gopinathan and will be appointed as the managing director & CEO in the next financial year.

Zee Entertainment Enterprises (ZEEL) declined 0.27%. The company offering a clarification to a media report, said that it has been exploring several strategies, including settlement, in relation to the ongoing dispute mentioned in the news report.

Media reports published yesterday stated that ZEEL has agreed to repay dues owed to IndusInd Bank as the company seeks to resolve insolvency proceedings initiated against it and inch closer to completing a merger with a Sony Group unit to create a $10 billion media giant.

Hindustan Aeronautics (HAL) rallied 3.05%. The Defence Acquisition Council on Thursday (March 16) approved proposals worth Rs 70,500 crore for the Armed Forces & Indian Coast Guard under Buy {Indian-IDDM (Indigenously Designed, Developed and Manufactured)} category. The council, under the chairmanship of Defense Minister Rajnath Singh, has also accorded acceptance of necessity (AoN) for procurement of advance light helicopters (ALH) MK-III from HAL for the Indian Coast Guard.

Glenmark Pharmaceuticals added 1.64%. The United States Food and Drug Administration (USFDA) gave its acceptance to Glenmark Specialty SA's investigational new drug (IND) application for GRC 54276, an orally available, small molecule hematopoietic progenitor kinase 1 (HPK1) inhibitor developed by Glenmark to proceed with a phase 1/2, first-in-human, clinical study for the treatment of patients with advanced solid tumors and lymphomas.

Adani Transmission locked in an upper circuit of 5% after the company said that it has incorporated a wholly owned subsidiary, Adani Electricity Aurangabad (AEAL), on 15 March 2023, with an authorized and paid-up share capital of Rs 1 lakh each for applying parallel distribution license in Aurangabad area.

Samvardhana Motherson International fell 1.04%. The company said that its board has approved the acquisition of remaining 50% stake of Fritzmeier Motherson Cabin Engineering from F Holdings GmbH, Austria. Post completion of the transaction, Fritzmeier Motherson Cabin Engineering will become wholly owned subsidiary of the company.

Rail Vikas Nigam (RVNL) rose 1.57% after the company said that it emerged as the lowest bidder (L1) for supply, installation, testing and commissioning work in Jabalpur for Rs 111.85 crore.

Lemon Tree Hotels gained 1.70% after the company signed license agreement for a 60 room property in Sri Ganganagar, Rajasthan under its brand Lemon Tree Hotels. The property is expected to be operational by July 2026 and shall be managed by Carnation Hotels, a wholly-owned subsidiary and the management arm of Lemon Tree Hotels.

Genus Power Infrastructures advanced 2.42% after the company announced that it has incorporated Genus Assam Package-2 SPV, a wholly-owned subsidiary of the company on 9 March 2023. Genus Assam Package-2 SPV, is a public limited company, its main object is to manufacture consumption meters for electricity, water or gas, flow meters and counting meter

Unichem Laboratories fell 2.99%. The pharma company announced that it has received abbreviated new drug application (ANDA) approval from the United States Food and Drug Administration (USFDA) for its Ranolazine extended-release tablets. The approved ANDA is a generic version of Ranexa of Gilead Sciences Inc. Ranolazine extended-release tablets are indicated for the treatment of chronic angina (chest pain).

Global Markets:

Shares in Europe and Asia advanced on Thursday after Credit Suisse and First Republic Bank received financial help designed to prevent a crisis in the banking sector.

The European Central Bank followed through with the 50 basis point rate hike it flagged at its prior meeting, despite ongoing volatility in the banking sector. It takes the bank's main rate to 3%.

US stocks finished solidly higher Thursday after a consortium of major US private banks announced a $30 billion rescue package for embattled lender First Republic.

Major Wall Street banks pledged a deposit of $30 billion in First Republic Bank in an attempt to bolster confidence in the banking system. The group of 11 banks, included Bank of America, Wells Fargo, Citigroup and JPMorgan Chase.

Meanwhile, U.S. Treasury Secretary Janet Yellen said the U.S. banking system remains sound and Americans can feel confident that their deposits will be there when needed.