Indices extended their losing run to fourth consecutive trading session on Monday. The Nifty closed just above the 17,200 mark after hitting a day's high of 17,351.05 in afternoon trade. The ongoing Russia-Ukraine conflict, rising crude oil prices and relentless selling by foreign portfolio investors (FPIs) continued to put pressure on domestic shares. In the commodities market, Brent crude for April 2022 settlement rose 45 cents at $93.99 a barrel.
However, investor's risk appetite improved after India's private weather forecaster, Skymet, said that it expects the upcoming Monsoon to be 'normal'.
As the provisional closing data, the S&P BSE Sensex, fell 149.38 points or 0.26% at 57,683.05. The Nifty 50 index lost 69.65 points or 0.4% at 17,206.45.
The broader market underperformed the main indices. The S&P BSE Mid-Cap index fell 0.8% while the S&P BSE Small-Cap index slipped 2.2%.
The market breadth was weak. On the BSE, 712 shares rose and 2773 shares fell. A total of 133 shares were unchanged.
Preliminary Monsoon Forecast Guidance for 2022:
Skymet, India's private weather forecasting solutions company, expects the upcoming Monsoon to be 'normal'. Skymet intends to release a detailed report on the prospects of Monsoon 2022 in April. Skymet has been predicting Monsoon since 2012, except in 2020 when it abstained for strategic reasons.
Monsoon has large inter-annual fluctuations in its arrival, intensity, duration, and withdrawal. It is rather early to decode all these aspects at this stage. However, there are precursors to get an early glimpse and gauge its health during the four-month-long season. The last two Monsoon seasons have been driven by back-to-back La Nina events, which has started shrinking now. It also means that Monsoon 2022 is going to be a devolving La Nina to start with and turn neutral later, it said in a statement.
Stocks in Spotlight:
Reliance Industries (RIL) lost 1%. Reliance Jio Infocomm (Jio), the subsidiary of RIL will land multi-terabit India-Asia-Xpress (IAX) undersea cable system in Hulhumale, Maldives. The high capacity and high-speed IAX system will connect Hulhumale' directly with World's major internet hubs in India and Singapore.
Capri Global Capital fell 0.33%. The company said it plans to enter the gold loan business and it will launch this business in the first half of the financial year 2022-23. The company aims to build a gold loan book size of Rs 8,000 crore and expand its network with 1500 branch locations over the next five years.
Power Finance Corporation (PFCL) rose 0.17%. Life Insurance Corporation (LIC) of India sold 5.35 crore equity shares or 2.028% stake of PFCL between 1 November 2017 and 17 February 2022. Post transaction, LIC has decreased its shareholding in PFCL to 5.069%.
White Organic Retail rose 3.7% after the company said its board will consider bonus share issue on 28 February 2022.
Tata Power fell 0.38%. RWE and Tata Power agreed on a partnership to explore the potential for a joint development of offshore wind projects in India. A Memorandum of Understanding (MoU) has been signed between Tata Power Renewable Energy, a 100% subsidiary of Tata Power and one of India's largest integrated power companies, and RWE Renewables GmbH, one of the key player in offshore wind. The MoU between Tata Power Renewable Energy and RWE becomes significant in the light of the Government of India's announcement of achieving 30 gigawatts (GW) of offshore wind installations by 2030 to meet the country's growing power demands.
Equitas Small Finance Bank rose 3.84% after the company said it has raised Rs 550 crore in the qualified institutional placement of equities. The small finance bank sold 10,26,31,087 equity shares to qualified institutional buyers at the issue price of Rs 53.59 each, aggregating to Rs 5,49,99,99,952. The qualified institutions placement (QIP) Issue opened on 14 February 2022 and closed on 18 February 2022. The government of Singapore invested about Rs 155 crore while the Monetary Authority of Singapore put in Rs 36 crore. The balance Rs 359 crore was invested by Nippon Life India Trustee, SBI Mutual Fund, ICICI Prudential, HDFC Mutual Fund and HDFC Trustee Company. The QIP will reduce the promoters holding to 75% and raise public shareholding to a minimum of 25%, as stipulated by the market regulator Securities & Exchange Board of India.
The Phoenix Mills (PML) rose 0.82%. The company announced the execution of non‐binding term sheet to acquire balance 50% equity stake in Classic Mall Development Company (CMDCL) from Crest Ventures and Escort Developers, a 100% subsidiary of Crest Ventures. Currently, PML owns 50% stake in CMDCL while the balance 50% stake is owned by Crest Ventures (46.35%) and Escorts Developers (3.65%); completion of the stake purchase will make CMDCL a subsidiary of PML.
Kansai Nerolac Paints fell 1.06%. The paint maker appointed Anuj Jain as the managing director (MD) for a term of five years, with effect from 1 April 2022. Jain is a B.Sc. and Master of Management Studies, University of Bombay (Mumbai). Jain had joined Kansai Nerolac Paints on 4 June 1990 and was the director of Decorative and Industrial Sales & Marketing, prior to his appointment.
InterGlobe Aviation lost 1.4%. The aviation firm informed that Rakesh Gangwal, non-executive, non-independent director has tendered his resignation from the board of directors of the company vide his letter dated February 18, 2022, with immediate effect.
Gujarat Mineral Development Corporation rose 0.67%. The company has received an amendment to its environment clearance from the Ministry of Environment and Forest to mine up to a depth of 135 meters from its earlier approved depth of 94 meters at the Tadkeshwar, Lignite Mines.
Strides Pharma Science fell 2.96%. The drug company announced that its step-down wholly-owned subsidiary, Strides Pharma Global Pte., Singapore, received approval for Amantadine Hydrochloride Softgel capsules from the United States Food & Drug Administration. The product is bioequivalent and therapeutically equivalent to the Reference Listed Drug (RLD), Symmetrel Capsules of Endo Pharmaceuticals, Inc (Endo). According to IQVIA MAT December 2021 data, the US market for Amantadine Hydrochloride Capsules USP,100 mg is approximately $11 million.
Global Markets:
European markets mildly traded higher while Asian markets declined on Monday, as investors continued to watch the situation surrounding Ukraine.
China on Monday held steady on a benchmark lending rate, with the one-year loan prime rate (LPR) kept unchanged at 3.7%. The five-year LPR was also kept unchanged at 4.6%.
Meanwhile, French President Emmanuel Macron and Russian leader Vladimir Putin on Sunday agreed to work for a ceasefire in eastern Ukraine, as per reports. They also agreed on the need to favour a diplomatic solution to the ongoing crisis and to do everything to achieve one, adding that both countries' foreign ministers would meet in the coming days.
US President Joe Biden is also willing to meet Russia's Vladimir Putin at any time to defuse Ukraine war tensions, as per reports, warning Russia appeared on the verge of invading its neighbor.
US stock market is closed on Monday for a holiday. Wall Street ended lower on Friday after escalating tensions in Ukraine and US warnings of a potential Russian invasion prompted investors to dump risky assets in the run-up to a long weekend.
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