Sensex, Nifty advance in early trade; breadth strong. 23February2022

Equity indices advanced in early trade as buying resumed after recent market slide. All sectoral indices on the NSE traded in the green.

The barometer index, the S&P BSE Sensex, was up 262.72 points or 0.46% to 56,563.65. The Nifty 50 index added 85 points or 0.5% to 17,177.20.

In the broader market, the S&P BSE Mid-Cap index rose 0.92% while the S&P BSE Small-Cap index gained 1.37%.

The market breadth is strong. On the BSE, 2222 shares rose and 559 shares fell. A total of 91 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 3,245.52 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 4,108.58 crore in the Indian equity market on 22 February, provisional data showed.

Stocks in Spotlight:

Wipro rose 0.43%. The IT major announced that it has formed a joint go-to market partnership with vFunction, a Palo Alto-based startup that has developed a scalable, AI-based technology platform for modernizing Java applications and accelerating migration to the cloud.

Dilip Buildcon added 3.49% after the road construction company announced that it was declared as L-1 bidder for a new HAM project under Raipur-Visakhapatnam in Chhattisgarh. The order is worth Rs 1141 crore.

Global Markets:

Most Asian stocks were trading higher on Wednesday as investors continue monitoring the intensifying crisis surrounding Ukraine. Markets in Japan are closed on Wednesday for a holiday.

Wall Street's main indices fell on Tuesday, with the S&P 500 confirming a correction, as the Ukraine-Russia crisis kept investors on the edge after Russian President Vladimir Putin recognised two breakaway regions in the country and ordered troops to the area.

U.S. President Joe Biden said Tuesday Russia has begun “an invasion” of Ukraine and announced sanctions against Russian banks and the country's sovereign debt, among others. Biden's announcement came following the Russian parliament's approval of President Vladimir Putin's Tuesday request to use military force outside the country's borders.

On the economic data front, the IHS Markit manufacturing PMI rose to 52.5 in February from 50.5. The IHS Markit services PMI jumped to 56 in February from 51.1 the month prior.

Benchmarks pare losses; metal stocks decline. 22February2022

 

The domestic equity barometers further pared losses in mid-morning trade. The Nifty hovered near the 17,000 mark. Metal stocks were under pressure.

The barometer index, the S&P BSE Sensex, was down 705.53 points or 1.22% to 56,978.06. The Nifty 50 index slumped 207.70 points or 1.21% to 16,998.95.

Escalating geopolitical tensions between Russia and Ukraine weighed on the sentiment. There are concerns that rising tensions in Eastern Europe will boost crude oil prices and could spark global supply chain disruption, resulting in rising input costs. Thousands of U.S. and European companies do business with suppliers in Russia and Ukraine. Many of them could be at risk during a prolonged military conflict.

In the broader market, the S&P BSE Mid-Cap index declined 1.17% while the S&P BSE Small-Cap index lost 1.84%.

The market breadth was weak. On the BSE, 535 shares rose and 2,666 shares fell. A total of 96 shares were unchanged.

Buzzing Index:

The Nifty Metal index declined 1.65% to 5,565.60, extending losses for fifth day in a row. The index has declined 4.79% in the five sessions.

Tata Steel (down 2.67%), Coal India (down 2.30%), Welspun Corp (down 2.25%), Hindustan Copper (down 2.17%), SAIL (down 2.04%), Vedanta (down 1.74%), Hindustan Zinc (down 1.65%), JSW Steel (down 1.44%), Jindal Steel & Power (down 1.35%), Adani Enterprises (down 1.19%) and APL Apollo Tubes (down 10%) declined.

Hindalco shed 0.25% to Rs 510.65. The company's wholly owned subsidiary Novelis will invest approximately Rs 372.74 crore ($50 million) to build a recycling centre with annual casting capacity of 100 kilotonnes of low-carbon sheet ingot at its Ulsan Aluminium joint venture in South Korea. It expects the recycling centre to reduce the company's carbon emissions by more than 420,000 tonnes each year.

Adani Enterprises fell 1.04% to Rs 1666.90. The Adani Group announced it has signed a non-binding Memorandum of Understanding (MoU) with Ballard Power Systems to evaluate a joint investment case for the commercialization of hydrogen fuel cells in various mobility and industrial applications in India. Under the MoU, both parties will examine various options to cooperate, including potential collaboration for fuel cell manufacturing in India.

Vedanta declined 2.08% to Rs 346.35. The company announced that it has made an oil discovery in its exploratory well in Rajasthan's Barmer district. The company holds 100% participating interest in the block.

Global Markets:

Asian stocks declined on Tuesday as tensions surrounding Russia and Ukraine continue to keep investors on edge.

U.S. markets were closed for a holiday on Monday. Oil jumped to a seven-year high as Europe's eastern flank stood on the brink of war after Russian President Vladimir Putin reportedly ordered forces into two breakaway regions of eastern Ukraine, following a Monday announcement that he would recognize their independence. After that development, the White House responded, with U.S. President Joe Biden ordering sanctions against the separatist regions of Ukraine.

Nifty trades above 16,950; banks tumble. 22February2022

The key equity indices pared early losses in morning trade. The Nifty was trading a tad above the 16,950 mark, after hitting the day's low at 16,843.80. Banks stocks declined across the board.

The barometer index, the S&P BSE Sensex, was down 887.94 points or 1.54% to 56,795.65. The Nifty 50 index slumped 250.10 points or 1.45% to 16,956.55.

Escalating geopolitical tensions between Russia and Ukraine weighed on the sentiment. There are concerns that rising tensions in Eastern Europe will boost crude oil prices and could spark global supply chain disruption, resulting in rising input costs. Thousands of U.S. and European companies do business with suppliers in Russia and Ukraine. Many of them could be at risk during a prolonged military conflict.

In the broader market, the S&P BSE Mid-Cap index declined 1.17% while the S&P BSE Small-Cap index lost 1.84%.

The market breadth was weak. On the BSE, 415 shares rose and 2,701 shares fell. A total of 86 shares were unchanged.

Amid growing concerns of geopolitical tensions, Russian President Putin has ordered to deploy troops into two breakaway regions in eastern Ukraine, which it has recognized as independent on Monday, a move strongly criticized by the world leaders.

Moscow calls the operation of launching the Russian army in these two regions in Ukraine as 'peacekeeping operation' in the area, however worrying the Western leaders of a potential invasion by Russia, and ringing the bells of war.

Post this development, US President Biden signed an executive orde to block trade and investment in parts of Ukraine which were declared independent by Russia by Putin.

Economy:

Union Minister for Finance & Corporate Affairs Nirmala Sitharaman asked the industry leaders to explore ways to further strengthen their sector and help in the post-pandemic revival of economy.

Addressing a post-budget interaction with various industry leaders in Mumbai, the Finance Minister expressed satisfaction about the resilience displayed by the financial markets even during pandemic times.

Sitharaman urged the market participants to strive for efficiency and transparency to help to channelize the resource for productive investment in the most effective manner.

During her opening remarks, the Finance minister asserted that the government wants a sustained recovery. She highlighted that the budget proposals on infrastructure building are an attempt to create the multiplier effect to help the economy. Stating that technology has helped the government make payments to the affected people during the pandemic, Smt Sitharaman said it is also looking at how digital solutions can be deployed in the education and the farming sectors.

She also said that banks will have to be a lot more customer-friendly not in terms of taking adverse risks, but in how they engage with and serve customers.

During the interaction, various ideas and suggestions related to investor awareness, KYC norms, mutual fund penetration, deepening of corporate bonds, commodity derivatives, and effectiveness of the market system were also discussed in detail.

Buzzing Index:

The Nifty Bank index fell 1.66% to 37,058.55. The index had advanced 0.40% in the past two sessions.

Bandhan Bank (down 2.74%), IDFC First Bank (down 2.39%), Federal Bank (down 2.26%), IndusInd Bank (down 2.26%), SBI (down 2.18%), Axis Bank (down 1.74%), Punjab National Bank (down 1.60%), AU Small Finance Bank (down 1.57%), HDFC Bank (down 1.20%), ICICI Bank (down 1.19%), RBL Bank (down 1.12%) and Kotak Mahindra Bank (down 1.10%) declined.

ICICI Bank slipped 1.13% to Rs 745.80. The bank has entered into an agreement to acquire 9.49% stake in Verve Financial Services for Rs 19.99 crore.

Stocks in Spotlight:

Tata Power slipped 1.49% to Rs 221.65. The company's subsidiary Tata Power Renewable Energy has signed a memorandum of understanding with RWE Renewables GmbH to explore the potential for a joint development of offshore wind projects in India.

Krsnaa Diagnostic advanced 2.66% to Rs 605.50. The company has bagged a tender for providing diagnostic/laboratory services in healthcare institutions run by the Health and Family Welfare Department of Government of Himachal Pradesh.

Sensex, Nifty tumble as Russia-Ukraine tension worsens. 22February2022

  

The domestic indices traded with deep cuts in early trade, mirroring the weakness in global markets. The continued escalation of geopolitical tensions between Russia and Ukraine depressed the investor community. All sectoral indices on the NSE are trading in the red.

The barometer index, the S&P BSE Sensex, was down 1,021.46 points or 1.77% to 56,662.13. The Nifty 50 index slumped 289.80 points or 1.68% to 16,916.85.

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, surged 18% to 27.03.

In the broader market, the S&P BSE Mid-Cap index declined 1.47% while the S&P BSE Small-Cap index lost 2.10%.

The market breadth was weak. On the BSE, 334 shares rose and 2,403 shares fell. A total of 58 shares were unchanged.

Stocks in Spotlight:

Adani Enterprises fell 2.16% to Rs 1647.90. The Adani Group announced it has signed a non-binding Memorandum of Understanding (MoU) with Ballard Power Systems to evaluate a joint investment case for the commercialization of hydrogen fuel cells in various mobility and industrial applications in India. Under the MoU, both parties will examine various options to cooperate, including potential collaboration for fuel cell manufacturing in India.

Vedanta declined 2.21% to Rs 345.90. The company announced that it has made an oil discovery in its exploratory well in Rajasthan's Barmer district. The company holds 100% participating interest in the block.

Indiabulls Housing Finance was up 0.30% to Rs 167.25. The company informed that the Enforcement Directorate has sought some information regarding certain clients. The company and its officials have provided the data of clients to Enforcement Directorate.

Global Markets:

Asian stocks were trading lower on Tuesday as tensions surrounding Russia and Ukraine continue to keep investors on edge.

Russian President Vladimir Putin reportedly ordered forces into two breakaway regions of eastern Ukraine, following a Monday announcement that he would recognize their independence. After that development, the White House responded, with U.S. President Joe Biden ordering sanctions against the separatist regions of Ukraine.

U.S. markets were closed for a holiday on Monday.

Oil jumped to a seven-year high as Europe's eastern flank stood on the brink of war after Russian President Vladimir Putin ordered troops into breakaway regions of eastern Ukraine.

Sensex, Nifty fall for fourth day amid negative global cues. 21February2022

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.

Sensex down 460 points, Nifty barely holds 17,100 mark. 21February2022

  

Equity indices traded range bound with losses amid geopolitical concerns. The Nifty traded above the 17,100 mark. All sectoral indices traded with losses with realty, media and metal stocks losing the most.

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 fell 22 cents at $93.32 a barrel.

The barometer index, the S&P BSE Sensex, dropped 460.92 points or 0.8% at 57,372.81. The Nifty 50 index lost 146.95 points or 0.85% at 17,129.80.

In the broader market, the S&P BSE Mid-Cap index declined 1.03% while the S&P BSE Small-Cap index lost 1.78%.

The market breadth was weak. On the BSE, 598 shares rose and 2,600 shares fell. A total of 140 shares were unchanged.

Buzzing Index:

The Nifty Metal index slipped 1.47% to 5,693, extending its losing run to fourth consecutive trading session. The metal index declined % in four days.

Coal India (down 4.01%), APL Apollo Tubes (down 2.09%), Hindalco Industries (down 1.97%), Vedanta (down 1.22%) and Hindustan Zinc (down 1.09%) were the top losers. Among the other losers were JSW Steel (down 0.85%), Tata Steel (down 0.75%), NMDC (down 0.7%) and Jindal Steel & Power (down 0.31%).

Stocks in Spotlight:

Kansai Nerolac Paints fell 1.16%. 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.

Strides Pharma Science fell 1%. 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.

Sensex, Nifty open lower amid negative global cues. 21February2022

The domestic indices traded lower in early trade, mirroring weak global cues. All sectoral indices on the NSE traded in the red.

The barometer index, the S&P BSE Sensex, dropped 521.8 points or 0.9% at 57,311.81. The Nifty 50 index lost 164.55 points or 0.95% at 17,111.80.

In the broader market, the S&P BSE Mid-Cap index declined 1.34% while the S&P BSE Small-Cap index lost 2.11%.

The market breadth was weak. On the BSE, 547 shares rose and 2,248 shares fell. A total of 118 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 2,529.96 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,929.08 crore in the Indian equity market on 18 February, provisional data showed.

Stocks in Spotlight:

InterGlobe Aviation lost 3%. 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 0.04%. 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.

Global Markets:

Asian stocks were trading lower 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.

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.

Markets in the U.S. are closed on Monday for a holiday.