Markets drift higher in early trade; Paytm, Jubilant Foodworks down 10%. 14March2022

  

Equity indices traded higher with decent gains in early trade. The Nifty traded near the 16,700 mark. Banking and financial stocks saw buying demand while auto and FMCG shares came under selling pressure.

The barometer index, the S&P BSE Sensex, rose 169.62 points or 0.31% at 55,719.15. The Nifty 50 index gained 41.65 points or 0.25% at 16,672.90.

In the broader market, the S&P BSE Mid-Cap index rose 0.17% while the S&P BSE Small-Cap index gained 0.4%.

The market breadth was strong. On the BSE, 1,726 shares rose and 758 shares fell. A total of 144 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 2,263.90 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,686.85 crore in the Indian equity market on 11 March, provisional data showed.

Stocks in Spotlight:

One97 Communications (Paytm) tumbled 10.4%.The Reserve Bank of India (RBI) directed Paytm Payments Bank to stop, with immediate effect, onboarding of new customers. The bank has also been directed to appoint an IT audit firm to conduct a comprehensive system audit of its IT system. Paytm Payments Bank is one of the payment instruments of Paytm.

Tech Mahindra rose 1.17%.The IT company on Saturday announced that it has approved the proposal to acquire 100% equity shares in Thirdware Solutions. Thirdware, headquartered in Mumbai, is a global player in Enterprise Applications focused in the areas of ERP, BIA, Cloud and business technologies.

Jubilant FoodWorks slumped 10%. The pizza maker said that the board of directors has accepted the resignation of Pratik Rashmikant Pota as the CEO and wholetime director of the company as he wishes to pursue opportunities outside the firm.

Global Markets:

Asian stocks were trading mixed on Monday as investors monitor a Covid wave in China. Meanwhile, oil prices continued to be volatile amid the Russia-Ukraine war.

Investors continued watching developments on the Russia-Ukraine war, which is disrupting shipping and air freight. Elsewhere, markets also monitored a recent wave of Covid infections in China — including the major city of Shenzhen.

U.S. stocks dropped on Friday as the ongoing Russia-Ukraine conflict continued to unnerve investors. The U.S. government will revoke Russia's most-favored nation trade status amid the conflict, the White House said Friday, noting that it will work with Group of Seven (G7) countries and the European Union to roll out new sanctions.

In U.S. economic reports, data from the University of Michigan consumer sentiment survey showed a fall to an initial March reading of 59.7 from February's level of 62.8.

Nearly 90 small-cap stocks gain over 10% as market ends in black amid volatility.

 

All the sectoral indices ended with gains as the Nifty Media and Pharma indices rise 6 percent each and Information Technology and Realty indices climb 3 percent each.

Indian benchmark indices witnessed smart recovery, gaining more than 2 percent in the week ended March 11 and broke a four-week losing streak amid volatility due to the ongoing geopolitical tension between Russian and Ukraine.

In the last week, the BSE Sensex added 1,216.49 points (2.23 percent) to end at 55,550.3, while the Nifty50 rose 385.15 points (2.37 percent) to end at 16,630.5 levels.

All the sectoral indices ended in the green with the Nifty Media and Pharma indices rising 6 percent each and Information Technology and Realty indices climbing 3 percent each.

Among broader indices, BSE Mid-cap Index rose 3 percent, Small-cap index jumped 3.2 percent and Large-cap Index added 2.2 percent.

Foreign institutional investors (FIIs) sold equities worth Rs 24,688.44 crore, and domestic institutional investors (DIIs) bought equities worth Rs 17,729.12 crore. However, in March, FIIs sold equities worth Rs 43,303.05 crore and DIIs bought equities worth Rs 30,329.05 crore.

Nearly 90 small-cap stocks gained 10-38 percent, including Take Solutions, Dwarikesh Sugar Industries, BGR Energy Systems, IOL Chemicals, Khaitan Chemicals, Gujarat Ambuja Exports, HEG, Avadh Sugar & Energy, Reliance Infrastructure, Sarda Energy and Minerals, JK Paper and Gujarat Narmada Valley Fertilizers & Chemicals.

However, KBC Global, JK Cement, Elgi Equipments, GTPL Hathway, Future Lifestyle Fashions, Jindal Stainless, KEC International, Quess Corp and Future Retail lost 8-14 percent.

“Nifty started trading for the week with a gap down opening amid negative global news flows. The index sneaked below the 15,700 mark, but it then witnessed a smart recovery for the rest of the week and recovered more than 1,000 points from the low to end well above 16,600,” said Ruchit Jain, Lead Research, 5paisa.com.

“Although we started the week on a negative note, the markets witnessed a V-shaped recovery to end the week on a positive note. However, if we look at the recent historical data, then it is seen that 16,800 has been a pivotal level which was the crucial support breached in the last week of February," he said.

The markets then sold off sharply and on pullback move now, this level has become a hurdle. The index needs to take out the hurdle of 16,800-17,000 zone.

“The main reason for the recent volatility was the geopolitical tensions between Russia and Ukraine which had cascading on commodities (which rose sharply) and equities. Hence, positive news from this crisis would only be a trigger to take the equity markets out of this situation,” he said.

“Until we see the index surpassing this hurdle, traders are advised to trade with a stock specific approach and avoid aggressive positions. The immediate supports for the Nifty are now placed around 16,350 and 16,200, said Jain.

The BSE Midcap index rose 3 percent with Indraprastha Gas, Balkrishna Industries, Jindal Steel & Power, Jubilant Foodworks, L&T Finance Holdings, Oberoi Realty, Zee Entertainment Enterprises and Tata Consumer Products gaining 7-14 percent.

The BSE 500 index added over 2 percent, led by the IOL Chemicals and Pharmaceuticals, HEG, JK Paper, Gujarat Narmada Valley Fertilizers & Chemicals, Gujarat Heavy Chemicals, Balrampur Chini Mills, Infibeam Avenues and Swan Energy.

“Markets had a terrible start to the week gone by as tensions escalated between Russia and Ukraine over the previous weekend. This resulted in a massive gap down on Monday. Fortunately, the damage was not much thereafter as we witnessed Nifty making attempts of stabilising around 15,700,” said Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One.

“After this, the global uncertainty subsided a bit which resulted in complete V-shaped recovery in the following two sessions. Since the market was deeply oversold, the speed at which it made a comeback, was really remarkable. Eventually, with some range-bound movement on Friday, Nifty ended the week with decent gains over a couple of a percent.”

Where is Nifty50 headed?

Next week the market will focus on the reduction of commodity prices and diplomatic development between Russia and Ukraine. If these global trends turn positive, the performance of the Indian market will be good or else it may get choppy.

The market will also focus on inflation data to be released in India and the US, and the US Fed and the BoE meeting is scheduled for next week.

The brief consolidation can continue in the range of 16,400-16,800 after which the index will be set to extend higher. Thus a potential minor degree dip towards 16,450-16,400 can be taken as a fresh buying opportunity. Beyond 16,800, the Nifty is expected to test 17,000 in the short term.

The markets will first react to the IIP data in early trades on Monday. Besides, development on the Russia-Ukraine crisis and movement of crude will remain in focus.

On the index front, a decisive move above 16,800 in Nifty would further fuel the recovery, else sideways to negative move will continue. Participants should stay light and wait for clarity.

Sensex crosses 56,000 level; banks stocks in demand. 10March2022

 

The benchmark indices extended gains in morning trade, buoyed by banks, autos and financial services scrips. Metal shares corrected for the third trading session. The Nifty crossed the 16,700 level.

The barometer index, the S&P BSE Sensex, surged 1,359.96 points or 2.49% at 56,007.29. The Nifty 50 index soared 390 points or 2.39% at 16,735.35.

In the broader market, the S&P BSE Mid-Cap index rose 1.84% while the S&P BSE Small-Cap index gained 2.29%.

The market breadth was strong. On the BSE, 2,728 shares rose and 382 shares fell. A total of 100 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 4,818.71 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 3,275.94 crore in the Indian equity market on 9 March 2022, provisional data showed.

Politics:

The elections of the five states - Goa, Manipur, Punjab, Uttar Pradesh and Uttarakhand - were held in seven phases between 10 February 2022 to 7 March 2022. The results are being announced today, 10 March 2022.

So far, the ruling Bhartiya Janata Party (BJP) is leading in Uttar Pradesh (UP), Goa, Manipur and Uttarakhand. In Punjab, Aam Admi Party (AAP) all set to dethrone the incumbent Indian National Congress (INC).

In UP, BJP under CM Yogi Adityanath is all set to sweep the elections again, as the party currently leads on 172 seats (vote share: 42.61%) while former CM Akhilesh Yadav's Samajwadi Party (SP) currently leads with 81 seats (vote share: 30.97%), grabbing the second position as of now.

Buzzing Index:

The Nifty Bank index rallied 4.52% to 35,345.55. The index has jumped 7.52% in three trading sessions.

Axis Bank (up 6.47%), IndusInd Bank (up 5.19%), State Bank of India (SBI) (up 5.07%), Bandhan Bank (up 4.61%) and ICICI Bank (up 4.60%) were the top gainers in the Bank segment.

Stocks in Spotlight:

Jindal Steel & Power (JSPL) lost 0.71%. The steel manufacturer reported a 8% year-on-year increase in steel sales to 5.9 lakh tonnes in February 2022 as compared to 5.47 lakh tonnes sold in February 2021. JSPL said sales would have been higher if not for limited rake availability in the eastern part of the country. The company further said that railway rake availability issue is not yet fully resolved, hampering its sales efforts. Meanwhile, exports contributed 24% to the sales volumes. On production side, JSPL's steel production stood at 6.57 lakh tonnes in February 2022 which was 1% higher than previous year.

Jindal Stainless (Hisar) advanced 2.43%. The company said it received AS 9100D Certification, a quality management system for aviation, space, and defence organizations. The certification validates Jindal Stainless (Hisar) (JSHL)'s competence to constantly meet highly stringent standards of the aerospace industry. It also enables JSHL to get listed in OASIS, the Online Aerospace Supplier Information System database, which showcases the company offerings to aerospace manufacturers. The AS 9100D certification journey was driven by the top management and implemented by a team of around 120 people across the supply chain, within 15 months, JSHL said in a statement.

Indices extend gains; IT stocks in demand. 09March2022

  

The benchmark indices extended initial gains in morning trade, buoyed by IT and pharma scrips. At 10:30 IST, the barometer index, the S&P BSE Sensex, rose 545.81 points or 1.02% at 53,969.90. The Nifty 50 index gained 139.25 points or 0.87% at 16,152.70.

In the broader market, the S&P BSE Mid-Cap index added 1.10% while the S&P BSE Small-Cap index rose 1.33%.

The market breadth was strong. On the BSE, 2,406 shares rose and 619 shares fell. A total of 114 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 8,142.60 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 6,489.59 crore in the Indian equity market on 8 March 2022, provisional data showed.

LIC IPO:

State-owned insurance behemoth Life Insurance Corporation of India (LIC) on Tuesday has received capital markets regulator Sebi's go-ahead to raise funds through an initial share sale. The government will sell over 31 crore equity shares of LIC.

Buzzing Index:

The Nifty IT index rose 1.47% to 35,570.25. The index rose 4.20% in the past two trading sessions.

Tech Mahindra (up 2.80%), Mphasis (up 2.16%), MindTree (up 2.15%), L&T Technology Services (LTTS) (up 1.97%) and Infosys (up 1.96%) were the top gainers in the IT segment.

Stocks in Spotlight:

Bharat Forge rose 0.89%. The forging company announced incorporation of a step-down subsidiary, Sagar-Manas Technologies (SMTL). Kalyani Strategic Systems (KSSL), a wholly owned subsidiary of Bharat Forge has incorporated SMTL on 7 March 2022, as a wholly owned subsidiary. SMTL is incorporated as a part of a joint venture agreement executed between KSSL and Kyrgyzstan-based Open Joint Stock Company Dastan Transnational Corporation (Dastan). The JV aims to participate in joint upgradation and manufacturing/providing solutions for marine and defence products, which will be undertaken through SMTL as a special purpose vehicle.

Atul declined 2.01%. Atul on Wednesday announced that it completed the expansion of its Sulphur Black manufacturing facility. The expansion will see production capacity increase from 9,800 tonnes per annum to 26,000 tonnes per annum. The integrated plant will produce both, liquid as well as powder formulations. Atul further said that the plant will be equipped with a zero liquid discharge facility in line with the commitment of the company towards sustainability. The products are GOTS approved and Oeko-Tex Standard 100 compliant.

Nifty below 16,300; auto shares decline. 04March2022

The equity benchmarks extended losses and declined further in morning trade. The Nifty was trading below the 16,250 mark. Auto shares declined for fourth day in a row.

The barometer index, the S&P BSE Sensex, was down 1017.64 points or 1.85% to 54,085.04. The Nifty 50 index lost 273.60 points or 1.66% to 16,224.45.

In the broader market, the S&P BSE Mid-Cap index fell 1.78% while the S&P BSE Small-Cap index declined 1.31%.

The market breadth was weak. On the BSE, 930 shares rose and 2054 shares fell. A total of 126 shares were unchanged.

The continued escalation of the Russia-Ukraine war, rising oil prices and continued FIIs selling puts a significant headwind on the economy by dampening growth prospects. FIIs were net sellers Rs 6,645 crore while DIIs were net buyers Rs 4,799 crore yesterday.

Economy:

Commerce and Industry Minister Piyush Goyal has called for increasing India's share in global trade to 10% and taking India's share of exports in GDP to about 25%. Addressing the closing session of the Post-Budget Webinar on 'Make in India for the World', Goyal said these are ambitious targets, but doable.

He said other countries are also talking of programmes very similar to AatmaNirbhar Bharat. Goyal called for taking India among the top three nations in Global Services Trade.

Stating that the government is looking at a more liberal regulatory regime for the Drones sector barring the Defence systems, he said that the Industry should aim to make India become the manufacturing hub of Drones.

He called for integrating quality in full value chain and said it should not just come into picture once the final product is made. Underlining the need to develop technical skills of tomorrow for the industry, the Minister called for the need to reorient academic courses to make it relevant to the needs of today.

Buzzing Index:

The Nifty Auto index fell 2.99% to 9,954.10. The index has lost 8.64% in four session sessions.

Ashok Leyland (down 4.85%), Hero MotoCorp (down 4.27%), Maruti Suzuki (down 4.24%), Eicher Motors (down 3.34%), Mahindra & Mahindra (down 3%), TVS Motor Company (down 2.98%), Tata Motors (down 2.72%), Bajaj Auto (down 2.10%) and Bharat Forge (down 0.84%) declined.

Stocks in Spotlight:

LT Foods rose 1.82% to Rs 67. The company's wholly-owned subsidiary, LT Foods Americas entered into agreement to acquire 51% stake of Golden Star Trading on 2 March 2022, with a call option to buy the remaining 49% stake at the end of 3 years.

IndiaMART InterMESH fell 1.71% to Rs 4480.10. The company entered into an agreement to invest 10% of the share capital (on fully diluted basis) of Zimyo Consulting (referred as Zimyo) for a cash consideration of Rs 17.01 crore. Zimyo is engaged in a business of offering SaaS-based human resource management software for the companies.

KEC International slipped 1.58% to Rs 459.20. The EPC company secured new orders of Rs. 1,131 crores across its various businesses.

Indices slide in early trade; breadth weak. 04March2022

  

The key equity barometers dropped sharply in early trade, amid across the board selling in index pivotals. Global stocks fell amid the ongoing Russia-Ukraine war and rising crude prices.

The barometer index, the S&P BSE Sensex, was down 726.83 points or 1.32% to 54,375.85. The Nifty 50 index lost 212.80 points or 1.29% to 16,285.25.

In the broader market, the S&P BSE Mid-Cap index fell 1.21% while the S&P BSE Small-Cap index declined 0.89%.

The market breadth was weak. On the BSE, 876 shares rose and 1580 shares fell. A total of 80 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 6,644.65 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 4,799.24 crore in the Indian equity market on 3 March, provisional data showed.

Stocks in Spotlight:

Vodafone Idea fell 3.16% to Rs 10.73. The board of directors of the telecom services provider has approved fund raising of upto Rs 4,500 crore on a preferential basis, through its promoters. It has decided to issue more than 338.34 crore equity shares at an issue price of Rs 13.30 per share to Euro Pacific Securities, Prime Metals, and Oriana Investments. The company has also received board's approval for additional fund raising of Rs 10,000 crore via private placement or qualified institutions placement.

Mahindra & Mahindra Financial Services (MMFSL) slipped 1.65% to Rs 139.75. MMFSL's disbursement in February 2022 was approximately Rs 2,733 crore, up 44% YoY. The YTD disbursement was approximately Rs 23,632 crore, registered a YoY growth of 42%.

Themis Medicare declined 1.81% to Rs 989. The company said that it received approval from Drug Controller General of India (DCGI) for its antiviral drug VIRALEX.

Global Markets:

Most Asian stocks slipped on Friday as investors remain on edge over Russia's invasion of Ukraine.

Europe's largest nuclear power plant in eastern Ukraine came under attack from Russian shelling early Friday, Ukrainian officials reportedly said.

Ukraine reportedly told the International Atomic Energy Agency the fire “has not affected 'essential' equipment,” and that there had been no change reported in radiation levels. The reactors are “being protected by robust containment structures” and are being safely shut down, U.S. Energy Secretary Jennifer Granholm reportedly said in a statement, which added that the department activated its Nuclear Incident Response

U.S. stocks churned lower on Thursday, led to the downside by tech sector, as action in the energy and bond markets slowed and investors monitored the war in Ukraine.

Traders also monitored comments from Federal Reserve officials, including Fed Chairman Jerome Powell's testimony to the Senate Banking Committee for his second day of Congressional testimony this week. Cleveland Fed President Loretta Mester said Thursday that the war in Ukraine intensified the need for the Fed to raise rates.

Shares with decent gains; Asian markets edge higher. 03March2022

The domestic equity barometers traded with decent gains in mid-morning trade. The Nifty hovered around the 16,650 mark. Metal stocks extended gains for the fourth consecutive session.

The barometer index, the S&P BSE Sensex, was up 155.42 points or 0.28% to 55,624.32. The Nifty 50 index added 41.25 points or 0.25% to 16,647.20.

In the broader market, the S&P BSE Mid-Cap index rose 0.53% while the S&P BSE Small-Cap index gained 1.15%.

The market breadth was strong. On the BSE, 2388 shares rose and 745 shares fell. A total of 122 shares were unchanged.

Buzzing Index:

The Nifty Metal index rose 1.45% to 6,225.75, extending gains for fourth day. The index has added 17.17% in four sessions.

Coal India (up 5.11%), Hindustan Copper (up 4.67%), Tata Steel (up 1.85%), Adani Enterprises (up 1.76%), Ratnamani Metals Tubes (up 1.59%), SAIL (up 1.75%), JSW Steel (up 1.19%), Welspun Corp (up 1.14%) and NMDC (up 1.06%) advanced.

Stocks in Spotlight:

Adani Ports and Special Economic Zone (APSEZ) was down 0.03% to Rs 710.05. The company during the month of February 2022, handled cargo volume of 24.15 million metric tonnes (MMT), registering a growth of 14.4% on a year-on-year (Y-o-Y) basis.

Oriental Rail Infrastructure added 3.57% to Rs 114.50. The company secured orders worth Rs 26.97 crore from Rail Coach Factory (Hussainpur), Kapurthala (Punjab) for manufacturing and supplying seats and berths to Indian Railways.

Global Markets:

Shares in Asia-Pacific were largely higher in Thursday trade as U.S. stocks bounced back overnight. Oil prices, however, continued to move higher following a price surge in recent days.

A private survey released Thursday showed slowing Chinese services activity growth in February, with the Caixin/Markit services Purchasing Managers' Index coming in at 50.2 for that month. That compared against January's reading of 51.4.

The 50-point mark in PMI readings separates growth from contraction. PMI readings are sequential and represent month-on-month expansion or contraction.

Investors continued monitoring movements in the oil market, with crude prices spiking to their highest level in years on Wednesday, amid Russia's escalating war on Ukraine.

The sanctions imposed on Russia have caused traders to back away from its resources, stoking fears of shortfalls in energy, grains and metals.

Meanwhile, the OPEC and its allies decided Wednesday to hold production steady despite the recent dramatic spike in oil prices.

U.S. equities were higher at the close on Wednesday, as gains in the basic materials, financials and oil & gas sectors propelled shares higher.

Federal Reserve Chair Jerome Powell backed a quarter-point interest-rate hike this month to commence a series of increases and didn't rule out a larger move at some stage, despite uncertainty caused by Russia's invasion of Ukraine.

Fed officials are pivoting to tackle the fastest inflation in 40 years and a few have publicly discussed the potential need to hike by a half point some time this year if inflation comes in too hot.