Sensex, Nifty extend losses; breadth weak. 28March2022

The benchmark indices were trading with modest losses in morning trade, dragged by banks and IT scrips. The Nifty was trading below its 200-day simple moving average placed at 17,042.74.

The barometer index, the S&P BSE Sensex dropped 447.26 points or 0.78% at 56,914.94. The Nifty 50 index lost 115.65 points or 0.67% at 17,037.35.

The S&P BSE Mid-Cap index fell 0.77%. The S&P BSE Small-Cap index slipped 0.88%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, shares 1,016 rose and 2,195 shares fell. A total of 143 shares were unchanged.

Foreign institutional investors (FIIs) have net sold shares worth Rs 1,507.37 crore, while domestic institutional investors (DIIs) have net bought shares worth Rs 1,373.02 crore on 25 March 2022, as per provisional data on the NSE.

Overseas investors have pulled out a net Rs 1,14,855.97 crore from the Indian markets in the current year so far, amid heightened geopolitical tensions and inflation concerns. Foreign portfolio investors have sold domestic equities worth Rs 48,261.65 crore so far this month, taking the year-to-date tally this year to a massive Rs 1,14,855.97 crore, according to depositories data.

Buzzing Index:

The Nifty Bank index fell 1% to 35,056.25. The index skid 3.55% in four trading sessions.

IDFC First Bank (down 2.51%), RBL Bank (down 2.25%), HDFC Bank (down 1.72%), Kotak Mahindra Bank (down 1.52%) and State Bank of India (SBI) (down 1.11%) were the top losers in the Bank segment.

Stocks in Spotlight:

Bharti Airtel rose 1.28%. The telecom major has entered into an agreement to acquire 7.036% stake in Avaada KNShorapur for Rs 1.74 crore as cash consideration. Avaada KNShorapur acts as a Special Purpose Vehicle (SPV) under Avaada Indiclean to develop, execute, manage and run upto 10 MW Solar Power Generation Plant(s) in Karnataka. The objects and effects of the acquisition are to comply with regulatory requirement for captive power plants under the provisions of Electricity Act' 2003 and Indian Electricity Rules' 2005 and procurement of cost-effective renewable energy.

Shares of INOX Leisure soared 13.93% while PVR jumped 5.94%. INOX Leisure, PVR announced a merger in which shareholders will receive 3 shares of PVR in exchange of 10 shares in INOX. The board of PVR and INOX Leisure, at their respective meetings held on Sunday (27 March 2022), approved an all stock amalgamation of INOX with PVR. The amalgamation is subject to approval of the shareholders of PVR and INOX respectively, stock exchanges, SEBI and such other regulatory approvals as may be required.

Upon obtaining all approvals, INOX will merge with PVR. INOX shareholders will receive 3 shares in PVR for 10 shares of INOX. Post the merger, PVR promoters will have 10.62% stake while INOX promoters will have 16.66% stake in the combined entity. The board of the merged company would be re-constituted with total board strength of 10 members and both the promoter families having equal representation on the board with 2 board seats each.

Indices drift lower in early trade. 28March2022

Indices opened tad lower and traded with tiny losses in early trade. The Nifty traded below the 17,150 level. Banks and financial stocks saw selling pressure while media shares rallied.

The barometer index, the S&P BSE Sensex, was down 193.92 points or 0.34% to 57,168.51. The Nifty 50 index lost 28.9 points or 0.17% to 17,124.50.

In the broader market, the S&P BSE Mid-Cap index rose 0.3% while the S&P BSE Small-Cap index gained 0.17%.

Buyers outnumbered sellers. On the BSE, 1385 shares rose and 1194 shares fell. A total of 123 shares were unchanged.

Stocks in Spotlight:

PVR jumped 5.34% while shares of INOX Leisure rallied 12.55% after the board of directors of PVR and INOX Leisure, at their respective meetings, approved an all stock amalgamation of INOX with PVR. INOX shareholders will receive 3 shares in PVR for 10 shares of INOX.

GAIL (India) gained 2.4%. The board of GAIL (India) will consider a share buyback on 31 March 2022.

Dilip Buildcon rose 0.74%. The road construction company on Saturday announced that it has been declared as L-1 bidder for road construction project by the National Highways Authority of India in the state of Telangana.

Global Markets:

Asian stocks were trading mixed on Monday as coronavirus lockdown in Shanghai looked set to hit global activity, while throwing another wrench into supply chains that could add to inflationary pressures.

U.S. stock benchmarks closed mostly higher Friday, following choppy trade, after oil prices rebounded on the back of reports of a missile strike on a Saudi Aramco facility and as investors continued to weigh rising interest rates.

New York Fed President John Williams on Friday said he would support a half-point move if justified but indicated it was premature to make a call on the size of a future rate increase.

Market ends in red; Nifty ends below 17,200. 25March2022

 

The key equity benchmarks ended with modest losses on Friday. The Nifty closed a tad above the 17,150 level. While most sectoral indices on the NSE ended in the red, realty, oil & gas and PSU banks advanced.

The barometer index, the S&P BSE Sensex fell 233.48 points or 0.41% to 57,362.20. The Nifty 50 index lost 69.75 points or 0.40% to 17,153.

Tech Mahindra (down 2.35%), Maruti Suzuki India (down 1.79%), Nestle India (down 1.24%) and Wipro (down 1.18%) were major drags.

In the broader market, the BSE Mid-Cap index fell 0.36% and the BSE Small-Cap index lost 0.33%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, shares 1,256 rose and 2,158 shares fell. A total of 96 shares were unchanged.

Economy:

India's projected economic growth for 2022 has been downgraded by over 2% to 4.6% by the United Nations, a decrease attributed to the ongoing war in Ukraine, with New Delhi expected to face restraints on energy access and prices, reflexes from trade sanctions, food inflation, tightening policies and financial instability, according to a UN report released on Thursday.

The UN Conference on Trade and Development (UNCTAD) report downgraded its global economic growth projection for 2022 to 2.6% from 3.6% due to shocks from the Ukraine war and changes in macroeconomic policies that put developing countries particularly at risk. The report said while Russia will experience a deep recession this year, significant slowdowns in growth are expected in parts of Western Europe and Central, South and South-East Asia.

Numbers to Watch:

The yield on 10-year benchmark federal paper fell to 6.814% as compared with 6.834% at close in the previous trading session.

In the foreign exchange market, the rupee was higher against the dollar. The partially convertible rupee was hovering at 76.22, compared with its close of 76.33 during the previous trading session.

MCX Gold futures for 5 April 2022 settlement fell 0.22% to Rs 51,966.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, declined 0.13% to 98.66.

In the commodities market, Brent crude for May 2022 settlement rose 8 cents at $119.11 a barrel. The contract fell $2.57 or 2.11% to settle at $119.03 a barrel during the previous trading session.

Foreign Markets:

European shares advanced while Asian stocks ended mixed on Friday.

Global markets have been tracking negotiations over Russia's invasion of Ukraine closely, and Thursday saw a host of high-level meetings between world leaders and international bodies.

US President Joe Biden said Thursday that NATO would respond “in kind” if Russia uses weapons of mass destruction in Ukraine. The president spoke after a marathon of summit meetings with the European Union, G-7 partners and NATO allies. Biden also said he would support an effort to expel Russia from the G-20 group of economies.

Buzzing Segment:

The Nifty Consumer Durables index fell 1.96% to 27,017.50. The index has fallen 3.54% in two sessions.

Rajesh Exports (down 3.48%), Titan Company (down 3.38%), Voltas (down 2.14%), Kajaria Ceramics (down 2.01%), Whirlpool of India (down 1.87%) and Dixon Technologies (India) (down 1.11%) tumbled.

Stocks in Spotlight:

Bharti Airtel advanced 0.42%. The telecom company on Friday announced that it has paid Rs 8,815 crore to the Department of Telecom (Government of India) towards part prepayment of deferred liabilities pertaining to spectrum acquired in auction of year 2015. The prepayment is for instalments due in FY 2027 and FY 2028.

In the past four months, Bharti Airtel has settled Rs 24,334 crore of its deferred spectrum liabilities much ahead of scheduled maturities. These liabilities carried an interest rate of 10% and have been paid off through a combination of strong free cash generated by business, equity proceeds and significantly lower cost debt of similar tenor.

Motherson Sumi Systems rose 2.49%. The company announced that it has won an order from Boeing to manufacture and supply aftermarket molded polymer parts for commercial airplane interiors. This is the first order for Motherson from Boeing. The order will commence from Q3 FY23 and will be produced in a Motherson plant situated in Noida, located in the state of Uttar Pradesh in India.

Zen Technologies rose 4.93%. The company has received a Project Sanction Order (PSO) from the Indian Army for design and development of prototype of Integrated Air Defence Combat Simulator (IADCS). The prototype is to be made ready for User Trial Readiness Review (UTRR) within a period of 30 weeks.

Tata Consumer Products fell 0.80%. The company's board will meet on 29 March 2022 to consider raising funds via preferential share sale. The Tata Group firm plans to issue preferential shares equivalent to 1.5% of its paid-up equity capital to a foreign buyer, it said in a stock exchange filing on Thursday.

Multi Commodity Exchange of India (MCX) rose 1.52% after the market regulator Sebi allowed exchanges having a commodity derivative segment to facilitate trading in options on commodity indices. Exchanges will have to seek a prior approval from the market regulator for allowing the same, the Securities and Exchange Board of India (Sebi) said in a circular on Thursday. The move is part of efforts to have more products in the commodity derivatives market.

Atul rose 2.30% to Rs 10,112.10. The company announced buyback of shares worth up to Rs 70 crore from shareholders, excluding promoters. The buyback of shares will be at a price not exceeding Rs 11,000 per equity share through the open market route. Atul's promoters held 45.04% stake as on 18 March 2022.

Vikram Thermo (India) jumped 6.32% after the company said its board will consider bonus share issue on 1 April 2022.

Adani Total Gas hits all time high; rises 26% in seven days. 25March2022

Shares of the gas distribution company have surged 26.36% in seven trading sessions from its previous closing low of Rs 1,624.70 posted on 15 March 2022. The counter hit a record high of Rs 2,069.80 in intraday today. The stock has zoomed nearly 165.6% from its 52-week low of Rs 772.95 recorded on 22 July 2021.

On the BSE, 28,000 shares were traded in the counter so far compared with average daily volumes of 19,000 shares in the past two weeks.

In last one month, the stock has moved nearly 30.21% higher outperforming the Nifty 50 index which rose 2.84% in the same period.

The counter saw demand after the company on 23 March received authorization letters from various Geographical Areas (GAs) for laying, building, operating and expanding CGD networks. The company participated in the 11th CGD Bidding Round conducted by Petroleum and Natural Gas Regulatory Board (PNGRB) and received authorization letters for laying, building, operating and expanding city gas distribution (CGD) networks from 6 states.

On the technical front, the stock's RSI (relative strength index) stood at 71.574. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock is trading above its 50 and 100 days simple moving average placed at 1756.05 and 1720.15 respectively. These levels will act as crucial support zones in near term.

Adani Total Gas is one of India's leading private players in developing City Gas Distribution (CGD) networks to supply Piped Natural Gas (PNG) to Industrial, Commercial, Domestic (residential) customers and Compressed Natural Gas (CNG) to the transport sector.

The company's consolidated net profit slipped 9.3% to Rs 131.58 crore on a 78% jump in net sales to Rs 883.27 crore in Q3 FY22 over Q3 FY21.

Shares end with limited losses; realty shares outperform. 25March2022

 

The key equity benchmarks ended with modest losses on Friday. The Nifty closed a tad above the 17,150 level. While most sectoral indices on the NSE ended in the red, realty, oil & gas and PSU banks managed to end higher.

As per provisional closing data, the barometer index, the S&P BSE Sensex fell 233.48 points or 0.41% to 57,362.20. The Nifty 50 index lost 69.75 points or 0.40% to 17,153.

In broader market, the S&P BSE Mid-Cap index fell 0.36% while the S&P BSE Small-Cap index slipped 0.33%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, shares 1,353 rose and 2,047 shares fell. A total of 110 shares were unchanged.

Economy:

India's projected economic growth for 2022 has been downgraded by over 2% to 4.6% by the United Nations, a decrease attributed to the ongoing war in Ukraine, with New Delhi expected to face restraints on energy access and prices, reflexes from trade sanctions, food inflation, tightening policies and financial instability, according to a UN report released on Thursday.

The UN Conference on Trade and Development (UNCTAD) report downgraded its global economic growth projection for 2022 to 2.6% from 3.6% due to shocks from the Ukraine war and changes in macroeconomic policies that put developing countries particularly at risk. The report said while Russia will experience a deep recession this year, significant slowdowns in growth are expected in parts of Western Europe and Central, South and South-East Asia.

Buzzing Index:

The Nifty Realty index rose 1.22% to 449.15. The index has added 1.72% in two sessions.

Godrej Properties (up 3.40%), Prestige Estates (up 2.97%), DLF (up 2.38%), Oberoi Realty (up 0.69%) and The Phoenix Mills (up 0.83%) advanced.

Sobha Developers (down 1.89%), Sunteck Realty (down 1.26%), Oberoi Realty (down 1.05%), Macrotech Developers (down 0.96%), Brigade Enterprises (down 0.51%) and Indiabulls Real Estate (down 0.29%) declined.

Stocks in Spotlight:

Tata Consumer Products shed 0.65% to Rs 734.55. The meeting of the board of directors of the company is scheduled on 29 March 2022 to consider preferential issue of equity shares of the company.

Exide Industries slipped 0.32% to Rs 153.70. Chloride Metals, a material wholly owned subsidiary of the company has started commercial production at its newly set-up green field manufacturing facility of battery recycling at Haldia, West Bengal.

Zen Technologies jumped 4.81% at Rs 205. The company has received a project sanction order (PSO) from the Indian Army for design and development of prototype of Integrated Air Defence Combat Simulator (IADCS).

GTPL Hathway fell 3.95% to Rs 186. The company announced its partnership with Verimatrix to onboard its Video Content Authority System (VCAS) to protect its Google Android TV-based DVB Hybrid set top box.

Lumax Auto Technologies slipped 2.79% to Rs 174.50. The application filed by the company along with its subsidiaries under the Production Linked Incentive (PLI) Scheme for automobile and auto component industry (PLI-AUTO) has been approved by IFCI.

Multi Commodity Exchange of India (MCX) added 1.47% to Rs 1443.05 after the market regulator SEBI allowed exchanges having a commodity derivative segment to facilitate trading in options on commodity indices.

Bharti Airtel advanced 0.81% to Rs 712. The telecom company on Friday announced that it has paid Rs 8,815 crore to the Department of Telecom (Government of India) towards part prepayment of deferred liabilities pertaining to spectrum acquired in auction of year 2015. The prepayment is for instalments due in FY 2027 and FY 2028.

In the past four months, Bharti Airtel has settled Rs 24,334 crore of its deferred spectrum liabilities much ahead of scheduled maturities. These liabilities carried an interest rate of 10% and have been paid off through a combination of strong free cash generated by business, equity proceeds and significantly lower cost debt of similar tenor.

Torrent Power fell 1.30% to Rs 487.85. The company said that it has completed transaction of acquisition of 100% of the share capital and all securities of LREHL Renewables India SPV 1 (SPV). The enterprise value for this acquisition is around Rs 300 crore, including the viability gap funding (VGF) receivable, consequent to closing adjustments.

The SPV operates 50 MW solar power plant, commissioned in April 2018, situated in the state of Maharashtra. It has a long-term power purchase agreement with Solar Energy Corporation of India for full capacity for a period of 25 years at a tariff of Rs 4.43 per kWh.

Bajaj Electricals (BEL) declined 2.05% to Rs 1039.90. The company said that CRISIL Ratings has assigned its 'CRISIL A+/CRISIL A1+' ratings to the bank loan facilities of the company. These ratings have been placed on 'rating watch with developing implications' while the rating on the short-term debt programme of the BEL has been reaffirmed at 'CRISIL A1+'.

Aurionpro Solutions shed 0.54% to Rs 303. The company's US-based subsidiary, Aurionpro Fintech Inc. bagged an order from a large payment facilitator in the USA offering merchant payment services in insurance financing segment. The scope of the order covers platform upgradation, maintenance & support therefor and also the managed services for AWS cloud infrastructure. The contract is for a tenure of 1 year and is valued at $3 million (approximately Rs 23 crore) spread monthly over the tenure of the contract.

Global Markets:

Most European markets advanced while most Asian stocks ended lower on Friday.

US stocks rose following choppy trading on Thursday, as investors watched western leaders present a unified front against Russia's invasion of Ukraine. Technology companies lifted US stock indices after a sharp fall in the previous session.

Global markets have been tracking negotiations over Russia's invasion of Ukraine closely, and Thursday saw a host of high-level meetings between world leaders and international bodies.

US President Joe Biden said Thursday that NATO would respond “in kind” if Russia uses weapons of mass destruction in Ukraine. The president spoke after a marathon of summit meetings with the European Union, G-7 partners and NATO allies. Biden also said he would support an effort to expel Russia from the G-20 group of economies.

Barometers trade with significant cuts; IT stocks decline. 25March2022

The key equity barometers traded with significant cuts, near the day's low in mid-afternoon trade. The Nifty traded below the 17,150 level. IT shares witnessed some bit of profit booking after advancing in the past three sessions.

The barometer index, the S&P BSE Sensex was down 346.06 points or 0.60% to 57,249.62. The Nifty 50 index lost 104.45 points or 0.61% to 17,118.30.

In broader market, the S&P BSE Mid-Cap index fell 0.40% while the S&P BSE Small-Cap index slipped 0.24%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, shares 1,321 rose and 2,027 shares fell. A total of 123 shares were unchanged.

Economy:

India's projected economic growth for 2022 has been downgraded by over 2% to 4.6% by the United Nations, a decrease attributed to the ongoing war in Ukraine, with New Delhi expected to face restraints on energy access and prices, reflexes from trade sanctions, food inflation, tightening policies and financial instability, according to a UN report released on Thursday.

The UN Conference on Trade and Development (UNCTAD) report downgraded its global economic growth projection for 2022 to 2.6% from 3.6% due to shocks from the Ukraine war and changes in macroeconomic policies that put developing countries particularly at risk. The report said while Russia will experience a deep recession this year, significant slowdowns in growth are expected in parts of Western Europe and Central, South and South-East Asia.

Buzzing Index:

The Nifty IT index fell 1.34% to 36,028.85. The index had advanced 3.22% in the past three sessions.

Tech Mahindra (down 2.57%), L&T Technology Services (down 2.14%), Wipro (down 1.79%), TCS (down 1.33%), Coforge (down 1.16%), Infosys (down 1.11%), HCL Tech (down 0.99%), Mphasis (down 0.73%) and Larsen & Toubro Infotech (down 0.53%) declined.

Numbers to Track:

The yield on 10-year benchmark federal paper fell to 6.829% compared with 6.831% at close in the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 76.3350, compared with its close of 76.3900 during the previous trading session.

MCX Gold futures for 5 April 2022 settlement added 0.13% to Rs 51,833.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.12% to 98.74.

In the commodities market, Brent crude for May 2022 settlement shed 48 cents or 0.39% $122.08 a barrel.

Global Markets:

European markets edged lower while most Asian stocks traded lower on Friday.

Russian shares endured a wild ride on Thursday as they returned to limited trading after a month on the sidelines following the country's invasion of Ukraine, and subsequent punitive international sanctions.

The volatility looks set to continue, and the MOEX Russia Index pulled back in early trade in Moscow on Friday.

US stocks rose following choppy trading on Thursday, as investors watched western leaders present a unified front against Russia's invasion of Ukraine. Technology companies lifted US stock indices after a sharp fall in the previous session.

Global markets have been tracking negotiations over Russia's invasion of Ukraine closely, and Thursday saw a host of high-level meetings between world leaders and international bodies.

NATO committed extra troops along its eastern flank, the U.K. and U.S. rolled out more sanctions against Russian elites and officials, and the U.S. announced billions more in aid to Ukraine.

It comes as markets endure another choppy week, with a hawkish pivot from the U.S. Federal Reserve fueling bets that monetary policy will be tightened aggressively in a bid to rein in runaway inflation.

US President Joe Biden said Thursday that NATO would respond “in kind” if Russia uses weapons of mass destruction in Ukraine. The president spoke after a marathon of summit meetings with the European Union, G-7 partners and NATO allies. Biden also said he would support an effort to expel Russia from the G-20 group of economies.

 

Indices hover near day's low; breadth negative. 25March2022

  

Indices traded near the day's low with losses in afternoon trade. The Nifty traded below the 17,150 level. Media, realty and metal stocks advanced while IT and FMCG shares came under selling pressure.

The barometer index, the S&P BSE Sensex dropped 330.8 points or 0.57% at 57,264.32. The Nifty 50 index lost 92.95 points or 0.54% at 17,129.60.

In broader market, the S&P BSE Mid-Cap index fell 0.17% while the S&P BSE Small-Cap index slipped 0.07%.

The market breadth, indicating the overall health of the market, was negative. On the BSE, shares 1,438 rose and 1,8260 shares fell. A total of 134 shares were unchanged.

Economy:

India's projected economic growth for 2022 has been downgraded by over 2% to 4.6% by the United Nations, a decrease attributed to the ongoing war in Ukraine, with New Delhi expected to face restraints on energy access and prices, reflexes from trade sanctions, food inflation, tightening policies and financial instability, according to a UN report released on Thursday.

The UN Conference on Trade and Development (UNCTAD) report downgraded its global economic growth projection for 2022 to 2.6% from 3.6% due to shocks from the Ukraine war and changes in macroeconomic policies that put developing countries particularly at risk. The report said while Russia will experience a deep recession this year, significant slowdowns in growth are expected in parts of Western Europe and Central, South and South-East Asia.

Nifty Gainers & Losers:

Bajaj Auto (up 1.74%), JSW Steel (up 1.23%), RIL (up 0.68%), UPL (up 0.67%) and Hindalco Industries (up 0.67%) were top gainers in Nifty 50 index.

Titan Company (down 3.35%), Maruti Suzuki India (down 1.92%), Cipla (down 1.87%), Tech Mahindra (down 1.6%) and Nestle India (down 1.54%) were top losers in Nifty 50 index.

Stocks in Spotlight:

Tata Consumer Products fell 0.72%. The meeting of the board of directors of the company is scheduled on 29 March 2022 to consider preferential issue of equity shares of the company.

Multi Commodity Exchange of India (MCX) rose 1.89% after the market regulator SEBI allowed exchanges having a commodity derivative segment to facilitate trading in options on commodity indices.

Bharti Airtel rose 0.6%. The telecom company on Friday announced that it has paid Rs 8,815 crore to the Department of Telecom (Government of India) towards part prepayment of deferred liabilities pertaining to spectrum acquired in auction of year 2015. The prepayment is for instalments due in FY 2027 and FY 2028.For the past four months, Bharti Airtel has settled Rs 24,334 crore of its deferred spectrum liabilities much ahead of scheduled maturities. These liabilities carried an interest rate of 10% and have been paid off through a combination of strong free cash generated by business, equity proceeds and significantly lower cost debt of similar tenor.