After a two-day rapid surge, Indian equity markets closed Monday’s session in negative territory, down a per cent, as the ongoing conflict in Ukraine drove up oil prices. Crude prices have surpassed $110 per barrel, blowing predictions of increased inflation. Markets opened slightly higher as some support arrived as India’s tax collection on personal and corporate income increased by more than 48% in the current fiscal year, following a 41% increase in advance tax payments, reflecting a sustained economic recovery in a year marked by two waves of coronavirus outbreaks.
The Nifty50 has formed a bearish candle on the daily chart, though the market’s medium-term texture still appears to be on the positive side, according to Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities.
He is of the view that the index’s 50-day simple moving average of around 17,250 is now an immediate hurdle for the bulls. “Below this zone, a correction wave is likely to continue till 17,000-16,975. A fresh uptrend is possible only after a breakout at 17,250, above which there are bright chances of 17,350-17,400 levels,” he says.
Sensex fell 571.44 points or 0.99% to 57,292.49 and Nifty was down by 169.45 points or 0.98% to 17,117.60 in the previous session. Sensex touched high and low of 58,127.95 and 57,229.08, respectively. There were 5 stocks advancing against 25 stocks declining on the index. Nifty traded in a range of 17,096.40 and 17,353.35. There were 9 stocks advancing against 40 stocks declining, while 1 stock remained unchanged on the index.
Broader Indices
The broader indices ended mixed with the BSE Midcap index falling 0.68%, while the Small cap index was up by 0.38%. The few gaining sectoral indices on the BSE were Metal up by 1.70%, Basic Materials up by 0.23% and Healthcare was up by 0.04%, while Utilities down by 1.89%, Power-down by 1.81%, FMCG down by 1.46%, Bankex down by 1.30%, Capital Goods down by 1.12% were the top losing indices on BSE.
Support and Resistance levels
The key support level for the Nifty is placed at 17,025, followed by 16,932. If the index moves up, the key resistance levels to watch out for are 17,282 and 17,446, according to pivot charts.
SGX Nifty
The trends on SGX Nifty indicate a negative opening for the index in India with a 75.50-points loss. The Nifty futures were trading at 17,166.00 on the Singaporean Exchange around 06:35 hours IST.
Asian Markets
Asian markets finished mixed. The Nikkei 225 gained 0.65% and the Shanghai Composite rose 0.08%. The Hang Seng lost 0.89%
The S&P 500 fell 1.94 points, less than 0.1%, to 4,461.18.
The Dow Jones Industrial Average fell 201.94 points, 0.6%, to 34,552.99
The Nasdaq fell 55.38 points, or 0.4%, to 13,838.46.
The Russell 2000 index of smaller companies fell 20.21 points, or 1%, to 2,065.94.
European Markets
European markets finished mixed. The FTSE 100 gained 0.51%, while the DAX led the CAC 40 lower. They fell 0.60% and 0.46% respectively.
LIC IPO: Government files updated DRHP with results
The government has filed updated draft papers with the Securities Exchange Board of India (SEBI) for an initial public offering (IPO) of LIC, including the December quarter results of the insurance giant, PTI reported citing officials on Monday. On February 13, the government had filed a draft red herring prospectus (DRHP) with the market regulator SEBI providing details of LIC’s financial results till September. SEBI approved the DRHP earlier this month. “Updated DRHP of LIC with December financials has been filed,” an official said, adding that it was mandatory. According to the latest financials, the insurance giant reported a net profit of Rs 235 crore in the October-December quarter. The net profit in April-December 2021 rose to Rs 1671.57 crore from Rs 7.08 crore in the year-ago period.
Crude oil prices have risen by more than $4 as EU weighs imposing a ban on Russian oil
Oil prices jumped by more than $4 on Monday, with Brent crude climbing above $111 a barrel, as European Union nations considered joining the United States in a Russian oil embargo and after a weekend attack on Saudi oil facilities. Brent crude futures were up $4.44, or 4.1%, at $112.37 a barrel by 1321 GMT, adding to a 1.2% rise on Friday. U.S. West Texas Intermediate (WTI) crude futures rose $4.05, or 3.9%, to $108.75, extending Friday’s 1.7% jump. Prices moved higher ahead of talks this week between European Union governments and U.S. President Joe Biden in a series of summits that aims to harden the West’s response to Moscow over its invasion of Ukraine.
REC board approves borrowing plan of Rs 85,000 crore for 2022-23
REC on March 21 approved a proposal to raise up to Rs 85,000 crore in 2022-23 which includes Rs 75,000 crore from different types of bonds, term loans, external commercial borrowing among others. “The Board of Directors of REC Ltd in its meeting held on March 21, 2022, inter-alia approved the market borrowing programme under different debt segments for the financial year 2022-23,” a BSE filing stated. The total borrowing plan approved by the board is for Rs 85,000 crore for 2022-23. According to the filing, the company has planned to raise Rs 75,000 through the issuance of bonds, term loans, and external commercial borrowings. It will also raise up to Rs 5,000 crore through short-term loans from Banks/Fls/NBFCs etc. The company has also planned to raise Rs 5,000 crore through commercial papers.
India clarifies Russian oil imports, claiming that it accounts for less than 1% of overall imports in 2021-22
The Government of India on March 21 issued an import clarification on Russian oil and said it constitutes less than one percent of total imports, CNBC-TV18 reported. Minister of State for Petroleum and Natural Gas Rameswar Teli said: “The Indian Oil & Gas Public Sector Undertakings have imported less than one percent of their total crude oil import from Russia in the year 2021-2022 (till January).” He further clarified that the oil PSUs in India have diversified procurement from various geographical locations. Teli added that India is closely monitoring the global energy markets and potential disruptions and is ready to take all steps to mitigate market volatility. The Indian government is reportedly looking to increase its imports of Russian oil, to boost its energy supplies at a discount. India, which imports 80 percent of its oil needs, usually buys about two to three percent of its supplies from Russia. But with oil prices up 40 percent so far this year, the government is looking at increasing this if it can help reduce its rising energy bill.
RBI cancels licence of Uttar Pradesh-based People’s Co-operative Bank
The Reserve Bank of India (RBI) has cancelled the licence of People’s Co-operative Bank Limited in Uttar Pradesh, the central bank said in a press statement on March 21. People’s Co-operative is the fourth such bank to face RBI action this year. The bank ceased to carry out banking business, with effect from the close of business on March 21, 2022. In a release, the RBI said that the licence was cancelled as the bank didn’t have adequate capital and earning prospects, and it failed to comply with various sections of the Banking Regulation Act. “The Commissioner for Cooperation and Registrar of Cooperative Societies, Uttar Pradesh has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank,” the RBI said. The continuance of the bank is prejudicial to the interests of its depositors as its financial position wouldn’t allow the bank to pay the depositors in full. The public interest would be affected if the bank was allowed to carry on its business, the banking regulator added.
HINDUJA REALTY VENTURES LIMITED bought 6,00,000 shares in Hinduja Global Sols Ltd at Rs 1090.00 per share on the NSE.
OLGA TRADING PRIVATE LIMITED sold 33,84,255 shares in KBC Global Limited at Rs 11.30 per share on the NSE.
NATH INDUSTRIES LIMITED bought 2,00,000 shares in Nath Bio-Genes (I) Ltd at Rs 228.70 per share on the NSE.
NIRAJ RAJNIKANT SHAH bought 3,50,000 shares in North East Carry Corp Ltd at Rs 27.68 per share on the NSE.
GMO EMERGING MARKET FUND bought 8,19,000 shares of Satin Credit Net Ltd at Rs 101.47 per share on NSE.
RAJASTHAN GLOBAL SECURITIES PVT LTD bought 4,90,815 shares of Selan Exploration Technology at Rs 183.41 per share on NSE.
APL APOLLO MART LIMITED bought 10,00,000 shares in Shankara Bldg Product Ltd at Rs 755.00 per share on the NSE.
VASANI ATUL ARVINDBHAI sold 10,00,000 shares in Vaishali Pharma Limited at Rs 58.39 per share on the NSE.
DREAM DUO LLP sold 9,62,568 shares in Vishal Fabrics Limited at Rs 35.50 per share on the NSE.
Foreign institutional investors (FIIs) sold shares worth a net Rs 2,962.12 crore, while domestic institutional investors (DIIs) bought shares worth a net Rs 252.91 crore in the Indian equity market on March 21, as per provisional data available on the NSE.
Balrampur Chini Mills, Delta Corp, and Indiabulls Housing Finance are under the F&O ban for March 22. Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.
