Indian stock indices fell for the second day in a row on Wednesday, mirroring global market volatility on hawkish comments from US Federal Reserve officials and new sanctions against Russia. Key indices opened in the red and remained in the red throughout the day, as traders became concerned after a private report stated that the Reserve Bank of India will delay its first interest rate hike by at least four months, to August at the earliest, because the central bank must now start worrying about inflation. Furthermore, the continued rise in petrol and diesel costs weighed on market sentiments.
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The Nifty50 has formed a small negative candle on the daily chart with a minor upper shadow, confirming a short-term top reversal at the swing high of 18,114 and the beginning of a downward correction in the market, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
“The index is placed above the previous upside gap of April 4 at 17,800,” he said.
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Sensex fell 566.09 points or 0.94% to 59,610.41 and Nifty was down by 149.75 points or 0.83% to 17,807.65 in the previous session. Sensex touched a high and low of 59,941.57 and 59,509.84, respectively. There were 10 stocks advancing against 20 stocks declining on the index. Nifty traded in a range of 17,901.00 and 17,779.85. There were 20 stocks advancing against 30 stocks declining on the index.
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Broader Indices
The broader indices ended in green with the BSE Midcap index rising 0.41%, while the Small cap index was up by 0.38%. The top gaining sectoral indices on the BSE were Utilities up by 1.91%, Power up by 1.84%, Telecom up by 1.65%, Metal up by 1.54%, PSU up by 1.51% while, IT down by 1.40%, Finance down by 1.25%, TECK down by 1.22%, Bankex down by 1.04% and Healthcare down by 0.44% were the top losing indices on BSE.
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India VIX Index
Nifty or India VIX, a gauge of the market’s expectation of volatility over the near term, rose 2.89% to 19.02 on Wednesday.
SGX Nifty
The trends on SGX Nifty indicate a negative opening for the index in India with a 31-points loss. The Nifty futures were trading at 17,768.80 on the Singaporean Exchange around 06:45 hours IST.
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Support and Resistance levels
The key support level for the Nifty is placed at 17,758, followed by 17,708. If the index moves up, the key resistance levels to watch out for are 17,879 and 17,951, according to pivot charts.
The S&P 500 fell 43.97 points, or 1%, to 4,481.15.
The Dow Jones Industrial Average fell 144.67 points, or 0.4%, to 34,496.51.
The Nasdaq fell 315.35 points, or 2.2%, to 13,888.82.
The Russell 2000 index of smaller companies fell 29.11 points, or 1.4%, to 2,016.94.
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Asian Markets
Asian markets finished mixed on Wednesday. The Shanghai Composite gained 0.02%, while the Hang Seng led the Nikkei 225 lower. They fell 1.87% and 1.58% respectively.
European Markets
European markets finished broadly lower yesterday with shares in France leading the region. The CAC 40 was down 2.21% while Germany’s DAX was off 1.89% and London’s FTSE 100 was lower by 0.34%.
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Invesco to sell 7.8% stake in Zee Entertainment via a block deal
Investment firm Invesco Developing Market Funds has decided to sell its stake in Zee Entertainment Enterprises Limited (ZEEL) for as much as Rs 2,171 crore via a block deal tomorrow, according to a CNBC-TV18 report. Until now, Invesco was locked in a boardroom battle with Zee Entertainment. Currently, Invesco is Zee’s largest shareholder and owns a total of 17.88% stake along with OFI Global China Fund LLC. It will offload up to 7.8% of the equity. It will be selling 7.4 crore shares worth around Rs 2,200 crore, according to a CNBC TV18 report. The shares are being offered between Rs 270 – Rs 290 per share, representing a 7% discount from the current market piece. Kotak Mahindra bank will be the banker for the block deal. Upon completion of the transaction, funds managed by Invesco’s Developing Markets investment team, including Invesco Developing Markets Fund, will continue to own at least 11% of ZEEL, highlighting the investment team’s belief that the Sony deal in its current form has great potential for Zee shareholders.
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Loans of Rs 50,000 crore will be transferred to a bad bank by the end of April: Union Bank MD
The transfer of 15 bad loan accounts worth Rs 50,000 crore to the National Asset Reconstruction Company could not be completed on time due to procedural delays, Union Bank of India Managing Director and CEO Rajkiran Rai G said on Wednesday, adding that the process would be completed by the end of April. In January this year, State Bank of India (SBI) chairman Dinesh Khara had said that the National Asset Reconstruction Company (NARCL) received all approvals to commence operations, and a total of 38 NPA accounts worth Rs 82,845 crore were identified to be transferred to the bad bank in a phased manner. In the first phase, banks agreed to transfer 15 NPA (Non-Performing Asset) accounts worth Rs 50,000 crore by March 31, 2022. Union Bank MD on Wednesday said that the transfer of these stressed assets is expected to take place by this month-end. “We were trying to do that before March 31, but we couldn’t complete all the processes. For the first time, we are doing a structure like this. There are lots of rules and procedures to be followed. By March 31, all the capitalisation parts had to happen. Private banks needed some approvals to come in, and we have got the permission. The capital has come in, and it (NARCL) is 100 per cent capitalised as per the plan,” Rai told reporters. “We may see it (Rs 50,000 crore of NPA transfer to NARCL) happening very quickly by April-end,” he added.
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A consortium led by the Bandhan Group will acquire IDFC AMC for Rs 4,500 crore
Infrastructure Development Finance Company (IDFC Limited) and a consortium comprising Bandhan Financial Holdings Limited (BFHL), GIC, and ChrysCapital (“CC”) have entered into a definitive agreement to acquire IDFC Asset Management Company Limited (IDFC AMC) and IDFC AMC Trustee Company Limited from IDFC Limited, for a consideration of Rs 4,500 crore subject to receipt of necessary regulatory approvals and customary closing conditions. The Bandhan consortium was reportedly selected through a highly competitive divestment process that saw the participation of strategic players and financial investors. A statement released by the consortium read: “This is a highly tracked acquisition and will be the largest deal in the Indian asset management industry to date.” It added: “The agreement envisages continuity of the current management team and investment processes at IDFC AMC, helping unitholders benefit from consistency in the high‐quality investment approach IDFC AMC is reputed for. This will be supplemented well by Bandhan’s brand as well as GIC’s and CC’s international network and experience which will aid IDFC AMC in further cementing its position in the asset management industry and propel further growth.”
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HDFC Bank intends to issue bonds to raise up to Rs 50,000 crore
HDFC Bank on Wednesday said it is planning to raise up to Rs 50,000 crore in the next one year by issuing bonds on a private placement basis. The decision was taken at the bank’s board meeting. “The bank proposes to raise funds by issuing perpetual debt instruments (part of additional tier I capital), tier II capital bonds and long-term bonds (financing of infrastructure and affordable housing) up to a total amount of Rs 50,000 crore over the period of next 12 months through private placement mode,” HDFC Bank said in a regulatory filing. The board of directors would consider this proposal at its meeting to be held on April 16, 2022, it added. Perpetual bonds carry no maturity date, so they may be treated as equity, not as debt. Earlier this week, HDFC Bank agreed to take over its parent and the country’s largest mortgage lender HDFC Ltd, as part of its strategy to fuel growth, especially in the affordable housing segment.
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ICICI PRUDENTIAL MUTUAL FUND UNITS bought 17,02,128 shares while PACE PRIVATE LIMITED sold 29,92,836 shares in Barbeque Nation Hosp. Ltd at Rs 1175.00 and Rs 1172.96 per share, respectively on the NSE.
TIRUPATI TRADE & FINANCE COMPANY sold 90,000 shares of Akash Infra-Projects Ltd at Rs 75.95 per share on NSE.
IDBI TRUSTEESHIP SERVICES LTD sold 51,50,000 shares in GTL Limited at Rs 11.20 per share on the NSE.
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SANTOSH INDUSTRIES LTD bought 32,00,000 shares in Jai Balaji Industries Ltd at Rs 46.60 per share on the NSE.
RAGHAV KAROL bought 1,11,000 shares in Krishna Defence and Allied Industries Limited at Rs 75.00 per share on the NSE.
PJS SECURITIES LLP sold 170,01,255 shares in Supreme Engineering Limited at Rs 3.00 per share on the NSE.
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RASHI ENTERPRISES sold 8,00,000 shares of SVP GLOBAL TEXTILES LTD at Rs 58.94 per share on NSE.
OVERSKUD MULTI ASSET MANAGEMENT PRIVATE LIMITED sold 1,18,800 shares in Uravi T And Wedg Lamp Limited at Rs 110.00 per share on the NSE.
SUNCITY SHARE BROKER PVT. LTD bought 2,18,000 shares of Walchandnagar Ind. Ltd at Rs 57.21 per share on NSE.
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Foreign institutional investors (FIIs) sold shares worth a net Rs 2,279.97 crore, while domestic institutional investors (DIIs) bought shares worth a net Rs 622.92 crore in the Indian equity market on April 6, as per provisional data available on the NSE.
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No security or stock has been put under the F&O ban for April 7. 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.
