Indian equity indices on Tuesday reversed a five-day winning streak and closed in the negative, reflecting lacklustre global markets. Metal, oil and gas, energy, and IT losses dragged down the main indices.
Following a positive start, key indices gave up gains and traded lower for the day, as traders became cautious with data released by the Ministry of Statistics and Programme Implementation showing that India’s retail inflation rate in February rose to an eight-month high of 6.07%, up from 6.01% the previous month, and remained above the central bank’s comfort level of 6% for the second consecutive month.
The Nifty50 has formed a long bear candle on the daily chart that almost engulfs the previous bull candle, suggesting the formation of a bearish dark cloud cover type pattern at the highs, according to Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
One can expect more weakness in the coming session, he said.
Sensex fell 709.17 points or 1.26% to 55,776.85 and Nifty was down by 208.30 points or 1.23% to 16,663.00 in the previous session. Sensex touched high and low of 56,720.60 and 55,418.95, respectively. There were 9 stocks advancing against 21 stocks declining on the index. Nifty traded in a range of 16,927.75 and 16,555.00. There were 14 stocks advancing against 36 stocks declining on the index.
Broader Indices
The broader indices ended in red with the BSE Midcap index falling 0.68%, while the Small cap index was down by 0.88%. The only gaining sectoral index on the BSE was Auto up by 0.56%, while Metal down by 4.34%, Oil & Gas down by 2.58%, Energy down by 2.41%, IT down by 2.32%, TECK down by 2.07% were the top losing indices on BSE.
Support and Resistance levels
The key support level for the Nifty is placed at 16,503, followed by 16,342. If the index moves up, the key resistance levels to watch out for are 16,875 and 17,088, according to pivot charts.
SGX Nifty
The trends on SGX Nifty indicate a flat opening for the index in India with a 7-points loss. The Nifty futures were trading at 16,912.50 on the Singaporean Exchange around 07:00 hours IST.
Asian Markets
Asian markets finished mixed. The Nikkei 225 gained 0.15%, while the Shanghai Composite led the Hang Seng lower. They fell 7.04% and 5.72% respectively.
The S&P 500 rose 89.34 points, or 2.1%, to 4,262.45.
The Dow Jones Industrial Average rose 599.10 points, 1.8%, to 33,544.34.
The Nasdaq rose 367.40 points, or 2.9%, to 12,948.62.
The Russell 2000 index of smaller companies rose 27.25 points, or 1.4%, to 1,968.97.
European Markets
European markets finished lower yesterday with shares in France leading the region. The CAC 40 was down 0.37% while London’s FTSE 100 was off 0.25% and Germany’s DAX was lower by 0.09%.
Softbank execs will leave the boards of Paytm and Policybazaar
Softbank representative on Indian fintech firm Paytm and Policybazaar, Munish Verma is stepping down from the companies’ boards, reported business-standard. The decision to step down from the boards of listed companies is part of Softbank’s global strategy to not be on boards of listed companies. “The bank has communicated this aspect to the companies at the time of the listing. They prefer not to be part of the boards of listed companies as their primary goal is an investment. In very few selective cases Softbank has stayed on board of few investee firms,” said a source in the know. Softbank will however retain the investments that it has in these firms. SoftBank owns a 17.4% stake in Paytm and around 12.4% stake in Policybazaar. Experts in the sector said that generally such a decision is taken because the primary goal of the investor is to invest, and they do so in similar firms. “By being on the board of the firm they are privy to information shared by the company to the board,” said the sources of business-standard.
Zomato will lend $150 million to Grofers India, acquire stake in Mukunda Foods
Zomato board on March 15 approved the acquisition of a 16.66% stake in Mukunda Foods Private Limited for a cash consideration of Rs 37.5 crore. The acquisition will be done via a subscription of 13,289 convertible preference shares and 10 equity shares of Mukunda Foods. Zomato said in a regulatory filing: “Pursuant to Regulation 30 and other applicable provisions of the Listing Regulations read with SEBI circular, we wish to inform you that the board of directors of Zomato Limited at its meeting held on March 15, 2022, has approved the acquisition by way of subscription of 13,289 (thirteen thousand two hundred eighty-nine) series B1 compulsorily convertible preference shares and 10 equity shares collectively aggregating to 16.66% of the share capital of Mukunda Foods Private Limited on a fully diluted basis, for an aggregate cash consideration of INR equivalent of $5 million (proposed investment).” The board has approved granting a loan of up to USD 150 million (around Rs 1,145 crore) to digital grocery shopping player, Grofers India Pvt Ltd (GIPL).
PNB reports a Rs 2,060 crore fraud in the ITPCL NPA account
Punjab National Bank (PNB), on March 15, reported a fraud of Rs 2,060 crore in the NPA account of IL&FS Tamil Nadu Power Company Limited (ITPCL). The bank informed it has already made provisions amounting to Rs 824.1 crore as per prescribed prudential norms. PNB said in a regulatory filing: “A fraud of Rs. 2060.14 crore is being reported by Bank to RBI in the accounts of the Company. Bank has already made provisions amounting to Rs 824.06 Crore, as per prescribed prudential norms.” Exactly a month ago, in February, Punjab & Sind Bank had declared IL&FS Tamil Nadu a fraud account with outstanding dues of Rs 148 crore. “It is informed that an NPA account, viz IL&FS Tamil Nadu Power Company Ltd with outstanding dues of Rs 148.86 crore has been declared as fraud and reported to RBI today as per regulatory requirement,” the lender said in a regulatory filing.
Oil prices drop around 6% on easing supply concerns, Ukraine talks
Oil prices plunged to their lowest levels in the past three weeks on Tuesday as supply disruption fears eased and rising COVID-19 cases in China triggered demand concerns. Brent futures slipped $6.40 or 5.9% to $100.50 per barrel at 13:08 GMT, while US West Texas Intermediate (WTI) crude was down $6.35 or 6.1% to $96.66 per barrel. Brent dropped as low as $97.44 and WTI touched $93.54, their lowest level since February 25. The sharp fall came after a statement from Russian Foreign Minister Sergei Lavrov that Russia supports the 2015 Iran nuclear deal resuming as soon as possible, according to a Reuters report. The discussions to revive the nuclear agreement, which would lift sanctions on Iran’s oil sector and allow Tehran to resume crude exports, were recently stalled by Russian demands. Oil prices extended their losses from the previous day’s 5% fall after a sudden rise in daily COVID-19 cases in China. The talks between Ukraine and Russian officials were expected to continue on Tuesday, reported Reuters. On the other hand, sanctions against Russia by the western nations failed to stop China and India from buying Russian crude.
India plans Rs 24,000 crore sovereign green bond issue
India will issue sovereign green bonds worth at least Rs 24,000 crore ($3.3 billion) as the country marks a shift towards a low-carbon economy, reported Bloomberg citing officials with knowledge of the matter. The initial sale could start in the first half of the fiscal year starting April 1, and the decision to sell more green debt will be based on the response to the initial issuance, the official said, requesting anonymity as the information is private. Bloomberg reported that a finance ministry spokesperson was not immediately available for a reaction. “If there’s a fitment to the investment portfolio with a good risk-return trade-off then we will look at sovereign green bonds in every possible avenue,” said Chintan Haria, head of products and strategy at ICICI Prudential Asset Management Co, India’s third-largest asset manager. India’s debut in the green bond space comes as it plans to fund renewable energy projects that will help reach its goal of net-zero emissions by 2070. In Budget 2022-23, the government had announced a sovereign green bond. The government expects lower yields on green bonds, as otherwise, it sees little purpose in issuing them, the officials said. The yield on the 10-year sovereign bond settled at 6.85% on Monday.
BAKUL HEERALAL JAIN sold 46,400 shares in Atal Realtech Limited at Rs 112.71 per share on the NSE.
RANE HOLDINGS LIMITED bought 50,000 shares in Rane Brake Lining Limited at Rs 670.35 per share on the NSE.
APOLLO EARTHMOVERS LIMITED sold 55,000 shares in Dangee Dums Limited at Rs 275.02 per share on the NSE.
PIYUSHKUMAR THUMAR sold 1,53,000 shares of Bright Solar Limited at Rs 5.72 per share on NSE.
ATITHI DEALERS PVT. LTD. bought 80,000 shares of Panache Digilife Limited at Rs 51.00 per share on NSE.
CHANDRA MEHTA bought 1,00,000 shares in Selan Exploration Technology at Rs 151.72 per share on the NSE.
DALAL AND BROACHA STOCK BROKING PVT LTD sold 55,00,000 equity shares in Supreme Engineering Ltd at Rs 2.00 per share on the NSE, the bulk deals data showed.
Foreign institutional investors (FIIs) sold shares worth a net Rs 1249.74 crore, while domestic institutional investors (DIIs) bought shares worth a net Rs 98.25 crore in the Indian equity market on March 15, as per provisional data available on the NSE.
Balrampur Chini Mills is under the F&O ban for March 16. 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.
