KEY HIGHLIGHTS
Yield On The 10-Year Declines
The yield on the 10-year bond closed 1.5 bps lower at 7.33% on Monday. It closed at 7.34% on Friday.
FPI Outflow Continues Unabated
Foreign investors in Indian equities remained net sellers for eighth day in a row.
Foreign portfolio investors sold equities worth Rs 2,545.87 crore on Monday, according to data from the National Stock Exchange.
Meanwhile, domestic institutional investors remained net buyers for the eight consecutive day as they bought equities worth Rs 2,876.64 crore.
Foreign institutions invested in Indian equities have remained net sellers so far in 2023, selling equities Rs 24,349 crore by March 20, 2023, according to the National Securities Depository Ltd.
Rupee Weakens Against The U.S. Dollar
The local currency weakened by 10 paise to close 82.64 against the greenback on Monday. It closed at 82.54 on Friday.
Source: Bloomberg
Sensex, Nifty Snap Two-Day Gaining Streak
Indian equity benchmarks declined at opened and struggled through the day on Monday following the Credit Suisse Group AG takeover by UBS Group AG.
The headline indices snapped two days of gain and the benchmarks corrected from the intraday low of over 1.3% to end lower. The NSE Nifty 50 Index recovered to close above 17,000 level after trading below 16,900 in trade.
European stocks fell and the U.S. equity futures retreated as the emergency weekend sale of Credit Suisse Group AG to UBS Group AG failed to soothe market jitters over the health of the banking system. Investors turned to the safest assets, spurring gains in treasuries, while gold rose on haven demand.
Contracts on the S&P 500 edged lower, with major lenders JPMorgan Chase & Co., Bank of America Corp., Wells Fargo & Co. and Citigroup Inc. all down in U.S. premarket trading. Nasdaq 100 futures steadied. Most Asian markets fell by more than 1%.
The S&P BSE Sensex closed down 361 points or 0.62% at 57,204.10 while the NSE Nifty 50 was 112 points or 0.65% lower at 16,988.40.
Bajaj Finserv Ltd., Adani Enterprises Ltd., Bajaj Finance Ltd., Hindalco Industries Ltd., Wipro Ltd., Tata Steel Ltd., Coal India Ltd., State Bank of India, Adani Ports and SEZ Ltd., and Tata Motors Ltd. declined in trade.
All Adani Group Company stocks declined in trade, whereas only Adani Green Energy Ltd. advanced in early trade on Monday.
The broader market indices ended lower; S&P BSE MidCap was down 1.12% whereas S&P BSE SmallCap was lower by 0.88%.
All the 19 sectors compiled by BSE declined, with S&P BSE Metal, S&P BSE Commodities and S&P BSE Realty declining the most in trade. .
The market breadth was skewed in the favour of the sellers. About 1,149 stocks rose 2,474 declined, and 129 remained unchanged on the BSE.
Mahindra Acquires 100% Stake In Mitra Agro Equipments
Mahindra and Mahindra completes the acquisition of MITRA Agro Equipments by increasing its shareholding from 47.33% to 100%.
M&M bought venture capital Omnivor's full stake in the company, which was one of its first institutional investors in MITRA.
MITRA plans to accelerate the expansion of its product portfolio and its network in India and overseas markets after the acquisition.
Source: Exchange filing
RBL Bank Declines Over 18% In Over 10 Days
Shares of RBL Bank Ltd. declined 3.37% to Rs 136.35 apiece in trade on Monday. The headline index NSE Nifty 50 was trading lower by 0.99%.
Scrip fell as much as 6.73% intraday, the most in over six weeks since Feb. 1, 2023. The stock has fallen over 18% for the last 10 trading sessions, since March 3, 2023.
Total traded volume stood at 2.8 time its 30-day average. The relative strength index was at 26.4.
Out of the 21 analysts tracking the company, 10 maintain a 'buy' rating, two recommend a 'hold' and nine suggest to 'sell' the stock.
The return potential as calculated by the consensus of analyst estimates, stand at an upside of 29.8% over the next 12 months.
Source: Bloomberg, Exchange filing
UBS Group AG Opens 13.24% Lower After Credit Suisse Takeover
European Markets Trade Lower
Air Passenger Traffic In February
Air passenger traffic rises 57% year-on-year to 1.21 crore in February.
Market share of airlines in February Vs January (2023):
IndiGo at 55.9% Vs 54.6%
Air India at 8.9% Vs 9.2%
Vistara at 8.7% Vs 8.8%
Go First at 8.0% Vs 8.4%
SpiceJet at 7.1% Vs 7.3%
AirAsia India at 7.0% Vs 7.4%
Source: DGCA
Indices Dragged By The Fall In U.S. Equity Futures
Where Will Nifty And Nifty Bank Find Support?
Arvind Sanger On UBS Takeover Of Credit Suisse
Swiss President Alain Berset On UBS' Takeover Of Credit Suisse
Sensex, Nifty Slip Over 1% As Metals, PSU Banks Drag: Midday Market Update
Indian equity benchmarks opened lower and declined over 1% in trade through midday on Monday.
Asian markets declined and the U.S. and European equity futures wiped out gains as efforts to safeguard the global banking system failed to soothe market jitters.
Positive early readings on UBS Group AG’s agreement to buy Credit Suisse Group AG and central bank moves to boost dollar liquidity gave way to a more cautious sentiment as the trading day progressed.
Financial stocks slid during Asian trading, led by HSBC Holdings Plc, whose shares dropped more than 6% in Hong Kong on concern over risky bond exposures related to Credit Suisse.
UBS will pay CHF 3 billion ($3.2 billion) in an all-stock deal to acquire Credit Suisse, according to a Bloomberg report. Credit Suisse's market capitalisation stood at $8 billion as of close on March 17.
As of 12:20, the S&P BSE Sensex was down 786 points or 1.36% at 57,204.10 while the NSE Nifty 50 was 233 points or 1.36% lower at 16,867.05.
Bajaj Finserv Ltd., Adani Enterprises Ltd., Hindalco Industries Ltd., Bajaj Finance Ltd., Adani Ports and SEZ Ltd., Tata Motors Ltd., Tech Mahindra Ltd., Tata Steel Ltd., Coal India Ltd., and HDFC Life Insurance Co. declined in trade.
All Adani Group Company stocks declined in trade, whereas only Adani Green Energy Ltd. advanced in early trade on Monday.
The broader market indices ended lower; S&P BSE MidCap was down 1.50% whereas S&P BSE SmallCap was lower by 1.05%.
All the 19 sectors compiled by BSE declined, with S&P BSE Metal, S&P BSE Realty declining the most in trade. .
The market breadth was skewed in the favour of the sellers. About 989 stocks rose 2,433 declined, and 125 remained unchanged on the BSE.
Rupee Strengthens Against The U.S. Dollar
Banking Stocks Decline
Shares of banking companies declined in trade on Monday and the headline index NSE Nifty 50 was higher by 1.08% in trade.
The NSE Bank Index was down 1.02% in trade. Eleven out of the 12 constituents compiled by the gauge Declined, while Kotak Mahindra Bank Ltd. declined in trade.
Punjab and National Bank, Bandhan Bank Ltd., IDFC First Bank Ltd., IndusInd Bank Ltd., State Bank of India, AU Small Finance Bank Ltd., Bank of Baroda Ltd., Federal Bank Ltd., and ICICI Bank Ltd. advanced in trade.
Source: NSE
HDFC Shares Decline After Two Bunched Trades
Shares of HDFC Ltd. declined 0.36% to Rs 2,555 apiece in trade on Monday. The headline index NSE Nifty 50 was trading lower by 1%.
About 2.2% equity or 47.8 lakh shares changed hands in two bunched trades.
Scrip fell as much as 1.17% intraday, the most March 15. The relative strength index was at 39.8.
Out of the 26 analysts tracking the company, 25 maintain a 'buy' rating and one recommends to 'hold' the stock.
The return potential as calculated by the consensus of analyst estimates, stand at an upside of 20% over the next 12 months.
Source: Bloomberg
Nifty Banks Recovers
Nifty Bank Index fell to 39,035.75-level in early trade and recovered over 300 points to an intraday high of 39,512.10 points.
Source: Bloomberg
Reliance Industries Hits A Fresh 52-Week Low
Shares of Reliance Industries Ltd. declined 1.39% to Rs 2,192.3 apiece in trade on Monday. The headline index NSE Nifty 50 was trading lower by 0.92%.
Scrip fell as much as 1.80% to Rs 2,183.1 apiece in trade, the most in 52 weeks. The relative strength index was at 29 implying that the stock maybe oversold.
Out of the 37 analysts tracking the company, 32 maintain a 'buy' rating, two recommend a 'hold' and three suggest to 'sell' the stock.
The return potential as calculated by the consensus of analyst estimates, stand at an upside of 30.2% over the next 12 months.
Source: Bloomberg
Stocks At 52-Week High As Markets Trade Lower
BPCL Advances After G Krishnakumar Takes Charge As New Chairman And MD
Shares of Bharat Petroleum Corporation Ltd. advanced 1.45% to Rs 356.5 apiece in trade on Monday. The headline index NSE Nifty 50 was trading lower by 1.11%.
Scrip advanced as much as 1.76%, the most in two trading sessions since March 16. Total traded volume stood at 2.7 time its 30-day average. The relative strength index was at 73.4 implying that the stock maybe overbought.
Out of the 38 analysts tracking the company, 25 maintain a 'buy' rating, eight recommend a 'hold' and five suggest to 'sell' the stock.
The return potential as calculated by the consensus of analyst estimates, stand at an upside of 8.4% over the next 12 months.
G Krishnakumar has taken over as the new chairman and managing director of Bharat Petroleum Corp. Ltd., the company said on Friday. Krishnakumar was an executive director in the company before his elevation.
Krishnakumar replaces Arun Kumar Singh, who retired as chairman in October 2022. Post that, Gupta was holding additional charge of the chairman.
Krishnakumar will hold the position of chairman and managing director till April 2025 or until any further notice, whichever is earlier, according to an official order.
Source: Bloomberg, Exchange filing
Rail Vikas Nigam Rises On Project Win
Shares of Rail Vikas Nigam Ltd. advanced 1.27% to Rs 63.75 apiece in trade on Monday. The headline index NSE Nifty 50 was trading lower by 1.13%.
The company was selected as the lowest bidder for a composite package of four contracts related to the new broad gauge railway line of the Haryana Orbital Rail Corporation project, jointly worth Rs 1,088.49 crore.
Scrip advanced as much as 3.02%, the most since March 17. Two analysts tracking the company maintain a 'buy' rating on the stock.
Source: Bloomberg, Exchange filing
Paras Defence Bags Order Worth Rs 64-Crore From Council Of Scientific And Industrial Research
Paras Defence and Space Technologies Ltd. secured an order worth Rs 64 crore for Avionics Suite for Saras MK-2 Aircraft from Council of Scientific & Industrial Research- National Aerospace Laboratories.
The delivery of Avionics Suite for Saras MK - 2 Aircraft are to be done in FY 2024.
Avionics Suite of Saras MK-2 Aircraft is the complete glass cockpit of the aircraft, including all the equipment related to control, monitoring, communication, navigation, weather and anticollision systems along with Auto-Pilot System.
Source: Exchange Filing
Westlife Foodworld Elevates Saurabh Kalra As Managing Director Of Its Subsidiary
Westlife Foodworld, owner and operator of McDonald’s restaurants in West and South India, has elevated Saurabh Kalra as the Managing Director of its subsidiary Hardcastle Restaurants.
Prior to this, Saurabh was the Chief Operating Officer (COO) of the organisation.
Shares of Westlife Foodworld Ltd. declined 1.32% to Rs 678.7 apiece in trade on Monday. The headline index NSE Nifty 50 was trading lower by 0.88%.
Scrip advanced as much as 4.83%, before declining to 1.40% the lowest intraday. Out of the 19 analysts tracking the company, 15 maintain a 'buy' rating, three recommend a 'hold' and one suggests to 'sell' the stock.
The return potential as calculated by the consensus of analyst estimates, stand at an upside of 25% over the next 12 months.
Source: Bloomberg, Exchange filing
Glenmark Pharma Receives ANDA Approval For Prochlorperazine Maleate Tablets
Glenmark Pharmaceuticals Ltd. has received final approval by the United States Food and Drug Administration for Prochlorperazine Maleate Tablets USP, 5 mg and 10 mg.
These tablets are a generic version of Compazine 1 Tablets, 5 mg and 10 mg, of GlaxoSmithKline.
Compazine tablets, 5 mg and 10 mg market achieved annual sales of approximately $26.9 million (Rs 221.9 crore) in the 12-month period ending January 2023.
Source: Exchange Filing
Most Adani Group Stocks Decline In Trade
All Adani Group Company stocks declined in trade, whereas only Adani Green Energy Ltd. advanced in early trade on Monday.
Source: Bloomberg
Sensex, Nifty Open Lower
Indian equity benchmarks opened with declines following the weakness in Asia trade on Monday morning.
Asian markets declined and the U.S. and European equity futures held small gains, the dollar fluctuated and treasuries fell as investors weighed on a frenetic weekend of efforts to safeguard the global banking system.
Two weeks of multiple U.S. bank failures followed by problems at Credit Suisse added to the rising conviction that global economies will struggle.
However, Swiss investment bank UBS announced the take over of its beleaguered compatriot Credit Suisse in a deal backed by the Swiss government.
UBS will pay CHF 3 billion ($3.2 billion) in an all-stock deal to acquire Credit Suisse, according to a Bloomberg report. Credit Suisse's market capitalisation stood at $8 billion as of close on March 17.
At pre-open, the S&P BSE Sensex was down 216 points or 0.37% at 57,773.52 while the NSE Nifty 50 was 34 points or 0.20% lower at 17,066.60.
IndusInd Bank Ltd., Tata Steel Ltd., Tata Motors Ltd., Tech Mahindra Ltd., State Bank of India, Cipla Ltd., ICICI Bank Ltd., Larsen and Toubro Ltd., ONGC Ltd., NTPC Ltd., declined in trade.
Sensex, Nifty Trade Lower At Pre-Open
At pre-open, the S&P BSE Sensex was down 216 points or 0.37% at 57,773.52 while the NSE Nifty 50 was 34 points or 0.20% lower at 17,066.60.
Source: Bloomberg
Rupee Strengthens Against The U.S. Dollar
The local currency strengthened by 5 paise to open 82.50 against the greenback on Monday. It closed at 82.55 on Friday.
Source: Bloomberg
Trend In Largecap I.T. & Auto Index Remains Weak: Trade Setup
Global Cues
U.S. Dollar Index at 103.9
U.S. 10-year bond yield at 3.48%
Brent crude up 0.11% to $73.05 per barrel
Nymex crude at $66.82 per barrel
SGX Nifty down 0.57% at 17,063.5 as of 8:10 a.m.
Bitcoin down 0.85% to $27,736.38
Pledge Share Details
Emami: Promoter group Suraj Finvest created a pledge of 1.6 lakh shares, promoter group Diwakar Finvest created a pledge of 12.1 lakh shares on March 14.
Cigniti Technologies: Promoter group C Rajeshwari invoked a pledge of 3 lakh shares, promoter and director invoked a pledge of 3 lakh shares on March 16.
Insider Trading
LG Balakrishnan & Bros: Promoters LG Sports bought 1,000 shares, LGB Auto Products bought 9.843 shares between March 15-16.
Maharashtra Seamless: Promoter and director Dharam Pal Jindal bought 29,500 shares, promoter Raghav Jindal bought 5,189 shares on March 16.
Mukand: Promoter group Baroda Industries bought 33,274 shares between March 15-16.
Greaves Cotton: Promoter Karun Carpets bought 1 lakh shares between March 16-17.
Sunteck Realty: Promoter Matrabhav Trust, through its trustees Kamal Khetan and Manisha Khetan, bought 22,899 shares between March 15-16.
Rajratan Global Wire: Promoter group Rajratan Resources 14,000 shares between March 15-16.
Zydus Wellness: Promoter Zydus Family Trust bought 12,260 shares on March 16.
Bajaj Finserv: Promoter group Bajaj Sevashram bought 6.69 lakh shares, promoter group Kamalnayan Investment and Trading bought 1.38 lakh shares, promoter group Niraj Holdings bought 1.41 lakh shares, promoter group Rishabnayan Bajaj sold 38,000 shares, promoter group Deepa Bajaj sold 1.25 lakh shares, promoter group Rishab Family Trust sold 7.69 lakh shares between March 14-15.
Meghmani Finechem: Promoter Maulik Jayantibhai Patel bought 2,000 shares on March 16.
Block Deals
Elpro International: IGE (India) bought 18 lakh shares (1.06%), Yamini Dabriwala sold 18 lakh shares (1.06%) at Rs 59 apiece.
Bulk Deals
Biocon: AHAN-I sold 1.89 crore shares (1.58%) at Rs 200.74.
Choice International: Scoutbit General Trading LLC bought 9.94 lakh shares (1%) on NSE and 11.88 lakh shares (1.19%) on BSE at Rs 255 apiece.
Delhivery: Vanguard bought 95.61 lakh shares (1.31%) at Rs 323.07 apiece, Integrated Core Strategies (Asia) sold 39.27 lakh shares at Rs 320.83 apiece, Internet Fund III sold 55.14 lakh shares (0.76%) at Rs 321.21 apiece.
Equitas Small Finance Bank: Vanguard Total International Stock Index Fund bought 57.19 lakh shares (0.52%) at Rs 68.01 apiece, Norges Bank on account of The Government Pension Fund Global bought 87.7 lakh shares (0.79%) at Rs 67.96 apiece, Integrated Core Strategies (Asia) sold 66.4 lakh shares (0.6%) at Rs 67.99 apiece.
Jaiprakash Power Ventures: Vanguard Total International Stock Index Fund bought 3.67 crore shares (0.53%) at Rs 6.08 apiece.
Jindal Stainless: Norges Bank on account of The Government Pension Fund Global bought 28.21 lakh shares (0.54%) at Rs 292.51 apiece, Integrated Core Strategies (Asia) sold 37.64 lakh shares (0.72%) at Rs 292.04 apiece.
Reliance Infrastructure: Vanguard Total International Stock Index Fund bought 20.12 lakh shares (0.57%) at Rs 148.7 apiece, Integrated Core Strategies (Asia) sold 20.12 lakh shares (0.57%) at Rs 148.46 apiece.
Stocks To Watch: Adani, Patanjali, NTPC, Tata Consumer, HDFC, Rail Vikas Nigam In Focus
Patanjali Foods: The company clarified that it is planning to float another follow-on public offer to meet the minimum public shareholding but is considering all modes for this purpose, including an offer for sale and/or qualified institutions placement.
Tata Consumer Products: The company ceased negotiations with Bisleri over a potential transaction. It said no definitive agreement or binding commitment has been signed on this matter.
NTPC: The Cabinet Committee on Economic Affairs exempted NTPC's investment in NTPC Green Energy from the existing guidelines for delegation of power to Maharatna CPSEs, allowing the company to invest over the prescribed limit.
HDFC: The RBI imposed a monetary penalty of Rs 5 lakh on the company on account of certain regulatory violations. The company said it will take the necessary steps to comply with the order.
Rail Vikas Nigam: The company was selected as the lowest bidder for a composite package of four contracts related to the new broad gauge railway line of the Haryana Orbital Rail Corporation project, jointly worth Rs 1,088.49 crore.
Navin Fluorine International: Navin Fluorine Advanced Sciences, a wholly owned subsidiary of the company, will set up a new 40,000 tonnes per annum hydrofluoric acid capacity at Dahej at a cost of Rs 450 crore.
Havells India: The company started commercial production of air conditioners at its facility in Sri City, located in the Chittor district of Andhra Pradesh.
Garware Technical Fibres: The company entered an agreement with TP Bhaskar Renewables to acquire and/or subscribe to 26% of the latter for Rs 4.5 crore.
Adani Transmission: The company incorporated a wholly owned subsidiary, Adani Electricity Nashik, to apply for a parallel distribution license in the Nashik area.
SKF India: The company acquired a 26% stake in Cleanmax Taiyo by acquiring 2,600 shares at a face value of Rs 10 each. The acquisition is meant to reduce energy costs and greenhouse gas emissions, and source renewable energy.
Torrent Pharmaceuticals: The U.S. FDA issued one observation after the pre-approval inspection of the company’s oral-oncology manufacturing facility at Bileshwarpura, Gujarat, from March 13 to March 17.
Bharat Petroleum Corporation: Krishnakumar Gopalan was appointed and has taken over the reins as chairman and managing director of the company.
Aditya Birla Fashion and Retail: Credit rating agency Crisil revised its rating for the company’s long-term loans to ‘AA+’ from ‘AA’, with a stable outlook.
Also Read: Jio Faces Outage In Delhi-NCR: Report
SGX Nifty Signals Lower Start For Benchmarks
After a frenetic weekend in finance, the street expects small but mostly positive moves in markets on Monday, with U.S. equity futures rising and a dollar gauge weakening slightly.
Two weeks featuring multiple U.S. bank failures followed by more problems at Credit Suisse have added to the rising conviction that global economies will struggle. However, Swiss investment bank UBS announced the takeover of its beleaguered compatriot Credit Suisse in a deal backed by the Swiss government.
UBS will pay CHF 3 billion, or $3.2 billion, in an all-stock deal to acquire Credit Suisse, according to a Bloomberg report. Credit Suisse's market capitalisation stood at $8 billion as of March 17.
Futures for the S&P 500 rose about 0.4% after the index dropped more than 1% on Friday, dragged down by the financial sector. Contracts for the Nasdaq 100 also gained about 0.4% after the gauge notched its best week since November with a jump of 5.8%, despite a slump Friday.
Investors continue to debate whether the Federal Reserve will deliver another quarter-point hike or pause at its March 21-22 meeting.
The yield on 10-year Treasury note was trading at 3.48%. Crude oil prices were trading around the $73 mark, while Bitcoin was around the $27,000 level.
At 8:10 a.m., the Singapore-traded SGX Nifty, an early indicator of India's benchmark Nifty 50, was down 0.57% at 17,063.5.
For a second consecutive session, the Indian benchmark indices, the Sensex and the Nifty, closed higher after braving volatility for the day.
The Indian rupee ended in green against the U.S. dollar on the last day of the week, ending a five-day losing streak, on the back of a rise in domestic equities.
Foreign investors in Indian equities closed the week as net sellers, as their selling spree continued for the seventh day. Foreign portfolio investors offloaded equities worth Rs 1,766.5 crore during the day. Meanwhile, domestic institutional investors remained net buyers for the seventh day in a row and picked up equities worth Rs 1,817.1 crore.
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