Stock Market Today: Nifty, Sensex Fall Most In Over A Month; Nifty Smallcap 250 Falls More Than 5%

Overseas investors turn net sellers of Indian equities on Wednesday.

Foreign portfolio investors sold stocks worth Rs 4,595.06 crore, according to provisional data from the National Stock Exchange.

Domestic institutional investors remained buyers and mopped up equities worth Rs 9,093.72 crore, the NSE data showed.

Foreign institutions have been net buyers of Rs 2037 crore worth of Indian equities so far in 2024, according to data from the National Securities Depository Ltd., updated till the previous trading day.

The Nifty ended below 22,000 for the first time in March at 21,997.70, down 338 points or 1.51%. The S&P BSE Sensex closed at 72,761.89, down 906.07 points or 1.23%.

-The local currency weakened by 9 paise to close at 82.86 against the U.S. Dollar.

-It closed at 82.77 a dollar on Tuesday.

Source: Cogencis

Benchmark indices ended lower after opening higher and broader market indices continued selloff in the third consecutive day.

The Nifty ended below 22,000 for the first time in March at 21,997.70, down 338.00 points or 1.51%. Meanwhile, the Sensex closed at 72,761.89, down 906.07 points or 1.23%.

After a long time the index closed below 20 day SMA and also formed long bearish candle on daily charts which is largely negative, said Shrikant Chouhan, Head Equity Research, Kotak Securities. "We are of the view that, the short term texture of the market turned to bearish from the bullish."

For the day traders, Chouhan said 22200/73600 would act as a trend decider level. Below the same, the market could slip till 21900-21800/72500-72200. On the flip side, above 22000/772800 a minor pullback.

The Nifty Midcap 150 index closed 4.17% lower and Nifty Smallcap 250 index ended 5.18% lower, their biggest fall in two years.

Shares of Reliance Industries Ltd., NTPC Ltd., Larsen & Toubro Ltd., Bharti Airtel Ltd., and Power Grid Corp Of India Ltd. dragged the indices.

Those of ITC Ltd., ICICI Bank Ltd., Kotak Mahindra Bank Ltd., Bajaj Finance Ltd., and Cipla Ltd cushioned the fall.

Except Nifty FMCG, which ended flat, all sectoral indices ended lower with Nifty Metal and Nifty Media losing the most.

Smallcap and Midcap indices on the BSE ended sharply lower, eroding Rs 6.88 lakh crore marketcap in a day. The S&P BSE Smallcap index ended 5.1% at 40,565.96, the lowest level since Nov 30, 2023.

The S&P BSE Midcap index settled 4.20% lower at 37,591.15, the lowest level since Jan 23. 

On BSE, all 20 sectoral indices ended lower, with the S&P BSE Power sector falling over 6.35% to become the worst performing sector. The S&P BSE FMCG sector was the best performing sector.

Market breadth was skewed in favour of sellers. Around 3,512 stocks declined, 404 stocks advanced, and 60 remained unchanged on BSE

• Advises users to procure a new FASTag issued by another bank before March 15, 2024

• Advises users to reach out to their respective banks or refer to the FAQs on IHMCL website

• RBI's deadline for restrictions on Paytm Payments Bank is March 15

Source: PIB

India's benchmark indices fell sharply through midday after opening higher on Wednesday, tracking loss in shares of index-heavyweights Reliance Industries Ltd., Larsen & Toubro Ltd., and NTPC Ltd.

As of 12:19 p.m., the NSE Nifty 50 was 267.60 points, or 1.20%, lower at 22,068.10, and the S&P BSE Sensex fell 685.24 points, or 0.93%, to 72,982.72.

Intraday, Nifty slumped 1.09% to 22,09.65, and Sensex fell 0.85% to 73,044.44.

"The Indian market in the recent sessions have revealed a segmented pattern: Nifty and Bank Nifty are hovering near their all-time highs, while mid and small-cap indices are noticeably lagging behind, far from their peak levels," said Shrey Jain, founder and chief executive officer, SAS Online.

As for Nifty, Jain foresees limited upside potential for the day, due to aggressive call writing observed at the 22,500 call strike.

Shares of Britannia Industries Ltd., ITC Ltd., ICICI Bank Ltd., Kotak Mahindra Bank Ltd., and Nestle India Ltd. limited loss in the Nifty.

While, Bharti Airtel Ltd., Larsen & Toubro Ltd., NTPC Ltd., Power Grid Corp. of India and Reliance Industries Ltd. weighed the index.

On NSE, 11 out of 12 sectors declined, and one advanced. Nifty Energy slumped as much as 3.94% to emerge as the top loser.

Nifty FMCG gained 0.91% and was the top performer.

Broader markets underperformed benchmark indices. The S&P BSE Smallcap was 3.80% down, and S&P BSE Midcap was 2.88% lower.

On BSE, 19 of the 20 sectors declined, and one advanced. S&P BSE Power declined the most among sectoral indices. S&P BSE FMCG was the only sector which gained and was the top performer.

Market breadth was skewed in the favour of sellers. Around 3,323 stocks declined, 427 stocks rose, and 81 remained unchanged on BSE.

Shares of Paisalo Digital extended its losses in the second consecutive session and fell over 19% in today's session. On Tuesday, it had fallen 20%.

The scrip fell as much as 15.45% to Rs 585.75, its lowest level since January 25, 2024.

Gets LoA for project worth Rs 106.4 crore

Source: Exchange filing

• Gets LoI for 500 MW solar project

• Tentative cost of construction & development of 500 MW solar project at Rs 2,700 crore

Source: Exchange Filing

The shares of Paytm hit a lower circuit for second consecutive day on Wednesday as Reserve Bank of India's deadline for restrictions on Paytm Payments Bank draws near.

The scrip fell as much as 4.99% to 350.95 apiece, to hit lower circuit. This compares to a 1.12% decline in the NSE Nifty 50 Index as of 12:11 p.m. The shares hit the lower circuit for second consecutive day.

It has fallen 39.57% in the last 12 months. Total traded volume so far in the day stood at 0.3 times its 30-day average. The relative strength index was at 31.

Out of 14 analysts tracking the company, six maintain a 'buy' rating, three recommend a 'hold,' and five suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an downside of 39.6%.

Fund sold stake in the company on March 11

Source: Exchange Filing

The shares of Gensol Engineering Ltd. was locked in lower circuit for the third time this week, after it issued clarification on media reports linking it to Zenith Multi Trading DMCC.

The scrip fell as much as 5% to 829.45 apiece, to be locked in the lower circuit. This compares to a 0.38% decline in the NSE Nifty 50 Index as of 11:10 a.m. The shares have been locked in lower circuit three times this week, while the circuit was increased to 10% on Monday and Tuesday. It is locked at 5% on Wednesday.

It has risen 83.31% in the last 12 months, but has fallen 26.22% in the last one month. Total traded volume so far in the day stood at 1.5 times its 30-day average. The relative strength index was at 29 indicating it was underbought.

• 10.1 lakh shares or 0.02% equity changed hands in a large trade

• Buyers and sellers not known immediately

Source: Bloomberg

To spend on M&A projects within the next 24 months

Source: Exchange filing

The shares of Oriental Rail Infrastructure Ltd. rose on Wednesday after its subsidiary Orient Foundry Pvt.'s contract with Indian Railways was increased to Rs 1,249 crore.

The scrip rose as much as 4.98%, its upper circuit limit to 254.90 apiece, the highest level since March 12. It pared gains to trade 2.97% higher at Rs 250 apiece, as of 9:44 a.m. This compares to a 0.13% advance in the BSE Sensex Index.

It has risen 437.29% in the last 12 months. Total traded volume so far in the day stood at 3.6 times its 30-day average. The relative strength index was at 41.

• 436.9 million shares or 3.5% equity changed hands at Rs 439 per share

• 4.39 million shares changed hands at Rs 435 per share

• 3.22 million changed hands at Rs 431.2 per share

• Buyers and sellers not known immediately

• The London-listed BAT plans to sell up to 43.68 crore shares to institutional investors through an accelerated book-build process, it said in a statement on Tuesday.
  
  Source: Bloomberg

• Lists at a discount of 5.4% to the issue price on NSE

• Lists on BSE at Rs 211 vs issue price of Rs 221

• Lists at a discount of 4.5% to the issue price on BSE

  Source: Exchanges

BSE Ltd. rose as much as 5.7% to Rs 2,270.00 apiece, the highest since March 7. It pared gains to trade 2.53% higher at Rs 2,201.25 apiece, as of 09:40 a.m. This compares to a 0.07% decline in the NSE Nifty 50 Index.

It has risen 405.95 in 12 months. Total traded volume so far in the day stood at 0.70 times its 30-day average. The relative strength index was at 41.01.

Out of seven analysts tracking the company, four maintain a 'buy' rating, three recommend a 'hold,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 25.7%

The shares of Jet Airways (India) Ltd. rose on Wednesday and were locked in the upper circuit after the National Company Law Appellate Tribunal on Tuesday granted approval on for the transfer of control to the Jalan Kalrock Consortium.

The scrip listed on the BSE rose as much as 4.98% to 44.92 apiece, to get locked in upper circuit. This compares to a 0.15% advance in the BSE Sensex Index as of 9:30 a.m.

It has fallen 34.40% in the last 12 months. Total traded volume so far in the day stood at 3.6 times its 30-day average. The relative strength index was at 39.

The scrip hit 5% lower circuit and fell to Rs 514.60 apiece, the lowest level since Jan 24. It remained locked in 5% lower circuit for second day in a row as of 09:32 a.m. This compares to a 0.06% advance in the NSE Nifty 50 Index.

The company has issued clarification on the Shapoorji stake sale report and said it is not aware of negotiations.

It has risen 76.47% in 12 months. Total traded volume so far in the day stood at 0.11 times its 30-day average. The relative strength index was at 35.84.

Two analysts tracking the company, maintain a 'buy' rating, according to Bloomberg data. The average 12-month consensus price target implies an upside of 41.4%

Shares of ITC rose as much as 8.30% at Rs 438 It is trading at 6.13% to trade 6.13% higher at Rs 429.25. This compares to a 0.02% decline in the NSE Nifty 50.

Of the 37 analysts tracking the company, 34 maintains a 'buy' rating, two recommend 'hold' and one recommend a 'sell', according to Bloomberg data. The average 12-month analysts' price target implies a potential upside of 24.4%.

Benchmark equity indices opened higher today with shares of ITC contributing the most to the gains after British American Tobacco reduced stake in the company.

At pre-open, the S&P BSE Sensex Index was up 325.44 points or 0.44% at 73,993.40 while the NSE Nifty 50 was at 22,432.20, up 96.50 points or 0.43%.

A breach above the immediate resistance at 22400, confirmed by a closing basis, could signal an upward trajectory, said Mandar Bhojane, research analyst at Choice Broking. "Conversely, the index finds immediate support around the 22200-22100 range, and maintaining above this level could trigger a recovery."

Shares of ITC Ltd. contributed the most to the gains followed by Reliance Industries Ltd., HDFC Bank Ltd., Tata Consultancy Services Ltd., and Infosys Ltd.

Meanwhile, those of Bharti Airtel Ltd., Power Grid Corp Of India Ltd., NTPC Ltd., Axis Bank Ltd., and Hindustan Unilever Ltd. capped the upside.

All sectoral indices gained except Nifty Energy. Nifty FMCG jumped nearly 2%.

Broader markets underperformed. The S&P BSE Smallcap was down 1% and the S&P BSE Midcap was 1.64% lower.

On BSE, 16 sectors out of 20 declined, three advanced, and one was flat. The S&P BSE Utilities was the top loser.

The market breadth was skewed in the favor of sellers. Around 1,725 stocks declined, 1,248 rose, and 93 were unchanged on the BSE.

BAT closes book for ITC's stake sale on receiving sufficient bids

BAT's offer for selling Rs 17,482 crore of ITC shares received enough bids

Sources say very strong demand for ITC In BAT Block

Source: Bloomberg

At pre-open, the S&P BSE Sensex Index was up 325.44 points or 0.44% at 73,993.40 while the NSE Nifty 50 was at 22,432.20, up 96.50 points or 0.43%.

Motilal Oswal maintains Neutral rating on Jubilant Foodworks with a TP of Rs. 480

• Total acquisition cost is Rs. 1200 crores which is funded with Rs. 950 crores debt and Rs. 250 crores equity

• Jubilant increased its stake in the Bangladesh business from 51% to 100% for Rs 34 crores

• Domino’s is the second largest playerin QSR market in Turkey after Burger King

• Domino’s Turkey profitability margin is better than India margin

• Believes India business recovery will be more critical for the stock’s performance

• Exports data of 21 pharma companies indicates improved traction

• Cumulative exports growth was 32% YoY/37% MoM

• No major uptick in Laurus’s and Suven Pharma’s exports

• Lower Zoetis shipments hurt Syngene

• Divi’s strong numbers due to Sacubitril/Valsartan and Iopamidol

• Strong gRevlimid offtake in ARBP, Zydus and SUNP

• Sees sustained growth momentum in key large oral players

• Lupin exports surge 51% YoY, they slid 20% QoQ

The yield on the 10-year bond opened flat at 7.03%.

Source: Bloomberg

• The local currency weakened by 4 paise to open at 82.81 against the U.S. Dollar.

• It closed at 82.77 a dollar on Tuesday.

Source: Cogencis

• Reliance Ethane Holding invests $103 mn in three wholly owned subsidiaries

• Investment to enable subsidiaries to make part payment towards construction of 3 ethane carriers

Source: Exchange filing

Stake to be acquired within one month, through secondary buy-outs

Source: Exchange filing

• Zenith is a passive shareholder since Sept 2022, holds less than 1.5% stake

• Zenith holds neither decision-making rights nor is involved in the co's business or operations

• Any developments related to Zenith will have no impact on co's growth trajectory

Source: Exchange filing

• Group term insurance business remains weak owing to competitive pricing in select cohorts

• Company expects growth in agency to ramp up over medium term (~15-18% overall APE CAGR)

• Increase in collaboration with ICICI Bank to drive protection sales

• Payout pressure sustains at select distribution partners

• Margin impact likely to be graded compared to last quarter

Morgan Stanley Rates ITC As Overweight With A TP of Rs. 491

• Believes BAT's stake sale will clear the uncertainty around stock performance

• Expect ITC's stock outperformance to resume after the stake sale

• Remains bullish on ITC based on their expectation of a moderate cigarette tax environment, continued scale-up of non-cigarette businesses, and reasonable valuations

HSBC upgrades ITC to Buy with a TP of Rs. 480

• ITC’s stock price has corrected from its peak and is down 11% YTD

• Implies an attractive valuation for its cigarette business

• Creates a buying opportunity even as the taxation overhang persists

• Thinks even with no volume growth, cigarette business to grow

• Cigarette business EBIT structurally in the range of 5-6%

• Any further decline in stock price could make the valuation more attractive

• Taxation overhang to persist, absence of excessive tax increases to serve as a catalyst

• Cigarette business looks set to remain low growth

Nuvama on ITC BAT Stake Sale's Impact on Passive Flows

• Nifty 50: Expects a Rs. 538 crores inflow, equal to 1.3 crore shares

• Nifty 50: Expects a 0.9-day volume impact

• Sensex 30: As per Nuvama Alternative math- Rs 315 crores up led inflow which is 0.7 crore shares

• Sensex 30: with a 0.5-day volume impact

• Does not anticipate any weight increase in global passive indices

• Price target of Rs 11,700

• Continues to remain attractive despite likely temporary slowdown ahead of elections

• Estimate around 12% volume CAGR through FY23-26, Ebitda/t expansion and continued visibility on growth

• Company expects industry demand growth at around 9% in FY24 with medium term demand growth around around 8%

• Expect supply to lag incremental demand, resulting in industry utilisation rising to 74-75% in about 5 years

• Well positioned to grow – FY25 planned capex is around $1.2 billion, internal accruals would be adequate to fund

• Long term initiatives (reducing lead distance, increasing green power, lowering clinker factor) can lower CoP by Rs200/t+

• See no business impact from Grasim’s paints foray

• Initial focus of management to get margins back to long term average

• Will continue to fill leadership gaps as needed

• Industry revenue growth to be in the range of 3-5% in FY25

• Revenues in Q1 to be impacted largely due to comviva seasonality

• Company will be the first one to cannibalize their own BPO revenues and upgrade

• Focus on BFSI vertical continues – lot of medium term scope for market share gains

• Price target of Rs 2,300

• Partnership expansion to drive revenues for CAMSPay

• Focus on domestic relationships without any immediate intent to focus on international expansionary strategies

• Cost growth likely to lag revenue growth as productivity picks up in new businesses

• Management retained upbeat stance on revenue traction in the annuity-based KRA business

• Management expects Ebitda growth at 18-20% CAGR over medium-term

• Quantum of price cut signifies limited room for price wars between exchanges

• BSE pricing discount can remain intact

• BSE market share inching higher, pace moderating

• To deliver greater than 2.5 times earning jump over FY24-26

• Higher Settlement Guarantee Fund remains key risk

• Reiterates Buy basis 24 times FY26 PE

Selexipag is used in adults to treat pulmonary arterial hypertension

Source: U.S. FDA website

• Price target of Rs 480

• Demand trend remains strong, management confident to achieve FY24E guidance

• To receive proceeds from aircraft sale by Mar’24, balance non-core assets to be sold in next 3-4 years

• Balance sheet deleveraging process on track

• Pricing premium on gold charged by some large jewellers has declined, now in-line with Kalyan Jewellers

• U.S. Dollar Index at 102.92

• U.S. 10-year bond yield at 4.15%

• Brent crude up 0.59% at $82.40 per barrel

• Nymex crude up 0.63% at $78.05 per barrel

• GIFT Nifty was flat at 22,465 points as of 7:27 a.m.

• Bitcoin was up 1.37% at $72,035.63

• Nifty March futures up by 0.07% to 22,447.05 at a premium of 111.35 points.

• Nifty March futures open interest up by 3.7%.

• Nifty Bank March futures up by 0.07% to 47,527.25 at a premium of 244.85 points.

• Nifty Bank March futures open interest up by 1%.

• Nifty Options March 14 Expiry: Maximum call open interest at 22,500 and Maximum put open interest at 22,000.

• Bank Nifty Options March 13 Expiry: Maximum call open interest at 48,000 and maximum put open interest at 46,000.

• Securities in ban period: Aditya Birla Fashion, Hindustan Copper, Manappuram Finance, Mahanagar Gas, National Aluminium, Piramal Enterprise, Sail, Tata Chemical, and Zee Entertainment Enterprise.

• Price Band changes from 20% to 10%: JTL Industries.

• Price Band changes from 10% to 5%: Gensol Industries, Swelect Systems.

• Moved into short-term ASM framework: JTL Industries.

• Moved out short-term ASM framework: Hind Rectifiers.

• Kfin Technologies: Kotak Mahindra Bank sold 34.7 lakh shares (2.03%) at Rs 600.28 apiece.

• Nirlon: Nihar Nandan Nilekani bought 22.52 lakh shares (2.49%) at Rs 430 apiece, while Kunal Virenchee Sagar sold 13.29 lakh shares (1.47%), and Alfano Pte. Ltd. sold 9.23 lakh shares (1.02%) at Rs 430 apiece.

• Onward Technologies: White Oak India Equity Fund IV sold 1.25 lakh shares (0.55%) at Rs 463.81 apiece.

• Popular Vehicles and Services: The public issue was subscribed to 0.27 times on day 1. There are no bids led by institutional investors, non-institutional investors (0.11 times), retail investors (0.47 times) and portions reserved for employees (3.83 times).

• JG Chemicals: The company's shares will debut on the stock exchanges on Wednesday at an issue price of Rs 221 apiece. The Rs 251.19 crore IPO was subscribed 27.78 times on its third and final day. Bids were led by institutional investors (32.09 times), retail investors (17.44 times), and non-institutional investors (46.33 times).

• ITC: British American Tobacco, the largest public shareholder of the company, has launched a block trade to offload up to a 3.5% stake in the company for over Rs 17,482 crore.

• Vedanta: The Securities Exchange Board of India ordered the company to pay Rs 77.62 crore to Scottish explorer Cairn for delay in payment of dividends and barred the firm's entire board from accessing the capital market for the same.

• Aurobindo Pharma: Eugia Pharma has restarted distribution of aseptic products and will start commercial production from aseptic lines in a phased manner beginning next week.

• Glenmark Pharma: The company completed the transfer of the remaining 20% stake in Glenmark Life Sciences to Nirma.

• Shree Cement: The company has entered into an asset purchase agreement with Starcrete LLP for the purchase of five ready-mix concrete plants located in Maharashtra for Rs 33.5 crore.

• SRF: The company incorporated a wholly owned subsidiary, SRF Middle East, in Dubai for trading in refrigerant gases.

• Oriental Rail Infrastructure: The company's contract from Indian Railways has been revised to Rs 1,249 crore.

• Ramco Cements: The company inaugurated the Gati Shakti Cargo Terminal project in Andhra Pradesh to transport crushed limestone through railway wagons from the company’s mines in Budawada to its integrated cement plant in Jayanthipuram.

• Allcargo Logistics: The company LCL volume for the month of February increased 7% YoY and FCL volume up 5% YoY for the month of February.

• Muthoot Capital: The company partners with Greaves Cotton unit Greaves Finance 100% EV-focused lending platform evfin for electric two-wheeler financing across India.

• Indoco Remedies: The company approved the purchase of 2,860 sq m of land in Mumbai.

• Sterling & Wilson: The company has issued clarification on the Shapoorji stake sale report and said it is not aware of negotiations.

• Titagarh Rail Systems: The company launched its second 25T Bollard Pull Tug, Bahubali, for the Indian Navy.

• Vakrangee: The Reserve Bank of India has renewed the authorization issued to the company for white-label ATMs.

• Jammu and Kashmir Bank: The company clarified that the news item of an Enforcement Directorate action does not pertain to the bank in any manner.

• Ethos: The company reduced its stake in Silvercity Brands AG to 35% from 100% earlier.

• Gensol Engineering: The company incorporated Gensol Clean Energy as a wholly owned subsidiary.

• Welspun Living: The company received approval from the NCLT, Hyderabad Bench, for the amalgamation of five companies with itself and is awaiting approval from the NCLT, Ahmedabad Bench.

• Signature Global India: The company, through its subsidiary, has launched its new project “Orchard Avenue-3” in Gurugram. The project consists of a total of 235 units, with an area of 1.66 acres.

Markets in the Asia-Pacific region were trading mixed after opening higher on Wednesday, tracking an overnight rally on Wall Street after investors brushed off stronger than expected U.S. inflation data.

Indices in Japan and China fell, while those in Hong Kong, South Korea, and Taiwan traded higher.

Brent crude was trading 0.59% higher at $82.40 a barrel. Gold was flat at $2,158.75 an ounce.

The March futures contract of the GIFT Nifty traded flat at 22,461.50 points as of 7:32 a.m.

India's benchmark stock indices ended on a mixed note after concluding a choppy session on Tuesday.

The NSE Nifty 50 settled 3.05 points, or 0.01%, up at 22,335.70, and the S&P BSE Sensex closed 165.32 points, or 0.22%, higher at 73,667.96.

Overseas investors remained net buyers of Indian equities for the fifth consecutive session on Tuesday. Foreign portfolio investors bought stocks worth Rs 73.1 crore; domestic institutional investors also remained buyers for the fifth straight session and mopped up equities worth Rs 2,358.2 crore, the NSE data showed.

The Indian rupee strengthened by 4 paise to open at 82.72 against the U.S. dollar.