The equity benchmarks reversed early gains and ended lower on Tuesday, marking their third straight session of loss. Negative global cues cast a shadow over investor sentiments. Traders are keenly eyeing the US fed meeting minutes, scheduled to release tomorrow, for hints on further monetary policy tightening. FMCG and consumer durables stocks were in demand while PSU banks, realty and IT shares were under pressure.
The barometer index, the S&P BSE Sensex declined 18.82 points or 0.03% to 60,672.72. The Nifty 50 index shed 17.90 points or 0.10% to 17,826.70. In three consecutive sessions, the Sensex lost 1.05% while the Nifty fell 1.16%.
TCS (down 1.05%), Infosys (down 0.88%) and ITC (down 0.44) were major drags.
In the broader market, the S&P BSE Mid-Cap index shed 0.21% while the S&P BSE Small-Cap index slipped 0.31%
The market breadth was negative. On the BSE, 1,411 shares rose and 2,046 shares fell. A total of 144 shares were unchanged.
Meanwhile, the NSE's India VIX, a gauge of the market's expectation of volatility over the near term, climbed 4.67% to 14.01.
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Meanwhile, a high probability of the El Nino climate pattern this year also worried investors. El Ni is the abnormal heating up of surface ocean waters that lead to changes in wind patterns and impacts weather across the world. El Nino adversely impacts the Indian monsoons and hence, agriculture in India.
Numbers to track:
The yield on India's 10-year benchmark federal paper advanced to 7.395 from 7.37 in previous trading session.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.82, compared with its close of 82.73 during the previous trading session
MCX Gold futures for 5 April 2023 settlement declined 0.20% to Rs 56,099.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.14% to 104.
The United States 10-year bond yield advanced 1.27% to 3.877.
In the commodities market, Brent crude for April 2023 settlement advanced 77 cents or 0.93% to $83.77 a barrel.
Global Markets:
The Dow Jones futures were down 236 points, indicating a negative opening in the US stock market today.
European stock markets declined while Asian stocks ended mixed on Tuesday.
The S&P Global Eurozone Composite PMI increased to 52.3 in February 2023. February's upturn was led by the service sector, where business activity rose for a second consecutive month, the index up from 50.8 to 53.0 to register the strongest expansion since last June.
Within the euro area, both France and Germany returned to growth for the first times since last October and last June respectively. The composite PMI for France rose from 49.1 to 51.6, albeit with growth confined to the service sector.
The composite PMI for Germany meanwhile edged up from 49.9 to 51.1 reflecting a second successive monthly rise in service sector activity and the first expansion of manufacturing output since last May.
The au Jibun Bank Flash Japan Manufacturing purchasing managers' index fell further into contraction territory to 47.4 in February, after recording 48.9 in January, a release showed. Meanwhile a stronger service sector growth was seen in the economy, with a reading of 53.6 in February, a rise from 52.3 seen in January.
There also remains a degree of caution within the markets as Russian President Vladimir Putin is due to make a speech later in the session as his invasion of Ukraine enters a second year.
U.S. President Joe Biden attempted to preempt this address on Monday with a surprise visit to Ukraine, where he offered his support for as long as it takes.
US markets were closed on Monday due to Presidents' Day holiday.
Stocks in Spotlight:
Tata Steel rose 0.76% after the company's board approved the issue of non-convertible debentures (NCDs) aggregating to Rs 2,150 crore on private placement basis. The fixed rate, unsecured, redeemable, rated, listed NCDs having face value of Rs 1 lakh each aggregating to Rs 2,150 crore, will be allotted on 27 February 2023 and will mature on 25 February 2028.
Bharat Petroleum Corporation (BPCL) shed 0.84%. BPCL said that it has planned to raise upto Rs 1,500 crore unsecured non-convertible debentures (NCDs) through private placement in FY23, subject to market conditions.
Asian Paints fell 0.37%. Asian Paints (Polymers), wholly owned subsidiary of the company, has, entered into a Memorandum of Understanding (MoU) with the Government of Gujarat to set up the manufacturing facility for Vinyl Acetate Ethylene Emulsion (VAE) and Vinyl Acetate Monomer (VAM) at Dahej, Gujarat.
IFL Enterprises gained 2.16% after the company informed that its board would meet on 9 March 2023 to consider a proposal for sub-division of the equity shares of the company. On the same day, the board will also consider a proposal for the issue of fully paid-up bonus equity shares to the members of the company.
SpiceJet tumbled 2.74%. The low-cost air carrier said that its board will consider fund raising on 24 February 2023. The company's board will consider issuing equity shares on preferential basis consequent upon conversion of outstanding liabilities into equity shares of the company, subject to applicable regulatory approvals. Further, the board will also discuss and consider options for raising fresh capital through issue of eligible securities to qualified institutional buyers, subject to applicable regulatory approvals.
G R Infraprojects slipped 2.26%. The company announced that it has emerged as lowest (L‐1) bidder for two projects floated by National Highways Logistics Management.
JK Tyre & Industries added 1.01% after the tyre maker said it will raise Rs 240 crore by issuing 24,000 compulsorily convertible debentures to International Finance Corporation (IFC).
NHPC rose 0.26%. The company announced that it has raised Rs 996 crore through unsecured, redeemable, non-convertible, non-cumulative and taxable AD series bonds on private placement basis. The company allotted the 7.59% p.a. bonds on 20 February 2023 for 15 years and it will be matured on 20 February 2038.
BEML rose 1.50%. BEML has signed a Memorandum of Understanding (MoU) with Delhi Metro Rail Corporation (DMRC) led SPV, who have been shortlisted for constructing the Bahrain Metro Rail Project Phase-1.
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