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Market slides for 7th day, Nifty ends below 17,400; IT, metal shares drag

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Capital Market
Last Updated : Feb 27 2023 | 5:31 PM IST

The key equity indices declined for the seventh straight day on Monday, tracking weak Asian stocks. The Nifty closed near the 17,400 level after hitting the day's low of 17,299 in afternoon trade. Selling was seen in auto, metal, IT and healthcare stocks.

The barometer index, the S&P BSE Sensex declined 175.58 points or 0.30% to 59,288.35. The Nifty 50 index lost 73.10 points or 0.42% to 17,392.70. In seven trading sessions, Sensex has fallen 3.31% and the NIfty has corrected 3.57%.

Tata Steel (down 3.37%), Infosys (down 2.71%), TCS (down 2.01%) and Reliance Industries (down 0.70%) were major drags.

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, fell 2.18% to 13.88.

In the broader market, the S&P BSE Mid-Cap index fell 0.69% while the S&P BSE Small-Cap index slipped 1.28%.

The market breadth was weak. On the BSE, 956 shares rose and 2593 shares fell. A total of 186 shares were unchanged.

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A stronger-than-expected U.S. inflation, possibility of further rate hikes in the US and an uncertainty over the recovery of the Chinese economy weighed on investor sentiment.

Numbers to track:

The yield on India's 10-year benchmark federal paper advanced to 7.451 from 7.419 in previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.8300, compared with its close of 82.7550 during the previous trading session.

MCX Gold futures for 5 April 2023 settlement fell 0.18% to Rs 55,330.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.03% to 105.18.

The United States 10-year bond yield rose 0.35 % to 3.963.

In the commodities market, Brent crude for April 2023 settlement added 9 cents or 0.11% to $82.91 a barrel.

Global Markets:

The Dow Jones futures were up 144 points, indicating a positive opening in the US stock market today.

European shares advanced while Asian shares fell across the board on Monday, after major indexes on Wall Street recorded their worst week for 2023.

The US stocks declined on Friday, following a bigger-than-expected increase in the latest reading for personal consumption expenditures, the Federal Reserve's preferred inflation gauge.

The personal-consumption-expenditures price index showed the cost of U.S. goods and services jumped 0.6% in January, according to a Bureau of Economic Analysis report Friday.

The more closely followed core index, which is the Fed's preferred inflation measure, also rose 0.6% in January, climbing 4.7% over the past 12 months.

Stocks in Spotlight:

One 97 Communications (Paytm) rose 1.81% after the news reports suggested that Sunil Mittal-owned Bharti Group was looking to buy stake in the fintech company.

According to the media reports, Sunil Mittal, the founder of Bharti Enterprises, wanted to merge Airtel Payments Bank with Paytm Payments Bank through a stock transaction and also wanted to purchase Paytm shares from other shareholders.

However, some other media reports suggested that the talks between Bharti Group and Paytm did not progress as the management of the fintech company declined to give up management control.

Bajaj Auto slipped 5.45% on news reports that the two-wheeler major is expected to take an upto 25% cut in motorcycle and three-wheeler production across its export-focused plants next month. The media reported that the automaker is likely to produce around 250,000-270,000 units in March, compared with average production of 338,000 units in each of the first nine months of FY23.

SpiceJet shed 0.5%. The low-cost air carrier said that its board has approved a proposal to transfer cargo business on a slump sale basis to its subsidiary and also raise fresh capital of upto Rs 2,500 crore via qualified institutional placement (QIP). The board will seek the approval of members of the company for fundraise.

Adani Ports and Special Economic Zone added 0.55% after the company said that its handled cargo volumes had crossed the 300 million metric tonne (MMT) mark on Thursday (23 February 2023). The company registered the said the cargo volumes within a span of 329 days this year. Last year, APSEZ had recorded the aforementioned cargo volume after a period of 354 days.

Dr Reddy's Laboratories declined 1.87%. The company said that its wholly owned subsidiary Dr. Reddy's Laboratories SA has entered into a definitive agreement to acquire the U.S. generic prescription product portfolio of Australia-based Mayne Pharma Group.

Power Grid Corporation of India advanced 2.02%. The power transmission company on Friday announced that its committee of directors on investment on projects has accorded investment approvals for various electricity transmission projects aggregating to Rs 803.57 crore.

Granules India declined 1.61%. The pharmaceutical company announced that it has received approval from US Food and Drug Administration (USFDA) for its abbreviated new drug and application (ANDA) for Losartan Potassium tablets.

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First Published: Feb 27 2023 | 5:18 PM IST

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