The frontline equity indices tumbled on Monday, extending losses for the third straight session. Mixed global cues and continous FII selling dented investors sentiment. After opening higher at 17,529.90, the Nifty 50 index declined as the session progressed and settled below the 17,200 level. All the sectoral indices on the NSE ended in the red. Financials and autos witnessed major selling.
The barometer index, the S&P BSE Sensex slumped 897.28 points or 1.52% to 58,237.85. The Nifty 50 index lost 258.60 points or 1.49% to 17,154.30. In third consecutive sessions, the Sensex slipped 3.5% while the Nifty declined 3.38%.
Infosys, Reliance Industries, ICICI Bank, HDFC Bank and SBI fell by 1.26% to 3.21%, dragging the indices lower today.
In the broader market, the S&P BSE Mid-Cap index shed 1.82% while the S&P BSE Small-Cap index fell 2.08%.
Sellers outnumbered buyers. On the BSE, 695 shares rose and 2915 shares fell. A total of 147 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, surged 20.89% to 16.22.
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Over the weekend, U.S. regulators announced plans to backstop both depositors and financial institutions associated with California-based Silicon Valley Bank (SVB). The US regulators on Sunday (12 March) night cleared a plan for the Silicon Valley Bank to protect depositors and assured that no losses would be borne by the taxpayers.
After SVB's downfall, New York-based Signature Bank was closed by New York state financial regulators on Sunday. Signature had been a popular funding source for cryptocurrency companies.
Depositors at both failed SVB and Signature Bank in New York, which was shuttered Sunday over similar systemic contagion fears, will have full access to their deposits as part of multiple moves that officials approved over the weekend. Depositors at the bank will have access to their money from Monday.
Today, London-based HSBC announced an agreement with the Bank of England to buy the U.K. operations of Silicon Valley Bank for 1 euro.
"The Bank and (His Majesty's Treasury) can confirm that all depositors' money with SVBUK is safe and secure as a result of this transaction," the Bank said in a joint statement with the Treasury. "SVBUK's business will continue to be operated normally by SVBUK. All services will continue to operate as normal and customers should not notice any changes."
Back home, consumer inflation data for February will be unveiled today, 13 March 2023. The annual consumer price inflation in India accelerated to 6.52% in January of 2023, the highest in three months, compared to 5.72% in December.
Numbers to track:
The yield on India's 10-year benchmark federal paper declined to 7.362 from 7.429 in previous trading session.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.20, compared with its close of 82.065 during the previous trading session.
MCX Gold futures for 5 April 2023 settlement rose 1.12% to Rs 56,780.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.32% to 104.24.
The United States 10-year bond yield slipped 3.71% to 3.558.
In the commodities market, Brent crude for May 2023 settlement dropped $1.35 or 1.63% to $81.43 a barrel.
Global Markets:
European markets tumbled while most Asian stocks ended higher on Monday as investors reacted to plans by the Bank of England and the US Federal Reserve to backstop both depositors and financial institutions associated with SVB.
SVB last week was shuttered by regulators, after customers withdrew a staggering $42 billion of deposits by the end of Thursday.
All of the depositors of Signature Bank and Silicon Valley Bank will be made whole, and "no losses will be borne by the taxpayer," the U.S. Treasury Department and other bank regulators said in a joint statement.
US stocks closed sharply lower on Friday over fears of contagion in the financial sector and strong February employment data showing that the economy added more jobs than expected.
Stocks in Spotlight:
Nazara Technologies shed 0.58%. The company on Sunday (12 March) said its step down subsidiaries Kiddopia Inc and Mediawrkz Inc hold cash balances worth $7.75 million (about Rs 64 crore) in SVB. Kiddopia Inc is a 100% subsidiary of Paper Boat Apps (owned 51.5% by Nazara) & Mediawrkz Inc is a 100% subsidiary of Datawrkz Business Solutions (owned 33% by Nazara).
Further, Nazara Group (Nazara Technologies and its subsidiaries) said it continues to maintain healthy reserves of cash and cash equivalents in excess of Rs 600 crore excluding the SVB impacted funds. "The situation with SVB remains fluid and the company shall keep all the stakeholders and public at large updated on further developments," it added.
The Adani Group has completed full prepayment of margin linked share backed financing aggregating to $2.15 billion, well before committed timeline of 31 March 2023. Promoters have also prepaid $500 million facility taken for Ambuja acquisition financing. This is in line with promoters' commitment to increase equity contribution and promoters have now infused $2.6 billion out of total acquisition value of $6.6 billion for Ambuja and ACC.
Following the update, Adani Power, Adani Transmission, Adani Green Energy, Adani Total Gas were up 5% each.
However, Adani Wilmar, Adani Ports and Special Economic Zone and Adani Enterprises fell by 1.20% to 3.95%.
IndusInd Bank tumbled 7.46%. The Reserve Bank of India (RBI) on 10 March 2023, granted approval for re-appointment of Sumant Kathpalia as managing director and chief executive officer (MD & CEO) of the bank for two years, with effect from 24 March 2023.
Tech Mahindra surged 6.83% after the company announced Mohit Joshi, the former president of Infosys, as its managing director (MD) and chief executive officer (CEO) designate for a period of five years, effective from 20 December 2023. Mohit Joshi will take over as MD & CEO when CP Gurnani retires on 19 December 2023. However, he will join Tech Mahindra well before that date to allow for sufficient transition time, said the company.
Mahindra CIE Automotive shares tumbled 8.61% and Mahindra & Mahindra (M&M) fell 2.57%. As per media reports, M&M was to sell a 4.6% stake in auto component firm Mahindra CIE Automotive through a block deals on Monday. The floor price for the sale is Rs 355 a share and the deal size is estimated to be Rs 615 crore, the reports added. M&M held 9.25% stake (equivalent to 3,51,02,068 crore shares) in Mahindra CIE Automotive at the end of December 2022 quarter.
JSW Steel declined 0.64%. The company on Friday (10 March 2023) announced that its wholly owned subsidiary, JSW Steel Coated Products (JSWSCPL), has acquired 31% stake in Ayena Innovations.
One 97 Communications (Paytm) fell 2.06% after the company's lending business witnessed a 94% year on year (YoY) growth during the two months ended February 2023. The number of loans disbursed through the company's platform zoomed 94% YoY to 7.9 million cumulative loans in two months ended February 2023, while the value of loans disbursed grew 286% YoY to Rs 8,086 crore ($979 million).
Sula Vineyards shed 2.17%. India's largest and only listed wine produce announced that it has taken on record the resignation of its chief financial officer, Bittu Varghese, to explore opportunities outside the company. Varghese will continue to be associated in his current role as the CFO till 9 June 2023. The company will keep all the stakeholders notified as soon as a replacement for Varghese is identified.
Sona BLW Precision Forgings slipped 6.93%. Blackstone was reported to offload 20.5% stake in Sona BLW Precision Forgings through a block deal on Monday. The floor price was fixed at Rs 400 per share. Blackstone, through an entity named Singapore VII Topco III, held 20.50% stake or 11,99,25,641 shares of Sona BLW Precision as on 31 December 2022.
Spandana Sphoorty Financial declined 2.84%. The company announced that its board approved the transfer of stressed loan portfolio to an asset reconstruction company (ARC) for Rs 133 crore. As on 31 December 2022, the company's outstanding written-off portfolio stood at Rs 372.45 crore. The company received a binding bid from an ARC, amounting to Rs.133 crore, on security receipt consideration basis.
IPO Update:
The initial public offer (IPO) of Global Surfaces was subscribed 0.42 times. The issue opened for bidding on Monday (13 March 2023) and it will close on Wednesday (15 March 2023). The price band of the IPO is fixed at Rs 133-140 per share.
Global Surfaces is engaged in processing natural stones and manufacturing engineered quartz. Its products find application in the flooring, wall cladding, countertops, cut-to size and other items and are used in both commercial and residential industry. The company sells its products both within and outside India.
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