The benchmark indices reversed gains and slipped into the negative terrain in mid-morning trade. The Nifty traded below the 17,400 level after hitting the day's high of 17,529.90 in early trade. Media stocks declined for the third consecutive trading session.
At 11:30 IST, the barometer index, the S&P BSE Sensex, was down 171.88 points or 0.29% to 58,963.25. The Nifty 50 index lost 54.90 points or 0.32% to 17,358.
The broader market underperformed the headline indices. The S&P BSE Mid-Cap index shed 0.93% while the S&P BSE Small-Cap index fell 1.24%.
Sellers outnumberd buyers. On the BSE, 961 shares rose and 2,393 shares fell. A total of 167 shares were unchanged.
U.S. regulators announced plans to backstop both depositors and financial institutions associated with 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.
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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.
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.
Buzzing Index:
The Nifty Media index fell 1.99% to 1,693.60. The index slipped 3.77% in three trading sessions.
New Delhi Television (down 4.21%), Dish TV India (down 2.79%), Network 18 Media & Investments (down 2.75%), Hathway Cable & Datacom (down 2.33%), TV18 Broadcast (down 2.06%), Zee Entertainment Enterprises (down 2.04%), Nazara Technologies (down 2.02%), Sun TV Network (down 1.18%), PVR (down 0.95%) and Navneet Education (down 0.92%) declined.
Nazara Technologies fell 2.02%. 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.
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.
Stocks in Spotlight:
One 97 Communications (Paytm) rose 1.75% 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).
Sona BLW Precision Forgings declined 2.71%. As per media reports, Blackstone was likely to sell 20.5% stake in Sona BLW Precision Forgings through a block deal on Monday. The floor price has reportedly been fixed at Rs 400 per share. Blackstone, through an entity named Singapore VII Topco III Pte Ltd., held 20.50% stake or 11,99,25,641 shares of Sona BLW Precision as on 31 December 2022.
Spandana Sphoorty Financial fell 1.28. 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.
Global Markets:
Asian stocks traded mixed on Monday as U.S. regulators announced plans to backstop both depositors and financial institutions associated with Silicon Valley Bank (SVB). SVB last week was shuttered by regulators, after customers withdrew a staggering $42 billion of deposits by the end of Thursday.
After SVB, US State regulators closed New York-based Signature Bank on Sunday, making it the third largest failure in U.S. banking history.
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.
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