Don’t miss the latest developments in business and finance.

Sensex tanks 1491 pts, Nifty ends below 15,900; VIX above 29 mark

Image
Capital Market
Last Updated : Mar 07 2022 | 5:31 PM IST

The benchmark indices closed near the day's low with steep losses on Monday, tracking weak global cues. Soaring crude oil prices amid ongoing Russia-Ukraine crisis continued to spook investors. Barring the Nifty Metal index, all the sectoral indices on the NSE ended in the red. Banks, autos and financial stocks slumped.

The barometer index, the S&P BSE Sensex, dropped 1,491.06 points or 2.74% at 52,842.75. The Nifty 50 index fell 382.20 points or 2.35% at 15,863.15. The 50-unit index hit the day's low of 15,711.45 in mid-afternoon trade, but firmed up in late trade to end above 15,850 mark.

IndusInd Bank (down 7.63%), Axis Bank (down 6.70%), Maruti Suzuki India (down 6.56%), Reliance Industries (down 3.67%), ICICI Bank (down 5.21%) and HDFC Bank (down 3.14%) were major drags.

In the broader market, the S&P BSE Mid-Cap index shed 2.25% while the S&P BSE Small-Cap index lost 2.30%.

The market breadth was weak. On the BSE, 849 shares rose and 2,608 shares fell. A total of 138 shares were unchanged.

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, jumped 4.90% at 29.33.

More From This Section

Numbers to Watch:

In the commodities market, Brent crude for May 2022 settlement rose $6.82 at $124.93 a barrel. The contract tumbled 3.45% to settle at $110.58 a barrel in the previous trading session. It has surged over 60% so far in calendar year 2022.

India imports majority of its crude oil requirements. A spike in crude oil prices has raised concerns over the impact on inflation, currency and input cost for companies across sectors. Higher crude oil prices could increase India's expenditure and adversely affects the fiscal deficit.

The yield on India's 10-year benchmark federal paper rose to 6.891% as compared with 6.813% at close in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 77.1, compared with its close of 76.17 during the previous trading session.

MCX Gold futures for 5 April 2022 settlement rose 2.72% to Rs 53,987.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, rose 0.59% to 99.25.

Global Markets:

The Dow Jones futures were down 530 points, indicating a weak opening in the US stock market.

Shares in Europe and Asia tumbled on Monday after news that the U.S. and European allies are considering a ban on Russian oil imports, posing a risk of global "stagflation."

Russia has continued to ramp up its assault on neighboring Ukraine in recent days, with forces attempting to advance and isolate the capital city of Kyiv and other major cities while being met with fierce Ukrainian resistance.

In Asia, China lowered its GDP target to 5.5% for this year from last year's 6.1%. The new target for the second-largest economy was announced by Premier Li Keqiang in his work report presented to the National People's Congress (NPC), the country's parliament which opened its annual session in Beijing on March 5.

The International Monetary Fund on Saturday said the War in Ukraine will have 'severe impact' on global economy. "While the situation remains highly fluid and the outlook is subject to extraordinary uncertainty, the economic consequences are already very serious," the IMF said.

Stocks in Spotlight:

Larsen & Toubro (L&T) fell 4.52%. The EPC major announced the launch of L&T-SuFin, an integrated e-commerce platform for B2B industrial products and services. L&T-SuFin hosts a vast selection of industrial products across 40+ categories as well as financing and logistics support from carefully vetted partners. For sellers, L&T SuFin is an opportunity to broaden their markets. The platform is designed to reach out to buyers across categories and pan India geographies. It will enable businesses by providing them with a complete ecosystem of seller toots, delivery, and negotiations on a single platform.

IndiaMART InterMESH slumped 8.43% to Rs 4031.75. IndiaMART is India's largest online B2B marketplace, connecting buyers with suppliers.

Balkrishna Industries advanced 3.20%. The company has commenced commercial production of the brown field expansion and debottlenecking project at Bhuj plant ahead of schedule. This will result in increased production of tires up to 50,000 MTPA. The complete ramp-up in production is expected to be achieved in the next 6 months.

Nazara Technologies rose 1.01%. The company's board approved issuance of equity shares worth Rs 25 crore to existing shareholders of Datawrkz Business Solutions. These shares will be issued on a preferential basis, at a price of Rs 2,260 per share.

JK Cement slumped 11.50% The board of directors of the company approved entering into paint business through a wholly owned subsidiary, formation of new wholly owned subsidiary and investment in the said wholly owned subsidiary.

Coal India (CIL) jumped 4.23%. The state-run coal major reported total coal supplies at 608.15 million tonnes (MTs) as of 4 March 2022. CIL said it has moved past the previous highest coal off-take of 608.14 MT achieved in FY19. CIL said it is concentrating its efforts to increase its supplies further in a bid to touch 670 MTs off-take mark in FY22.

Info Edge (India) lost 1.30%. The company had announced that it has invested an amount of about Rs 91 crore in Aisle Network through its wholly owned subsidiary. Aisle is engaged in the business of running multiple dating platforms on the web via its mobile apps Aisle, Anbe, Arike and HeyDil. Info Edge said the investment is done as a strategic investments that would help to strengthen its offerings in the match making segment by addressing the needs of people of different age groups and beliefs, searching for a suitable match for them. The company has agreed to acquire 21,483 shares comprising 11,699 Compulsorily Convertible Preference Shares (CCPS) and 9,784 equity shares via mix of primary infusion and secondary purchase. The aggregate shareholding of the company, post this investment, in the said entity would be about 76% on a fully converted & diluted basis.

Zydus Lifesciences skid 1.30%. The lifesciences company has received approval for its New Drug Application (NDA) from the Drug Controller General of India for Oxemia (Desidustat). Desidustat is a first-of-its-kind oral treatment in India for anemia associated with Chronic Kidney Disease (CKD) in patients either on dialysis or not on dialysis. It is an oral tablet formulation which is the first-in-India alternative to injectable erythropoietin-stimulating agents (ESAs), Zydus Lifesciences said in a statement.

Powered by Capital Market - Live News

Also Read

First Published: Mar 07 2022 | 5:08 PM IST

Next Story