Domestic equity benchmarks ended near the day's low amid significant selloff on Wednesday. Barring the Nifty Pharma index, all the sectoral indices on the NSE ended in the red. Banks, auto and metal shares witnessed steep selling. The Nifty ended a tad below the 14,550 mark, after hitting the day's low at 14,535.
The barometer index, the S&P BSE Sensex, tumbled 871.13 points or 1.74% to 49,180.31. The Nifty 50 index slumped 265.35 points or 1.79% to 14,549.40.
Axis Bank (down 3.33%), ICICI Bank (down 3.22%), Reliance Industries (down 2%), HDFC Bank (down 1.36%) and HDFC (down 1.71%) were major drags.
Selling was broad based. The BSE Mid-Cap index slipped 1.69% and the BSE Small-Cap index lost 1.60%.
The market breadth was weak. On the BSE, 842 shares rose and 2115 shares fell. A total of 167 shares were unchanged.
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, jumped 8.66% to 22.46.
More From This Section
Domestic shares mirrored the weakness in other global stock markets as rising COVID-19 cases drove demand for safe assets like dollar. Germany, France and Italy have widened virus-related curbs. The head of the World Health Organization called recent increases in deaths and cases "truly worrying trends."
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 12,41,43,841 with 27,33,634 deaths. India reported 3,68,457 active cases of COVID-19 infection and 1,60,441 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.
India recorded 47,262 new cases of the coronavirus disease in a timespan of 24 hours, according to Union health ministry update on Wednesday. Maharashtra recorded 28,699 new COVID-19 cases and 132 deaths. The five most affected states by total cases are Maharashtra (25,33,026), Kerala (11,05,467), Karnataka (9,71,647), Andhra Pradesh (8,94,044), and Tamil Nadu (8,68,367).
Meanwhile, the government has decided to open up its vaccination drive for all above 45 years of age from 1 April 2021, and requested that all eligible people should "immediately register and get vaccinated". The rest of the population could be considered for vaccination coverage once the current stage is over.
Numbers to Watch:
The yield on 10-year benchmark federal paper rose to 6.154% as compared with 6.144% 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 72.55, compared with its close of 72.43 during the previous trading session.
MCX Gold futures for 5 April 2021 settlement rose 0.41% to Rs 44,827.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, rose 0.18% to 92.50.
In the commodities market, Brent crude for May 2021 settlement rose $1.53 at $62.32 a barrel. The contract fell $3.83, or 5.93% to settle at $60.79 a barrel in the previous trading session.
Foreign Markets:
Shares in Europe and Asia tumbled on Wednesday as concerns over the world's recovery from the pandemic weighed on investor sentiment.
Preliminary estimates Wednesday showed that euro zone business activity unexpectedly grew in March. IHS Markit's composite PMI (purchasing managers' index) came in at 52.5 for March, up from 48.0 in February, with the 50 mark separating contraction from expansion. The U.K. equivalent rose to 56.6 in March from 49.6 in February.
An expansion of Japan's factory activity gathered pace in March, a private sector survey showed on Wednesday. The au Jibun Bank Flash Japan Manufacturing Purchasing Managers' Index (PMI) rose to a seasonally adjusted 52.0 in March from a final 51.4 in February.
The World Health Organization said most regions of the globe are seeing an increase in new COVID-19 cases as highly contagious variants continue to spread. Germany is extending its lockdown until 18 April, while nearly a third of France entered a month-long shutdown on Saturday.
US stocks tumbled on Tuesday as concerns about the cost of infrastructure spending and potential tax hikes to pay for President Joe Biden's $1.9 trillion relief bill weighed on investors.
Federal Reserve' Chairman Jerome Powell and Treasury Secretary Janet Yellen made their first joint appearance Tuesday before the U.S. House Committee on Financial Services. The duo acknowledged the richly valued asset prices in the markets, but said that they are not worried about financial stability.
Buzzing Indian Segment:
Shares of four paint manufacturing companies bucked weak market trend due to easing crude oil prices.
Shalimar Paints (up 2.16%), Asian Paints (up 1.44%), Berger Paints India (up 0.40%) and Akzo Nobel India (up 0.08%) advanced.
Lower crude oil decreases input costs for paint companies, which use crude derivatives as their raw material.
Stocks in Spotlight:
Grasim Industries slipped 1.50%. The board of the company at its meeting held on 24 March 2021 approved raising funds by availing term loans or by issuing debt securities in India or overseas within the overall borrowing limit of Rs 10,000 crore.
Vascon Engineers rose 5.43%. The company emerged as the lowest bidder for two projects floated by the Uttar Pradesh Public Works Department. The projects are for the establishment of new medical colleges attached with existing district hospitals in Bijnor and Kaushambi valued at Rs 246.09 crore and Rs 269.54 crore, respectively.
Dalmia Bharat shed 0.56%. The company said its a wholly owned subsidiary of the company, Dalmia Cement (Bharat), has commenced commercial production of Line II having a capacity of 2.25 million tons at its Bengal Cement Works (BCW) unit in West Midnapore in the state of West Bengal. This addition will increase the overall capacity of the BCW unit to 4 million tons per annum.
Cadila Healthcare fell 1.10%. The company and its subsidiary Zydus Pharmaceuticals (USA) Inc. have reached an agreement with Celgene Corporation (Celgene), a wholly owned subsidiary of Bristol Myers Squibb relating to patents for Revlimid (lenalidomide) in the US.
Glenmark Pharmaceuticals fell 1.31%. The company has received a final approval from the USFDA for chlorpromazine hydrochloride tablets, a generic version of Thorazin tablets of GlaxoSmithKline. The antipsychotic medication is primarily used to treat psychotic disorders such as schizophrenia. According to IQVIA sales data for the 12-month period ended January 2021, Thorazine Tablets, achieved annual sales of approximately $108.6 million.
Rossari Biotech declined 3.95%. The board of the speciality-chemicals maker approved issuing 30,12,046 equity shares of face value of Rs 2 each, on a preferential basis. The board determined a floor price of Rs 996 per equity share or such higher price, aggregating to Rs 300 crore. This preferential issue is subject to necessary approvals, including from the company's shareholders.
Rail Vikas Nigam slumped 8.88% to Rs 27.70 as the offer for sale (OFS) opened for non-retail investors today, 24 March 2021.
Through the OFS, the Government of India proposes to sell up to 20,85,02,010 equity shares (representing 10% stake), with an option to sell an additional 5% stake or 10,42,51,005 equity shares in case of oversubscription. The floor price for the OFS is Rs 27.50 per equity share, at a 9.54% discount to Rail Vikas Nigam's closing price of Rs 30.40 on Tuesday, 23 March 2021.
The OFS opened on Wednesday (24 March 2021) for non-retail investors, while both retail as well as non-retail investors will be able to subscribe on Thursday (25 March 2021). A total of 10% of the offer size is reserved for retail investors.
As on 15:30 IST, the OFS received subscription for 19,75,62,294 shares. It was subscribed 105.28% on the base non-retail total offer size of 18,76,51,809 shares and 70.19% on the total non-retail total offer size (base size+green shoe) of 28,14,77,713 shares.
New Listing:
Shares of Anupam Rasayan India closed at Rs 525.90 on the BSE, a discount of 5.24% over the initial public offer (IPO) price of Rs 555.
The stock was listed at Rs 534.70, a discount of 3.66% to IPO price. The stock hit a high of Rs 548.95 and low of Rs 501.15. On the BSE, 15.82 lakh shares were traded on the counter.
The IPO of Anupam Rasayan was subscribed 44.06 times. The issue opened for bidding on 12 March 2021 and closed on 16 March 2021. The price band for the IPO was set at Rs 553-555 per share.
Powered by Capital Market - Live News