Key equity indices traded in a narrow range near the day's low in afternoon trade. The Nifty was trading below the 14,800 mark. Rising domestic inflation and increase in COVID-19 cases sapped investors appetite for risk assets.
At 13:20 IST, the barometer index, the S&P BSE Sensex, tanked 859.26 points or 1.69% at 49,932.82. The Nifty 50 index lost 256.65 points or 1.71% at 14,774.30.
Reliance Industries (down 2.25%), ICICI Bank (down 3.39%) and HDFC Bank (down 2.02%) were major drags.
The broader market tumbled. The S&P BSE Mid-Cap index declined 1.80%. The S&P BSE Small-Cap index dropped 1.12%.
Sellers outnumbered buyers. On the BSE, 898 shares rose and 2,049 shares fell. A total of 184 shares were unchanged.
Foreign portfolio investors (FPIs) sold shares worth Rs 942.60 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 163.87 crore in the Indian equity market on 12 March 2021, provisional data showed.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 11,98,75,420 with 26,53,652 deaths. India reported 2,19,262 active cases of COVID-19 infection and 1,58,725 deaths while 1,10,07,352 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
The media reported that Maharashtra recorded this year's highest one-day spike of 16,620 new COVID-19 cases on Sunday, which pushed its overall caseload to 23,14,413, while 50 deaths pushed the toll to 52,861.
Economy:
India's wholesale price-based inflation (WPI) in February rose to 4.17% as against 2.03% a month ago in January and 2.26% during the corresponding month of the previous year. Wholesale prices in February this year, which were highest in the last 27 months, rose on the back of rising food prices and manufactured goods.
India's retail inflation (CPI) inched up to 5.03% in February, mainly due to rise in food and fuel prices. Food inflation rose to 3.87% in February, compared to 1.89% in the previous month. Inflation in 'fuel and light' category fell marginally to 3.53% in February compared to 3.87% in January but remained high compared to the corresponding period of the previous year.
The consumer price index (CPI) based retail inflation was at 4.06% in January which was lowest since October 2019.
Meanwhile, the country's factory output (IIP) for the month of January contracted by 1.6% after registering a 1% growth in December 2020. Electricity sector output grew 5.5% in January, while manufacturing contracted by 2% and mining output contracted by 3.7%.
Hit by COVID-19 spread and lockdowns, IIP contracted for five months in row from April to August in last fiscal before making a comeback to positive territory.
Further, Bank credit has risen by 6.63% to Rs 107.75 lakh crore and deposits grew by 12.06% to Rs 149.34 lakh crore in the fortnight ended 26 February, according to RBI data. In the fortnight ended 28 February last year, bank credit stood at Rs 101.05 lakh crore and deposits at Rs 133.26 lakh crore.
Bank credit increased by 6.58% to Rs 107.04 lakh crore and deposits rose by 11.75% to Rs 147.81 lakh crore in the previous fortnight ended 12 February 2021.
Gainers & Losers:
PowerGrid Corporation of India (up 1.85%), HCL Technologies (up 0.71%), Nestle India (up 0.43%), Britannia Industries (up 0.35%) were major gainers in Nifty 50 index.
Divis Laboratories (down 3.70%), Mahindra & Mahindra (M&M) (down 3.66%), Bajaj Finance (down 3.49%), ICICI Bank (down 3.39%) were major losers in Nifty 50 index.
Stocks in Spotlight:
Titan Company fell 0.44%. The company on Friday announced that it has completed its exit from Montblanc India Retail (MB India). Consequently, MB India ceases to be an associate/ JV company of the company with effect from 12 March 2021. Earlier in October 2020, the company had informed the exchanges regarding the ending of its joint venture with MB Services in respect of its shareholding, which was mainly driven by the Titan's consolidation strategy to focus on its primary business and proprietary brands.
Axis Bank dropped 4.05%. The private bank will pick up a 9.9% stake in Fettle Tone, a promoter of Max Bupa Health Insurance Company (MBHI), for Rs 90.80 crore to strengthen is insurance business. The definitive agreements in connection with the proposed acquisition have been executed by Axis Bank on 13 March 2021 and the acquisition is proposed to be completed on or before 17 March 2021. The plan is aimed at strengthening Axis Bank's position in the insurance sector.
Tech Mahindra gained 1.32% after the company announced that it acquired 70% stake in Perigord Asset Holdings to augment expertise in the global pharmaceutical, healthcare and lifesciences sectors. Tech Mahindra will pay a total cash consideration of 21 million euros for 70% stake of Perigord Asset Holdings. The balance 30% stake will be acquired over the next four years at a valuation linked to financial performance of the company. The transaction is expected to close by 19 March 2021.
Strides Pharma Science lost 1.27%. Strides Pharma Science (Strides) on Monday (15 March) announced that its step-down wholly owned subsidiary, Strides Pharma Global, Singapore, has received approval for potassium chloride for oral solution USP, 20 mEq from the United States Food & Drug Administration (USFDA). The product is bioequivalent and therapeutically equivalent to the reference listed drug (RLD), Potassium Chloride for Oral Solution USP, 20 mEq, of Pharma Research Software Solution.
Global Markets:
European stocks opened higher while Asian stocks were mixed on Monday ahead of this week's Federal Reserve meeting stateside.
The Federal Open Market Committee is due to meet on March 16 and 17 and it is reportedly expected that the U.S. central bank may revise up its GDP forecast, following a $1.9 trillion fiscal stimulus package that will send direct payments of up to $1,400 to most Americans. The Fed will also deliver its decision on interest rates.
US stocks closed mixed on Friday. The blue-chip Dow powered to its fifth consecutive record high on Friday and the S&P 500 closed slightly higher as investors bought shares that should benefit from a strong reopening of the U.S. economy.
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