Domestic equity benchmarks extended losses for the second straight session today due to renewed worries of US Fed rate hike. After the strong US economic data announced last week, speculation are high about rise in US inflation that may prompt US Fed to further hike interest rate. The minutes from U.S. Federal Reserve's February meeting will be published on 23 February 2023.
Weakness in banks and financial stocks weighed on the benchmark indices lower. The Nifty 50 index, despite opening higher and touching 18,004.35 during morning deals, ended 100 points down at 17,845.
The barometer index, the S&P BSE Sensex, fell 311.03 points or 0.51% to 60,691.54. The Nifty 50 index lost 99.60 points or 0.56% to 17,844.60.
HDFC (down 1.33%), ICICI Bank (down 1.18%), Reliance Industries (down 1.01%) and HDFC Bank (down 1%) were major drags.
In the broader market, the S&P BSE Mid-Cap index shed 0.12% while the S&P BSE Small-Cap index declined 0.16%.
The market breadth was weak. On the BSE, 1,391 shares rose and 2,178 shares fell. A total of 169 shares were unchanged.
The Nifty Oil & Gas index (down 1.14%), the Nifty Bank index (down 1.05%) and the Nifty Financial Services index (down 0.98%) underperformed the Nifty. The Nifty IT index (up 0.54%), the Nifty Auto index (up 0.28%) and the Nifty FMCG index (down 0.25%) outperformed the Nifty.
Fresh geopolitical concerns also spooked investors. North Korea fired two more ballistic missiles off its east coast earlier in the day and warned US forces to halt their military drills in the pacific.
Meanwhile, US President Joe Biden made a surprise trip to Kyiv on Monday ahead of the first anniversary of Russia's invasion of Ukraine. Biden's visit on Monday was the first to Ukraine since Russian President Vladimir Putin ordered his troops into the neighbouring country on 24 February 2022.
Numbers to Track:
The yield on India's 10-year benchmark federal paper declined to 7.3681 from 7.388 previous trading session.
In the foreign exchange market, the rupee higher lower against the dollar. The partially convertible rupee was hovering at 82.73, compared with its close of 82.825 during the previous trading session
MCX Gold futures for 5 April 2023 settlement added 0.06% to Rs 56,290.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.05% to 103.91.
The United States 10-year bond yield fell 0.30% to 3.817.
In the commodities market, Brent crude for April 2023 settlement advanced 67 cents or 0.81% to $83.67 a barrel.
Global Markets:
European shares declined while Asian stocks ended higher on Monday. Investors were cautious at the start of a week that includes the release of important Eurozone activity data as well as the minutes from the last Federal Reserve meeting.
Monday will be a trading holiday for the U.S., in light of Presidents' Day.
Elsewhere, China's central bank left its interest rates unchanged earlier Monday, tensions between Beijing and Washington remained fraught due to issues surrounding the alleged Chinese spy balloon and potential aid to Russia, while North Korea has reportedly fired three ballistic missiles off its east coast on Monday.
Stocks in Spotlight:
Cipla dropped 6.02%. The United States Food and Drug Administration (USFDA) conducted a current Good Manufacturing Practices (cGMP) inspection at the company's Pithampur manufacturing facility from 6th - 17th February 2023. On conclusion of the inspection, the company has received 8 inspectional observations in Form 483. The company will work closely with the USFDA and is committed to address these comprehensively within stipulated time.
Hindustan Unilever shed 0.17%. The FMCG major has signed an agreement for the sale of its atta and salt business carried out under the brands 'Annapurna' and 'Captain Cook.' The brands were sold at Rs 60.4 crore to Uma Global Foods, and Uma Consumer Products, which are subsidiaries of Reactivate Brands International, a Singapore-headquartered company and an affiliate of CSAW Aqbator (Singapore).
Tata Motors rose 0.67% after the media reports suggested that the company would supply 25,000 XPREST electric vehicle (EV) units to Uber in one of the largest deals in the green mobility space till date.
Samvardhana Motherson International advanced 3.27% to Rs 82.15 after the company's announced the signing of an agreement by its subsdiary to acquire SAS Autosystemtechnik for 4.4 billion euros.
Sun Pharmaceutical Industries added 0.16%. The pharma major announced that it has entered into agreements to acquire minority stake up to 26.09% in Agatsa Software and 27.39% in Remidio Innovative Solutions.
CRISIL gained 2.31%. On consolidated basis, the company's net profit fell 6.3% to Rs 158.02 crore in Q4 FY22 compared with Rs 168.63 crore in Q4 FY21. Income from operations jumped 16.5% year on year to Rs 822.3 crore in the quarter ended 31 December 2022.
Power Grid Corporation of India added 0.91%. The state-owned firm said that it has been declared as the successful bidder under tariff based competitive bidding to establish inter-state transmission system for the following projects on build, own operate and transfer (BOOT) basis.
Zydus Lifesciences fell 1.36%. The drug maker received tentative approval from the USFDA for Gabapentin tablets (once-daily), 300 mg and 600 mg. Further, it also received tentative approval from the USFDA for Canagliflozin and Metformin Hydrochloride tablets.
United Breweries (UBL) declined 1.26%. The company announced that its managing director and chief executive officer, Rishi Pardal, tendered his resignation on 16 February 2023. UBL said its board has commenced a search for a new managing director & CEO for the company.
Ugro Capital lost 1.16%. The investment and borrowing committee of the company's board has approved fund raising of up to Rs 20 crore by issuing non-convertible debentures (NCDs) on a private placement basis. The NBFC said that the NCDs will be issued at a coupon rate of 10% per annum. The tentative allotment date for the NCD is 24 February 2023. The tenure of the instrument is 18 months from the date of allotment. Meanwhile, the tentative maturity date is 24 August 2024.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
