As per the provisional closing data, the barometer index, the S&P BSE Sensex, tumbled 2,702.15 points or 4.72% at 54,529.33. The Nifty 50 index slumped 815.3 points or 4.78% at 16,247.95.
In the broader market, the S&P BSE Mid-Cap index cracked 5.41% while the S&P BSE Small-Cap index dropped 5.63%.
The Sensex has declined 6.2% in seven days while the Nifty corrected 6.3% in the same period.
Sellers outnumbered buyers. On the BSE, only 236 shares rose while 3,155 shares fell. A total of 87 shares were unchanged.
Trading sentiment took a hit after Russian President Vladimir Putin said in a public address that he had authorized a military operation in Ukraine. Later the media reported explosions were heard in Kyiv. Putin appealed to Ukrainian soldiers to lay down their arms and go home. He said Russia doesn't plan to occupy its southern neighbour, but that Russia must defend itself from those who took Ukraine hostage -- the U.S. and its allies who had crossed Russia's red line with expansion of the NATO alliance.
India has called for an immediate de-escalation of tensions between Russia and Ukraine. India's Permanent Representative UN, TS Tirumurti cautioned that the situation is in danger of spiraling into a major crisis. He was addressing an emergency meeting of UN Security Council held on Ukraine this morning. This was the second meeting of UNSC this week and the fourth since January 31 as tensions escalated between Russia and Ukraine. Tirumurti emphasized sustained and focused diplomacy to address all issues concerning the situation.
Meanwhile, UN Secretary-General Antonio Guterres made a direct appeal to President Putin to stop Russian troops from attacking Ukraine.
Stocks in Spotlight:
Saregama India slumped 5%. The company's board proposed to split equity shares of face value of Rs 10 each into equity shares of face value of Re 1 each (10:1) (i.e. sub-division of existing one equity share of face value of Rs 10 each fully paid up into ten equity shares of Re 1 each fully paid).
Hikal slumped nearly 5%. The drug company said that the Bombay High Court has set aside the impugned order of closure issued by MPCB. The writ petition filed by the company was also disposed by the Bombay High Court. The MPCB has been directed by the High Court to grant fresh personal hearing to the company in the matter, Hikal said. On 16 February 2022, Hikal had informed the exchanges about the receipt of a notice from the Maharashtra Pollution Control Board (MPCB) for closure of the firm's manufacturing unit located at MIDC Taloja, Dist. Raigad. The closure notice was issued in view of certain alleged non-compliances of the conditional consent to operate and the recent Surat issue. The Taloja unit had contributed approx. Rs 260 crore amounting to around 15% of the turnover of the company for financial year 2020-21.
Bharat Forge slumped 5.24%. The forging product supplier announced that it has entered into a definitive agreement to acquire JS Autocast Foundry India. Established in 2004, JS Auto is a leading supplier of critical machined Ductile Iron castings for the wind, hydraulic, off-highway and automotive applications. Over the past 5 year, the sales of JS Auto has grown at a CAGR of 17.7%. JS Auto registered sale of Rs 259 crore in FY21. Bharat Forge will acquire JS Auto for an upfront consideration (based on enterprise valuation adjustments) plus fixed deferred payment at the end of 3rd year. The closing of the transaction is subject to customary closing conditions. The valuation is not disclosed herein due to reasons of confidentiality, the company said.
Ashoka Buildcon declined nearly 11%. The EPC major said that it has received letter of acceptance (LoA) from Northeast Frontier Railway for a project involving electrification of railway lines in the State of Assam on EPC mode. The accepted offer of the project is Rs 692.50 crore. The contract period is 900 days.
L&T Finance Holdings tumbled 10.75% after CitiGroup Global Markets Mauritius and CBNA London sold 6.39 crore equity shares or 4.88% stake of the company on 21 February 2022. Post transaction, CitiGroup Global Markets Mauritius and CBNA London decreased its shareholding to 3.87% stake from 8.75% stake held in L&T Finance Holdings. The deal was executed as secondary market sale.
Piramal Enterprises tumbled 7%. The NBFC on Thursday said that it will consider and approve the issue of secured, rated, listed, redeemable NCDs up to Rs 100 crore along with an option to retain oversubscription up to Rs 400 crore. The total size will aggregate up to Rs 500 crore and the fund raising will be done on a private placement basis.
Sanofi India fell 1.33% after the company reported 23% fall in net profit to Rs 90.40 crore on a 4.5% fall in net sales to Rs 687.90 crore in Q4 December 2021 over Q4 December 2020. Total expenditure rose 1.3% YoY to Rs 56.70 crore in the fourth quarter, primarily due to higher raw material costs (up 85.3% YoY) and higher other expenses (up 10.8% YoY). Profit before tax in Q4 December 2021 stood at Rs 132.20 crore, down 22.3% YoY.
Federal-Mogul Goetze (India) jumped 5.63% after Pegasus Holdings III, LLC, made an open offer to buy 25.02% of the fully diluted voting share capital of the company. Pegasus Holdings III, LLC will acquire up to 1,39,16,676 fully paid-up equity shares (25.02% equity) at Rs 275 per offer share aggregating to a total consideration of up to Rs 382.8 crore.
The open offer was triggered due to the merger between Pegasus Merger Co and Tenneco Inc, the ultimate holding company of Federal-Mogul Goetze (India). Tenneco Inc. on 23 February 2022, entered into an agreement to merge with Pegasus Merger Co., a corporation established under the laws of Delaware and a direct wholly owned subsidiary of Pegasus Holdings III, LLC. Effective upon the closing of the transactions, Merger Sub will merge with and into Tenneco Inc., with Tenneco Inc. continuing as the surviving corporation and a direct wholly owned subsidiary of the Parent. Tenneco holds a 100% stake in Federal-Mogul Mauritius and Federal-Mogul Germany under subsidiaries. Federal-Mogul Mauritius and Federal-Mogul Germany are the promoter companies of Federal-Mogul India. Meanwhile, promoter holds a 74.98% stake in Federal-Mogul India.
Global Markets:
The Dow Jones index futures were down 718 points, indicating a weak opening in the US stocks today.
Shares in Europe and Asia tumbled on Thursday as investors continue to watch the escalating situation between Russia and Ukraine.
The Bank of Korea kept interest rates unchanged at 1.25% at its meeting on Thursday. However, it predicted that consumer price inflation will run substantially above 3% for a considerable time.
Ukraine warned its citizens against traveling to Russia and to leave the neighboring country, if they are there. Meanwhile, the UK said that it was ready to impose more sanctions on Russia.
Meanwhile, the Biden administration announced it will allow sanctions to move forward on the company in charge of building Russia's Nord Stream 2 gas pipeline, following a first tranche of sanctions against Russia Tuesday that targets Russian banks, the country's sovereign debt and three individuals.
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