As per provisional closing data, the barometer index, the S&P BSE Sensex, was down 195.16 points or 0.26% to 73,677.13. The Nifty 50 index shed 49.30 points or 0.22% to 22,356.30.
In the broader market, the S&P BSE Mid-Cap index shed 0.17% and the S&P BSE Small-Cap index declined 0.63%.
The market breadth was weak. On the BSE, 1,267 shares rose and 2,574 shares fell. A total of 92 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, slipped 3.63% to 14.38.
Economy:
The seasonally adjusted HSBC India Services Business Activity Index registered 60.6 in February, down from 61.8 in January. Despite having slipped, the headline index was comfortably above the neutral mark of 50.0 and signalled a sharp rate of expansion that was well above the series history (since December 2005).
With both manufacturing production and services activity in India increasing during February, there was a further upturn in private sector output. The HSBC India Composite PMI Output Index slipped from a six-month high of 61.2 in January to 60.6, indicating a softer but sharp rate of expansion.
IPO Update:
The initial public offer (IPO) of J G Chemicals received 1,51,93,523 bids for shares as against 81,68,714 shares on offer, according to stock exchange data at 15:30 IST on Tuesday (5 March 2024). The issue was subscribed 1.68 times.
The issue opened for bidding on Tuesday (5 March 2024) and it will close on Thursday (7 March 2024). The price band of the IPO is fixed at Rs 210 to 221 per share. An investor can bid for a minimum of 67 equity shares and in multiples thereof.
The initial public offer (IPO) of R K Swamy received 3,97,75,450 bids for shares as against 82,32,946 shares on offer, according to stock exchange data at 15:30 IST on Tuesday (5 March 2024). The issue was subscribed 4.83 times.
The issue opened for bidding on Monday (4 March 2024) and it will close on Wednesday (6 March 2024). The price band of the IPO is fixed at Rs 270 to 288 per share. An investor can bid for a minimum of 150 equity shares and in multiples thereof.
Buzzing Index:
The Nifty PSU Bank index gained 2.62% to 7,326.50. The index jumped 7.1% in five trading sessions.
Indian Overseas Bank (up 9.58%), UCO Bank (up 7.58%), Central Bank of India (up 7.15%), Punjab & Sind Bank (up 7%), Union Bank of India (up 6.25%), Bank of Maharashtra (up 4.01%), Bank of India (up 3.16%), Punjab National Bank (up 2.98%), Canara Bank (up 1.82%) and Bank of Baroda (up 1.81%) advanced.
Stocks in Spotlight:
IIFL Finance hit a lower limit of 20% after the RBI barred the company from sanctioning, disbursing new gold loans, citing "material supervisory concerns". The Reserve Bank of India (RBI) has imposed a business restriction on IIFL Finance, effective 4 March 2024. This restriction prohibits IIFL Finance from issuing new gold loans or selling existing ones. The action stems from concerns identified during a recent RBI inspection of IIFL's gold loan portfolio.
Star Housing Finance advanced 2.16% after the company announced that it board will meet on Saturday, 9 March 2024 to raise funds through issuance of non-convertible debentures on private placement basis.
Kalpataru Projects International (KPIL) rose 0.71%. The company announced that it has received letter of intent (LoI) from Aramco for carrying out EPC work for the Master Gas System Network (MGS‐3) in Saudi Arabia.
Garden Reach Shipbuilders & Engineers (GRSE) gained 1.77% after the company said that it has signed a memorandum of understanding with the Indian Register of Shipping (IRS) to develop green energy and autonomous vessels.
Indian Energy Exchange (IEX) declined 2.44%. The company informed that it has achieved 9,462 million units (MU) overall volume in February 2024, registering a growth of 15.4% YoY basis.
Infibeam Avenues rallied 5.61% after the company announced that it has received final authorisation from Reserve Bank of India (RBI) to operate as an online payment aggregator.
Star Cement rose 0.53%. The company informed that CRISIL Ratings has assigned its 'CRISIL A1+ rating to the short-term bank facilities of the company.
Strides Pharma Science advanced 1.98% after its step‐down wholly owned subsidiary, Strides Pharma Global Pte. Singapore received approval from the United States Food & Drug Administration (USFDA) for Gabapentin tablets.
Westlife Foodworld surged 6.81% after firm announced that the Food Safety and Standards Authority of India (FSSAI) verified that McDonald's India uses 100% real cheese.
Power Mech Projects (PMPL) rose 0.44%. The company informed that it has received multiple orders aggregating to Rs 658.57 crore.
Global Markets:
European stocks declined as markets struggled to find positive momentum ahead of the European Central Bank meeting later this week.
Markets in Asia ended mixed on Tuesday as investors showed their disappointment at Beijing's plans to support the economy as its week-long annual session of parliament, the National People's Congress, got underway.
Chinas Two Sessions meeting got under way, with investors watching out for the details of its economic plans after the country projected a GDP growth target of around 5% for 2024. The country also expects the inflation rate to rise to around 3%.
U.S. stocks closed lower on Monday, backing away from record highs, while US Treasury yields ticked higher as investors looked ahead to key jobs data and Federal Reserve Chair Jerome Powell's congressional testimony later in the week.
All eyes are on Fed Chair Jerome Powell's testimony before Congress. In his semiannual testimony on Wednesday and Thursday, he is reportedly expected to double down on his message that theres no rush to cut rates.
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