Nifty PSU Bank index plunged 3.7 per cent while Nifty Metal index lost 2.5 per cent. Image: ReutersShare Market News Today | Sensex, Nifty, Share Prices HIGHLIGHTS: Domestic equity market benchmarks BSE Sensex and Nifty 50 ended over one per cent lower on Wednesday, on the back of mixed cues from Asian peers ahead of US Fed outcome and rising Covid-19 cases in the country. Besides, market participants were seen cautious ahead of the weekly expiry of the F&O contracts due on Thursday. BSE Sensex tumbled 562.34 points or 1.12 per cent to 49,801.62, while the broader Nifty 50 index settled at 14,721, down 189.15 points or 1.27 per cent. Top BSE Sensex losers were ONGC, NTPC, Sun Pharma, State Bank of India (SBI), IndusInd Bank, Reliance Industries Ltd (RIL), Bajaj-Auto, Titan Company, among others. On the contrary, ITC, Infosys, Tata Consultancy Services (TCS) and Housing Development Finance Corporation (HDFC), were the only index gainers. All the Nifty sectoral indices ended in a deep sea of red. Nifty PSU Bank index plunged 3.7 per cent while the Nifty Metal index lost 2.5 per cent.
Highlights
BSE Sensex tumbled 562.34 points or 1.12 per cent to 49,801.62, while the broader Nifty 50 index settled at 14,721, down 189.15 points or 1.27 per cent.
Domestic equities dropped for the fourth consecutive day as concerns pertaining to recent rise in Covid-19 cases in various parts of the country and high inflation continued to weigh on investors’ sentiments. Additionally, weak cues from global markets ahead of FOMC meeting outcome also caused selling in domestic equities. Clearly, mounting concerns with regards to higher inflation, bond yields and recent spike in new Covid-19 cases in select states have weighed on investors’ sentiments. Outcome of Fed policy meeting will equally be important for domestic markets in the near term as this can potentially influence FPIs flows into equities and INR.: Binod Modi, Head Strategy at Reliance Securities
The fall in markets has more to do with global market. Markets is keenly waiting for the Fed meeting outcome. When global markets tumble, FIIs come out selling. Other than that, covid cases in India are increasing and oil prices are also up which are negative for India. Consensus is that US Fed policy stance will remain accommodative. More than that market will look at the statement of Fed and look at what the Fed will look to do in the near future. If the policy stance remains accommodative the selling could come down. Volatility is expected to remain.: Vinod Nair, Head of Research, Geojit Financial Services
Any dovish comments by the US Fed Reserve will see some softening in the Dollar as well as the yields. If this happens, it would be good base for some technical pullback. With PCR of 0.83, NIFTY is oversold on short-term charts. If any technical pullback occurs, we have resistance at 14830 and 14900 levels. If 14700 is not held, then the next support comes in at 14565: Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst and founder of Gemstone Equity Research & Advisory Services
The markets are more worried on the US Fed commentary which is slated to come in tonight where the median of the 18 members expecting the rates to stay between 0 and 0.25 %. Coming to domestic markets, the NIFTY has tested its 50-DMA which currently stands at 14728 and these levels are extremely crucial as a support on a closing basis.: Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst and founder of Gemstone Equity Research & Advisory Services
The index has continued to respect the 14700-14750 support range. Short to medium term weakness will be triggered once we break 14700 on a closing basis. Thereafter 14300-14400 is a possibility. On the upside, unless we do not get past 15300, we will not see a bullish trend. The current range is between 14700-15300 and unless we do not get past either of them, we will continue to see uneventful trading sessions. Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
Top BSE Sensex losers were ONGC, NTPC, State Bank of India (SBI), Sun Pharma, IndusInd Bank, Reliance Industries Ltd (RIL), among others.
BSE Sensex tumbled 600 points or 1.19 per cent to 49,762, while the broader Nifty 50 index gave up 14,750, on the back of mixed cues from Asian peers, rising Covid-19 cases in the country.
The recent fall in the banking stocks can be attributed to the reform of the SEBI regarding the treatment and valuation of perpetual bonds. Perpetual bonds have no liability on the issuer to repay or make coupon payments if it is not profitable but it also embeds a call option with the bond for a specified date in the future and the investors (institutional) e.g Mutual funds used to value and consider the maturity as of the option trigger date. SEBI now mandated that funds that claim to make investments in fixed maturity bonds can no longer buy into these securities and other funds’ exposure are also to be capped at 10 per cent. This circular has created problems for the fundraising plans of PSBs which were looking to raising 3500 crores through this route. Shorter duration yields rose 25 basis points in the secondary market thereby having effect on these stocks.: Vishal Balabhadruni, Senior Research Analyst, CapitalVia Global Research Limited
True to the heightened investor interest in initial public offerings (IPO), Rakesh Jhunjhunwala-backed Nazara Technologies’ issue was oversubscribed within hours on the very first day. Nazara Technologies IPO received bids for 2.32 times the issue with retail and non-institutional investors oversubscribing their portion. Interest in the shares of the company was strong even in the grey market as premium climbed further to nearly double the IPO price. The diversified gaming and sports media platform is looking to raise Rs 582 crore through the issue which is an offer for sale (OFS) by existing investors of the company. Nazara Technologies will not generate any funds through the IPO.
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BPCL witness supply pressure due to disappointment from low dividend, stock has given the breakdown to its upsloping trend line on daily chart which indicates it may witness more supply pressure 420-410 level in near-term. One can keep stop loss of 445 to remain short. Derivative data also suggests that stock has witness short buildup today, supports the bearish bias in near term.: Rajesh Palviya, Head –Technical & Derivatives Research, Axis Securities Ltd
ICRA has upgraded its ratings on the long-term debt facilities of Muthoot Finance Limited to ‘[ICRA] AA+(Stable)’ from ‘[ICRA]AA(Stable)’. The rating upgrade signifies reaching the highest standing in the category and this rating is just one level below ‘AAA’ rating which is the highest rating for long term debt instruments. The rating denotes ‘high safety’ regarding timely servicing of financial obligations and such instruments carry very low credit risk. This rating upgrade will enable the Company to raise more long term debt funds as well as attract wider set of investors. This upgrade can further attract investments from Retail Investors in the public Issue of NCDs in which company has track record of 24 issuances raising Rs. 17392 crore cumulatively. Moreover, the company will be able to raise funds at much more competitive rates.
Shakti Pumps (India) is engaged in the manufacturing of Pumps, Motors & their spare parts. The core products of the Company are Engineered Pumps, Industrial Pumps, and Solar Pumps etc. The company has awarded a contract from the Government of Uganda represented by the Ministry of Water and Environment for the Supply of solar-powered water pumping Systems at a contract price of USD 3,53,00,000. This is a positive development for the company (considering the company’s top-line), which would support revenue growth for FY22.: Amarjeet Maurya - AVP - Mid Caps, Angel Broking Ltd
ICRA has upgraded its ratings on the long-term debt facilities of Muthoot Finance Limited to ‘[ICRA] AA+(Stable)’ from ‘[ICRA]AA(Stable)’. The rating upgrade signifies reaching the highest standing in the category and this rating is just one level below ‘AAA’ rating which is the highest rating for long term debt instruments. The rating denotes ‘high safety’ regarding timely servicing of financial obligations and such instruments carry very low credit risk.
The market opened on a flatter note and since then has been trading on a slightly negative note. US markets closed on a slightly negative note and Asian market has also shown weaker movements in the market as the market awaits the results of the US reserve’s monetary policy later in the week. Rating agency India Ratings and Research (Ind-Ra) has revised its outlook on the domestic steel sector to stable from negative for the fiscal year beginning April 1, 2021 (FY22). It expects the prices of iron ore, a raw material used for steel making, to increase in the coming financial year. It also expects FY22 steel volumes to improve year-on-year. Only Tech stocks have shown some strength in the market other than that all major indices are trading in the red zone. Gaurav Garg, Head of Research at CapitalVia Global Research
The US economy is now in an expansion cycle but this period of economic growth is likely to be shorter than the previous three witnessed by the country, Morgan Stanley analysts said in a note. This shorter cycle warrants investors to position their strategies accordingly but equities are not expected to run out of favour. “A rapid economic recovery and an emergence of inflation after a 30-year absence mean this cycle could be shorter than the prior three, in our view. We think risk-asset leadership is already shifting from 'early cycle' to 'mid-cycle,' and that investors should position accordingly,” the note added.
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BPCL share price fell as much as 4 per cent to Rs 435.65 apiece on BSE on Wednesday, a day after the company declared the second interim dividend of Rs 5 per share of face value Rs 10, each for the current fiscal. The dividend announced is much lower than expected. Moreover, the board of directors of Bharat Petroleum Corporation Ltd have fixed March 27, 2021, as the record date to determine the eligibility of the shareholders to receive the declared interim dividend.
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India with its young population and being entertainment-driven is one large market that game publishers are looking at, says Manish Agarwal, chief executive officer, Nazara Technologies. He explains why the company is not raising any growth capital with its Rs 583-crore initial public offering slated to hit the markets.
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Gold prices in India were trading higher on Wednesday ahead of the US Federal Reserve meeting outcome. Domestic markets were mirroring the international prices, where gold hit a two-week high. On MCX, gold April futures were trading Rs 130 or 0.29 per cent higher at Rs 44,943 per 10 gram against the previous close of Rs 44,813. While silver May futures were ruling at Rs 67,025 per kg, up Rs 106 or 0.16 per cent on the Multi Commodity Exchange. In the previous session, silver futures settled at Rs 66,919 per kg.
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The markets are still in a sideways patch. We need to either get past 15300 on the upside or break 14700 on the downside. Until then, we will witness choppy trading and lacklustre sessions. Traders need to exercise extreme caution in these times as the risk-reward ratio is skewed in favor of risk.: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
A recent spike in US bond yields and a rebounding US economy has put the Fed’s policy decision and rate guidance at concerns. Focus remains on Fed’s dot forecast, used to assess the interest rates trajectory, growth and inflation in the world’s largest economy. The past four dots showing liftoff will bring the median dot to a hike in 2023, this could be the sort of hint the market would take as an approaching taper signal. If FOMC’s statement are not dovish enough, it could make US bond yields and the safe heaven dollar jump higher.: Amit Pabari, managing director, CR Forex Advisors
Asian Paints, Kotak Mahindra Bank, ONGC, Power Grid Corporation of India, Axis Bank, Nestle India were capping the gains in Sensex.
Top BSE Sensex gainers were Larsen & Toubro (L&T), Tech Mahindra, ITC, Mahindra & Mahindra, HDFC Bank and Infosys, among others.
The FOMC meet outcome expected today is likely to have an impact on markets. The Fed is likely to emphasize it's highly accommodative stance and signal that inflation is not a concern. That will be positive. Any departure from this stance can be negative. The US 10 year yield, firm at around 1.62%, will deter equity bulls from going aggressive. The second wave of Covid cases in parts of the country, though not serious, is an area of concern. Issues relating to the AstraZenaca vaccine in parts of Europe is another concern. FIIs turning buyers again is positive but that is negated by DII selling. In brief, investors have to be cautious.: V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
BSE Sensex was trading flat to negative at 50,333, while the broader Nifty 50 index gave-up the 14,900 level on Wednesday.
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COMEX gold trades mixed near $1730/oz after a 0.1% gain yesterday. Gold is choppy ahead of the Fed decision later today. Support from Europe’s vaccination concerns, Chinese equity market sell-off and US stimulus deal is countered by weaker investor interest and higher bond yields. Gold may remain choppy ahead of Fed decision however general bias may be on the upside amid expectations that Fed and other central banks may maintain dovish stance.: Ravindra Rao, VP- Head Commodity Research at Kotak Securities
FMCG and technology stocks saved the market on Tuesday, otherwise, the Nifty/Sensex would have reached 14,800/50000 again due to weakness in bank stocks and metal companies. The global market was stable and long-term bond yields were also trading in the short-range.
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BSE Sensex slipped 150 points, while the broader Nifty 50 index breached the 14,900 level onthe downside in the pre-opening session on Wednesday.
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LBMA Gold Spot could trade on positive momentum up to $1739-$1747 level where support is at $1725-$1717 levels. MCX Gold April could see a sideways momentum where 44750-44500 is holding a support and resistance is at 45100-45300 levels. Strategy for Gold April Buy 44800 SL 44600 TGT 45200. LBMA Silver Spot is sustaining below 50-Daily Moving Average which is placed at $26.40 level indicating for some downside pressure up to $25.55-$24.28 levels. MCX Silver May is holding a resistance zone near 67800-67930 level below which could see a downside momentum up to 66200-65600 levels. Neha Qureshi, Technical Analyst at Reliance Securities
Nifty futures were trading 29 points or 0.19 per cent up at 15,001 on Singaporean Exchange on Wednesday, indicating a flat opening for BSE Sensex and Nifty 50. A host of factors such as resurgence in COVID-19 cases, fresh localised restrictions, US Fed meet outcome, oil prices, rupee trajectory and other global cues will set the market tone.
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Kalyan Jewellers has said that the government of Singapore and Monetary Authority of Singapore are among the 15 anchor investors who invested Rs 351.89 crore on Monday ahead of the jewellery retailer’s initial public offering (IPO). The firm has allocated 4.04 crore shares at the upper price band of Rs 87 a share. Government of Singapore has been allocated 29% in the anchor allocation of Kalyan Jewellers India, while Monetary Authority of Singapore has been allocated 5.11%.
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Asian stock markets were trading mostly lower in early trade on Wednesday as investors await the Fed outcome. Australia’s ASX 200 was down half a per cent. Japan’s Nikkei 225 gained 0.20 per cent while the Topix index was marginally lower. South Korea’s Kospi fell 0.66 per cent.
Nifty futures were trading 29 points or 0.19 per cent up at 15,001 on Singaporean Exchange on Wednesday, indicating a flat opening for BSE Sensex and Nifty 50.
Domestic equity markets ended in red for the third consecutive day on Tuesday. S&P BSE Sensex now sits at 50,363 points while the 50-stock NSE Nifty is at 14,910. Stock markets have been consolidating for a while now as bond yields rise and inflation worries emerge. Technically, Nifty not showing any significant decline on Tuesday, after two days of sharp weakness could be a slight positive indication, said Nagaraj Shetti, Technical Research, Analyst, HDFC Securities. SGX Nifty was up 44 points on Wednesday morning, hinting at a gap-up start for equities.
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Nazara Technologies on Tuesday said it has mopped up a little over Rs 261 crore from anchor investors ahead of its initial public offer, which opens for subscription on Wednesday. The company's initial public offer IPO committee has decided to allocate 23.73 lakh shares to 43 anchor investors at Rs 1,101 per piece. At this price, the firm has raised Rs 261.31 crore, Nazara Technologies informed BSE.