Sensex, Nifty Snap Two-Week Winning Streak Dragged By Banking, FMCG Stocks

India's stock benchmarks declined for third consecutive session to log losses for the week.

The S&P BSE Sensex and NSE Nifty 50 declined in four of the last five sessions.

Sectorally, banking and FMCG stocks dragged the markets in a volatile week. Media index surged in the week aided by Invesco's decision to not call for an EGM and back Zee Entertainment's merger with Sony.

This the first time Sensex and Nifty have logged losses for the week since the week ended Mar. 4

For Friday, the Sensex shed 0.41% ( equivalent of 233 points) to 57,362.20. The 30-stock gauge tested 57,100 levels in intraday trade. The NSE Nifty 50 almost declined by similar magnitude to 17,153. Titan Co. had the largest drop, falling 3.6%. Today, 38 of 50 shares fell, while 12 rose.

The broader indices almost mirrored their larger peers with both the S&P BSE MidCap and S&P BSE SmallCap losing over 0.3%. Fourteen of the 19 sectoral indices compiled by BSE Ltd. declined with S&P BSE Consumer Durables falling nearly 2.3%. On the flipside, the S&P BSE Realty index added over 1%.

The market breadth was skewed in the favour of bears. About 1,329 stocks advanced, 2,076 declined and 105 remained unchanged

"It was yet another volatile day's trading session as uncertainty surrounding several global developments continue to weigh on investors' minds. The rising US yields have once again raised concerns that the Fed may go for rate hikes, which could prompt overseas investors to shed their exposure to emerging markets", Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities Ltd. wrote in a added. He added, "with Nifty near the 50-day SMA or 17400 level, the market is consistently facing selling pressure which is broadly negative. Further, on weekly charts, the Nifty has formed a small bearish candle that also indicates further weakness".

"Rise in domestic retail fuel prices added to the overall cautious sentiments. Nifty opened positive but pared away its early gains and closed with loss of 70 (-0.4%) points at 17,153 levels. Broader market too ended lower. Among sectors, Realty was top gainer up 1.4%, followed by Media, PSU Bank and Oil & Gas. While selling was seen in Consumer Durables, IT, Pharma, Private Bank, FMCG, Financial Services and Auto", according to Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services. He added , "markets are unable to sustain at higher levels as selling pressure emerge around 17,350-17,400. A strong close above this can take the Nifty towards 17600-17750 zones. Among the broader market, leisure and tourism segment is witnessing lot of interest after the government removed most of the Codid-19 restrictions. Stocks in the multiplex, hotels, travel as well as entertainment space are likely to do well".

Shares of Lemon Tree rose 10% after 1.26% of equity (10 million shares) changed hands in two large trades.

• Details of the buyers, sellers are not known immediately.

Source: Bloomberg

Shares of Tata Elxsi Ltd. rose over 10.6%, the most in over two months, to a record Rs 8,420.05 apiece.

• Trading volume on the stock was over six times the 30-day average volume at this time of the day.

• The relative strength index on the stock is at 74, suggesting it may be overbought.

• Of the seven analysts tracking the company, two maintain 'buy', two suggest 'hold' and three recommend 'sell'. The return potential on the stock is -23.4%.

Source: Bloomberg

BLOOMBERG EXCLUSIVE

• Bengaluru-based startup behind social media platform ShareChat and short-video app Moj -- Mohalla Tech is seeking to raise fresh funds at a valuation of $5 billion.

• Mohalla Tech is in advanced talks with Singapore state investor Temasek Holdings and Indian digital media group Times Internet for the series H round.

• The company could raise at least $200 million.

• Google is also weighing participating in the fundraising.

• Deliberations are ongoing and details such as funding size may change.

Source: People with knowledge of the matter.

• Representatives for Alphabet, Mohalla Tech and Temasek declined to comment.

• Times Internet did not immediately respond to requests for comment.

Source: Bloomberg

• Discussed bilateral relations that have been disturbed as a result of Chinese actions since April 2020

• Exchanged views major international issues including Afghanistan and Ukraine

• Progress has been achieved on several friction points regarding disengagement in border areas with China.

• Completion of disengagement necessary for discussions on de-escalation to take place.

• Describe current situation as work-in-progress, at slower pace than desirable.

• Frictions and tensions arising from China’s actions cannot be reconciled with normal relationship between two neighbours.

• India wants a stable and predictable relationship with China, but restoration of normalcy will require restoration of peace and tranquility.

• So long as there are very large deployments in the India-China border areas that are violative of 1993 and 1996 agreements, the situation is not normal.

• Have made progress in resolving some friction areas including Pangong Tso.

• Effort today is to sort out the friction issues in entirety.

Shares of India's multiplex operators rose, ahead of a major big-budget movie release.

• PVR rose over 5% while Inox Leisure jumped 12%. Both the stock rose to a 2-year high.

• The multilingual movie, titled RRR, has already made Rs 350 crore ($46 million) by selling theatrical, satellite TV rights across five languages, according to an Edelweiss Securities note, earlier this month.

Source: Edelweiss note, Bloomberg

• The U.S. and European Union have announced a ‘task force' to wean Europe off Russian gas.

• The aim is to boost supply of LNG to European countries by 2022-end with at least 15 billion cubic metres.

• Russia is the EU's biggest natural gas supplier, accounting for over 40% of imports. The EU also relies on Russia for coal and oil imports.

Source: Bloomberg

• Sensex sheds nearly 500 points, Nifty slips below 17,100.

• Information technology, auto, consumer durables stocks decline.

• Broader markets outperform.

Shares of InterGlobe Aviation rose nearly 4.9%, the most in over two weeks.

• Today rise comes after JPMorgan upgraded the stock to 'neutral' from 'underweight' on Thursday. The price target was raised to Rs 1,825 from Rs 1,400; an implied downside of 2.04%.

• Trading volume was nearly 1.5 times the 30-day average volume at this time of the day.

• Of the 25 analysts tracking the company, 14 maintain 'buy', five suggest 'hold' and six recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 9.3%.

• Earlier in the day, Minister of Civil Aviation Jyotiraditya Scindia said that air passenger numbers will surpass pre-covid levels in a year, at Wings India airshow.

Source: Bloomberg

India's stock benchmarks declined, dragged by losses in consumer durables, fmcg, information technology stocks. The S&P BSE Sensex and NSE Nifty 50 are on course to snap a two-week winning streak.

The Sensex fell 0.51% to 57,304.62. The Nifty also declined by similar magnitude to 17,143.50.

The broader indices outperformed their larger peers with S&P BSE SmallCap little changed and S&P BSE MidCap shedding 0.1%. Twelve of the 19 sectoral indices compiled by BSE Ltd. declined with S&P BSE Consumer Durables losing 2% and S&P BSE Information Technology falling 1%.

The market breadth was skewed in the favour of bears. About 1,450 stocks advanced, 1,847 declined and 135 remained unchanged.

• Engineers India has 1 million shares change hands in a large trade.

• Details of the buyers, sellers are not immediately known.

Source: Bloomberg

Housing Development Finance Corporation sold 28.90 lakh shares in Hindustan Oil Exploration between July 9 and March 24, for Rs 61.04 crore.

• This aggregates to 2.19% of paid-up share capital of Hindustan Oil Exploration.

• The sale crossed 2% threshold on a cumulative basis on Thursday.

Source: Exchange Filing

Shares of MTAR Technologies Ltd. fell as much as 8.8%, the most since Feb. 24, after about 26.4 lakh shares of the company, which makes up 8.6% of its paid-up share capital, changed hands in eight transactions.

The stock fell for the third day and was the second worst performer on the S&P BSE Small Cap and AllCap indices. The buyers and sellers were not immediately known.

Source: Bloomberg

Gujarat Polysols Ltd. has filed its draft red herring prospectus with the SEBI for an initial public offering to raise as much as Rs 414 through a combination of fresh share issue and an offer for sale.

The company manufactures chemicals for construction, agro, dyes and leather industries and is the sole maker of poly carboxylate ether powder in India.

Delegations from India and the U.K. concluded the second round of talks for a free trade agreement today.

"For this round of negotiations, draft treaty text was shared and discussed across most chapters that will make up the agreement. Technical experts from both sides came together for discussions in 64 separate sessions covering 26 policy areas," a government release stated.

The third round of negotiations is due to be hosted by India in April 2022.

Source: PIB

Sugar mills like Dwarikesh Sugar, Balrampur Chini fell after Reuters reported that the government is mulling restrictions on sugar exports, citing government and industry source which it didn't identify.

• Government may cap exports at around 8 million tonnes, according to the report

• Any curbs on sugar exports could tilt global sugar prices, as India is the second biggest sugar exporter.

• India's Ministry of Commerce and Industry did not immediately respond to Reuters' request for comment.

Source: Reuters, Bloomberg

• Singapore based internet firm Glance InMobi has acquired Indian gaming company Gambit Sports Pvt.

• The acquisition intends to bring together Glance's scale (45 million monthly active users in Asia) and Gambit's expertise of gaming ecosystem.

• Gambit owns the gaming platform Nostragamus, which hosts fantasy sports, poker, rummy, quiz. Over 100 million games have been played on the platform that has about 10 million registered users.

Source: Glance Statement

• L&T Finance Holdings has 1.12 million shares change hands in a large trade.

• Details of buyers, sellers are not known immediately.

Source: Bloomberg

Shares of Adani Total Gas extended their winning streak for the seventh day. The stock rose 4% in today's session and over 8% in the last two sessions.

• On Wednesday, the company received authorisation letters for expanding city gas distribution networks for 14 geographical areas in six states.

• The relative strength index on the stock is at 72, suggesting it may be overbought.

Source: Exchange Filing, Bloomberg

Shares of Vijaya Diagnostic Centre added nearly 10.5%, the most in over five months.

• The rise comes after about 2.62 million shares changed hands on NSE in a large trade, according to data compiled by Bloomberg. Details of buyers, sellers are not immediately known.

• The stock is the best performer on S&P BSE Healthcare index.

• Trading volume was over 13 times the three-month full-day average.

Source: Bloomberg

Air passenger numbers are likely to surpass pre-covid levels in a year, says Union Minister of Civil Aviation Jyotiraditya Scindia

• Passenger throughput in India is likely to reach 41 crore by FY2024-25.

• India needs to add more widebody aircraft.

• India aims to add 110-120 planes a year going forward.

• India to approve 15 new flight schools.

Source: Bloomberg

Maturities across the India sovereign yield curve were little changed in Friday morning trading.

• The 2-year yield fell 1bp to 5.004%

• The 10-year yield fell 0.8bps to 6.826%

• The 30-year yield was little changed at 7.275%

• The 2-year-10-year yield spread was 182.2bps, vs previous close 182.1bps

Source: Bloomberg

Shares of Motherson Sumi Systems rose over 5%, the most in seven sessions, after the company bagged its first order from Boeing.

• The order pertains to the manufacture of aftermarket molded polymer parts for commercial airplane interiors.

• The order will commence from Q3FY2023 and production will be done from the company's Noida plant.

• Trading volume on the stock was thrice the 30-day average volume at this time of the day.

• Of the 31 analysts tracking the company, 20 maintain 'buy', eight suggest 'hold' and three recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 40.3%.

Source: Company Statement, Bloomberg

• The Indian rupee tracked Asian currencies higher as the drop in oil prices support risk sentiment. Bond traders are awaiting details of debt auctions in the new fiscal year starting April.

• USD/INR falls 0.3% on Friday to 76.1337; pair is up 0.4% on the week.

Source: Bloomberg

Shares of Zen Technologies hit 5% upper circuit after the company secured a project sanction order from Indian Army.

• The order pertains to the design, development of prototype of Integrated Air Defence Combat Simulator (IADCS).

• This prototype is to be made ready for User Trial Readiness Review with 30 weeks.

• Once the review is successfully completed, Indian Army will subject an order to procure 16 IADCS equipment.

• Trading volume on the stock was quadruple the 30-day average volume at this time of the day.

Source: Exchange Filing

Shares of Multi Commodity Exchange surged over 4.5%, the most in two weeks after the markets regulator SEBI allowed stock exchange with commodity derivative segment, to introduce options on commodity prices.

The decision is made to allow more products in the commodity derivatives markets and is based on the recommendation of commodity derivatives advisory committee.

Trading volume on the stock was more than quadruple the 30-day average volume at this time of the day.

Share price crossed above 50-day moving average. Of the 12 analysts tracking the company, seven maintain 'buy', two suggest 'hold' and three recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 18.1%.

Source: SEBI Circular, Bloomberg

• Muthoot Finance has 4.2 million shares change hands in two large trades.

• Tata Teleservices has 1.87 million shares change hands in a large trade.

• IDFC First Bank has 2.95 million shares change hands in a large trade.

Source: Bloomberg

Shares of Tata Consumer Products Ltd. fell 4.31%, the steepest decline in a month. The stock was the top laggard on the Nifty 50 index.

• The company said it will consider preferential issue of equity share representing 1.5% of paid-up share capital to a foreign company on March 29.

• Trading volume of the stock was more than quadruple the 30-day average volume at this time of the day.

Source: Exchange Filing, Bloomberg

India's stock benchmarks opened higher, aided by gains in telecom, power stocks, amid a decline in crude prices.

The S&P BSE Sensex rose 0.15% to 57,681.35. The NSE Nifty 50 opened higher before paring gains at 17,226.85.

The broader indices outperformed their larger peers.Thirteen of the 19 sectoral indices compiled by BSE Ltd. advanced with S&P BSE Realty gaining 1%.

The market breadth was skewed in the favour of bulls. About 1,658 stocks advanced, 864 declined and 92 remained unchanged.

• Butterfly Gandhimathi has 33.5% equity trade in two large trades

• Details of buyers, sellers are not known immediately

Source: Bloomberg

The Indian rupee is expected to track Asian currencies higher as the drop in oil prices benefits the net oil importing nation. Bond traders are awaiting details on debt auctions in the new fiscal year starting April.

• USD/INR rose 0.1% to 76.3725 on Thursday

• 10-year yields little changed at 6.83% on Thursday.

• Global funds sell net Rs 1,740 crore of India stocks Thursday: NSE

• They sold Rs 70 crore of sovereign bonds under limits available to foreign investors, and withdrew Rs 21 crore of corporate debt

• State-run banks bought Rs 570 crore of sovereign bonds on March 24: CCIL data. Foreign banks sold Rs 2,780 crore of bonds.

Source: Bloomberg

• Bajaj Electricals cut to 'hold' from 'buy' at Edelweiss Capital; price target set at Rs 1,180.

• Havells India raised to 'buy' from 'hold' at Edelweiss Capital; price target set at Rs 1,310.

• HDFC Life raised to 'buy' from 'hold' at Investec; price target set at Rs 650.

Source: Bloomberg

• Ola will acquire Avail Finance, a platform which provides loans to blue-collar workers.

• Ola has previously invested in Avail Finance and holds around 9% in the company.

• Avail Finance was founded by Tushar Aggarwal, brother of Ola co-founder Bhavish Aggarwal.

Source: Press release

• IndiGo raised to 'neutral' at JPMorgan; price target set at Rs 1,825.

Source: Bloomberg

The Reserve Bank of India held meetings with officials of three large Russian financial institutions—VTB, Sberbank and Gazprombrank—to explore a possible payment mechanism for trade, the Economic Times newspaper reported, citing banking sources it did not identify.

• One of the options considered was a rupee-ruble trade where exporters and importers pay and receive funds in domestic currency.

• RBI officials did not offer comment to the newspaper.

• Tata Consumer: The company will consider preferential issue of equity shares representing 1.5% of the paid-up share capital to a foreign company on March 29.

• Punjab and Sind Bank: The bank will consider approval for the exercise of the Call Option on the Additional Tier I Bond Series on March 29.

• Gulshan Polyols: The company approved allotment of 24,16,000 equity shares to five QIBs at the issue price of Rs 326.48 per share (including a premium of 325.48 at the face value of Rs 1 per share) which is at a discount of 5% to the floor price of Rs 343.66 per share.

• Axis Bank: SEBI levied a penalty of Rs 5 lakh on the bank for violation of debt issuance norms. The matter related to issue of debt securities between 2016 and 2019, where the bank acted as a merchant banker.

• Zen Technology: The company received a project order sanction from the Indian Army for design and development of a prototype of the Integrated Air Defence Combat Simulator. The equipment will help in imparting training to gunners at unit level.

• Future Enterprises: The company couldn't pay Rs 93.99 crore to Punjab National Bank and Canara Bank under one-time resolution plan.

• Yes Bank: The bank will consider redemption/interest payment date of bonds on April 12.

• Lupin: The company has received approval from the United States Food and Drug Administration for Sildenafil for oral suspension, 10 mg/ml to market a generic equivalent of Revatio for oral suspension. The drug will be manufactured at company’s facility in Goa.

• NTPC: The company commissioned 42.5 MW of 100 MW Ramagundam Floating Solar PV Project in Telangana, taking the company’s total commercial capacity to 54,494.68 MW.

• Union Bank/Bank of Baroda: The bank reduced its stake in National Asset Reconstruction company from 13.27% to 9.9%.

• PNB Housing: The company entered strategic co-lending agreement with State Bank of India to offer retail loans to homebuyers. The two financial institutions will co-originate loans at an agreed ratio of 20:80 interest rates.

• State Bank of India: India's largest public sector lender has acquired 9.9% stake in National Assets Reconstruction Company.

• Capri Global: The company entered strategic co-lending agreement with State Bank of India to offer retail loans to homebuyers.

• Aurum Proptech: The company has approved the acquisition of 100% of the share capital of HelloWorld Technologies for Rs 42 crore. After the completion of acquisition, the company will infuse Rs 18 crore in the HelloWorld Technologies.

• GTPL Hathway: The company entered into partnership with Verimatrix to onboard its Video Content Authority System to protect its Google Android TV-based DVB Hybrid set top box.