Sensex falls 253 points, Nifty ends below 10,100

The Sensex and the Nifty slumped 0.75 per cent to 1 per cent on Monday. The Sensex ended down 252.88 poins or 0.76 per cent at 32,923.12 while the NSE Nifty lost 100.95 points or 0.99 per cent at 10,094.20.

On the Sensex 30, Tata Steel fell nearly 4.5 per cent. Bharti Airtel, Wipro, Coal India, YES Bank and Bajaj Auto followed with losses of up to 4.3 per cent.

The BSE 30-share barometer opened higher at 33,268.97 and advanced to 33,275.79 in morning trade on value-buying in recently battered stocks by investors. However, across-the-board profit booking at every rise, pulled it down to a low of 32,856.54. This is Sensex's weakest close since December 6 last when it settled at 32,597.18. The gauge lost 741.94 points in the previous four sessions.

Selling in Infosys, Tata Steel and SBI contributed to the fall in the Sensex. Larsen & Toubro provided some support.

Sensex movers and shakers at 3.40 pm

Among sectoral indices, the BSE telecom index emerged the worst performer by falling 3.40 per cent, followed by realty, (3.01 per cent, metal (2.65 per cent), teck (2.08 per cent), IT (1.98 per cent), PSU (1.84 per cent), oil & gas (1.70 per cent), consumer durables (1.46 per cent), banking (1.09 per cent), healthcare (0.90 per cent) and infrastructure (0.86 per cent).

A similar trend was also extended to the broader markets as investors indulged in cutting down their portfolios, pulling down the small-cap index by 1.98 per cent, while mid-cap index declined 1.58 per cent.

The wider NSE Nifty shuttled between 10,224.55 and 10,075.30 during the session. All the NSE sectoral indices too declined.

Overall market sentiment remained weak after the RBI data released after market hours on Friday showed current account deficit (CAD) rose to 2 per cent of the GDP at USD 13.5 billion in the December quarter, up from 1.4 per cent in the year-ago period, due to a higher trade deficit.

Meanwhile, on a net basis, foreign institutional investors sold equities worth Rs 150.46 crore on Friday, while domestic institutional investors (DIIs) sold shares worth Rs 770.53 crore, as per the provisional data.

Global markets : Global cues too were weak as investors moved cautiously before the US Federal Reserve meeting, that is likely to raise US interest rates.

In the Asian region, Japan’s Nikkei was down 0.90 per cent, Singapore fell 0.39 per cent, while Hong Kong’s Hang Seng was up 0.04 per cent. Shanghai Composite Index edged higher by 0.29 per cent.

In the Eurozone, Frankfurt’s DAX was lower by 1.05 per cent, while Paris CAC 40 fell 0.82 per cent in their early deals. London’s FTSE too was down 1.09 per cent.

UltraTech Cement today said it has entered into an agreement with Binani Industries to buy 98 per cent stake in its debt ridden subsidiary Binani Cement Ltd (BCL) which is going through insolvency proceedings. In a filing to the stock exchange, UltraTech said it will issue a comfort letter to provide Rs 7,266 crore to Binani Industries Ltd for ending insolvency proceedings against Binani Cement. Read more

Renewable energy company Suzlon has announced it has won two projects of 300 MW and 200 MW each under the SECI bidding process. These projects are to be implemented in Kutch district in Gujarat in line with SECI guidelines. The projects will provide electricity to about 3 million households and curb about 10 million tonnes of CO2 emissions annually. Read more

Weekly outlook : The aluminium futures contract on the Multi Commodity Exchange (MCX) spiked to a high of ₹137.25 a kg on Wednesday last week, but could not sustain higher. The contract reversed lower from then breaking below the key support level of ₹135. It is currently trading at ₹134.3 per kg.

Traders who have taken short positions on a break below ₹135 last week can hold it.

Read more

Shares continued to trade in negative territory on Monday, dragged down by energy stocks such as Indian Oil Corp Ltd and Bharat Petroleum Corp Ltd which declined on reports the refiners may buy stakes in GAIL (India) Ltd.

IOC and BPCL may buy 26 per cent each in gas utility GAIL, a PTI report said, adding that the companies would pay the government over Rs 20,000 crore ($3.08 billion) each to become integrated energy firms. Analyst say the deal will have negative implications for BPCL and IOC as it will saddle them with more debt in addition to what they already carry on their balance sheets. Shares in both IOC and BPCL dropped over 4 per cent each, with IOC hitting its lowest since January 2017.

The broader NSE Nifty was down 0.94 per cent or 95.50 points at 10,099.65 while the benchmark BSE index dropped 0.78 per cent to 32,917.72.

“The likelihood of a very strong rebound from the recent correction looks unlikely,” said Dhananjay Sinha, Head of Research, Economy and Strategy at Emkay Global Financial Services.

“There are two factors relevant now that will impact retail flows - country's political landscape and how it pans into policymaking and market sentiment, and secondly, the aspect of tightening of liquidity and rising yields,” Sinha said.

Metal stocks took a beating with the Nifty metal index dropping 2.8 per cent for a fourth consecutive session of losses. Chinese iron ore fell 4 per cent to its lowest since November as high inventory levels and a weak domestic steel market weighed on prices.

Steel Authority of India Ltd shed 6.7 per cent, while Tata Steel Ltd lost 3.1 per cent. Financial and IT shares also declined with ICICI Bank Ltd and Infosys Ltd shedding over 1 per cent each.

Meanwhile, Asian shares were weak as investors stayed cautious in a week when the Federal Reserve is likely to hike U.S. interest rates and perhaps signal that as many as three more lie in store for the rest of the year.

MSCI's broadest index of Asia-Pacific shares outside Japan was 0.34 per cent lower. -- (Reuters)

Drug major Lupin today said it has received approval from the US health regulator to market Desoximetasone Topical spray, used for treatment of plaque psoriasis, in the American market. It is a generic version of Taro Pharmaceuticals USA Inc.’s Topicort Topical Spray, 0.25 per cent. Read more

The initial public offer of Bandhan Bank was subscribed 1.49 times so far on the last day of bidding today. The IPO, to raise Rs 4,473 crore, received 12,45,42,960 shares of bids against the total issue size of 8,34,96,347 shares, data available with NSE till 12.30 pm showed. Read more

The Nifty call : The downside pressure will ease if the contract manages to surpass 10,200 decisively. In such a scenario, a relief rally to 10,225 and 10,250 is possible. Read more

 Consider objections to Tata Steel bids: NCLT to Bhushan Steel creditors

The National Company Law Tribunal (NCLT) today asked the Committee of Creditors (CoC) of debt-ridden Bhushan Steel to consider the objections raised by its employees over the bids submitted by Tata Steel. The CoC, which is scheduled to meet tomorrow to take up the resolution plan of the highest bidder Tata Steel, would consider the objections raised by the employees. Read more

At about 12.35 pm, the Sensex was trading down 172.66 points or 0.52 per cent at 33,003.34. Similarly, the NSE Nifty too was trading down 68.15 points or 0.67 per cent at 10,127.00.

On the Nifty, Hindalco, Adani Ports, BPCL, IOC and Tech Mahindra were the top 5 losers. Lupin, PowerGrid, HUL, Larsen & Toubro and Maruti were the top 5 gainers. 37 stocks declined against 12 that advanced.

All the BSE sectoral indices were trading in the red with metal, realty and telecom the top losers.

Sensex 30 at 12.40 pm

Sensex movers and shakers at 12.40 pm

Nifty indices

The Nifty Metal index was down 3.13 per cent with all the constituents in the red. The Nifty Auto index was down 0.65 per cent with only M&M and Maruti trading higher. Bank Nifty fell 0.85 per cent with 11 stocks down by up to 9.1 per cent. Nifty PSU Bank index plunged 2.66 per cent.

Steel prices are expected to firm up by 6-10 per cent this month wiping out the current domestic discount to the landed cost of imports. Steel companies are planning to increase prices on the back of rise in raw material cost and revival in demand across sectors, including infrastructure, construction, capital goods and automobile sectors. Read more

 IndianOil, BPCL fall on reports of stake buy in GAIL

Indian Oil Corporation Ltd (IOC) fell as much as 4.7 per cent to Rs 176, its lowest since January 31, 2017. Similarly, Bharat Petroleum Corp Ltd too dropped as much as 4.1 per cent to Rs 429. Read more

Amid weak cues from overseas markets, gold prices moved down by 0.16 per cent to Rs 30,175 per 10 grams in futures trade today after participants trimmed positions. Read more

Silver prices fell 0.21 per cent to Rs 38,277 a kg in futures trade today as speculators cut positions amid a weak trend overseas.  Read more

World’s first brass futures contract on MCX

The Multi Commodity Exchange, one of the largest commodity exchanges in the country, will launch brass trading futures for the first time in the world at an event on March 21. The trading will go live on March 26 this year. Read more

HAL initial public offer

While spectacular gains are unlikely, given the modest growth in earnings, investors with a long-term horizon wanting to bet on the prospects of the Defence sector, can subscribe to the HAL issue.

The IPO is an offer-for-sale of 3.4 crore equity shares. Retail investors and employees get a discount of ₹25 per share. Read more

IRB Infra wins Rs 2,043 cr road project in Gujarat:

IRB Infrastructure Developers today said it has won a road project worth Rs 2,043 crore from state-run NHAI in Gujarat. "The company has emerged as a preferred bidder for a hybrid annuity project.. in Gujarat.. The company’s bid project cost is Rs 2,043 crore,” IRB Infrastructure Developers said in a BSE filing. The order is for construction of eight lane Vadodara Kim expressway from 355 km to 378.74 km (Padra to Vadodara  section of Vadodara Mumbai Expressway) in Gujarat. With addition of these projects, the company’s construction order book stands to approximately Rs 12,000 crore to be executed in three years, the company added. Shares of the company were trading flat at Rs 219.85 on the BSE at about 11 am. The shares hit a high of Rs 222.95 in early trade.

The domestic share indices turned choppy in morning trade today amid weak global cues and a widened current account deficit, which rose to 2 per cent of the GDP at USD 13.5 billion in the December quarter.

The 30-share index rebounded by 99.79 points in opening deals only to turn choppy thereafter. At about 10.40 am, the gauge was trading down 79.33 points or 0.24 per cent at 33,096.67. It had lost 741.94 points in the previous four sessions.

Coal India, Asian Paints, Tata Steel, Adani Ports, SBI, Hero MotoCorp, Bajaj Auto and Wipro fell up to 3.18 per cent.

Sensex 30 at 10.40 am

Sensex movers at 10.40 am

The NSE Nifty slipped 33.30 points, or 0.33 per cent, to trade at 10,161.85.

Metal, realty and IT stocks fell up 1.25 per cent.

Brokers said weak global cues ahead of the US Federal Reserve policy decision later in the week, influenced the trading sentiments here.

A sharply widened current account deficit (CAD) too weighed on investors’ mood. The CAD rose to 2 per cent of the GDP at USD 13.5 billion in the December quarter, up from USD 8 billion or 1.4 per cent in the year-ago period, on the back of higher trade deficit, data released by RBI on Friday showed.

Meanwhile, on a net basis, foreign institutional investors sold equities worth Rs 150.46 crore on Friday, while domestic institutional investors (DIIs) sold shares worth Rs 770.53 crore, as per the provisional data.

In Asia, Hong Kong’s Hang Seng rose 0.35 per cent, while Shanghai Composite index up 0.13 per cent in early trade today. Japan’s Nikkei, however, was down 0.89 per cent.

The US Dow Jones Industrial Average ended 0.29 per cent higher on Friday.

 Sandhar Technologies IPO

Investors with a high-risk appetite can subscribe to the IPO of Sandhar Technologies. At the price band of ₹327-332, this auto component player is looking to raise about ₹500 crore through this offer. Read more

Bandhan Bank IPO

Despite good financials, regional concentration and costly valuation are dampeners

Robust profitability, good asset quality, healthy success in scaling up low-cost deposit base, and strong presence in under-penetrated markets, are key positives for Bandhan Bank.

For investors wanting a piece of the action in a somewhat differentiated banking space, Bandhan’s superior operating metrics — return on assets of around 4 per cent, return on equity of 25-odd per cent and low cost-to-income ratio of about 35 per cent — are a big draw. Read more

The rupee depreciated by 9 paise against the US dollar to 65.03 in opening trade today as the greenback firmed up ahead of US Federal Reserve’s policy meet this week. A strong dollar and sustained foreign fund outflow weighed on the domestic unit amid rising current account deficit in the December quarter, a currency dealer said. Read more

Weekly trading guide for bellwether stocks

Immediate outlook is  unclear for SBI

ITC hovers above a crucial support

Resistance caps the upside in Infosys

RIL indicating signs of a fresh fall

Tata Steel signals trend reversal

Read full technical analysis here

Asian markets

Asian share markets slipped into the red on Monday as caution gripped investors in a week in which the Federal Reserve is likely to hike US interest rates and perhaps signal that as many as three more lie in store for the rest of the year.

Japan's Nikkei extended early losses to drop 1.3 per cent as exporters were undermined by recent broad-based gains in the yen. MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.5 per cent, while Australia's main index lost 0.2 per cent. Read more

Asian markets were down on Monday. REUTERS

Global forex market

The dollar started the week little changed on Monday as traders set sights on new Federal Reserve Chair Jerome Powell's first monetary policy meeting later in the week and as the increased threat of trade protectionism kept markets on edge.

The Japanese yen has also moved little so far though traders were nervous after weekend polls suggested a massive drop in public support for Prime Minister Shinzo Abe over his handling of a festering cronyism scandal. Read more

The markets await the new Federal Reserve Chair Jerome Powell's first monetary policy meeting.

The Sensex opened 93 points higher on Monday. Similarly, the NSE Nifty too opened 20.35 points higher at 10,195.  On Friday, the Sensex had closed down 510 points at 33,176. The Nifty fell 165 points to close at 10,195.

In the coming week, all eyes are on the US Fed meeting, with broad expectations of a rate hike. The Bank of England’s policy action is also keenly awaited.

Nifty outlook: Following a corrective rally, the index recorded an intra-week high at 10,478 and resumed its short-term downtrend. The 21-day moving average and a crucial barrier at around 10,400 also limited the index rally. The index trades well below its 21 and 50-day moving averages. The daily relative strength index has re-entered the bearish zone from the neutral region. Both the daily and weekly price rate of change indicators feature in the negative territory implying selling interest. Read more

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