Closing Bell: Nifty ends around 17,550, Sensex falls 927 points; all sectors in the red

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

Overnight slump in the US markets shook the Indian stocks badly as heavy selling across the board saw Sensex crash nearly 1,000 points and plunge below the crucial 60,000 mark. Markets were already range-bound with a negative bias in the last few sessions and today's sharp fall could further accentuate the pressing concerns of rising interest rate going ahead, higher inflation, and slowing global growth.

Technically, the Nifty has formed a long bearish candle on daily charts and lower top formation on intraday charts, which indicate further weakness from the current levels. However, since the market is in an oversold zone, we could see a sharp pullback rally, if the index trades above 17,600.

For the traders now 17,600 would be the key level to watch out for and above the same the pullback move will continue till 17,700-17,750. On the flip side, below 17,600 the index could slip till 17,500-17,475. Contra traders can take a long bet near 17,475 with a strict support loss at 17,440.

Vinod Nair, Head of Research at Geojit Financial Services

Resurgence of cold war between US & Russia has brought apprehension in the market. Although it should be a short-term effect, the fear of sanctions against Russia and its degree of implication on the economy, especially on food and oil exports, is adding to the anxiety.

The market is just recovering from the pandemic, and high interest & inflation are the headwinds in the background.

It is presumed that this war will be fought on an economic front, limiting its effect on strong economies like the US & India. Awaiting the release of Fed and RBI minutes are the other major elements that kept investors on the side lines.

Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas

The Nifty opened gap down and continued to witness selling pressure throughout the day to close deep in the red down ~272 points for the day. On the daily charts we can observe that the Nifty has closed decisively below the 61.82% fibonacci retracement level (17,650) and is currently trading below the 40 week moving average (17,594) which is a sign of weakness.

The daily momentum indicator has triggered a negative crossover from the equilibrium line which is a sell signal. Thus, both price and momentum indicator is suggesting a further decline in the coming trading session.

On the way down we expect Nifty to retest the recent swing low of 17,350 which coincides with the 200-day simple moving average and the recent swing low it touched on the day of Budget. On the upside the hourly moving averages and the gap area formed today in the range 17,775 - 17,820 shall act as a stiff resistance.

Rupee Close:

Indian rupee closed lower at 82.85 per dollar against previous close of 82.79.

Market Close

Benchmark indices ended lower for the fourth consecutive session on February 22 with Nifty around 17,550.

At Close, the Sensex was down 927.74 points or 1.53% at 59,744.98, and the Nifty was down 272.40 points or 1.53% at 17,554.30. About 928 shares have advanced, 2451 shares declined, and 127 shares are unchanged.

Adani Enterprises, Adani Ports, Grasim Industries, JSW Steel and Bajaj Finance were among the major Nifty losers, while ITC, Bajaj Auto and Divis Laboratories gained the most.

All the sectoral indices ended in the red.

BSE midcap and the smallcap shed 1 percent each.

Jefferies View On Voltas

-Buy rating, target at Rs 1,050 per share
-IMD recently issued first heat wave alert of 2023
-Dealers are highlighting that lower commodity prices have not been passed on in pricing
-This points to improved volume & margin outlook for Voltas ahead
-Believe FY24 estimate should see both AC & engineering segments of Voltas being in a sweet spot

BSE Midcap index down 1 percent dragged by Aditya Birla Fashion, Adani Power, ACC

Hindustan Zinc's shareholders meeting to be held on March 29

The meeting of equity shareholders of Hindustan Zinc is scheduled to be held on March 29, in the matter of Scheme of Arrangement between the company and its shareholders. The National Company Law Tribunal on February 6 has passed the order in the said matter of Scheme of Arrangement.

Hindustan Zinc was quoting at Rs 316.00, down Rs 5.75, or 1.79 percent on the BSE.

Dilip Parmar, Research Analyst, HDFC Securities

The Indian rupee was the median performer among Asian currencies amid suspected central bank dollar supply in the OTC market. However, the direction for the rupee remained down on the back of a stronger greenback of FOMC meeting minutes.

Ahead of the monthly expiry, we could see the rupee hold the 83 levels amid huge derivative positioning.

In the near term, spot USDINR is expected to trade between 82.50 to 83.

Jefferies View On Prestige Estates Projects

-Buy rating, target at Rs 550 per share
-Management aims to double overall sales by FY26 & multiply lease income 7x in 5 years
-The latter will entail USD 2 billion in capex and debt could treble in interim
-Success in unfolding cycle could deliver strong returns

Market at 3 PM

Benchmark indices are trading lower with Nifty below 17600.

Sensex is down 792.71 points or 1.31% at 59,880.01, and the Nifty is down 241.60 points or 1.36% at 17,585.10. About 815 shares have advanced, 2431 shares declined, and 106 shares are unchanged.

Bank asset quality to improve on expected fall in fresh slippages, say analysts

Nifty Metal index falls 2 percent dragged by Adani Enterprises, JSW Steel, Jindal Steel

Mohammed Imran, Research Analyst at Sharekhan by BNP Paribas

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The fear of interest rate hikes expectation from US Fed has triggered a selloff in broader risk assets across the globe on Wednesday, with WTI crude for April delivery down 1.1% at USD 75.50 per barrel during the European trading session.

The economic data from US & Eurozone indicated recovery in services and Mfg. activities in February while US housing market remained on downslide.

US Weekly inventories of crude oil have surged for last 2 months signalling growing recessionary concerns from world largest energy consumer, but the market is cautiously optimistic on Asian demand led by China’s recovery especially in gasoline and jet fuel. Overall, we expect oil prices to slide further as Fed is going to keep interest rate higher for longer period thus slowing the economic expansion.

We expect WTI April to test the support of USD 72 before sliding further. Another jump in weekly oil inventories in US will add on to the selling pressure. We advise traders to short the rallies for the target of USD 72-70, while resistance remains around USD 77.

Sanjay Rastogi to be a government nominee director on RCF board 

Sanjay Rastogi has been appointed as government nominee director on the board of Rashtriya Chemicals & Fertilisers with effect from February 21, 2023. He is currently working as additional secretary and financial adviser in the Ministry of Chemicals and Fertilizers, Government of India.

Rashtriya Chemicals and Fertilisers was quoting at Rs 105.50, down Rs 3.15, or 2.90 percent.

Nifty breaks 200-day EMA but still maintains Budget day’s low

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The Nifty50 has seen gap down opening and remained under pressure, forming long bullish candlestick pattern on the daily charts on February 22. Traders seem to be cautious ahead of FOMC minutes due tonight as well as RBI monetary policy meeting minutes due later today. New nuclear warnings issued by Russia to West also dampened mood at Dalal Street.

The index has been making lower highs lower lows for fourth consecutive session, and decisively broken 200-day EMA (exponential moving average – 17,592) as well as upward sloping support trendline adjoining lows of June 2022 and February 1, 2023, indicating negative strength in the market.

The next support for the benchmark index lies at Budget day’s low as well as 200 SMA (simple moving average) – 17,350. If the said level gets broken then there could be a possibility of sharp selling pressure in the market, experts said.

European Markets Updates

ITI shares rally

ITI shares gained 6 percent on February 22 after Rajesh Rai took over as the chairman and managing director of the company. The Government of India appointed Rai as the CMD of the telecom solutions provider for five years with effect from the February 21. He will continue till the his superannuation, or until further orders, whichever comes first.

Rakesh Chandra Tiwari, the director of marketing, was handling the CMD portfolio till now. With the government order he has relinquished the additional charge of CMD and will remain as director of marketing at ITI.

Market at 2 PM

Benchmark indices are trading at day's low with Nifty below 17600.

The Sensex is down 890.70 points or 1.47% at 59,782.02, and the Nifty is down 266.40 points or 1.49% at 17,560.30. About 777 shares have advanced, 2437 shares declined, and 102 shares are unchanged.

Bank NIMs should normalise in next few quarters as deposit repricing kicks: CLSA

Dhanlaxmi Bank board appoints Vardhini Kalyanaraman as Additional Director

Dhanlaxmi Bank has received board approval for appointment of Vardhini Kalyanaraman as Additional Director (Independent Category).

Dhanlaxmi Bank was quoting at Rs 15.40, down Rs 0.25, or 1.60 percent.

BSE Capital Goods index sheds 1 percent dragged by Hindustan Aeronautics, BHEL, V-Guard Industries

Peninsula Land gets board approval for fundraising:

Peninsula Land has received board approval for issuance 1.45 crore equity shares, and 1.53 crore warrants exchangeable into equity shares, at a price of Rs 14 per share and warrant respectively, by way of preferential allotment on a private placement basis, for Rs 41.72 crore.

This fund raising is subject to approval of shareholders next month.

Nifty below 200-day SMA

New Zealand hikes rates to over 14-year highs, flags more to come

New Zealand's central bank raised interest rates by 50 basis points to a more than 14-year high of 4.75% on Wednesday, and said it expects to keep tightening further as inflation remains too high, a hawkish signal that sent the local dollar surging.

The Reserve Bank of New Zealand (RBNZ) said it was too early to assess the policy implications of the recent devastating cyclone and floods in the country's North Island, and expects to look past the short-term price pressures stemming from the "extreme weather events".

BSE Power index declines 2 percent dragged by Adani Transmission, Adani Power, Adani Green Energy

JK Lakshmi Cement | 5.02 lakh shares (0.43% equity) worth Rs 37.35 crore change hands at an average of Rs 744.05 per share.

JK Lakshmi Cement was quoting at Rs 748.25, up Rs 0.30, or 0.04 percent.

Concor Large Trade | 17.67 lakh shares (0.30% equity) worth Rs 103.89 crore change hands at an average of Rs 588 per share

Container Corporation of India was quoting at Rs 589.60, down Rs 6.45, or 1.08 percent.

Magnum Ventures approves allotment of 45 lakh equity shares on conversion of warrants

The board of directors of Magnum Ventures considered and approved the allotment of 45,00,000 equity shares upon conversion of warrants at a price of Rs 25 each (including premium of Rs 15 each), aggregating Rs 11,25,00,000.

Market 

Benchmark indices extended losses and are trading at day's low with Nifty around 17600.

The Sensex is down 687.34 points or 1.13% at 59,985.38, and the Nifty is down 209.90 points or 1.18% at 17,616.80. About 769 shares have advanced, 2415 shares declined, and 94 shares are unchanged.

Ravindra V.Rao, CMT, EPAT, VP-Head Commodity Research, Kotak Securities

WTI Crude oil futures extended losses on Tuesday and closed marginally down at USD 76.36 per bbl. Prospects of aggressive rate hikes from the Fed have kept a lid on prices, despite optimism on demand recovery from China.

Supply outages are not rare in the oil market. The CPC oil terminal said in a statement that they see the risk of a complete halt in operations as storms stopped seaborne loadings from the facility.

The terminal stopped loading oil tankers on 19th February due to bad weather and its crude reservoirs are nearly full. However, a separate statement will be made if the CPC has to halt crude transportation to the terminal.

Meanwhile, the US is planning more sanctions on Russia, including on the nation’s energy sector.

Oil prices might trade with a positive bias for the day amid supply concerns, however, expectations of a hawkish FOMC minutes might limit the upside.

Visaka Industries approved the sub-division / split of 1 (One) equity share of face value of Rs.10/- each fully paid up into 5 equity shares of Rs2each fully paidup, subject to the approval of the members of the company. The record date for the sub-division of equity shares shall bedecided by the Board / Management Committee of the Board and willl be intimated to the exchanges.

KRChoksey view on Infibeam Avenues

Infibeam Avenues has been reporting very robust growth in TPVs, GTRs, and NTRs on back of strong demand and favourable payments mix. With additional growth drivers like i) consistently converting EBITDA into free cash, ii) debt-free company and iii) a major capex cycle behind, Infibeam is charting a focused growth strategy for the next 3-5 years.

Its new businesses are expected to drive gross margins over the long term once it reaches scale.

Infibeam is trading at 2.5x/1.8x its FY23E/FY24E Price/Sales (P/S) multiples, respectively. It is similarly trading at P/E multiples of 39.7x/27.2x on its FY23E/FY24E earnings.

Given the strong growth witnessed in TPVs and NTRs, the broking house now values the company on a Price/Sales multiple of 3x on FY24E sales. This yields a target price of Rs 28 giving an upside potential of 80.6% from the CMP. Accordingly, it has maintained its Buy rating on the shares of Infibeam Avenues.

Infibeam Avenues was quoting at Rs 15.50, down Rs 0.20, or 1.27 percent on the BSE.

Info Edge reappoints non-executive directors for short term

Info Edge's board decided to continue with Saurabh Srivastava and Naresh Gupta as non-executive non-independent directors after expiry of their present tenure as Independent Directors. Bala C Deshpande will also continue as a Non-Executive Director of Info Edge. Their re-appointment will be effective from April 01, 2023 till August 12, 2023.

Info Edge India was quoting at Rs 3,511.30, down Rs 64.25, or 1.80 percent on the BSE.

RIL subsidiary completes purchase of German-based Nexwafe shares

Reliance Industries' subsidiary Reliance New Energy (RNEL) has completed the purchase of 7,433 common shares; 1,518 Series B1 preferred shares; and 660 Series B2 preferred shares of German-based Nexwafe, for 7,55,684 euro.

No governmental or regulatory approvals were required for the said purchase of shares. NexWafe is developing and producing monocrystalline silicon wafers grown directly from inexpensive raw materials.

Reliance Industries was quoting at Rs 2,395, down Rs 39.50, or 1.62 percent.

ON NSE

West Coast Paper production at Dandeli unit disrupted due to strike of contract workers

The production at the paper and paper board division at Dandeli has been disrupted due to illegal strike of contract workers called by joint negotiation committee of trade unions for unreasonable demands, said West Coast Paper.

SBI raises Rs 4,544 crore via non-convertible AT 1 Bonds

State Bank of India has raised Rs 4,544 crore via non-convertible, taxable, perpetual, subordinated, unsecured, fully paid up Basel III compliant AT 1 Bonds at a coupon of 8.20% per annum.

State Bank of India was quoting at Rs 515.95, down Rs 7.30, or 1.40 percent.

Market at 12 PM

Benchmark indices extended losses and are trading at day's low with Nifty around 17650.

The Sensex is down 621.94 points or 1.03% at 60,050.78, and the Nifty is down 183.20 points or 1.03% at 17,643.50. About 800 shares have advanced, 2321 shares declined, and 116 shares are unchanged.

Air Conditioners stocks in focus

Morgan Stanley has Overweight rating on ONGC and Oil India. It has downgraded HPCL to Equal-weight from Overweight, target cut to Rs 254 from Rs 280 per share

ICICI Prudential Mutual Fund buys additional stake in LIC Housing Finance

ICICI Prudential Mutual Fund has acquired additional 2.03% stake in LIC Housing Finance via open market transactions. With this, the mutual fund house shareholding in the company increased to 7.07%, up from 5.04% earlier.

LIC Housing Finance was quoting at Rs 354.35, down Rs 4.05, or 1.13 percent.

Nifty Bank index falls 1 percent dragged by PNB, Bank of Baroda, AU Small Finance Bank

Bajaj Steel Industries to complete sale of superpack division by March 2023

Bajaj Steel Industries company has executed slump sale agreement with the buyer VSA Business Solutions (based in Nagpur) and the rest of the transactions pertaining to such sale are expected to be completed on or before March 31, 2023. The company intimated exchanges on February 14 about sale of its superpack division on a slump sale basis to VSA Business Solutions.

Wockhardt to restructure US business to save $12 million per year

Pharmaceuticals major Wockhardt has during its investor meeting on February 21 stated that it plans to restructure the United States business to shave off $12 million of annual expenses, according to its filing with the exchanges.

The restructuring entails shutting down the company’s manufacturing facility at Morton Grove (MGP Chicago – Illinois, US), and handing off the manufacturing of a few high-margin products to third parties.