Closing Bell: Nifty ends around 17,400, Sensex falls 671 pts; power stocks outshine

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services

Domestic indices extended losses for second consecutive day in line with sell off in global markets triggered by 60% fall in US based Silicon Valley Banks. Nifty opened with deep cuts and remained in negative territory to close with loss of 177 points (-1%) at 17413 levels. All sectors ended in red with major selling seen in banking stocks.

Fall in the select US banks added to the overall Global uncertainty regarding the quantum of the next Fed rate hike. US jobs data that would be released late on Friday will also be crucial for upcoming Fed’s meeting as it could also influence the Fed rate decision.

Expect the volatility to continue next week as well. On the domestic front, Feb inflation data would be released while on the global front, ECB meeting would be key event to watch out for.

Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas

The Nifty opened on a weak note today and consolidated thereafter for most part of the day to close with cut of ~177 points. On the daily charts we can observe that the Nifty has closed well off the lows it witnessed post the opening. It is currently trading around the 200-day moving average (17,434) which is attracting value buying. This could lead to volatility as both Bulls and Bears would try to defend and break that average.

Broadly, the index has shifted its range lower to 17,800 – 17,200 for short term perspective. Despite the sharp fall, the daily momentum indicator still has a positive crossover which suggests that this dip should be bought into.

Until Nifty breaches this range decisively on either side, the rangebound action is likely to continue and we might see sector rotation and stock specific action.

Amol Athawale, Deputy Vice-President - Technical Research, Kotak Securities

Markets crumbled for the second straight session as weak global cues triggered selling across the board with banking stocks taking the maximum pounding.

The sentiment has been bruised by the recent US Fed statement that more rate hike is on the card to keep inflation under control, which could fuel recession fears going ahead.

Technically, the Nifty has formed a strong bearish candle on weekly charts and it is comfortably trading below the 20 and 50-day SMA. For the positional traders, 17,550 would act as a medium term resistance zone and below the same, the index could slip till 17,150.

On the flip side, a minor pullback rally is possible, if the index trades above 17,425 and could move up to 17,480-17,500. Meanwhile, the Bank Nifty also breached the important support level of 41,000 or 20-day SMA (Simple Moving Average) which is broadly negative. Below the same it could retest the level of 40,000-39,800.

Vinod Nair, Head of Research at Geojit Financial Services

The global market's cautious attitude towards the probability of a sharper rate hike was exacerbated by further negative signs from the US market. Selling intensified as the market awaited the release of US unemployment and non-farm payroll data, which will have a significant impact on the upcoming Fed meeting. However, higher-than-expected jobless claims in the US that came in yesterday helped alleviate some concerns about the Fed becoming stricter.

Rupee Close:

Indian rupee closed marginally in red at 82.05 per dollar against previous close of 81.98.

Market Close:

Benchmark indices ended lower for the second consecutive session on March 10 with Nifty around 17,400.

At Close, the Sensex was down 671.15 points or 1.12% at 59,135.13, and the Nifty was down 176.70 points or 1% at 17,412.90. About 1404 shares advanced, 2021 shares declined, and 102 shares unchanged.

The major losers on the Nifty were Adani Enterprises, HDFC Bank, Apollo Hospitals, IndusInd Bank and HDFC, while gainers were Tata Motors, NTPC, Maruti Suzuki, Britannia Industries and BPCL.

On the sectoral front, power index rose 1 percent, while bank, realty, capital goods and PSU Bank down 1-2 percent.

The BSE midcap and smallcap indices down 0.5 percent each.

Jefferies View On Bharti Airtel:

-Upgrade to buy rating, target at Rs 900 per share
-See 13% growth in its mobile ARPUs over FY23-25
-Market share gains likely to accelerate amid 5G rollouts
-Cut estimate by 1-4% to factor tariff hike delays, upgrade after 13% fall since November 2022
-Over FY23-25, now expect a single tariff hike of 15% towards CY23 end

Glenmark Life Sciences to consider payment of interim dividend on March 16

The board members of Glenmark Life Sciences are scheduled to meet on March 16 to consider and declare payment of interim dividend, if any, for the financial year 2022-23. The trading window will remain closed from March 10-March 18, 2023 for the interim dividend.

Glenmark Life Sciences was quoting at Rs 391.80, up Rs 5.15, or 1.33 percent.

NBCC bags work orders worth Rs 230 crore in Kakinada

NBCC (India) has received work orders worth Rs 229.81 crore, from Indian Institute of Foreign Trade. The company will construct new campus for IIFT in Kakinada.

NBCC (India) was quoting at Rs 37.70, up Rs 0.64, or 1.73 percent.

Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas

Indian Rupee depreciated marginally by 0.04% on Friday amid weak domestic markets. However, weak dollar cushioned the downside. Dollar slipped from three months high on weak US markets and disappointing weekly jobless claims data which rose to 211,000 from 190,000 in the previous week.

We expect rupee to trade with a negative bias on risk aversion in global markets and selling pressure from FIIs. However, weak greenback, declining US Treasury yields and a fall in crude oil prices may cushion the downside.

Traders may remain cautious ahead of non-farm payroll, average hourly earnings and unemployment rate data from US. Trader may also watch out for India’s industrial production data which is expected better than previous month. USDINR spot price is expected to trade in a range of Rs 81.60 to Rs 82.50.

Morgan Stanley View On JSW Steel

-Underweight rating, target at Rs 545 per share
-Demand likely was muted in February
-Export market remains dull
-FY23 domestic production guidance of 23.6 mt appears achievable

Oil prices set for 5% weekly drop on U.S. rate hike jitters

Oil fell for a fourth session on Friday, heading for its biggest weekly loss in five weeks on worries about the prospect of steep interest rate hikes in the United States hitting fuel demand.

Brent dipped 41 cents, or 0.5%, to $81.18 a barrel by 0852 GMT. U.S. West Texas Intermediate crude (WTI) was down 56 cents, or 0.7%, at $75.16.

BSE 500

HUL board appoints Rohit Jawa as MD & CEO

The board of directors of Hindustan Unilever approved the appointment of Mr. Rohit Jawa, presently the Chief of Transformation for Unilever, as a Whole-time Director of the company with effect from April 1, 2023 upto June 26, 2023 and as the Managing Director & Chief Executive Officer of the company for a term of five consecutive years with effect from June 27, 2023.

Market at 3 PM

Benchmark indices were trading lower in the final hour of the session with Nifty below 17400.

The Sensex was down 755.24 points or 1.26% at 59,051.04, and the Nifty was down 204.60 points or 1.16% at 17,385.About 1159 shares have advanced, 2100 shares declined, and 95 shares are unchanged.

IFCI board to consider preferential issue of equity shares to government

A meeting of the board of directors has been scheduled on Tuesday, March 28, 2023, to consider preferential issue of equity shares to the Government of India subject to the approval of shareholders, stock exchanges and such other regulatory authorities as may be required.

Tata Power arm signs power purchase agreement with Tata Power Delhi Distribution

Tata Power Renewable Energy Limited (TPREL), a subsidiary of Tata Power signed a power purchase agreement (PPA) with Tata Power Delhi Distribution Limited (Tata Power-DDL), for 510 MW hybrid project.

Lumax Auto Technologies receives NCLT approval for amalgamation of subsidiary with itself

The National Company Law Tribunal has received approval for the scheme of arrangement for amalgamation of subsidiary Lumax Mettalics, with Lumax Auto Technologies.

Lumax Auto Technologies was quoting at Rs 281.55, up Rs 4.00, or 1.44 percent on the BSE.

Mohammed Imran, Research Analyst at Sharekhan by BNP Paribas

The growing fear of aggressive rate hike from US Fed has potential to drag crude oil prices under USD 70 in short term. China's January-February imports of crude oil were down 1.3% from last year, while imports of natural gas fell by 9.4% again indicating towards a struggling economy.

Given the high inflation in the US and Europe, demand from there should keep weakening, which also dampens the processing demand in China. A strong US labour market report may further darken the rate hike cloud and risk assets can see sell-off.

Oil prices at $74.80 is down 6% for the week so far and is heading for worst weekly fall in 5 weeks. We advise traders to short into the rallies for the target of $72 and stoploss around $76.50.

BSE Bank index down 2 percent dragged by Bank of Baroda, HDFC Bank, SBI

Santosh Meena, Head of Research, Swastika Investmart

:

Markets have taken a significant hit as a result of weak global cues. The US market was under pressure due to the decline in shares of SVB bank and cryptocurrency financier Silver Capital, particularly in stocks related to banking and finance. We lack direction and are currently under selling pressure at higher levels as a result of the extremely volatile global cues over a long period of time. The most recent issue is more US-specific, and there is only an sentimental influence on markets worldwide. Nevertheless, the market may stay volatile in the lead-up to US job data and US CPI figures next week.

Technically, Nifty has once again fallen beneath its 200-DMA, although the swing low from earlier this year at 17,255 will be a crucial support level. If Nifty is able to hold this level, the market can once more be expected to rebound, with 17,625 and 17,800 serving as significant resistance levels. But, Nifty may move near 16,800 if it drops below 17,255.

Bank Nifty has resistance near the 50-DMA of 41,650, but there are several support levels as well, including 40,400-40,000 and 39,500. If block deals aren't included, FIIs are still in a sell mode, but their short positions in the index futures market have once more increased to 80 percent. Despite being oversold, the market is not experiencing any substantial short-covering rallies in absence of any positive trigger.

European Markets Updates

HAL announces second interim dividend of Rs 20 per share

The Board of Directors of Hindustan Aeronautics has declared second interim dividend of Rs. 20 per equity share of Rs 10 each fully paid up for the financial year 2022-23.

MRPL shares trade in the green for fifth straight session

Bucking the market trend, Mangalore Refinery and Petrochemicals shares soared 7 percent on March 10, on track for a five-day gaining streak. The stock has been buoyed by the recent revision in windfall taxes. On March 6, the government marginally hiked the windfall tax on locally produced crude oil to Rs 4,400 per tonne from Rs 4,350. However, the export duty on diesel was slashed to Rs 0.5 per litre and export duty on Aviation Turbine Fuel (ATF) was scrapped completely. read more

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

:

Nifty fell by 1.08% last week, while the Sensex fell by about 1.13%. While the BSE SmallCap Index increased by 0.44%, the BSE Midcap Index only lost 0.09%. Indian equity markets continued to be concerned due to the slowdown, increased interest rates, and valuation, as well as an upward trend in US inflation and a negative trend in India. The remarks of Fed Chairman Powell, who suggested that the Fed may need to raise interest rates more than initially anticipated, had an effect on the mood of the world markets.

Investors are eagerly observing the employment statistics in the global news since it and the impending consumer price index, which is due on March 14, are two reports that may have an impact on the Fed's rate decision on March 22. The prognosis for the Fed was altered by the robust labour market and hotter-than-expected January inflation figures. Inflation may be more difficult to control than expected, and the Fed may need to hike interest rates even more than expected, Fed Chairman Jerome Powell told Congressional committee this week. In contrast to the present goal range of 4.50%-4.75%, the futures market is currently pricing an end point for Fed rate hikes near 5.75%.

Market update at 2 PM

Sensex was down 731.34 points or 1.22% at 59,074.94, and the Nifty was down 197.60 points or 1.12% at 17,392.

Alert | Moody’s downgrades Vedanta resources ratings to CAA1 

February Mutual Fund Data 

Net equity inflow at Rs 15,657 crore versus Rs 12,472 crore inflow and Hybrid Fund inflow at Rs 460.3 crore versus Rs 4,492 crore inflow, MoM.

Liquid Fund outflow at Rs 11,304 crore versus Rs 5,041.7 crore outflow and ETF Inflow at Rs 29 crore versus Rs 1,709 crore outflow, MoM.

Parth Nyati, Founder, Tradingo

Nifty witnessed selling pressure at below 17500 support level. It is trading below the 200-day moving average and has breached the critical support level of 17430. The next important support level is now 17350; below this level, the 17000 field will be open in the short term.

On the upper side, 17600/17750 are the resistance levels.

Bank Nifty is facing resistance at the 50-DMA, placed around 41650. It is trading below the 20-DMA of 40950, where 40450 is the next support level. 40000 is a critical demand zone for any major weakness.

BSE 500

KNR Constructions bags order worth Rs 1340crore

KNR Constructions is in receipt of Letter of Award for construction of access controlled four laning with paved shoulder from Mysore to Kushalnagara Section of NH-275 on Hybrid Annuity Mode under NH(O) in the State of Karnataka (Package IV). The project cost is Rs 650 crore.

Also, a Letter of Award for construction of access controlled four laning with paved shoulder from Mysore to Kushalnagara Section of NH-275 in the State of Karnataka (Package V). The project cost is Rs 690.30 crore.

KNR Constructions was quoting at Rs 274.15, up Rs 1.25, or 0.46 percent.

Gold drifts higher in run-up to US payrolls data

Gold prices edged up on Friday as investors looked forward to the US non-farm payrolls report due later in the day to assess the likely path of the Federal Reserve's rate-tightening cycle.

Spot gold was up 0.1% at USD 1,832.24 per ounce, as of 0716 GMT. US gold futures also rose 0.1% to USD 1,836.20.

Still, bullion lost 1.2% so far this week and was set for a fifth weekly drop in six.

BSE Smallcap

Market at 1 PM

Benchmark indices were trading lower with Nifty around 17400.

The Sensex was down 676.19 points or 1.13% at 59,130.09, and the Nifty was down 177.20 points or 1.01% at 17,412.40. About 1180 shares advanced, 2000 shares declined, and 110 shares unchanged.

Welspun Corp subsidiary receives Kitemark certificate from BSI UK for ductile iron pipes

Welspun DI Pipes, a wholly owned subsidiary of Welspun Corp, has received the 'Kitemark' certificate from for size range of 100 to 1,000 DN against EN 545 and ISO 2531 standards. These are the international standards for ductile iron pipes used for transportation of potable water. This has a wide acceptance in Commonwealth countries, and in general many other countries in South East Asia, Middle East, Africa and Europe.

Welspun Corp was quoting at Rs 212.05, up Rs 1.50, or 0.71 percent on the BSE.

BSE Realty index down 0.7 percent dragged by Macrotech Developers, Sobha, Indiabulls Real Estate

Bessemer India Capital Holdings offloads Rs 467.3 crore shares in Home First Finance

Fidelity Funds - Asian Smaller Companies Pool purchased 4.93 lakh shares in Home First Finance Company India via open market transactions, and The Nomura Trust and Banking Co Ltd as The Trustee of Nomura Indian Stock Mother Fund bought 7 lakh shares at an average price of Rs 685 per share. However, Bessemer India Capital Holdings II Limited offloaded 68.11 lakh shares at an average price of Rs 686.07 per share.

Home First Finance Company India was quoting at Rs 680.70, up Rs 0.45, or 0.07 percent.

BSE Midcap index fell 1 percent dragged by Canara Bank, Gland Pharma, Polycab India

Motilal Oswal View on ITC

ITC has demonstrated a healthy 23% EPS growth in FY23E and broking firm expect a likely EPS CAGR of ~15% over the next two years as well.

ITC’s earnings outlook is better than other large cap staples players both on a two-year CAGR ending FY23E as well as FY24 earnings growth expectations.

At a time when uncertainty looms over the industry, led by high inflation, unpredictable monsoons, continued weak rural sales, and delay in commodity costs decline, ITC’s earnings performance in the last couple of years and in FY24 shines like a beacon.

The challenges for ITC led by (a) an extremely punitive tax regime of the past, (b) covid related disruptions and (c) commodity cost inflation now seems to be receding.

Motilal Oswal maintain buy rating and target price of Rs 450.

NBCC stock price rises over 3% after bagging orders worth Rs 230 cr

Shares of NBCC (India) climbed over 3 percent on March 10 after the company bagged orders worth Rs 230 crore.

The central public sector enterprise under the Ministry of Housing and Urban Affairs received work orders worth Rs 229.81 crore, from the Indian Institute of Foreign Trade. The civil construction company will construct new campus for IIFT in Kakinada, the company said in an exchange filing.

Adani Group Saga's contagion risk to Indian stocks appears low: Bloomberg

Allegations of fraud against Adani Group pose limited risk to Indian equities, given the group's low-single-digit index weightings, and the high proportion of public float held by foreign funds, which circumvent widespread capitulation risks. Onshore funds, which empirically have had low stakes in firms with governance issues, have minimal exposure.

Hind Rectifiers commences commercial production at new manufacturing plant in Nashik

Hind Rectifiers has commenced commercial production at new manufacturing plant in Nashik, Maharashtra. The benefits of these new production lines will be availed from 2023-24 onwards.

Market at 12 PM

Becnhmark indices are trading lower with Nifty around 17400.

The Sensex is down 707.23 points or 1.18 percentat 59,099.05. Nifty is down 190 points or 1.08 percentat 17,399.60. About 1221 shares advanced, 1898 shares declined, and 117 shares unchanged.

Marksans Pharma gets USFDA approval for Famotidine Tablets USP

Marksans Pharma has received final approval from US Food & Drugs Administration for its Abbreviated New Drug Application (ANDA) of Famotidine Tablets USP, 10 mg and 20 mg for over-the-counter (OTC) use.

Citi View On Mahanagar Gas

-Buy rating, target raised to Rs 1,140 per share
-Unison acquisition has potential to improve long-term growth outlook
-Incorporate Rs 50 per share as option value of acquisition
-Company is now our preferred CGD pick followed by Indraprastha Gas

BSE Power index up 0.7 percent led by Adani Green Energy, Adani Transmission, Adani Power