Ajit Mishra, VP - Technical Research, Religare Broking
Markets inched further lower and lost over half a percent, in continuation to the prevailing trend. After the initial decline, Nifty tried to recoup losses in the middle but selling pressure in index majors from IT, banking and energy pack pushed the index to a newer low. It slipped below the psychological mark of 17,000 levels for a brief and finally settled at 17,043.30 levels. The broader indices traded in tandem and lost in the range of 0.5%-08%.
Markets are dancing to the global tunes and we’ll see the reaction to the US inflation in early trade on Wednesday. Indications are in the favor of some breather after the recent slide but the upside seems capped too. Meanwhile, participants should stay light and focus more on risk management.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services
Domestic indices saw roller coaster ride amid continued global uncertainty. Nifty opened flat but soon witnessed selling pressure. Nifty drifted below 17k zone for a brief moment intraday – almost after more than 4 months – it was below 17k last time on 13 Oct 2022. Nifty finally ended the day with loss of 111 (-0.7%) at 17043 levels.
The only positive factor today was the WPI data for Feb’23, which came in at 25-month low at 3.85%. Except Pharma, all sectors ended in red.
Markets are likely to remain under pressure in the near term, as the US banking crisis deepens with more and more US banks coming under the cloud. Now all eyes will be on the US inflation data that will be released late on Tuesday and would be key factor for the Fed’s decision on interest rate in its upcoming meeting amidst the ongoing banking turmoil.
Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas
The Nifty witnessed a volatile trading session today. It witnessed sharp swings in both directions and ultimately closed in the negative, down 111 points for the day. It is the fourth consecutive negative close for the Index. It has corrected around 800 points during this period and hence a relief rally cannot be ruled out.
The momentum indicator has a negative crossover which is a sell signal and with prices trading along the expanding lower Bollinger band suggests that the fall is likely to continue. The preferred strategy to trade in Nifty would be to sell on rise around 17,150 – 17,200 zone. On the downside we expect the Nifty to target levels of 16,950 where the lower end of the downward sloping channel is placed. On the upside, 17,380 – 17,400 where the 40-hour moving average is placed should act as an immediate hurdle zone from short term perspective.
Vinod Nair, Head of Research at Geojit Financial Services
The selling continued while the degree of ambiguity over the US Banks reduced due to supportive measures announced by the US FED. The underlying issue of the market is high interest rates, which will continue to wreak havoc in the world economy.
Yields will take time to moderate to the long-term trend given hawkish monetary policy & high inflation.
However, the disruptive development in the US Banks and slowing economy have created a precursor to presume that yields will peak in the near future, supported by a change in monetary policy from hawkish to neutral, which will diminish the worries of long-term investors.
Rupee Close:
Indian rupee ended 37 paise weak at 82.49 per dollar against previous close of 82.12.
Market Close
Indian benchmark indices ended lower for the fourth consecutive session on March 14 with Nifty around 17,050.
At close, the Sensex was down 337.66 points or 0.58% at 57,900.19, and the Nifty was down 111.00 points or 0.65% at 17,043.30. About 1173 shares advanced, 2257 shares declined, and 109 shares unchanged.
Adani Enterprises, Adani Ports, M&M, TCS and HDFC Life were among the major losers on the Nifty, while gainers were BPCL, Titan Company, Bharti Airtel, SBI Life Insurance and Larsen & Toubro.
All the sectoral indices ended in the red with power, realty, information technology, PSU Bank, metal and auto fell 1-2 percent.
The BSE midcap index fell 0.5 percent and smallcap index fell 0.8 percent.
Apollo Pipes board approves fund raising of up to Rs 259.60 crore via preferential issue
the Board of Directors of Apollo Pipes considered and approved the issue and allotment of up-to 47,20,000 fully convertible warrants of face value of Rs 10 each carrying a right exercisable by the Warrant holder to subscribe to one equity share per warrant to persons belonging to ‘Promoter & Promoter Group’ and ‘Non-Promoter’ Category on preferential basis at an issue price of Rs 550 aggregating upto Rs 2,59,60,00,000.
Apollo Pipes was quoting at Rs 550.65, up Rs 1.85, or 0.34 percent.
Nomura View On Tata Motors
-Buy rating, target at Rs 508 per share
-Management highlighted that demand remains strong across JLR, CV & PV businesses
-Management started witnessing a softening of demand in PV business with rising dealer inventory
-JLR's order book remains at healthy levels with steady improvements
-Management believes that Q1FY24 CV volumes can be impacted due to pre-buying in Q4FY23
-Management expects volumes to stabilise from Q2FY24
Tata Motors was quoting at Rs 417.00, down Rs 5.40, or 1.28 percent.
HCC JV bags contract worth Rs 3,681 crore from NHSRCL
Hindustan Construction Company (HCC), in a joint venture with Megha Engineering & Infrastructures Ltd (MEIL), has been awarded a Rs 3,681 crore contract by National High-Speed Rail Corporation Limited (NHSRCL) for the construction of the Sandra Kurla Complex Station of the 508.17 km long Mumbai-Ahmedabad High-Speed Rail.
Axita Cotton gets orders from Bangladesh
Axita Cotton has received an order from Taraspinning Mills Limited, Bangladesh and Khadiza Sadek Spinning Mills Limited, Bangladesh for Indian Raw Cotton value aggregating at $2,716,091.84. Order needs to be delivered by April 30, 2023, said the company.
Axita Cotton was quoting at Rs 56.46, up Rs 0.53, or 0.95 percent.
Rajani Sinha | Chief Economist
India’s wholesale inflation eased to a 25-month low of 3.9% in February, led by moderation in manufactured goods inflation. The low print for manufactured goods inflation (1.9%) was mainly because of deflation in textile and metals categories on an annual basis.
A lower manufactured food and chemicals inflation also helped. However, a higher print for food inflation limited the downside in overall wholesale inflation.
However, there has been a second consecutive month of gain in sequential momentum for wholesale prices due gain in metals and food prices (mom). A sharp uptick in sequential momentum was also visible for coal and mineral oils.
While we expect WPI inflation to ease further in coming months due to the high base, any strong rebound in global commodity prices will remain a key monitorable. Favourable base could help WPI inflation turn negative in May and June 2023. For the next fiscal, we expect the wholesale inflation to ease below 3%. A lower WPI print would also support downtrend in retail inflation.
Market at 3 PM
Benchmark indices were trading lower with Nifty around 17,050.
The Sensex was down 305.62 points or 0.52% at 57,932.23, and the Nifty was down 102.00 points or 0.59% at 17,052.30. About 984 shares advanced, 2294 shares declined, and 89 shares unchanged.
BL Kashyap bags orders worth Rs 158 crore
B L Kashyap & Sons has secured two new orders for construction, civil and structural works.
The order worth Rs 89 crore (excluding GST) is for the construction of Business Park Campus at Bengaluru and order worth Rs 69 crore (excluding GST) for residential complex at Bengaluru.
The current order book stands at approximately Rs 2,089 crore.
BSE Oil & Gas index shed 0.7 percent dragged by Adani Total Gas, Indraprastha Gas, ONGC
| Company | CMP | Chg(%) | Volume |
|---|---|---|---|
| Adani Total Gas | 947.80 | -5 | 202.61k |
| IGL | 426.40 | -2.18 | 50.24k |
| ONGC | 153.55 | -1.44 | 277.03k |
| Gujarat Gas | 501.80 | -1.05 | 19.94k |
| Reliance | 2,276.00 | -0.39 | 302.35k |
| GAIL | 109.90 | -0.32 | 1.03m |
| IOC | 77.63 | -0.21 | 357.32k |
| HINDPETRO | 227.90 | -0.18 | 314.17k |
National Aluminium Company announces Rs 2.50 interim dividend
The Board of Directors of National Aluminium Company in their meeting held on March 13 approved payment of 2nd interim dividend at Rs 2.50 per share on the paid-up equity share capital of Rs 918.32 crore for the financial year 2022-23.
The company has fixed Tuesday, the 21st March, 2023 as record date.
National Aluminium Company was quoting at Rs 82.44, up Rs 0.38, or 0.46 percent.
Rama Vision allots 4 lakh warrants to promoters
A committee of Rama Vision allotted 4,00,000 convertible warrants at a issue price of Rs 57.10 on preferential basis to the persons belonging to promoter's category, after receipt of subscription amount, equivalent to 25 percent of the issue price.
The rest will be paid when promoters exercise their rights within next 18 months.
Rama Vision was quoting at Rs 39.20, up Rs 0.35, or 0.90 percent.
Prakhar Pandey, Founder and CEO of Moolaah
We are already seeing a cascading effect in the Indian equity markets, due to the collapse of SVB. A unique run to the bank story, where an ALM mismatch turned horrors for most startups across the US and probably across the globe. A large number of depositors expected the yields to go up, however an onward investment of deposits into Mortgage backed securities which are held to maturity, despite a rising interest rate scenario led to unrealised losses of >$16B against an equity base of $11B , leading to insolvency.
Deposit Insurance National Bank of Santa Clara under FDIC has been set up to absorb the effect of SVB, however other similar banks like First Republic Bank, Signature Bank and PacWest Bankcorp are receding to similar pressure.
Largely, the effect of SVB collapse can further enhance the global economic downturn, which we are seeing. Already $470Billion is wiped out from Equity markets globally, and with manufacturing in a recession zone, housing sales having plummeted and household spending looking to come down we can see a further wealth erosion across capital markets.
The Indian economy could face impact with exports going down, a pricing waiver with a further on forex hit, and a liquidity crisis with FII flows depleting from its existing lows.
Notable Indian startups who had registered in the US, for an ease in raising funds for their upcoming rounds and also for an ease in business to cater to global requirements are facing the heat. Much of them, not having an existing new account to transfer their funds. Startup’s like Carwale, Sarva, Tutor Vista, Naaptol, iYogi, Genesis Color’s, Inmobi, Bluestone, Loyalty Rewardz are a few notable names with their existing funding lines from SVB.
Also Indian startups having raised funds from Y-Combinator who banks largely with SVB, due to their startup ecosystem are also some companies who might get duly affected in case Ycombinator has to take a few critical steps with this mishappening. Some Indian Saas Corporatrs might also see some pressure, having opened US entities across Delaware and similar startup ecosystem zones. A lot many VC’s / PE’s are not declaring their impact, due to a ripple down effect it can create with the investor community.
Market Check:
For the fourth consecutive session, the Indian markets maintained their selling stance, following the losses seen in global equities.
Investors are currently focused on the upcoming release of the US CPI later today, as it will be the final high-impact economic data published before the March 22 Federal Reserve policy meeting.
Investors are anticipating that following the failures of Silicon Valley Bank and Signature Bank, the US Fed may continue with its rate hike cycle. However, some analysts believe that the central bank may not be as aggressive as initially expected, given the recent developments.
Infosys hit five month low and dropped over 10% in the last one month while Bajaj Finance lost for sixth sessions.
BSE Smallcap index down 1 percent dragged by GTL Infra, Indian Bank, Allied Digital
| Company | CMP | Chg(%) | Volume |
|---|---|---|---|
| GTL Infra | 0.70 | -12.5 | 45.65m |
| Indian Bank | 255.65 | -9.42 | 155.30k |
| Allied Digital | 84.75 | -8.69 | 314.00k |
| Xelpmoc Design | 106.05 | -8.5 | 14.65k |
| PNB Housing Fin | 533.50 | -8.45 | 61.80k |
| Rama Phosphates | 180.50 | -6.38 | 5.34k |
| Triveni Turbine | 312.40 | -6.09 | 64.02k |
| BLACK BOX | 90.30 | -6.04 | 9.63k |
| Bannariamman | 2,592.00 | -5.9 | 192 |
| Olectra Greente | 669.85 | -5.79 | 115.24k |
Raghvendra Nath, Managing Director – Ladderup Wealth Management on WPI inflation
:
WPI inflation eased to 3.85% in February from 4.73% in January and 4.95% in December. It has now stayed below 5% for the third consecutive month. The easing of inflation was primarily due to fall in prices of crude petroleum & natural gas, non-food articles, food products etc. Inflation in primary articles was down to 3.28% from 3.88% in January, Fuel and power inflation moderated slightly to 14.82% from 15.15% & manufactured products saw inflation easing to 1.94% from 2.99% in January. Change in WPI on MoM basis was 0.20%. The easing of WPI is in line with the recent CPI number for February at 6.44% although above RBI’s upper limit of 6%. Future MPC decisions remain susceptible to Fed’s announcement next week.
| Company | CMP | High Low | Gain from Day's Low |
|---|---|---|---|
| Cipla | 874.70 | 883.70 853.85 | 2.44% |
| Torrent Pharma | 1,515.60 | 1,526.85 1,496.45 | 1.28% |
| Zydus Life | 469.95 | 472.60 464.10 | 1.26% |
| Divis Labs | 2,764.30 | 2,787.90 2,730.00 | 1.26% |
| Biocon | 218.80 | 220.35 216.15 | 1.23% |
| Aurobindo Pharm | 452.30 | 460.15 447.05 | 1.17% |
| Sun Pharma | 960.80 | 963.75 950.30 | 1.1% |
| Alkem Lab | 3,086.05 | 3,102.95 3,056.60 | 0.96% |
| Dr Reddys Labs | 4,349.95 | 4,420.90 4,309.00 | 0.95% |
| Lupin | 658.05 | 668.90 652.20 | 0.9% |
Air passenger traffic to log double-digit growth next fiscal: Crisil
Air passenger traffic is expected to continue on recovery course and clock double-digit growth in fiscal 2024, riding on a pick-up in international and business travel, capacity expansion by airport operators, and higher availability of aircrafts. Following traffic volumes, cash flows of airport operators are also rebounding, leading to recovery in their debt service cushions.
European Markets Updates
SBI to hike prime lending rate by 70 bps to 14.85% from March 15 and base rate by 70 bps to 10.10% from March 15
Market at 2 PM
Benchmark indices extended the losses and broke 17000 intraday amid selling across the sectors.
The Sensex was down 416.80 points or 0.72 percentat 57,821.05, and the Nifty was down 136.80 points or 0.80 percentat 17,017.50. About 921 shares advanced, 2330 shares declined, and 90 shares unchanged.
Persistent Systems Large Trade | 1.89 lakh shares (0.26% equity) worth Rs 85.50 crore change hands at an average of Rs 4,516.51 per share, reported CNBC-TV18.
Persistent Systems was quoting at Rs 4,495.80, down Rs 127.00, or 2.75 percent.
MC A10 Index was down about 7 percent thanks to all round selling in Adani Group stocks. Biggest casualties was Adani Enterprises, which slumped nearly 8 percent.
Care Ratings revises long-term outlook of India Cements to negative from stable, reported CNBC-TV18.
India Cements was quoting at Rs 187.45, up Rs 0.40, or 0.21 percent on the BSE.
Nifty 500
| Company | 52-Week Low | Day’s Low | CMP |
|---|---|---|---|
| Wockhardt | 182.85 | 182.85 | 173.95 |
| Rossari | 602.10 | 602.10 | 575.45 |
| Aditya Birla F | 228.15 | 228.15 | 219.70 |
| MphasiS | 1976.85 | 1976.85 | 1,892.50 |
| Bandhan Bank | 218.15 | 218.15 | 211.40 |
| Balaji Amines | 2184.95 | 2184.95 | 2,096.50 |
| Alkyl Amines | 2473.10 | 2473.10 | 2,403.75 |
| ABSL AMC | 370.00 | 370.00 | 359.05 |
| Godrej Agrovet | 434.00 | 434.00 | 423.25 |
| Network 18 | 56.40 | 56.40 | 54.35 |
BL Kashyap gets two orders in Bengaluru
BL Kashyap and Sons has secured new orders from domestic unrelated clients aggregating to Rs 158 crores approximately, excluding GST as per below details. This includes construction of Business Park Campus at Bengaluru worth Rs 89 crore excluding GST and construction of Residential Complex at Bengaluru worth Rs 69 crore excluding GST.
These projects are expected to be completed within about 24 months, from the date of award. The current order book of the company stands at Rs 2,089 crore excluding GST.
Sun TV declared dividend at Rs 2.50 per share
The Board of Directors of Sun TV Network at their meeting held on March 13, 2023, inter alia, have declared an interim dividend of Rs 2.50 per equity share for the financial year 2022-23.
Sun TV Network was quoting at Rs 429.05, down Rs 0.10, or 0.02 percent.
Dhanlaxmi Fabrics to close unit for renovation
Dhanlaxmi Fabrics said it will be shutting its processing unit at Dombivali for 6-8 months as the 30-year old factory need to go for a major renovation. The renovation work will start on April 1.
However, the weaving unit of the company located at Kolhapur will remain in operations, it said.
Dhanlaxmi Fabrics was quoting at Rs 38.45, down Rs 2.97, or 7.17 percent on the BSE.
BSE Smallcap
| Company | CMP | High Low | Fall from Day's High |
|---|---|---|---|
| Vimta Labs | 306.50 | 306.55 304.90 | -0.02% |
| VST | 3,141.70 | 3,143.05 3,119.30 | -0.04% |
| Forbes Gokak | 628.00 | 628.40 610.15 | -0.06% |
| Panama Petro | 306.80 | 307.00 294.35 | -0.07% |
| Newgen Software | 453.15 | 453.45 437.00 | -0.07% |
| Suven Pharma | 475.05 | 475.50 473.00 | -0.09% |
| Ambika Cotton | 1,438.70 | 1,439.95 1,420.00 | -0.09% |
| Shalby | 125.00 | 125.15 123.45 | -0.12% |
| Mangalam Cement | 259.00 | 259.35 257.70 | -0.13% |
| KDDL | 1,030.60 | 1,032.00 1,017.75 | -0.14% |
Coal India gears up to meet power sector’s demand
Coal India is optimistic of supplying 156 million tonnes (MTs) of coal to power sector during April-June’23 quarter amid concerns over spike in coal demand.
This would be 25.6 percentof the enhanced annual dispatch target of 610 MTs slated for this sector in 2023-24, the coal major said in a press release.
Coal India was quoting at Rs 221.15, up Rs 0.45, or 0.20 percent.
Market at 1 PM
Benchmark indices were trading lower in the volatile session with Nifty below 17100.
The Sensex was down 302.49 points or 0.52% at 57,935.36, and the Nifty was down 97.90 points or 0.57% at 17,056.40. About 1005 shares advanced, 2194 shares declined, and 94 shares unchanged.
Sharekhan maintains 'Buy' rating on IndusInd Bank, target Rs 1,400
At the current market price, IndusInd Bank trades at 1.3 timesand 1.1 timesits FY2024/FY2025Book Value estimates. A well-capitalised balance sheet, adequate internal risk control measures placed, improvement in collection efficiencies across business segments, run down of the restructured book without much flowing into Non Performing Assets by Q1 of FY2024, steady asset-quality matrix and, in turn, lower credit costs would augur well for the bank’s return ratio profile.
Sharekhan believes, the strong recovery in earnings, improvement in liability franchise, and recovery in return ratios would help valuations inch higher.
Broking house maintain its buy rating on the stock with a revised target price of Rs 1,400.
IndusInd Bank was quoting at Rs 1,068.80, up Rs 8.80, or 0.83 percent on the BSE.
BSE Metal index up 0.5 percent supported by Tata Steel, APL Apollo, SAIL India
| Company | CMP | Chg(%) | Volume |
|---|---|---|---|
| Tata Steel | 108.10 | 1.17 | 1.84m |
| APL Apollo | 1,198.95 | 1.14 | 15.37k |
| SAIL | 87.43 | 0.48 | 664.77k |
| NALCO | 82.42 | 0.44 | 313.78k |
| Coal India | 221.60 | 0.41 | 392.89k |
| Hindalco | 403.80 | 0.4 | 98.05k |
| JSW Steel | 677.80 | 0.32 | 31.67k |
| Vedanta | 279.35 | 0.25 | 238.92k |
GST Department conducts search at Exxaro Tiles' Padra, Gujarat plant
Superintendent (Preventive) official of the GST Department conducted search at the company’s plant located at Padra, situated at Block No: 204-205, Opp. Hanuman Temple, NrMahuvad, Dabhasa, Padra, Vadodara, Gujarat-391440 dated 13th March 2023 in context of inspection of books of Account of the company.
Exxaro Tiles was quoting at Rs 110.70, down Rs 3.55, or 3.11 percent on the BSE.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services
With the Nifty down by around 10% from the peak and underperforming other markets in 2023, the sentiments have turned negative. This is not a favourable time for IPOs and NFOs. Attractively priced IPOs will attract investors but it would be a tough time for NFOs. Investors should remain invested and a good strategy would be to continue investing through SIPs in existing funds.
Market recovers sharply as February WPI inflation at 25-month low
Benchmark indices made smart recovery after February 2023 WPI inflation came at 25-month low at 3.85%.
February WPI at 3.85 percent:
February WPI inflation at 3.85% versus 4.73% and Core inflation at 2.4% versus 2.8%, MoM.
Morgan Stanley On Real Estate
-Property upcycle is now well entrenched
-Listed developers appear prepared with new launch pipelines and execution capability
-Balancesheets have been repaired
-Valuations have corrected to mean levels
-Overweight on DLF, Prestige & Sobha
-Equal-weight on Oberoi Realty & Macrotech Developers
-Underweight on Godrej Properties
| Company | CMP | Chg(%) | Volume |
|---|---|---|---|
| Macrotech Dev | 850.35 | -3.04 | 4.39k |
| Indiabulls Real | 57.80 | -2.84 | 398.13k |
| Sobha | 535.25 | -2.24 | 3.86k |
| Phoenix Mills | 1,295.70 | -2.23 | 2.40k |
| Oberoi Realty | 853.10 | -1.18 | 9.77k |
| Godrej Prop | 1,113.30 | -0.78 | 8.85k |
| Mahindra Life | 353.25 | -0.6 | 2.65k |
| Brigade Ent | 456.30 | -0.21 | 2.13k |
Bannariamman Sugars shares fall 5% as workers go on strike
Workmen Union at Sugar Unit-II situated at Mysore and Sugar Unit-Ill situated at Chamarajnagar Karnataka have called for strike with effect from March 10, 2023 regarding wage settlement and other related demands, the company said in an exchange notification.
The company is monitoring the situation and steps have been taken for smooth operations of the units and to minimise the disruptions, it added.
Bannariamman Sugars was quoting at Rs 2,599.00, down Rs 155.45, or 5.64 percent.
Market at 12 PM
Benchmark indices extended the losses and trading near the day's low with Nifty around 17000.
The Sensex was down 309.80 points or 0.53% at 57,928.05, and the Nifty was down 99.90 points or 0.58% at 17,054.40. About 934 shares advanced, 2207 shares declined, and 101 shares unchanged.
Morgan Stanley View On Bharti Airtel
-Overweight rating, target price at Rs 860 per share
-Company has rolled out higher minimum recharge plans in the remaining 3 circles
-Bharti has been first mover in taking entry-level tariffs higher, competition has not reacted
-Expect this to be 1.3-1.5 percentaccretive to revenues of Bharti's India mobile business
-Potential 4G tariff hikes andaccelerated market share gains are key triggers
On BSE
| Company | CMP | Chg(%) | Volume |
|---|---|---|---|
| Bank of India | 71.20 | -5.38 | 6.08m |
| Indian Bank | 267.25 | -5.36 | 735.46k |
| Union Bank | 66.30 | -4.26 | 5.57m |
| Punjab & Sind | 25.45 | -3.6 | 1.09m |
| IOB | 22.95 | -3.57 | 6.60m |
| UCO Bank | 24.60 | -3.34 | 6.14m |
| JK Bank | 46.40 | -3.13 | 1.87m |
| Bank of Mah | 24.80 | -2.94 | 7.34m |
| Central Bank | 24.50 | -2.78 | 2.64m |
| Canara Bank | 282.00 | -2.27 | 4.91m |
Glenmark Pharma receives ANDA approval for Clindamycin Hydrochloride Capsules
Glenmark Pharmaceuticals has received final approval by the United States Food & Drug Administration (USFDA) for Clindamycin Hydrochloride Capsules USP, 75 mg, 150 mg, and 300 mg, the generic version of Cleocin Hydrochloride Capsules, 75 mg, 150 mg, and 300 mg, of Pfizer Inc.
Glenmark’s Clindamycin Hydrochloride Capsules will be distributed in the US by Glenmark Pharmaceuticals Inc., USA.
