Closing Bell: Nifty below 22,950, Sensex down 200 pts; all sectors in the red

Indian equity indices ended lower for the eight consecutive sessions on February 14. At close, the Sensex was down 199.76 points or 0.26 percent at 75,939.21, and the Nifty was down 102.15 points or 0.44 percent at 22,929.25.

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The Nifty opened gap up however it was unable to sustain at higher levels and closed the day down ~102 points. On the daily charts we can observe that the Nifty has tested the swing low of 22800 for the third time in the last one month. We believe that the Nifty is likely to continue with the decline and test the lower end of the wedge 22670 – 22600 during the upcoming week.

On the upside, the resistance zone of 23000 – 23100 which coincides with the key hourly moving averages shall the rise under check. Huge addition in the open interest across 23000 – 23300 Call Option strikes shall also keep the benchmark under pressure and until the call writers unwind, we expect the pullbacks in Nifty to be sold into. Overall, we shall continue to maintain our negative stance.

Markets remained volatile, shedding nearly half a percent amid mixed cues. After an initial uptick, Nifty quickly reversed course, retesting the crucial 22,800 support zone once again. However, a late-hour recovery helped trim losses, with the index closing at 22,929.25. All major sectors faced selling pressure, with pharma, energy, and realty among the top laggards. Additionally, broader indices took a significant hit, declining between 2.6% and 3.7%, further exacerbating market weakness.

Relentless FII selling, coupled with mixed earnings, has put bulls on the defensive. While efforts to hold the 22,800 level continue, the overall market structure suggests further downside risks. Moving forward, the performance of the banking and IT sectors will be crucial in determining market direction. Traders should adjust their strategies accordingly, with a strong emphasis on trade management.

The Nifty index opened on a positive note but faced selling pressure before a late recovery helped it recoup some losses, eventually settling on a negative note at 22,929. The volatility index, India VIX, cooled off from 15.68 levels but still settled slightly higher by 0.40% at 15.02.

Technically, Nifty has formed a triple bottom around 22,780 on the daily scale, indicating strong support. However, the red candle on both daily and weekly charts signals a lack of strength in the upside recovery. The 21-Day Simple Moving Average (DSMA) is placed around 23,260, making the 23,260-23,300 zone an immediate hurdle. A decisive move above 23,300 could confirm a near-term bottom reversal pattern.

Similarly, Bank Nifty opened with a gap up, experienced volatility-led profit booking, and settled the day on a negative note at 49,099. Technically, the index has formed a red candle on both daily and weekly charts, indicating weakness. However, it managed to hold the weekly support level of 48,700. Sustaining below 48,700 could trigger further downside towards 48,000, while 50,000 remains a key resistance. Traders should closely monitor these levels for potential trading opportunities.

Benchmarks slipped below their crucial psychological levels of 76k and 23k in a volatile trading session as investors in absence of any positive cues continue to book profits in frontlines and sectoral stocks.

The gloomy mood continued as investors are perturbed by lingering foreign fund outflows and the falling rupee against the dollar, which has thus dampened the sentiment.

The risk-averse sentiment continues to rule investors’ minds as corporate earnings are significantly lower than the market expectations during the start of the year, especially for mid- and small caps. Muted earnings trend, INR depreciation along with external factors like tariffs are expected to keep the sentiments weak in the near term, which could further push FIIs outflows. Volatility is expected to stay elevated until there is clarity on tariffs and a recovery in corporate earnings.

The Nifty continues to reel under a bear attack, closing below 23,000 after spending a few days floating above this level. Sentiment remains weak, even though the index managed to close 155 points off its low, as it continues to trade below a critical short-term moving average.

A decisive fall from 22,800 could trigger further panic in the market. On the higher end, 23,100 appears to be the immediate resistance, above which the market may see some respite.

Indian rupee ended higher at 86.83 per dollar on Friday versus Thursday's close of 86.89.

Indian equity indices ended lower for the eight consecutive sessions on February 14.

At close, the Sensex was down 199.76 points or 0.26 percent at 75,939.21, and the Nifty was down 102.15 points or 0.44 percent at 22,929.25. About 642 shares advanced, 3200 shares declined, and 73 shares unchanged.

Bharat Electronics, Adani Enterprises, Adani Ports, Sun Pharma, Trent were among top losers on the Nifty, while gainers were Britannia Industries, ICICI Bank, Nestle India, Infosys, TCS.

Nifty Midcap index shed 2.4 percent, while smallcap index down 3.5 percent.

All the sectoral indices ended in the red with media, metal, oil & gas, pharma, PSU Bank, realty, consumer durables, auto energy down 1-3 percent.

#1 Profit plunges 51.5% to Rs 98.1 crore Vs Rs 202 crore, YoY

#2 Revenue declines 5.3% to Rs 1,903.4 crore Vs Rs 2,009.2 crore, YoY

The company has approached M/s. Kamlesh Desh Raj Pharma for sale of Industrial Land & Building, situated at Nahan for a total consideration of Rs 85 Lakhs ( payable in multiple tranches).

QIB – 6.59 times

NII - 0.11 times

Retail – 0.09 times

Employee Reserved - 0.26 times

Overall – 1.92 times

The IPO, which is raising funds for the owner Carlyle Group Inc., drew bids that were about 77% more than the number of available shares as of 2:25 PM, according to BSE Ltd.’s website. Carlyle holds 95% stake in the Indian software-services company, and aims to raise as much as Rs8750 crore.

#1 Fortis Healthcare to buy Jalandhar Hospital for Rs 462 crore

The Sensex was down 636.95 points or 0.84 percent at 75,502.02, and the Nifty was down 245.45 points or 1.07 percent at 22,785.95. About 438 shares advanced, 3077 shares declined, and 68 shares unchanged.

#1 Profit falls 14.4% to Rs 99.4 crore Vs Rs 116.1 crore, YoY

#2 Revenue drops 2.5% to Rs 262.9 crore Vs Rs 269.6 crore, YoY

#1 Profit sinks 68.8% to Rs 34.8 crore Vs Rs 111.3 crore, YoY

#2 Revenue rises 9% to Rs 1,255.5 crore Vs Rs 1,151.4 crore, YoY

#3 Exceptional loss at Rs 104.13 crore Vs Nil, YoY

#1 Profit drops 16.1% to Rs 62.8 crore Vs Rs 74.8 crore, YoY

#2 Revenue falls 5.5% to Rs 902.2 crore Vs Rs 954.7 crore, YoY

#1 Profit rises 5.8% to Rs 453.4 crore Vs Rs 428.6 crore, YoY

#2 Net interest income grows 13.7% to Rs 1,160.9 crore Vs Rs 1,021.2 crore, YoY

#1 Profit drops 15% to Rs 39 crore Vs Rs 45.9 crore, YoY

#2 Revenue grows 7.8% to Rs 449 crore Vs Rs 416.3 crore, YoY

GlaxoSmithKline Pharmaceuticals shares extend fall on sixth consecutive day

#1 Profit sinks 52.9% to Rs 13.7 crore Vs Rs 29.04 crore, YoY

#2 Revenue zooms 66.9% to Rs 534.7 crore Vs Rs 320.4 crore, YoY

#1 Profit surges 78% to Rs 248.6 crore Vs Rs 139.6 crore, YoY

#2 Revenue falls 14.9% to Rs 848.1 crore Vs Rs 996 crore, YoY

#1 Profit rises 11.9% to Rs 58.3 crore Vs Rs 52.1 crore, YoY

#2 Revenue increases 6% to Rs 161.3 crore Vs Rs 152.1 crore, YoY

#1 Loss stands at Rs 38.9 crore Vs Profit of Rs 182.3 crore, YoY

#2 Revenue declines 31.7% to Rs 1,006.8 crore Vs Rs 1,474.5 crore, YoY

Damodar Valley Corporation awarded contract worth Rs 776.75 crore for construction of buildings and associated works of township (as per requirement of DVC) at Durgapur, Koderma & Raghunathpur, DVC Administrative Building at New Town, Kolkata.

Also, Ministry of Housing and Urban Affairs awarded contract worth Rs 74.94 crore, for maintenance works of New Moti Bagh GPRA Complex (NMB

Complex) (For two years i.e. FY 2025-26 and FY 2026-27)

Gold is likely to trade steady to positive as trader’s/ market participants take pause and look for fresh cues with most of the uncertainty related to the trade tariffs and its impact seems already priced in.

The bullion remains supported by weakness in the U.S. dollar, which is down nearly 1% so far in the week. Silver is likely to outperform gold in the near term, as a rally in industrial metals is likely to support prices.

Technically, momentum in gold remains positive with support at 85900/ 85650, upside potential looks like 86900/ 87450.

USFDA conducted a routine surveillance inspection at the group’s Topical Manufacturing site situated at Changodar in Ahmedabad. The inspection was

conducted from February 10th to 14th, 2025. The inspection concluded with NIL observations.

QIB – 1.80 times

NII - 0.07 times

Retail – 0.08 times

Employee Reserved - 0.23 times

Overall – 0.57 times

Glenmark Pharmaceuticals, Aditya Birla Fashion and Retail, Dilip Buildcon, Dr Agarwals Eye Hospital, Easy Trip Planners, Glaxosmithkline Pharmaceuticals, GVK Power, Samvardhana Motherson International, Narayana Hrudayalaya, RateGain Travel Technologies, Swan Energy, Uflex, and Zen Technologies will release their quarterly earnings scorecard on February 14.

Bharat Petroleum Corporation Limited (BPCL) has finalized its first Liquefied Natural Gas (LNG) sourcing contract linked to the Henry Hub Index. The agreement established with ADNOC Trading, a wholly owned subsidiary of ADNOC Gas.

The European Commission (EC) granted marketing authorization in the European Union (EU) for Zefylti, a filgrastim biosimilar, to CuraTeQ Biologics s.r.o., a wholly owned step-down subsidiary of the company.

Archies shares fall in 4 out of last 5 sessions

The company's subsidiary, Paytm Money, settled with the markets regulator SEBI in a case pertaining to an alleged violation of norms after paying a settlement amount of Rs 45.50 lakh.

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The Board has approved the raising of capital up to Rs 8,500 crore via QIP in suitable tranches up to March 2028 and beyond. Additionally, the Board has authorized the extension of time until March 2026 and beyond, if required, for raising the remaining capital of Rs 4,000 crore (via additional Tier I (AT I) and/or Tier II debt capital instruments) out of the Rs 7,500 crore, which was already approved by the board as part of the previous year’s capital plan in the last meeting dated July 5, 2024.

Asian Paints International Private Limited, Singapore (APIPL), wholly owned subsidiary of Asian Paints, along with PT Asian Paints Indonesia (PTAPI) and PT Asian Paints Color Indonesia (PTAPCI), wholly owned subsidiaries of APIPL, have today entered into a Share Purchase Agreement with Berger Paints Singapore Pte Limited, Singapore, subsidiary of Omega Property Investments Pty Ltd., Australia, for sale of 100% stake held in PTAPI and PTAPCI for a consideration of SGD 7.5 Mn (~Rs. 48 crores), subject to completion of certain conditions precedent and adjustments at closing.

The Reserve Bank of India has approved the reappointment of R Subramaniakumar as the Managing Director & CEO of RBL Bank for three years, effective June 23, 2025. RBL Bank will seek approval from its shareholders for the reappointment within the stipulated timelines.

The Reserve Bank of India has permitted Bank of Maharashtra to set up an IFSC banking unit (IBU) in GIFT City, Gandhinagar, Gujarat.

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Fresh out of the oven, (another initiative for increasing transparency in RPTs) the industry standard forum has approved it just now. What are the minimum disclosures that would need to be made by the company when the RPT is taken for approval for Audit Committee and when you go to the shareholders.

The issue of strategic importance in supply chain... the core ESG guidelines, in SEBI we have asked only a limited set of 40 odd parameters. In that, under the governance section, there is a question on openness of business on the diversity of business partners that you have. The first set of companies have started reporting it. They also disclose how much of it is RPTs. If exchanges are listening to this, that data needs to be piped into this RPT portal.

It is our belief that in every decision made by its company, in almost every case, the objectives and interests of promoters and minority shareholders are aligned. The only place where there is a potential for divergence is RPTs.

In managing RPTs, how can we distinguish between what is strategically good for company and therefore benefits minority shareholders as well (from the others) The largest number of queries we get from institutional investors including foreign investors is questioning SEBI on what we are doing to create transparency around RPTs

It is our belief that in every decision made by the company. In almost every case the promoter and minority shareholder has the same objective. The only place where there is possibility of divergence it is in RPTs. This is why you have seen the way on which these RPT regulations have developed.

#1 The matter related to RPT is something that we care about a lot at SEBI. If there is one thing that is really important it is looking at the governance around RPT.

#2 This aspect of running a business is so crucial to our investors that to me it is the number one item.

#3 We never tell companies what to do or what not to do. Only thing we ask is that please disclose what you are doing

#4 When investors know how to reward or punish a company for good or bad behaviour, that is called an informed investor. For being informed investor, disclosures are important. The regulator therefore stresses on disclosures

The Board has approved the issuance of non-convertible debentures (NCDs) worth up to Rs 75 crore, along with a green shoe option to retain oversubscription of up to Rs 375 crore, on a private placement basis.

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Let's take a step together where investors can move ahead with confidence knowing they have the right information at the right time .

RPTs when done right unlock synergies, create efficiencies. RPTs can be a powerful tool for businesses. However, if these transactions are not conducted at arms length, when transparency is lacking, a problem arises. When transparency is compromised, it leads to shareholders' wealth destruction

RPTs can be a powerful tool for business growth. But problems arise when they are not done at arms length and benefits only a few. When transparency is compromised it leads to loss of wealth and loss of investor confidence.

Investors will no longer have to second guess whether a transaction benefits a company or a select few because data will be available on a common platform.

The Board has appointed Praveen Kumar Tripathi as the Chairperson of the company until June 30, 2025. Currently, Praveen Kumar Tripathi is the Non-Executive Independent Director of the company. Executive Chairperson Rashmi Saluja has ceased to be the Director of the company.

It was a collaborative effort involving SEBI and proxy advisories. It reminds me of the MF Central. This initiative is also a lesson for global regulators to follow, and to tell them that we are ahead of them by miles.

To my mind, the RPT portal is just the first of many initiatives aimed at bringing greater transparency to related party transactions. Another initiative, currently being developed through the industry standards forum, will be launched soon.

Proxy advisors have gained significant importance for their recommendations on whether to accept or reject related party transactions (RPTs), influencing investor decisions and enhancing corporate governance standards.

Going forward, we would like to see executive compensation brought under the scope of related party transactions (RPTs). Audit committees should also assess whether transactions create operational dependence on promoter groups. Additionally, disclosure requirements for RPTs in PSUs should be aligned with those applicable to non-PSUs.

There's a perception that related party transactions (RPTs) may lead to value leakage. However, investors are generally comfortable with RPTs, pushing back only when there is a lack of transparency.

Regulations initially focused on listed companies, but many related party transactions (RPTs) were happening through subsidiaries. In 2020, a working group was formed, and by 2022, the scope of RPT regulations was expanded to include subsidiaries, requiring shareholder approval. The introduction of a Rs 1,000 crore threshold was significant, though it seemed low to us (proxy advisories).

While the Companies Act addresses related party transactions, it was a senior SEBI official who advocated for bringing RPTs or related party transactions under the Act. SEBI has always been at the forefront of ensuring transparency in this area.