Barometers trade with minor gains, broader mkt underperforms

The key equity indices traded near the flat line with minor gains in morning trade. The Nifty traded above the 17,400 level. Financial services and IT stocks edged higher while media, auto and consumer durables stocks witnessed a bit of a selling pressure.

At 10:30 IST, the barometer index, the S&P BSE Sensex, was up 34.82 points or 0.06% to 59,169.95. The Nifty 50 index rose 12.55 points or 0.07% to 17,425.45.

The broader market underperformed the headline indices. The S&P BSE Mid-Cap index shed 0.85% while the S&P BSE Small-Cap index fell 1.04%.

The market breadth was weak. On the BSE, 1,079 shares rose and 2,126 shares fell. A total of 176 shares were unchanged.

U.S. regulators announced plans to backstop both depositors and financial institutions associated with Silicon Valley Bank (SVB). The US regulators on Sunday (12 March) night cleared a plan for the Silicon Valley Bank to protect depositors and assured that no losses would be borne by the taxpayers.

After SVB`s downfall, New York-based Signature Bank was closed by New York state financial regulators on Sunday. Signature had been a popular funding source for cryptocurrency companies.

Depositors at both failed SVB and Signature Bank in New York, which was shuttered Sunday over similar systemic contagion fears, will have full access to their deposits as part of multiple moves that officials approved over the weekend. Depositors at the bank will have access to their money from Monday.

Back home, consumer inflation data for February will be unveiled today, 13 March 2023. The annual consumer price inflation in India accelerated to 6.52% in January of 2023, the highest in three months, compared to 5.72% in December.

Buzzing Index:

The Nifty Financial Serivces index rose 0.57% to 18,030.40. The index declined nearly 2% in the past two trading sessions.

ICICI Lombard General Insurance Company (up 1.43%), ICICI Bank (up 0.91%), ICICI Prudential Life Insurance Company (up 0.91%), Bajaj Finance (up 0.9%), Kotak Mahindra Bank (up 0.74%), HDFC Bank (up 0.57%), State Bank of India (up 0.23%), Housing Development Finance Corporation (up 0.22%), Axis Bank (up 0.09%) and HDFC Life Insurance Company (up 0.02%) edged higher.

On the other hand, REC (down 1.35%), Power Finance Corporation (down 1.29%) and Muthoot Finance (down 1.23%) declined.

Stocks in Spotlight:

Nazara Technologies fell 1.59%. The company on Sunday (12 March) said its step down subsidiaries Kiddopia Inc and Mediawrkz Inc hold cash balances worth $7.75 million (about Rs 64 crore) in SVB. Kiddopia Inc is a 100% subsidiary of Paper Boat Apps (owned 51.5% by Nazara) & Mediawrkz Inc is a 100% subsidiary of Datawrkz Business Solutions (owned 33% by Nazara).

Further, Nazara Group (Nazara Technologies and its subsidiaries) said it continues to maintain healthy reserves of cash and cash equivalents in excess of Rs 600 crore excluding the SVB impacted funds. "The situation with SVB remains fluid and the company shall keep all the stakeholders and public at large updated on further developments," it added.

Sula Vineyards shed 1.33%. India`s largest and only listed wine produce announced that it has taken on record the resignation of its chief financial officer, Bittu Varghese, to explore opportunities outside the company. Varghese will continue to be associated in his current role as the CFO till 9 June 2023. The company will keep all the stakeholders notified as soon as a replacement for Varghese is identified.

Dishman Carbogen Amcis slipped 4.57. The pharma company announced that its board approved issuance of non-convertible debentures (NCDs) of aggregating up to Rs 100 crore, with a base issue of Rs 50 crore and green shoe option of Rs 50 crore.

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