Benchmarks pare losses; metal stocks decline

The domestic equity barometers further pared losses in mid-morning trade. The Nifty hovered near the 17,000 mark. Metal stocks were under pressure.

At 11:23 IST, the barometer index, the S&P BSE Sensex, was down 705.53 points or 1.22% to 56,978.06. The Nifty 50 index slumped 207.70 points or 1.21% to 16,998.95.

Escalating geopolitical tensions between Russia and Ukraine weighed on the sentiment. There are concerns that rising tensions in Eastern Europe will boost crude oil prices and could spark global supply chain disruption, resulting in rising input costs. Thousands of U.S. and European companies do business with suppliers in Russia and Ukraine. Many of them could be at risk during a prolonged military conflict.

In the broader market, the S&P BSE Mid-Cap index declined 1.17% while the S&P BSE Small-Cap index lost 1.84%.

The market breadth was weak. On the BSE, 535 shares rose and 2,666 shares fell. A total of 96 shares were unchanged.

Buzzing Index:

The Nifty Metal index declined 1.65% to 5,565.60, extending losses for fifth day in a row. The index has declined 4.79% in the five sessions.

Tata Steel (down 2.67%), Coal India (down 2.30%), Welspun Corp (down 2.25%), Hindustan Copper (down 2.17%), SAIL (down 2.04%), Vedanta (down 1.74%), Hindustan Zinc (down 1.65%), JSW Steel (down 1.44%), Jindal Steel & Power (down 1.35%), Adani Enterprises (down 1.19%) and APL Apollo Tubes (down 10%) declined.

Hindalco shed 0.25% to Rs 510.65. The company`s wholly owned subsidiary Novelis will invest approximately Rs 372.74 crore ($50 million) to build a recycling centre with annual casting capacity of 100 kilotonnes of low-carbon sheet ingot at its Ulsan Aluminium joint venture in South Korea. It expects the recycling centre to reduce the company`s carbon emissions by more than 420,000 tonnes each year.

Adani Enterprises fell 1.04% to Rs 1666.90. The Adani Group announced it has signed a non-binding Memorandum of Understanding (MoU) with Ballard Power Systems to evaluate a joint investment case for the commercialization of hydrogen fuel cells in various mobility and industrial applications in India. Under the MoU, both parties will examine various options to cooperate, including potential collaboration for fuel cell manufacturing in India.

Vedanta declined 2.08% to Rs 346.35. The company announced that it has made an oil discovery in its exploratory well in Rajasthan`s Barmer district. The company holds 100% participating interest in the block.

Global Markets:

Asian stocks declined on Tuesday as tensions surrounding Russia and Ukraine continue to keep investors on edge.

U.S. markets were closed for a holiday on Monday. Oil jumped to a seven-year high as Europe`s eastern flank stood on the brink of war after Russian President Vladimir Putin reportedly ordered forces into two breakaway regions of eastern Ukraine, following a Monday announcement that he would recognize their independence. After that development, the White House responded, with U.S. President Joe Biden ordering sanctions against the separatist regions of Ukraine.

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