Domestic equity indices plunge as banking stocks tumble

Domestic equity indices plunged on Monday, reversing a two-day rally. The Nifty fell below 22,350 after reaching an intraday high of 22,526.60. While banking and metal stocks took a beating, healthcare, pharma, and IT sectors bucked the trend and closed higher. Meanwhile, broader markets suffered heavy losses. Analysts expect continued weakness due to SEBI`s push for stress tests on mid- and small-cap mutual fund schemes to address concerns about inflated valuations.

In the barometer index, the S&P BSE Sensex tumbled 616.75 points or 0.83% to 73,502.64. The Nifty 50 index fell 160.90 points or 0.72% to 22,332.65.

SBI (down 1.86%), HDFC Bank (down 1.33%), Reliance Industries (down 0.91%) and ICICI Bank (down 0.91%) were major drags.

In the broader market, the S&P BSE Mid-Cap index shed 0.24% and the S&P BSE Small-Cap index slipped 2.01%.

The market breadth was weak. On the BSE, 876 shares rose and 3095 shares fell. A total of 111 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, gained 2.80% to 14.

Economy:

Continuing the gaining streak, India�s forex reserves surged $6.55 billion to $625.626 billion during the week ended March 1, according to the latest RBI data.

For the week ended March 1, the foreign currency assets, a major component of the reserves, increased by $6.043 billion to $554.231 billion, the data said.

Gold reserves increased by $569 million to $48.417 billion during the week. The special drawing rights (SDRs) were down by $17 million to $18.18 billion, according to the data.

India�s reserve position with the IMF was also down by $41 million to $4.798 billion in the reporting week, the apex bank data showed.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper shed 0.27% to 7.012 as compared with the previous close of 7.031.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.7550, compared with its close of 82.6750 during the previous trading session.

MCX Gold futures for 5 April 2024 settlement rose 0.04% to Rs 66,048.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.01% to 102.71.

The United States 10-year bond yield shed 0.30% to 4.076.

In the commodities market, Brent crude for April 2024 settlement rose 21 cents or 0.26% to $82.29 a barrel.

Global Markets:

European shares tumbled while Asian stocks ended mixed on Monday, following Wall Street`s decline, as investors digested economic data from Japan and awaited key inflation figures from the United States.

Japan narrowly avoided a recession. Revised official data showed the economy grew 0.4% in the last quarter of 2023, reversing earlier estimates of a contraction. This comes after a sharp decline in the previous quarter.

Meanwhile, China reported its first inflation increase in four months. Consumer prices rose 0.7% year-on-year in February, compared to a drop in January.

U.S. stocks closed lower on Friday. Technology giant Nvidia led the losses, experiencing its worst day since May. Investors were also reacting to jobs data, which showed strong payroll growth but a slight uptick in unemployment.

Focus now shifts to U.S. inflation data due Tuesday. Analysts expect core prices to show further moderation.

Stocks in Spotlight:

Power Grid Corporation of India slipped 2.41%. The company has signed a memorandum of understanding (MoU) with Rajasthan Rajya Vidyut Prasaran Nigam (RRVPNL) to incorporate a joint venture company for the development of an Intra State Transmission System in Rajasthan.

Coal India (CIL) declined 1.11%. The company announced that it has executed a memorandum of understanding (MoU) with Rajasthan Rajya Vidyut Utpadan Nigam (RRVUNL) for securing power to meet the growing energy demand of Rajasthan.

NLC India jumped 6.74% after the company announced the signing of an MoU with the Government of Rajasthan for formation of joint venture to set up 125 MW Lignite-based power plant and 1000 MW Solar power plant.

Rail Vikas Nigam (RVNL) rallied 3.07% after the company announced that it has received an order from Madhya Pradesh Poorv Kshetra Vidyut Vitaran Company (MPPKVVCL) and Himachal Pradesh State Electricity Board (HPSEBL), aggregating to Rs 1,139.61 crore.

InterGlobe Aviation rallied 3.63% after the company�s co-founder Rakesh Gangwal reportedly plans to sell a 3.3% stake in Interglobe Aviation to raise around $450 million. The offer floor price for the proposed block deal is Rs 2,925 per share, as per reports.

Torrent Power advanced 1.67% after the company said that it has emerged as a successful bidder and received letter of award (LoA) from MSEDCL for setting up of 306 MW grid-connected solar power project at Nasik in Maharashtra.

Gensol Engineering dropped 9.32%. The company announced that it has emerged as lowest (L-1) bidder for a partial capacity of 70 MW/140 MWh out of 250 MW/500 MWh standalone battery energy storage systems (BESS) floated by Gujarat Urja Vikas Nigam (GUVNL).

NBCC (India) hit a lower circuit of 5%. The company said that its wholly owned subsidiary HSCC (India) has bagged orders worth Rs 367.92 crore from Medical Education & Ayush, Maharashtra, and Power Grid Corporation India.

SJVN fell 1.88%. The company said that its wholly owned subsidiary SJVN Green Energy (SGEL) has signed a PUA for 500 MW solar power and a PPA for 100 MW solar power with Rajasthan Urja Vikas and IT Services (RUVITL).

D B Realty tanked 5.41%. The company said that it has leased 186 acres of land in Mira Road to BMC for Rs 248 crore annually (avg). Land will be used for BMC projects & could see development potential unlocked with coastal road construction.

IPO Update:

The initial public offer (IPO) of Gopal Snacks received 10,80,83,438 bids for shares as against 1,19,79,993 shares on offer, according to stock exchange data at 17:00 IST on Monday (11 March 2024). The issue was subscribed 9.02 times.

The issue opened for bidding on Wednesday (6 March 2024) and it will close on Monday (11 March 2024). The price band of the IPO is fixed at Rs 381 to 401 per share. An investor can bid for a minimum of 38 equity shares and in multiples thereof.

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