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Indices slump in early trade on weak global stocks

Published on Mar 07, 2022 09:35

The benchmark indices tumbled in early trade amid weak global cues. A surge in crude oil prices amid heightened geopolitical tensions impacted sentiment adversely.

At 9:30 IST, the barometer index, the S&P BSE Sensex, tumbled 1496.53 points or 2.75% at 52,837.28. The Nifty 50 index slumped 425.90 points or 2.62% at 15,819.45.

In the broader market, the S&P BSE Mid-Cap index declined 2.88% while the S&P BSE Small-Cap index fell 2.74%.

The market breadth was weak. On the BSE, 572 shares rose and 2,206 shares fell. A total of 131 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 7,631.02 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 4,738.99 crore in the Indian equity market on 4 March 2022, provisional data showed.

On the political front, the seventh and final phase of Uttar Pradesh elections 2022 will begin at 7 A.M. and end at 6 P.M. today, bringing the curtains down on these fiercely contested polls held in five states. The results of exit polls for elections in Uttar Pradesh, Punjab, Uttarakhand, Goa and Manipur will be broadcast from 7 P.M. today, after the end of polling. Votes will be counted on 10 March 2022.

Stocks in Spotlight:

Balkrishna Industries dropped 3.39%. The company has successfully commenced commercial production of the Brown Field Expansion and Debottlenecking project at Bhuj plant ahead of schedule. This will result in increased production of tires up to 50,000 MTPA (million tonnes per annum).

Nazara Technologies lost 0.77%. The company`s board approved issuance of equity shares worth Rs 25 crore to existing shareholders of Datawrkz Business Solutions. These shares will be issued on a preferential basis, at a price of Rs 2,260 per share.

JK Cement skid 4.89% The board of directors of the company approved entering into paint business through a wholly owned subsidiary, formation of new wholly owned subsidiary and investment in the said wholly owned subsidiary.

PNB Housing Finance rose 1.96%. A meeting of the board of directors of the company is scheduled on 9 March 2022 to consider and approve fund raising.

Global Markets:

Overseas, Asian stocks are trading lower on Monday trade as oil prices surged, with the ongoing Russia-Ukraine war continuing to weigh on investor sentiment globally.

China lowered its GDP target to 5.5% for this year from last year`s 6.1%. The new target for the second-largest economy was announced by Premier Li Keqiang in his work report presented to the National People`s Congress (NPC), the country`s parliament which opened its annual session in Beijing on March 5.

Oil prices soared in the morning of Asia trading hours on Monday, with international benchmark Brent crude futures hovering near $128 per barrel. The sharp rise in oil prices, which already recently spiked, came after U.S. Secretary of State Antony Blinken said Sunday Washington and its allies are considering banning Russian oil and natural gas imports.

Wall Street ended lower on Friday as the war in Ukraine overshadowed an acceleration in US jobs growth last month that pointed to strength in the economy.

The International Monetary Fund on Saturday said the War in Ukraine will have `severe impact` on global economy. "While the situation remains highly fluid and the outlook is subject to extraordinary uncertainty, the economic consequences are already very serious," the IMF said.

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