INDICES TRADE WITH MODEST LOSSES, IT STOCKS UNDER PRESSURE

The benchmark indices continued to trade with significant losses in mid-morning trade. The Nifty traded below the 17,100 level after hitting the day`s high of 17,224.65 in morning trade. IT stocks extended losses for the fourth consecutive trading session.

At 11:30 IST, the barometer index, the S&P BSE Sensex, was down 299.05 points or 0.51% to 57,938.80. The Nifty 50 index lost 98.40 points or 0.57% to 17,055.90.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index fell 0.66% while the S&P BSE Small-Cap index slipped 1%.

Sellers outnumbered buyers. On the BSE, 952 shares rose and 2,336 shares fell. A total of 112 shares were unchanged.

The turmoil in the US banking space with the failure of Silicon Valley Bank (SVB) and the closure of New York-based Signature Bank dampened the investors sentiment. Meanwhile, traders will keep a close eye on the U.S. consumer price index for February, due to be released later in the day.

Economy:

Retail inflation, measured by the consumer price index (CPI), eased marginally in February but remained stubbornly above the 6% mark for the second straight month. Data released on Monday revealed that retail inflation stood at 6.44% in February against 6.52% in January. It stood at 6.07% a year ago. Both food and core inflation remained sticky and elevated at over 6% last month and the price pressures were higher in rural areas than urban centres.

Meanwhile, as per the latest estimates of National Income released by National Statistical Office, Ministry of Statistics and Programme Implementation (MoSPI), real GDP is projected to grow by 9.1% in 2021-22 (1st RE) and 7% in 2022-23 (2nd AE). This was stated by the Union Minister of State for Finance, Pankaj Chaudhary in a written reply to a question in Lok Sabha. The International Monetary Fund (IMF) and the World Bank projects India to be the fastest-growing major economy in 2023.

IPO Update:

The initial public offer (IPO) of Global Surfaces received bids for 48,72,000 shares as against 77,49,000 shares on offer, according to stock exchange data at 11:21 IST on Tuesday (14 March 2023). The issue was subscribed 0.63 times.

The issue opened for bidding on Monday (13 March 2023) and it will close on Wednesday (15 March 2023). The price band of the IPO is fixed at Rs 133-140 per share. An investor can bid for a minimum of 100 equity shares and in multiples thereof.

Buzzing Index:

The Nifty IT index declined 1.64% to 28,787.20, extending losses for the fourth straight session. The index tumbled 4.61% in four trading sessions.

Coforge (down 4.21%), Persistent Systems \ (down 2.91%), Tech Mahindra \ (down 2.52%), Mphasis (down 2.43%), LTI Mindtree \ (down 2.27%), L&T Technology Services \ (down 1.94%), HCL Technologies (down 1.85%), Wipro (down 1.41%), Infosys (down 0.92%) and Tata Consultancy Services (down 0.73%) edged lower.

Stocks in Spotlight:

Varun Beverages added 0.06%. The carbonated soft drinks maker said that it has invested 9.80% of equity share capital (5.68% on fully diluted basis) of Lone Cypress Ventures, a special purpose vehicle (SPV), for a cash consideration of Rs 3.15 crore.

NMDC rose 1.83% after the company announced that Amitava Mukherjee, director (finance) has been assigned the additional charge of chairman and managing director (CMD) for a period of 3 months upto 31 May 2023. Amitava Mukherjee will continue as CMD upto 31 May 2023 or till regular incumbent joins the post, or until further orders, whichever is the earliest, said NMDC.

Sona BLW Precision Forgings jumped 6.14% after auto component maker announced that Blackstone`s 20.5% stake in the company has been acquired by long-term investors.

Global Markets:

Asian stocks tumbled on Tuesday as investors grappled with the fallout of failed banks in the U.S., including Silicon Valley Bank.

US stocks ended lower on Monday even as a plan to backstop all the depositors in failed Silicon Valley Bank, along with other extraordinary measures, failed to boost bank shares. The fallout from SVB`s collapse prompted President Joe Biden to promise stronger regulation of U.S. lenders, while reassuring depositors that their money is safe.

Traders are looking to the US consumer price index report later in the day for cues that may trigger further shifts in bets on the Fed`s next move ahead of its meeting on March 21 and 22. As per reports, a hot inflation report will raise expectations the Fed could hike rates by 50 basis points, up from the 25 points it implemented in February.

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