Indices turn volatile; banks stocks decline
Published on Mar 08, 2022 11:33
The benchmark indices slipped into the negative terrain in mid-morning trade. The Nifty hovered below 15,800 level. Metal, auto and bank scrips were under pressure. Soaring crude oil prices amid ongoing Russia-Ukraine crisis continued to spook investors.
At 11:30 IST, the barometer index, the S&P BSE Sensex, tumbled 192.13 points or 0.36% at 52,650.62. The Nifty 50 index lost 77.35 points or 0.49% at 15,785.80.
In the broader market, the S&P BSE Mid-Cap index rose 0.45% while the S&P BSE Small-Cap index gained 0.66%.
The market breadth was strong. On the BSE, 2,049 shares rose and 1,035 shares fell. A total of 132 shares were unchanged.
Foreign portfolio investors (FPIs) sold shares worth Rs 7,482.08 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 5,331.03 crore in the Indian equity market on 7 March 2022, provisional data showed.
As per exit polls conducted by the media, the Bharatiya Janata Party (BJP) is expected to sweep with a majority in Uttar Pradesh and Manipur, while the Aam Aadmi Party (AAP) will unseat the Congress in Punjab, as per the polls for the just-finished five assembly elections released on 7 March 2022. In Uttarakhand, the ruling BJP may emerge as the first party to retain power in the hill-state. The BJP is likely to retain power in Manipur. Goa is likely to witness a fractured mandate in the recently contested assembly elections.
The elections to the five states - Uttar Pradesh, Punjab, Uttarakhand, Goa and Manipur - were held in seven phases between 10 February 2022 and 7 March 2022. The results will be announced on 10 March 2022.
The Nifty Bank index fell 1.34% to 32,429.35. The index slumped 10.98% in six trading sessions.
Axis Bank (down 3.16%), State Bank of India (SBI) (down 1.99%), HDFC Bank (down 1.77%), Kotak Mahindra Bank (down 1.38%) and IndusInd Bank (down 1.01%) were the top losers in the Bank segment.
Stocks in Spotlight:
JSW Steel declined 2.14%. The steel maker`s standalone crude steel production for the month of February 2022 grew 21% year on year to 15.80 lakh tonnes as against 13.06 lakh tonnes in February 2021. While the production of flat rolled products increased by 25% to 11.54 lakh tonnes, production of long rolled products rose 8% to 3.67 lakh tonnes in February 2022 over February 2021. JSW Steel said the average capacity utilisation on expanded capacity was 88% while the utilisation was at 98% excluding Dolvi expansion project.
Metro Brands lost 0.02%. The company said that Sohel Kamdar, chief operating officer (COO) & key managerial personnel of the company, has resigned citing personal reasons. The company has accepted the resignation and shall relieve him from his responsibilities w.e.f. 15 March 2022. Further, the company informed that Tarannum Bhanpurwala, company secretary & compliance officer of the company, had resigned citing personal reasons. She will continue with the company as deputy company secretary. The board has accepted her resignation and has relieved her from the responsibilities w.e.f. 7 March 2022. The board of Metro Brands has approved the appointment of Deepa Sood as the company secretary and the compliance office of the company w.e.f. 7 March 2022.
Overseas, Asian stocks declined on Tuesday, following heavy losses for the major indexes overnight stateside as the Russia-Ukraine war continues to keep investors on edge.
Wall Street`s main indices fell sharply on Monday as the prospect of a ban on oil imports from Russia sent crude prices soaring and fueled concerns about rising inflation.
A Western ban on Russian oil imports may more than double the price to $300 a barrel and prompt the closure of the main gas pipeline to Germany, Moscow reportedly warned on Monday, as talks on Ukraine hardly advanced amid efforts to agree on civilian safe passage. Brent, the international benchmark, briefly hit more than $139 a barrel, its highest level since 2008. A rejection of Russian oil would lead to catastrophic consequences for the global market, said Russian Deputy Prime Minister Alexander Novak.
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