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Market drifts higher in early trade, breadth negative

Published on Mar 13, 2023 09:37

The domestic equity barometers were trading with modest gains in early trade on buying demand in index pivotals. The Nifty traded above the 17,500 level. Metal, IT and PSU bank stocks advanced while media, consumer durables and auto stocks edged lower.

At 09:30 IST, the barometer index, the S&P BSE Sensex, was up 349.83 points or 0.59% to 59,484.96. The Nifty 50 index advanced 104.15 points or 0.60% to 17,517.05.

In the broader market, the S&P BSE Mid-Cap index added 0.01% while the S&P BSE Small-Cap index fell 0.29%.

The market breadth was negative. On the BSE, 1,303 shares rose and 1,488 shares fell. A total of 144 shares were unchanged.

U.S. regulators announced plans to backstop both depositors and financial institutions associated with Silicon Valley Bank (SVB). The US regulators on Sunday (12 March) night cleared a plan for the Silicon Valley Bank to protect depositors and assured that no losses would be borne by the taxpayers.

After SVB`s downfall, New York-based Signature Bank was closed by New York state financial regulators on Sunday. Signature had been a popular funding source for cryptocurrency companies.

Depositors at both failed SVB and Signature Bank in New York, which was shuttered Sunday over similar systemic contagion fears, will have full access to their deposits as part of multiple moves that officials approved over the weekend. Depositors at the bank will have access to their money from Monday.

Back home, consumer inflation data for February will be unveiled today, 13 March 2023. The annual consumer price inflation in India accelerated to 6.52% in January of 2023, the highest in three months, compared to 5.72% in December.

Stocks in Spotlight:

Nazara Technologies slipped 3.08%. Two of Nazara Technologies (Nazara) step down subsidiaries Kiddopia Inc and Mediawrkz Inc hold cash balances at Silicon Valley Bank (SVB), which is currently under the receivership of the Federal Deposit Insurance Corporation (FDIC). The balances held at SVB by Kiddopia Inc. and Mediawrkz Inc cumulatively account for $7.75 million (about Rs 64 crore).

Mahindra & Mahindra (M&M) rose 0.24%. M&M on Friday announced that the company`s total production of automobiles advanced 14.04% to 56,997 units in February 2023 as compared with 49,979 units sold in February 2022. The auto major`s total sales rose 9.51% to 56,551 units in February 2023 as against 51,641 units sold in the same period a year ago.

IndusInd Bank tumbled 4.79%. The private lender said that the Reserve bank of India (RBI) has approved the re-appointment of Sumant Kathpalia as managing director and chief executive officer (MD & CEO) of the bank for two years effective from 24 March 2023.

Godrej Industries added 0.38%. The management committee of the company`s board on Friday, 10 March 2023, approved raising upto Rs 1,000 crore by issuing non-convertible debentures (NCDs) on private placement basis.

Numbers to Watch:

The yield on India`s 10-year benchmark federal paper declined to 7.371 from 7.429 previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 81.8150, compared with its close of 82.0650 during the previous trading session

MCX Gold futures for 5 April 2023 settlement advanced 0.85% to Rs 56,625.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.81% to 103.78.

The United States 10-year bond yield rose 0.15% to 3.701.

In the commodities market, Brent crude for May 2023 settlement added 25 cents or 0.30% to $83.03 a barrel.

Global Markets:

Asian stocks were trading mixed on Monday as U.S. regulators announced plans to backstop both depositors and financial institutions associated with Silicon Valley Bank (SVB). SVB last week was shuttered by regulators, after customers withdrew a staggering $42 billion of deposits by the end of Thursday.

US stocks closed sharply lower on Friday over fears of contagion in the financial sector and strong February employment data showing that the economy added more jobs than expected.

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