Nifty below 17,150 mark; bank shares slide for 4th day

The domestic equity barometers traded with minor losses in early afternoon trade. The Nifty traded below the 17,150 mark after hitting the day`s high of 17,224.65 in morning trade. Banking stocks extended losses for the fourth consecutive trading session.

At 12:25 IST, the barometer index, the S&P BSE Sensex, was down 130.12 points or 0.22% to 58,107.73. The Nifty 50 index lost 32.95 points or 0.19% to 17,121.35.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index fell 0.48% while the S&P BSE Small-Cap index slipped 0.77%.

The market breadth was weak. On the BSE, 1,029 shares rose and 2,314 shares fell. A total of 131 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.

Derivatives:

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, declined 1.74% to 15.9325. The Nifty 29 March 2023 futures were trading at 17,207.15, at a premium of 85.8 points as compared with the spot at 17,121.35.

The Nifty option chain for the 29 March 2023 expiry showed maximum Call OI of 34.3 lakh contracts at the 18,000 strike price. Maximum Put OI of 54.3 lakh contracts were seen at 17,000 strike price.

Buzzing Index:

The Nifty Bank index slipped 0.83% to 39,236.50. The index tumbled 5.63% in four trading sessions.

Bandhan Bank (down 5.6%), State Bank of India (down 1.7%), Federal Bank (down 1.51%), Bank of Baroda (down 1.49%), Kotak Mahindra Bank (down 1.45%) Axis Bank (down 1.23%), ICICI Bank (down 1.06%), AU Small Finance Bank (down 0.75%), Punjab National Bank (down 0.62%) and HDFC Bank (down 0.42%) declined.

Stocks in Spotlight:

Mahindra & Mahindra declined 1.18%. The company said that it has sold 2,29,80,000 equity shares, representing 6.058% of the paid-up share capital of Mahindra CIE Automotive, a listed associate of the company at a gross price of Rs. 357.39 per share. Following the sale, the shareholding of the company in MCIE has come down from 9.253% to 3.195% of its share capital.

Glenmark Pharmaceuticals rose 0.05%. The drug maker announced that it has received final approval by the United States Food & Drug Administration (USFDA) for Clindamycin Hydrochloride capsules. Clindamycin Hydrochloride capsules are used to treat bacterial infections of the lungs, skin, blood, female reproductive organs, and internal organs.

Powered by Capital Market - Live News