Sensex, Nifty snap 5-day winning streak

Equity indices settled with steep losses on Tuesday, ending their five-day winning streak. Sentiment was negative amid anticipation of the first U.S. interest rate hike in three years, which could come this week. The Nifty closed below the 16,650 level after hitting a day`s high of 16,927.75 in morning trade. Barring auto and FMCG stocks, all sectoral indices on the NSE ended in the red.

The barometer index, the S&P BSE Sensex, fell 709.17 points or 1.26% at 55,776.31. The Nifty 50 index lost 208.3 points or 1.23% at 16,663.30.

Indices witnessed profit booking after rising for five straight sessions. The barometer, BSE Sensex added 6.89% in five days while the Nifty rose 6.36% in the same period.

Broader markets suffered losses as well. The S&P BSE Mid-Cap index declined 0.68% while the S&P BSE Small-Cap index slipped 0.88%.

Sellers outnumbered the buyers. On the BSE, 1,342 shares rose and 2,045 shares fell. A total of 101 shares were unchanged.

Economy:

India`s consumer price index based inflation rose slightly to 6.07% in February 2022 from 6.01%in the previous month, data released by the Ministry of Statistics and Programme Implementation showed yesterday. The consumer food price index also edged up to 5.85% in February 2022 compared to 5.43% in previous month.

Stocks in Spotlight:

Reliance Industries (RIL) fell 2.28%. Reliance New Energy Limited (Reliance), a wholly owned subsidiary of Reliance Industries (RIL), signed definitive agreements to acquire substantially all of the assets of Lithium Werks BV (Lithium Werks) for a total transaction value of $61 million including funding for future growth.

Larsen & Toubro fell 0.22%. The Power Transmission & Distribution business of Larsen & Toubro (L&T) bagged significant orders in India and abroad. As per L&T`s classification, the value of the significant project is Rs 1,000 crore to Rs 2,500 crore.

Godrej Properties fell 1.04%. The Mumbai-based developer said that it has acquired approximately 50 acres of land in Sonipat, Haryana, which will offer approx. 1 million sq. ft. of plotted residential development, plot sizes and lifestyle amenities. The site has good connectivity to the Delhi border and national highways. In addition, the site is in close proximity to the upcoming educational and industrial hub of Sonipat and offers a well-developed social infrastructure.

Manappuram Finance fell 0.78%. The NBFC said that the board is scheduled to meet on Thursday, 17 March 2022, to consider and approve borrowing program including issuance of redeemable non-convertible debentures, notes, bonds (Debt Securities) in onshore/offshore market by way of private placement and/or public issue for FY 2022-23. The board will also discuss business plan for FY 2022-23.

Anupam Rasayan India rallied 5.63% after the company announced the appointment of Amit Khurana as its Chief Financial Officer (CFO) effective from 14 March 2022. Amit Khurana will take over his new role from the incumbent CFO, Afzal Malkani, who has been appointed as the non-executive director on Tanfac`s board as nominee of Anupam Rasayan.

Wipro fell 1.72%. The IT company announced that Speira, a leading global aluminium rolling and recycling company, has chosen the company as its technology partner. As per the press release, Wipro, over the next five years, will work to strengthen the technology infrastructure and cybersecurity requirements of Speira.

Ramkrishna Forgings jumped 4.27% after the company bagged an order worth Rs 75 crore per annum from India`s largest OEM in the MHCV segments.

Avantel was locked in an upper circuit of 20% at Rs 892.40 after the company received the supply order for supply of Loco devices for implementation of RTIS phase - 2 (Real Time Train Information system) for an amount of Rs 125.68 crore.

Numbers to Track:

The yield on 10-year benchmark federal paper fell to 6.821% as compared with 6.854% at close in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 76.6200, compared with its close of 76.5400 during the previous trading session.

MCX Gold futures for 5 April 2022 settlement fell 0.95% to Rs 51,805.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, fell 0.27% to 98.757.

In the commodities market, Brent crude for May 2022 settlement fell $6.23 at $100.67 a barrel.

Global Markets:

European stock markets traded lower on Tuesday as a fresh round of EU sanctions and a rebound in Covid-19 cases weighed on sentiment. Asian markets closed on a weak note on Tuesday as surging COVID-19 cases in China hit the confidence of investors who are already worried about the Ukraine war.

Major US stock indexes closed mostly lower on Monday as investors sold tech and big growth names ahead of this week`s Federal Reserve meeting and an expected hike in interest rates.

Wall Street kept an eye on the conflict between Russia and Ukraine, as the two countries resumed talks on Monday. A Ukrainian official reportedly said the country`s objectives were to secure a ceasefire and an immediate withdrawal of Russian troops, along with other security guarantees. Hopes that talks between Russia and Ukraine due to resume on Tuesday could provide a resolution to the conflict prompted a sharp fall in global oil prices.

Fighting has intensified around Ukraine`s capital, Kyiv, while Russian forces bombard cities across the country, killing civilians who are unable to escape.

Investors were also focused on the Fed, which is expected to raise its target fed funds rate by a quarter-percentage point from zero at the end of its two-day meeting Wednesday.

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