Sensex drops 409 pts; breadth positive
Published on Mar 08, 2022 12:23
Equity indices traded near the day`s low with deep losses in early afternoon trade. IT, media and pharma stocks bucked broader selling pressure. At 12:20 IST, the barometer index, the S&P BSE Sensex, declined 409.19 points or 0.77% at 52,433.62. The Nifty 50 index lost 0.84% at 15,729.95.
The broader market bucked weak trend. The S&P BSE Mid-Cap index was down only 0.09% while the S&P BSE Small-Cap index gained 0.17%.
The market breadth was positive. On the BSE, 1,803 shares rose and 1,345 shares fell. A total of 127 shares were unchanged.
Soaring crude oil prices due to ongoing Russia-Ukraine crisis continued to spook investors. India imports majority of its crude oil requirements. A spike in crude oil prices has raised concerns over the impact on inflation, currency and input cost for companies across sectors. Higher crude oil prices could increase India`s expenditure and adversely affects the fiscal deficit.
The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, fell 1.8% to 28.8. The Nifty 24 February 2022 futures were trading at 15,750, at a premium of 3 points as compared with the spot at 15,747.
The Nifty Pharma index rose 0.63% to 12,625.80, snapping its four day losing streak. The pharmaceutical index saw bargain hunting after falling 3% in four days.
Natco Pharma (up 1.91%), Pfizer (up 1.88%), IPCA Laboratories (up 1.84%), Biocon (up 1.71%), Aurobindo Pharma (up 1.67%) and Cipla (up 1.62%) were top gainers in pharmaceutical space.
Stocks in Spotlight:
Alembic Pharmaceuticals rose 0.26%. The drug company on Tuesday informed that company`s joint venture, Aleor Dermaceuticals has received final approval from US Food and Drug Administration (USFDA) for nystatin and triamcinolone acetonide ointment. Nystatin and triamcinolone Acetonide Ointment is indicated for the treatment of cutaneous candidiasis.
Ramkrishna Forgings rose 3.03% to Rs 806.35 after the company said it entered business association from USA axle manufacturer for light vehicle segment. A leading Axle manufacturer in the USA has encouraged Ramkrishna Forgings for an estimated business of Rs 70 crore over a 5-year period. The products will be used in the rear axle applications.
Spandana Sphoorty Financial was down 1.42%. The NBFC said a meeting of the management committee of the board of directors is scheduled to be held on Thursday, 10 March 2022 to consider fund raising plans. The funds would be raised via the issue of non-convertible debentures (NCDs) on a private placement basis.
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.
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