Sensex drops 454 pts, Nifty ends below 22,050

Domestic stocks fell on Friday, tracking losses in other Asian stock markets. The Nifty 50 index ended below 22,050. Disappointing economic data from the US lowered expectations of a Federal Reserve rate cut, dampening investor sentiment. Oil & gas, auto, and pharma stocks led the decline, while metals and FMCG sectors found some buying interest.

In the barometer index, the S&P BSE Sensex slipped 453.85 points or 0.62% to 72,643.43. The Nifty 50 index lost 123.30 points or 0.56% to 22,023.35.

Mahindra & Mahindra (down 4.75%), Larsen & Toubro (down 1.97%) and Reliance Industries (down 0.98%) were major drags.

In the broader market, the S&P BSE Mid-Cap index fell 0.51% and the S&P BSE Small-Cap rose 0.25%.

The market breadth was negative. On the BSE, 1,725 shares rose and 2,106 shares fell. A total of 105 shares were unchanged.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, rose 0.49% to 13.69.

Finance Minister Speaks on Stock Market and Crypto:

At an event today, Finance Minister Nirmala Sitharaman expressed confidence in the stability of the Indian stock market amid global fluctuations, emphasizing the importance of allowing the market to operate independently based on its wisdom. She acknowledged the existence of potential bubbles in the small and midcap segments, raising concerns about their impact on investors. Sitharaman pointed to the growing participation of citizens in the stock market, evidenced by the rise in demat accounts and mutual fund investments. Additionally, Sitharaman reiterated the government of India`s position that crypto assets cannot be considered currencies.

India`s Exports Rise:

India`s exports rose 11.9% to $41.4 billion in February, the highest in the current fiscal, while the trade deficit stood at $18.7 billion, according to the data released by the commerce ministry. The exports in February 2023 were $37.01 billion. Imports were valued at $60.1 billion, up 12.16% compared to $53.58 billion in February 2023.

India`s merchandise trade deficit expanded to $18.71 billion in February, compared to $17.49 billion in January. The trade deficit stood at $16.57 billion in February 2023. The merchandise trade deficit during April-February 2023-24 is $225.20 Billion compared to $245.94 Billion during April-February 2022-23, registering a decline of (-) 8.43%.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose 0.27% to 7.060 as compared with the previous close of 7.041.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.8875, compared with its close of 82.8400 during the previous trading session.

MCX Gold futures for 5 April 2024 settlement was up 0.34% to Rs 65,817.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies was down 0.05% to 103.31.

The United States 10-year bond yield shed 0.35% to 4.283.

In the commodities market, Brent crude for April 2024 settlement lost 49 cents or 57% to $84.93 a barrel.

Global Markets:

Upward pressure on US inflation was evident as the producer price index rose 0.6% in February, exceeding expectations. This follows a revision to January retail sales data, showing a steeper decline than previously reported.

Financial markets reacted negatively. US stocks fell on Thursday, and the stronger-than-anticipated inflation data led to speculation that the Federal Reserve might reduce the number of expected rate cuts this year.

European stocks, on the other hand, managed to gain on Friday, while Asian stocks closed lower, mirroring the overall uncertainty in the global market.

Separately, China`s central bank opted to maintain its key lending rate for the seventh consecutive month.

Stocks in Spotlight:

Wipro shed 0.15%. The company announced that it has been selected by Desjardins to transform their credit solutions for members and clients. This transformation program will provide Desjardins members and clients with a convenient digital lending experience that is accessible anytime, anywhere, and on any device.

One97 Communications (OCL) hit an upper circuit of 5% after the National Payments Corporation of India (NPCI) has granted approval to the company to participate in UPI as a Third-Party Application Provider (TPAP) under multi-bank model.

RailTel Corporation of India advanced 3.39% after the company has received the work order from Odisha Computer Application Centre (OCAC) amounting to Rs. 113.46 crore.

Crompton Greaves Consumer Electricals declined 1.54%. The company has bagged order(s)/ Letter of Empanelment from Government of Maharashtra, Haryana and Rajasthan for supply, installation, testing and commissioning of Solar Photovoltaic Water Pumping System (SWPS) with PV Modules under the esteemed PM-KUSUM Scheme at various location across the respective states.

JSW Energy rallied 2.42% after JSW Neo Energy, a wholly owned subsidiary of JSW Energy received a letter of intent (LoI) for grid connected solar capacity of 300 MW from Gujarat Urja Vikas Nigam (GUVNL).

NHPC slipped 2.42%. The company said that it has received letter of intent by Gujarat Urja Vikas Nigam (GUVNL) for a 200 megawatt (MW) solar power project at the 1125 MW Gujarat State Electricity Corporation (GSECL�s) renewable energy (RE) Park in Khavda, Gujarat.

Shakti Pumps (India) hit an upper limit of 5% at after the company announced that it has received Letter of Award from Maharashtra Energy Department Agency (MEDA) for a project worth Rs 93 crore.

KPI Green Energy fell 2.27%. The power generation company announced that it has emerged as the successful winner in the Gujarat Urja Vikas Nigam (GUVNL) tender for development of 50 MW wind-solar hybrid power project.

Biocon dropped 5.73% after the company said that its chief financial officer (CFO), Indranil Sen has resigned with effect from 15 March 2024.

CFF Fluid Control surged 3.72% after the company informed that it has received the biennial rate contract from Mazagon Dock Shipbuilders (+1.46%) worth approximately Rs 46.46 crore.

IPO Update:

The initial public offer (IPO) of Krystal Integrated Services received 21,00,940 bids for shares as against 29,99,448 shares on offer. The issue was subscribed 70%.

The issue opened for bidding on Thursday (14 March 2024) and it will close on Monday (18 March 2024). The price band of the IPO is fixed at Rs 680 to 715 per share. An investor can bid for a minimum of 20 equity shares and in multiples thereof.

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