Shares drop in early trade; weak market breath

The key equity indices tumbled in early trade amid across the board selling in index pivotals. All the sectoral indices on the NSE were currently in the red. Financials, banks, autos and realty shares declined the most.

At 09:25 IST, the barometer index, the S&P BSE Sensex, was down 852.94 points or 1.53% to 55,005.58. The Nifty 50 index lost 246.30 points or 1.48% to 16,412.10.

In the broader market, the S&P BSE Mid-Cap index declined 1.39% while the S&P BSE Small-Cap index fell 1.65%.

The market breadth was weak. On the BSE, 653 shares rose and 2061 shares fell. A total of 140 shares were unchanged.

Stocks in Spotlight:

Bharti Airtel fell 2.39% to Rs 672. The telecom major on Friday said it has entered into an agreement with Vodafone Group Plc. to buy 4.7% equity in Indus Towers. The financial details of the deal have not been disclosed.

Hindalco Industries added 0.68% to Rs 537.45. The company has entered into a Share Purchase Agreement (`SPA`) with Terrabel Empreedimentos Ltda , a Brazilian firm to divest entire equity shareholding in Hindalco Do Brazil Industria Comercia de Alumina LTDA (HDB) - Wholly owned step down subsidiary of Hindalco Industries.

IRCON International rose 0.25% to Rs 40.20. The company has been appointed as a `project implementation agency` for a road project in Myanmar by the Ministry of External Affairs (MEA), Government of India.

Meanwhile, Government has permitted up to 20% Foreign Direct Investment (FDI) under automatic route in Life Insurance Corporation of India (LIC) with an aim to facilitate disinvestment of the country`s largest insurer.

Department for Promotion of Industry and Internal Trade (DPIIT) had mooted the proposal to allow FDI in LIC, after taking views from the Ministry of Finance. The much-awaited initial public offering, IPO of LIC is expected to hit the market in March and LIC`s employees and policyholders would get a discount over the floor price.

Global Markets:

Asian stocks are trading mixed on Monday as investors monitor the Russia-Ukraine crisis and related sanctions. Taiwan markets are closed for a holiday on Monday.

Russia continued its advance into Ukraine over the weekend, with reports of fighting on the streets and forces encircling Kyiv. President Vladimir Putin on Sunday put his country`s deterrence forces, which reportedly include nuclear capabilities, on high alert in response to international backlash to Russia`s invasion.

The U.S. and its allies announced new sanctions and measures to hit Russia, such as removing selected Russian banks from the interbank messaging system, SWIFT. Many countries have also said they will close their airspace to Russian aircraft.

On the diplomatic front, representatives from the Ukraine and Russian governments have agreed to meet at the Ukraine-Belarus border with no preconditions, as per reports. Belarus, which shares a border with both Ukraine and Russia, has close ties with Moscow.

US stocks climbed Friday as investors continued to assess the financial risks stemming from Russia`s invasion of Ukraine.

On the data front, the Commerce Department said on Friday consumer spending, which accounts for more than two-thirds of U.S. economic activity, surged 2.1% last month after falling 0.8% in December.

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