Shares remain volatile; private bank stocks edge lower

The key equity indices continued to trade in a volatile manner in mid-afternoon trade. The Nifty traded below the 17,200 mark. Private banks witnessed across the board selling.

At 14:21 IST, the barometer index, the S&P BSE Sensex was down 187.06 points or 0.32% to 57,497.76. The Nifty 50 index lost 49.90 points or 0.29% to 17,195.75.

In the broader market, the S&P BSE Mid-Cap index rose 0.28% while the S&P BSE Small-Cap index gained 0.10%.

The market breadth, indicating the overall health of the market, was negative. On the BSE, shares 1,434 rose and 1,904 shares fell. A total of 120 shares were unchanged.

Buzzing Index:

The Nifty Private Bank index fell 1.71% to 17,977.50. The index has lost 2.17% in two sessions.

Bandhan Bank (down 2.66%), HDFC Bank (down 2.56%), ICICI Bank (down 1.95%), IDFC First Bank (down 1.60%) and Axis Bank (down 0.54%) declined.

Kotak Mahindra Bank fell 2.67% to Rs 1720.70 after a large block deal took place in the initial deals on the BSE today. The media reported that Canada Pension Plan Investment Board is expected to sell stake via a bulk deal on 24 March 2022 to make a partial exit from Kotak Mahindra Bank. The Canadian pension fund will offload a 1.41% to 2.02% stake in the private lender at Rs 1,681.26-Rs 1,769.75 per share through the bulk deal, media reports said.

As on 31 December 2021, Canada Pension Plan Investment Board held 6.37% stake in Kotak Mahindra Bank.

Numbers to Track:

The yield on 10-year benchmark federal paper fell to 6.829% compared with 6.831% at close in the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 76.3350, compared with its close of 76.3900 during the previous trading session.

MCX Gold futures for 5 April 2022 settlement added 0.13% to Rs 51,833.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.12% to 98.74.

In the commodities market, Brent crude for May 2022 settlement shed 48 cents or 0.39% $122.08 a barrel.

Global Markets:

European stocks were slightly higher on Thursday with regional investors keeping a close eye on developments in Ukraine, and key meetings of NATO, EU and G-7 leaders in Brussels.

The war in Ukraine is top of the agenda as Russia`s invasion continues. U.S. President Joe Biden is attending the meetings and Ukrainian President Volodymyr Zelenskyy is expected to join the NATO summit via videolink.

NATO`s Secretary General Jens Stoltenberg said Wednesday that the Western military alliance`s leaders are expected to commit �major increases� in troops along its eastern flank when they meet to discuss Russia`s war on Ukraine. More sanctions on Russia could also be announced, President Biden has indicated.

Meanwhile, Asian stocks are trading lower on Thursday, as the recent global equities rally eased. Volatile commodity prices added concerns to a market already dealing with record inflation and the impact of an ongoing war in Ukraine.

Activity in the services sector, which has been battered by the pandemic, contracted for the third straight month, but the pace of decline slowed. The au Jibun Bank Flash Japan Manufacturing Purchasing Managers` Index (PMI) rose to a seasonally adjusted 53.2 in March from a final 52.7 in the previous month.

US stocks eased Wednesday as oil prices rose, renewing inflation fears. Traders digested the latest news on the Ukraine-Russia war. Ukrainian President Volodymyr Zelenskyy called for more pressure on Russia from other countries as the conflict appears to be entering a stalemate.

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