Sensex ends flat at 50,363 down 31 points

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After opening in the green benchmark Indian equity indices took a U-turn due to increasing risk second wave of COVID-19, rising crude prices, selling by both FIIs & DIIs. Indices closed lower for the third straight session on Tuesday. At close, the Sensex was down 31 points or at 50,363, while Nifty50 was down 19 points to end at 14,910.

Asian Paints, Dr Reddy, HCL Tech, HUL and Bharti Airtel were top gainer on the Sensex. On the downside, L&T, ICICI Bank, SBI & HDFC twins were top losers falling over 1% at the end of days trade.

Barring Nifty IT, Nifty FMCG & Nifty Auto all other sectoral indices ended in the red. Nifty Bank fell the most by over 1.07%, followed by Nifty Metal losing 0.85% while Nifty Realty was down 0.56% and Nifty Pharma fell 0.10%.

On the other hand, broader markets remained better placed. The BSE MidCap & BSE SmallCap indices gained around 0.4%.

Economy

India’s overall exports in February 2021 were $27.93 billion, as compared to $27.74 billion in February 2020, exhibiting a positive growth of 0.67%. In Rupee terms, exports were Rs 2,03,201.56 crore in February 2021, registering a positive growth of 2.46%.

Imports in February 2021 were $40.54 billion (Rs 2,94,985.04 crore), which is an increase of 6.96% in dollar terms and 8.86% in rupee terms over imports in February 2020.

The trade deficit for February 2021 was estimated at $12.62 billion as against the deficit of $10.16 billion in February 2020, which is an increase of 24.14%.

Taking merchandise and services together, the overall trade deficit for April-February 2020-21 is estimated at $7.80 billion as compared to the deficit of $75.90 billion in April-February 2019-20.

Meanwhile, the Ministry of Finance has released the final weekly instalment of Rs 4,104 crore to the States to meet the GST compensation shortfall.

Primary market

The initial public offer (IPO) of Anupam Rasayan received bids for 30.32 crore shares as against 97.01 lakh shares on offer, according to the stock exchange data at 15:20 IST on Tuesday (16 March 2021). The issue was subscribed 31.26 times. The issue opened for bidding on Friday, 12 March 2021, and it will close today, 16 March 2021. The price band for the IPO is set at Rs 553-555 per share. The offer comprises a fresh issue aggregating up to Rs 760 crore by the company. An investor can bid for a minimum of 27 equity shares and in multiples thereof.

The initial public offer (IPO) of Laxmi Organics received bids for 17.26 crore shares as against 3.25 crore shares on offer, according to the stock exchange data at 15:20 IST on Tuesday (16 March 2021). The issue was subscribed 5.3 times. The issue opened for bidding today, 15 March 2021, and it will close on Wednesday, 17 March 2021. The price band for the IPO is set at Rs 129-130 per share. An investor can bid for a minimum of 115 equity shares and in multiples thereof. The offer comprises equity shares aggregating up to Rs 600 crore, comprising a fresh issue of up to Rs 300 crore and an offer for sale of up to Rs 300 crore by the promoter Yellow Stone Trust.

The initial public offer (IPO) of Craftsman Automation received bids for 38.73 lakh shares as against 38.69 lakh shares on offer, according to the stock exchange data at 15:20 IST on Tuesday (16 March 2021). The issue was fully subscribed. The issue opened for bidding on Monday, 15 March 2021, and it will close on Wednesday, 17 March 2021. The price band for the IPO is set at Rs 1488-1490 per share. An investor can bid for a minimum of 10 equity shares and in multiples thereof. The issue comprises equity shares comprising a fresh issue of Rs 150 crore and an offer for sale of 45,21,450 equity shares by existing shareholders.

Global markets

Shares in Europe and Asia advanced on Tuesday as investors focus on the global economic recovery and the latest meeting of the U.S. Federal Reserve.

In US, the Dow and S&P 500 both hit new records on Monday as investors grew optimistic about the economic reopening from the pandemic.

As a part of the $1.9 trillion stimulus package that became law last week, the IRS started processing $1,400 direct payments for millions of Americans, which is expected to add juice to the already recovering economy.

Investors will be gearing up for the Federal Open Market Committee two-day meeting on March 16 and 17. It is reportedly expected that the U.S. central bank may revise up its GDP forecast, following a $1.9 trillion fiscal stimulus package that will send direct payments of up to $1,400 to most Americans. The Fed will also deliver its decision on interest rates.