Sensex tanks 800 points: Key factors behind the market fall

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The benchmark indices further extended losses and hit fresh intraday low in mid-morning trade. The Nifty was trading below the 14,800 mark. Rising treasury yields, weak global cues, the possibility of another lockdown in Maharashtra and soaring fuel prices weighed on the investors’ sentiment. Barring the Nifty Metal index, all the sectoral indices on the NSE were negative.

The barometer index, the S&P BSE Sensex, traded 804 points, or 1.58% down at 50,085. The Nifty 50 index lost 208 points or 1.39% to 14,773.

In the broader market, the S&P BSE Mid-Cap index shed 0.92% while the S&P BSE Small-Cap index fell 0.63%.

The market breadth was negative. On the BSE, 1,037 shares rose and 1,796 shares fell. A total of 159 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 118.75 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,174.98 crore in the Indian equity market on 19 February, provisional data showed.

Covid-19 Update:

Amid a spurt in Covid-19 cases, Maharashtra chief minister Uddhav Thackeray on Sunday held a televised conference to address the Covid-19 situation in the state. If the (COVID-19) situation deteriorates, then we have to impose lockdown. Those who want lockdown can roam around without mask while those who don’t want it must wear mask and follow all the rules, he said.

Total COVID-19 confirmed cases worldwide stood at 11,13,43,040 with 24,65,882 deaths. India reported 1,50,055 active cases of COVID-19 infection and 1,56,385 deaths while 1,06,67,741 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Meanwhile, a total of over one crore 11 lakh people have been administered Covid-19 vaccines in the country so far. Union Health Ministry said that 31 thousand 681 people have been inoculated with Covid-19 doses in the last 24 hours. The country’s COVID-19 recovery rate reached 97.22% with a total recovery of more than nine thousand patients in the last 24 hours.

Buzzing Index:

The Nifty PSU Bank index fell 1.27%, extending losses for the second day. The index has declined nearly 6% in two sessions while the benchmark Nifty 50 index corrected by 1.6% during the same period.

CBI (down 9.95%), Indian Overseas Bank (down 7.67%), Bank of Maharashtra (down 7.49%), Jammu and Kashmir Bank (down 3.97%), UCO Bank (down 3.13%), Indian Bank (down 2.25%), Bank of India (down 1.6%), Union Bank of India (down 1.48%), SBI (down 1.43%), Canara Bank (down 0.56%) and Punjab National Bank (down 0.48%) edged lower while Bank Of Baroda added 0.88%.

The Nifty PSU Bank index rallied 16.57% in five consecutive sessions till 18 February 2021, from its close of 2,220.25 on 11 February 2021.

Stocks in Spotlight:

Karnataka Bank fell 3.03% to Rs 67.30. The bank reported to Reserve Bank of India (RBI) a fraud in the credit facilities extended earlier to IL&FS Transportation Networks with an outstanding balance of Rs 34.16 crore. IL&FS Transportation Networks availed credit facilities from Karnataka Bank during 2016 under multiple banking arrangement wherein, Karnataka Bank was one of the member banks and during 2018, the borrowing account was classified as Non-Performing Asset (NPA) and has been fully provided for.

NTPC lost 1.68% to Rs 102.55. The state-run power major informed that 5 megawatts (MW) last part capacity for 20 MW Auraiya Solar PV project at Auraiya, UP, has been declared on commercial operation from 20 February 2021. With this, the total installed capacity of NTPC and NTPC Group has become 52,115 mega-watt (MW) and 64,880 mega-watt (MW), respectively.

Torrent Power jumped 5.08% to Rs 383.35 after the company emerged as the highest bidder for acquisition of 51% stake in the power distribution company in the Union Territory of Dadra & Nagar Haveli and Daman & Diu.

The bidding for the distribution business of the Union Territory has been undertaken as part of the Government of India’s initiative to privatize distribution utilities of Union Territories to usher in efficiency, which will provide a model for emulation by other utilities across the country.

Global Markets:

Asian stocks are trading mixed on Monday as China left its benchmark lending rate unchanged over the weekend.

China kept the one-year loan prime rate (LPR) unchanged at 3.85%, largely in line with expectations. The five-year LPR was also kept steady at 4.65%. The LPR is a lending reference rate set monthly by 18 banks.

Stocks on Wall Street closed near break-even on Friday as investors sold technology shares that have rallied through the pandemic and rotated into cyclical stocks set to benefit from pent-up demand once the coronavirus pandemic is subdued.

The House of Representatives will try to pass a $1.9 trillion coronavirus relief plan before the end of February, Speaker Nancy Pelosi said Thursday. Democratic Congressional leaders may try to pass a package without votes from Republicans.

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