Sensex tumbles 740 points; Nifty nears 14,300

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Benchmark Indian equity indices ended near the day’s low on Thursday amid across the board selling pressure as rising domestic coronavirus cases dented investors sentiment. Global cues were subdued as COVID-induced lockdowns in Europe and potential U.S. tax hikes hit investors’ risk appetite. Trading was volatile as the March 2021 F&O contracts expired today, 25 March 2021.

At close, the Sensex was down 740 points or 1.51% at 48,440, and the Nifty was down 224 points or 1.54% at 14,324.

IOC, Maruti Suzuki, HUL, Bharti Airtel and Coal India were among the major losers on Nifty, while gainers were Tata Steel, Dr Reddy’s Laboratories, ICICI Bank, HDFC and JSW Steel.

Sellers outnumbered buyers. On the BSE, 760 shares rose and 2185 shares fell. A total of 176 shares were unchanged.

Commenting on the selloff Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers said “Indian markets opened weak following selloff in global markets and weaker Asian markets trade. During the afternoon session, selling pressure continued to take a toll on markets and it traded at day lows amid monthly expiry. However, in the late afternoon session markets trimmed their losses but continued to trade below the neutral lines.”

In the broader market, the BSE MidCap index declined 2.22% while the BSE SmallCap index lost 1.85%.

Sectorally, the Nifty Nifty Auto index fell 2.76%. The index has lost 5.37% in two sessions. Meanwhile, the Nifty Realty, Nifty IT and Nifty FMCG dropped over 2% each. Nifty Bank was down 0.86 whereas the Nifty Metal index ended with marginal gains of 0.02%.

Sentiments remained down-beat even after the central bank chief has said that India’s revival of economic activity is expected to be ‘unabated’, despite a rise in coronavirus infections in many areas and 2022 growth projections might not need to be cut, added Solanki

Economy:

Fitch has revised India’s GDP growth estimate to 12.8% for next fiscal from the previous 11% on the back of a stronger carryover effect, a looser fiscal stance, and better virus containment.

The ratings agency, in its latest Global Economic Outlook GEO, anticipates the level of the country’s GDP to remain well below its pre-pandemic forecast trajectory. Fitch also expects GDP growth to ease to 5.8% in Fiscal Year 2023.

In a report it said, India’s recovery from the depths of the lockdown-induced recession in the second quarter of 2020 has been swifter than expected. GDP surpassed its pre-pandemic level in the fourth quarter of current fiscal.

It also added that High-frequency indicators point to a strong start to 2021. The manufacturing Purchasing Managers’ Index PMI remained elevated in February, while the pickup in mobility and a rise in the services PMI point to further gains in the services sector.

The ratings agency notes that it no longer expects the Reserve Bank of India (RBI) to cut its policy rate, owing to a brighter short-term growth outlook and a more limited decline in inflation than it had forecast.

Primary market:

The initial public offer (IPO) of Barbeque Nation Hospitality received bids for 91.29 lakh shares as against 49.99 lakh shares on offer, according to the stock exchange data at 15:20 IST on Thursday (25 March 2021). The issue was subscribed 1.83 times.

The issue opened for bidding on Wednesday, 24 March 2021, and it will close on Friday, 26 March 2021. The price band for the IPO was set at Rs 498-500 per share.

New listing:

Shares of Laxmi Organic Industries were trading at Rs 165.30 at 15:14 IST on the BSE, a premium of 27.15% over the initial public offer (IPO) price of Rs 130.

The stock was listed at Rs 156.20, a premium of 20.15% to the IPO price. The stock hit a high of Rs 174.50 and low of Rs 143. On the BSE, 50.70 lakh shares were traded on the counter.

Shares of Craftsman Automation were trading at Rs 1449 at 15:16 IST on the BSE, a discount of 2.75% over the initial public offer (IPO) price of Rs 1490.

The stock was listed at Rs 1350, a discount of 9.4% to IPO price. The stock hit a high of Rs 1489 and low of Rs 1,349.20. On the BSE, 1.65 lakh shares were traded on the counter.

Global markets:

European shares declined while most Asian stocks advanced on Thursday, following a subdued session overnight on Wall Street yesterday.

Investors are on edge as many regions of the world are seeing rising COVID-19 cases as highly contagious variants continue to spread. Germany and France are extending or enforcing new lockdown measures.

US stocks gave up earlier gains and closed in the red Wednesday as tech stocks sold off, continuing a market rotation out of high-flying growth names.

On Wednesday, Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen appeared for a second day for virtual Capitol Hill testimony. Talking with members of the Senate Banking Committee, Powell said he expects the economy to experience superior growth in 2021 amid a recovery from the pandemic.

With inputs from Capital Market – Live News