Bloody Monday: Sensex crashes 1,317 points in early trade; Nifty slips below 14,250

Indian benchmark equity indices slipped deep into the red on Monday, led by a heavy selloff in banks and financial stocks. Rising COVID-19 infections, shortage of oxygen and vaccines dented the investor sentiment. In opening session, Sensex plunged 1,317 points or 2.70% to 47,940; whereas the broader market index Nifty 50 tumbled 369 points or 2.53% to 14,248.

All 30 shares on Sensex traded in the red. IndusInd Bank plunged over 5%, followed by Bajaj Auto sank 4.57%, Axis Bank lost over 4.4% while ICICI Bank & SBI slipped over 4%.

All the sectoral indices traded with losses. Nifty Bank traded with losses of around 4%, followed by Nifty Auto tanked 3.43%, Nifty Realty plunged 3.27%, Nifty Metal tanked over 2.25%, Nifty FMCG lost 1.37% and Nifty IT & Nifty Pharma were down around 0.46% and 0.18% respectively.

The broader market mirrored the losses of benchmark indices. BSE MidCap index slumped over 2.5% and BSE SmallCap index fell 2.63%. Market breadth was also negative as 1,566 shares declined compared to 212 stocks advanced and 496 scrips remained unchanged.

Earnings today:
ACC, ICICI Prudential Life Insurance Company, Bajaj Consumer Care, CRISIL, Agio Paper & Industries, Pratik Panels, Response Informatics, and Sri Chakra Cement will release their earnings number for the quarter and financial year March, 2021 on Monday.

New listing:
Shares of Macrotech Developers (earlier known as Lodha Developers) will debut on the bourses today, 19 April 2021. The issue price has been fixed at Rs 486 per share and the company raised Rs 2,500 crore through its public issue.

Stocks in spotlight:
HDFC Bank reported 18.2% rise in net profit to Rs 8186.50 crore on 16.4% increase in net revenues to Rs 24714.10 crore in Q4 March 2021 over Q4 March 2020.

HDFC Bank said that the board of directors of the bank, has granted an enabling approval to the bank for issuance of Perpetual Debt Instruments (part of Additional Tier I capital), Tier II Capital Bonds and Long Term Bonds (financing of infrastructure and affordable housing) up to a total amount of Rs 50,000 crores in the period of next twelve months through private placement mode.

Shares of Bharti Airtel will be watched. The Government of Ghana, Bharti Airtel (Airtel) and Millicom International Cellular S.A. (Millicom) (through their respective subsidiaries), on Friday announced that they have executed the definitive agreement for the transfer of ‘AirtelTigo’ (Airtel Ghana Limited and Millicom Ghana Limited) to the Government of Ghana on a going concern basis.

In the proposed agreement, the Government of Ghana will acquire 100% shares of AirtelTigo along with all customers, assets and liabilities. Basis the agreement, the transaction will entail a seamless takeover by the Government of Ghana post which AirtelTigo would become and operate as a State entity.

Mindtree reported a 2.8% decline in consolidated net profit to Rs 317.30 crore on 4.2% increase in revenues to Rs 2,109.30 crore in Q4 March 2021 over Q3 December 2020.

In dollar terms, the company posted a decline of 1.9% in consolidated net profit to $43.3 million on a 5.2% increase in revenues to $288.2 million in Q4 FY21 over Q3 FY21.

Kolte-Patil Developers announced sales volume of 0.85 million square feet (msf) in Q4FY21 against 0.67 msf in Q4FY20. Realisation per square feet increased to Rs 5,988 from Rs 5,333 in same period.

KEC International has signed project/ novation agreements with Warora-Kurnool Transmission Limited (WKTL), a subsidiary of Adani Transmission Limited (ATL) for Rs. 477 crores to complete the balance work of the Transmission lines in the states of Andhra Pradesh, Maharashtra and Telangana and release of the earlier dues of this project.

Global markets:
Overseas, Asian stocks are trading mixed on Monday, with investors watching Alibaba’s stock in Hong Kong following yet another development between affiliate Ant Group and billionaire Jack Ma.

Japan’s exports posted their strongest growth in more than three years in March. Ministry of Finance data showed on Monday exports surged 16.1% in March from a year earlier, marking the steepest rise since November 2017. That was followed by a 4.5% contraction in February.

U.S. stocks rose again on Friday as the market’s rally to records carried on amid strong earnings from blue-chip companies as well as solid data signaling a snapback in the economy.

Federal Reserve Governor Christopher Waller said Friday the U.S. economy is set to take off, but there’s still no reason to start tightening policy.

The University of Michigan said Friday its preliminary consumer sentiment index rose to a one-year high of 86.5 in the first half of this month from 84.9 in March.