Sensex tanks 599 points, Nifty ends below 15,081; HDFC twins, RIL drag13 min read . 04 Mar 2021
- The Sensex slipped 1.16% while the Nifty ended the day nearly 165 points lower tracking Asian peers, that were down on tech selloffs in US markets.
Indian equity benchmark indices closed lower amid pressure from global selloffs and rising yields.
The Sensex ended the day at 50,846.08, down 1.16% or 598.57 points. The Nifty ended the day at 15,080.75, down 164.85 points or 1.08%, as volatility prevailed in the markets owing to rising bond yields. Metals and financials sectors remained in the negative zone throughout the day.
UltraTech, Dr Reddy's, Asian Paints, HUL and Maruti Suzuki were the only stocks to have ended the day in green on the 30-share gauge.
Gold futures on Thursday fell 0.31% to ₹44,810 per 10 gm as participants offloaded their holdings on a low spot demand.
On the Multi Commodity Exchange, gold prices for April delivery slipped by ₹138, or 0.31%, to ₹44,810 per 10 gm in a business turnover of 13,656 lots.
However, in the international market, gold was trading 0.02% higher at $1,716.20 per ounce in New York. (PTI)
Walmart Inc.’s Flipkart is exploring going public in the US through a merger with a blank-check company as it seeks to quicken its listing process, according to people familiar with the matter.
The Bengaluru-based online retailer has been weighing a U.S. initial public offering and it’s now also looking at other options, the people said. Flipkart’s advisers have approached several SPACs, said one of the people, who asked not to be identified as the information is not public. Flipkart could seek a valuation of at least $35 billion in a blank-check transaction, the people said. (Bloomberg)
The cement company was trading 5.04% higher at 2:53 pm at ₹6,827.35 per share, in the vicinity of its 52-week high price of ₹6,830.40. Ultratech Cement's board has approved a proposal raise up to ₹3,000 crore through issuance of US dollar-denominated bonds.
Reliance Power Ltd's joint venture with JERA Co. Inc., which is developing a new gas-fired power generation project in Bangladesh, has achieved financial closure with a group of lenders that including Japan Bank for International Cooperation and Asian Development Bank, the company said in a regulatory filing.
Reliance Power unit Samalkot Power Ltd received Export Import Bank of the US' approval to sell one module of equipment to Samsung C&T Corp., an
EPC contractor for the project, for ₹1,540 crore. Reliance Power aims to cut debt worth ₹3,000 crore by March 2021, it added in the filing.
Mahindra Logistics climbed 4.83% to ₹503.75 a piece at 2:21 pm. Earlier, the company announced that it has partnered Bajaj Electricals Ltd (BEL) for a five-year, Rs1,000 crore agreement for logistics optimisation and outsourcing arrangement. The deal is an end-to-end redesign and outsourcing of BEL's entire logistics by MLL. It will help them to achieve enhanced service levels coupled with a logistics cost saving in excess of 25%.
Despite covid-19-generated economic uncertainty, 71% of Indian business leaders are optimistic about the economy’s rebound to higher growth in 2021, than the global average of 57% for the world economic recovery, says Grant Thornton International Business Report.
“The government’s consistent push for ‘Make in India’ and rising interest from companies and governments across the globe in meeting their sourcing requirements from India will pave the way for robust exports," said Vishesh C. Chandiok, chief executive officer, Grant Thornton Bharat.
The Supreme Court today adjourned the case filed by multiple unit holders against Franklin Templeton Mutual Fund to July 2021. According to experts the adjournment has been given in order to give time to Sebi to conclude its adjudication proceedings against the fund house. "The adjournment of the case on merits to July by the Supreme Court is basically to give time to Sebi to finish its adjudication process. Once the process concludes, we can resume arguments on merits and on the question of compensation to unit holders," said Paritosh R Gupta, a lawyer representing the Khambatta family, who are petitioners in the case.
The company was trading 4.90% higher at ₹4.50 at 1;34 pm. Earlier, the company had revealed the quantum of its outstanding debt to Axis Bank, Yes Bank and LVB in a regulatory filing. The total oustanding debt amounted to ₹1.350 crore, it reported March 3. Power stocks performed better on Thursday.
India's state-owned lenders are expected to see additions to bad loans moderate, but structural issues at the banks could cap returns on their stocks, Morgan Stanley said on Thursday.
Some of these banks have long struggled with a pile of bad loans or nonperforming loans (NPLs), prompting the government to pump in more funds to shore up their balance sheets.
"Over the past few years, state-owned enterprise banks have seen significant capital infusion by the government, lower risk-weighted assets density, higher provisioning and some large recoveries," the brokerage said in a report, adding that as slippages moderate, fresh additions to bad loans, credit costs will also moderate over the next few years. (Reuters)
Ashoka Buildcon Ltd has entered into a share purchase agreement with India Infrastructure Fund (IIF) for purchasing directly or through its subsidiary, 49% stake (1,27,95,399 shares at ₹10/- each) held by IIF in Ashoka Highways (Bhandara) Ltd. The acquisition includes a zero interest shareholders loan for an aggregate consideration of ₹35.98 crore. On completion of this transaction, the company will hold 100% stake in AHBL.
The rubber chemicals manufacturer said the National Company Law Tribunal has approved its proposal to amalgamation of Suremi Trading Pvt. Ltd and Sushripada Investments Pvt Ltd.
The lender's board of directors allotted 1,85,000 shares worth ₹1.69 cr at a face value of ₹2 a piece under its employee stock option scheme. Manappuram Finance was down 0.03% to ₹175.25 a piece at 12:20 pm.
The travel aggregator's IPO is set to open on 8 and close on 10 March. The issue is a complete offer for sale worth ₹510 crore. At the upper price band of ₹187, the issue is priced at a 49.9x P/E ratio and 15.4x P.BV which is very expensive.
Tata Consultancy Services has expanded its strategic partnership with VodafoneZiggo BV Netherlands to help the latter speed up its fixed fiber network roll out, enabling superior connectivity for subscribers and faster launch of new services.
As part of the partnership, TCS will deploy AI and machine learning technology for the rollout of its B2B fixed fiber network.
Federal Reserve Chairman Jerome Powell will probably seek to convince suddenly skeptical financial markets on Thursday that the central bank will be ultra-patient in pulling back its support for the economy after the pandemic has ended.
Rather than trying to cap rising long-term interest rates, Fed watchers expect Powell to use his appearance at a Wall Street Journal webinar to reaffirm the Fed’s determination to meet its revamped employment and inflation goals by keeping monetary policy looser for longer, and to make clear he’d like to avoid a repeat of last week’s disorderly bond market. (Bloomberg)
Adani Ports and SEZ climbed 3.03% to ₹751.65 after it announced the acquisition of the 31.5% in Gangavaram Port Ltd (GPL), near Visakhapatnam, currently held by private equity investor Warburg Pincus. The acquisition is valued at ₹1,954 crore and subject to regulatory approvals. Adani intends to follow this up by the remaining shares in the port from the promoter family soon.
RailTel Corporation of India Ltd secured an advance purchase order worth ₹25.46 crore from Bharat Sanchar Nigam Ltd for commissioning of point-to-point links. The order will be valid for a period of one year and further extendable by two years, Railtel Corporation said. The corporation's stock was down 1.33% to ₹163.40 at 11:13 am.
Alembic Pharmaceuticals Ltd said that its joint venture Aleor Dermaceuticals Ltd has received final approval from the US Food and for its abbreviated new drug application for testosterone gel. Alembic Pharma was down 0.97% at 10:55 am to ₹920.20 a piece.
The Indian rupee slumped 27 paise to 72.99 against the US dollar in opening trade on Thursday, weighed down by a rebound in the US dollar and lacklustre opening in domestic equities.
At the interbank forex market, the domestic unit opened at 72.99 against the US dollar, registering a fall of 27 paise over its previous close.
On Wednesday, the rupee had settled at 72.72 against the American currency.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.12 per cent to 91.05. (PTI)
Home textiles major Welspun India's board has approved raising up to USD 100 million (approximately ₹750 crore) in one or more tranches.
The board of directors has "approved raising of borrowing of up to a maximum of $100 million in one or more form or instruments, including but not limited to loans, ESG Bonds, nonconvertible debentures (NCDs), ECBs, etc, may be raised in form of domestic or overseas issuance... in one or more tranches", Welspun said in a regulatory filing.
Public sector lender Canara Bank on Thursday said that banking services may get affected later this month due to the proposed strike by several bank unions.
"We have been informed by the Indian Banks' Association (IBA) that the United Forum of Bank Unions (UFBU) has given a call for strike in the banking industry on March 15 and March 16, for issues relating to industry level and not for any bank level issues," Canara Bank said in a regulatory filing.
Canara Bank said it is taking necessary steps for smooth functioning of bank branches and offices on the days of the proposed strike. (PTI)
Mirae Asset MF acquired 7,624 shares in Gateway Distriparks Ltd, boosting its stake to 7.60% from 7.54% earlier.
Blank-check companies are increasingly looking to India for acquisition targets, which will keep the country’s recent dealmaking streak going, according to Nomura Holdings Inc.
ReNew Power last week agreed to merge with a US-listed special purpose acquisition company in a deal that will give India’s biggest renewable power producer an enterprise value of $8 billion. Online grocer Grofers is also looking to go public in the U.S. through a merger with a blank-check company, Bloomberg News reported in February.
“SPAC-led transactions are expected to increase in the coming years in India," Utpal Oza, head of investment banking for India at Nomura, said in a phone interview. (Bloomberg)
The Sensex tanked more than 500 pts while the Nifty was down more than 160 points amid global selloffs and negative cues from Asian peers. The Sensex opened down more than 500 points at 50,812.14, while the Nifty was in the vicinity of the 15,000 mark. Stocks of financials and metals opened in red.
Peterhouse Investments Ltd offloaded 805,000 shares in Usha Martin Ltd, bringing its stake down to 4.13% from 4.40%.
The Sensex was down 420.21 points or 0.82% to 51,024.44 at pre-opening. Meanwhile, the Nifty was at 15,245.60, up 326.50 points, or 2.19% at 9:05 am. The Sensex took cues from Asian peers that opened lower amid rising bond yields and a tech stock selloff in the US.
Oil prices rose for a second straight session on Thursday, as the possibility that Opec+ producers might decide against increasing output at a key meeting later in the day lent support alongside a drop in US fuel inventories.
Brent crude futures added 27 cents, or 0.4%, to $64.34 a barrel, as of 03:08 GMT, after climbing more than 2% on Wednesday. US West Texas Intermediate (WTI) crude futures gained 19 cents, or 0.3% to $61.47 a barrel.
"Prices hinge on Russia's and Saudi Arabia's preference to add more crude oil production," said Stephen Innes, global market strategist at Axi. "Perhaps more interesting is the lack of US shale response to the higher crude oil prices, which is favourable for higher prices."
HCL Tech unit HCL America's board has agreed to issue dollar denominateds unsecured notes worth $500 million to be listed on the Singapore Exchange. Earlier, HCL Technologies chief executive C Vijayakumar had said that Indian IT players are well-positioned to capture at least 20% share of the trillion-dollar incremental spend on technology over the next 4-5 years, potentially doubling the size of the industry.
Indian shares rose for a third straight session on Wednesday supported by gains in financial and metal stocks. Benchmark BSE Sensex closed at 51,444.65, up 1147.76 points or 2.28%, while the Nifty climbed 326.50 points or 2.19% to end at 15,245.60.
The dollar hit a seven-month high against the yen on Thursday as an orderly rise in U.S. Treasury yields lent support ahead of a speech by Federal Reserve Chairman Jerome Powell that may determine the trend for global bond markets and currencies. The dollar also traded near a three-month high against the Swiss franc and held on to gains against most currencies as a renewed sense of calm in the Treasury market supported sentiment. However, currencies were subdued overall as traders avoided taking out big positions before the speech later in the day. Investors are anxious to see if Powell expresses concern about a recent volatile sell-off in Treasuries and if there is any change in his assessment of the economy before the Fed's next meeting ending March 17. (Reuters)
Gold prices edged up on Thursday to recover from a near nine-month low hit in the previous session, although higher US treasury yields continued to weigh on the non-yielding bullion's appeal. Spot gold was up 0.2% at $1,714.27 per ounce by 00:51 GMT, having dropped to their lowest since June 9 at $1,701.40 on Wednesday. US gold futures dipped 0.2% to $1,712.80. Benchmark US treasury yields held near 1.5%, increasing the opportunity cost of holding bullion, which pays no returns.
Asian stocks fell with U.S. futures Thursday after an overnight surge in bond yields once more dragged down shares on Wall Street. Treasuries steadied and the dollar strengthened.
Stocks dropped in Japan, South Korea and Australia, while S&P 500 futures saw modest declines. Hong Kong and China opened lower. Earlier, the Nasdaq 100 slumped to a two-month low and the S&P 500 extended its slide into a second day. A selloff in high-flying giants such as Apple Inc. and Amazon.com Inc. outweighed gains in banks and energy producers.
SGX Nifty was down 109.00 points or 0.72% to 15,072.00.
S&P 500 futures fell 0.2% as of 10:56 a.m. in Tokyo. The S&P 500 fell 1.3%. The Nasdaq 100 lost 2.9%.
Topix index fell 1%.
Australia’s S&P/ASX 200 Index fell 0.8%.
Kospi index fell 1.1%.
Hang Seng Index fell 1.3%.
Shanghai Composite was down 1%
The yield on 10-year Treasuries was steady at 1.48% after rising nine basis points.
Australia’s 10-year bond yield rose 11 basis points to 1.79%.
The Nasdaq ended sharply lower after investors sold high-flying technology shares and pivoted to sectors viewed as more likely to benefit from an economic recovery on the back of fiscal stimulus and vaccination programs.
Microsoft Corp, Apple Inc and Amazon.com Inc dropped, weighing more than any other stocks on the S&P 500.
The Dow Jones Industrial Average fell 119.08 points, or 0.38%, to 31,272.44, the S&P 500 lost 50.46 points, or 1.30%, to 3,819.83 and the Nasdaq Composite dropped 361.04 points, or 2.7%, to 12,997.75.