PremiumIndian market ended in the green with a rise of around 0.4% as earnings reports by various companies continue to remain one of the key drivers. Fed's rate hike decision scheduled to be released this week is also keeping investors on their toes. Tata Steel and UCO Bank are among the companies that will be declaring their quarterly results today.
Equity benchmarks climbed for the seventh session in a row on Tuesday amid continuous foreign fund inflows and record GST collection in April.
Also, a largely firm trend in Asian gauges and buying in index major Reliance Industries and IT counters added to the optimism.
The 30-share BSE Sensex climbed 240 points to close at 61,354 in today's session. The broader NSE Nifty went up 82 points to end at 18,147. Twelve of the 15 broad Nifty sectoral indices ended in the green in today's trading.
Nearly all broad sectoral indices gained in today's session with Pharma, FMCG and Realty remaining an exception as they shed marginally in today's session. IT, Metal and Energy climbed more than a per cent each and led the rally.
ONGC jumped more than 3%, while HDFC Life, Tech Mahindra, and Hindalco climbed more than 2% each. Hero MotoCorp shed 2.3%, followed by Sun Pharma, Ultratech Cement and Bharti Airtel, each dropping more than a per cent.
Tokyo's key Nikkei index ended slightly higher on Tuesday ahead of a closely watched Federal Reserve policy decision, with the Japanese market closed for the rest of the week. The benchmark Nikkei 225 index added 0.12%, while the broader Topix index slipped 0.12%.
Hong Kong stocks were marginally up on Tuesday as HSBC soared after reporting a tripling in quarterly profit, while investors cautiously evaluated China activity data over the holiday weekend. Hang Seng Index inched up 0.2%, while Hang Seng China Enterprises Index dipped 0.33%.
Mainland China markets will be closed May 2 and May 3 for the Labour Day holiday and will resume trading on May 4.
European shares were subdued on Tuesday, as investors returned from Labor Day weekend, ahead of interest rate decisions from the U.S. Federal Reserve and European Central Bank later in the week.
London's blue-chip FTSE 100 edged higher on Tuesday, boosted by a jump in shares of HSBC after the lender's quarterly profit tripled, though overall gains were limited by weakness in energy stocks.
Adani Total Gas on Tuesday reported 21 per cent rise in net profit (attributable to owners) at ₹97.91 crore for the quarter that ended March 2023. This is against a consolidated net profit of ₹81.09 crore in the corresponding quarter last fiscal.
Its consolidated revenue from operations rose by 10.2 per cent to ₹1,114.8 crore during the quarter under review compared to ₹1,012 crore a year ago. On the operating front, EBITDA (earnings before interest, taxes, depreciation and amortization) gained 49 per cent year-on-year to ₹195.2 crore and margins improved to 17.5 percent from 13 per cent in March 2022 quarter. (Read More)
Cooperative major IFFCO, which sells conventional granular as well as nano (liquid) fertilisers, has reported 62 per cent increase in net profit to record ₹3,052.73 crore for the last fiscal year on better income.
Its profit stood at ₹1,883.77 crore in the previous year.
Total revenue also grew to ₹60,324 crore in 2022-23 from ₹40,171.67 crore in the previous year.
"IFFCO has registered the highest ever Profit After Tax of ₹3,053 crore along with the highest ever turnover of ₹60,324 crore for FY22-23," IFFCO's MD U S Awasthi said.
He attributed the record profit to better plant performance, efficient marketing channel, good support from the government and better management.
On operational front, IFFCO reported the highest production of 95.61 lakh tonne last fiscal. It also achieved the highest production of nano fertilisers at 479.38 lakh bottles of 500 ml each. (PTI)
The shares of Welspun India Ltd. rallied over 16 percent in trade on Tuesday after the home textiles company announced a buyback offer along with its earnings for the March quarter.
The company's scrip was trading 15.29 per cent up at ₹101.04 on BSE. The stock hit a 52-week high of ₹104.90 in intraday trade.
Welspun India reported a rise of whooping 140 per cent in consolidated net profit to ₹125.4 crore for the March 2023 quarter. This is against a consolidated net profit of ₹52.2 crore in the corresponding quarter last fiscal. (Read More)
The British energy giant BP reported a net profit of $8.2 billion for the first quarter. The Q1 numbers show the company is recovering from a record loss a year earlier as it ended operations in Russia after the Ukraine invasion.
In 2022, the company had posted for the first three months its biggest quarterly loss ever, at $20.4 billion after taxes, after Moscow's assault on Ukraine and subsequent Western sanctions forced its exit from Russian business. (Read More)
Shares of New Delhi Television Ltd (NDTV) trades flat during Tuesday's session. The stock slumped nearly 5% and opened at the day's intraday low of ₹180.60. At 10:00 IST, the stock was 1% down, later it further fell.
On Monday, the company reported 97.5% decline in Q4FY23 net profit.
In comparison to a consolidated net profit of ₹24.16 crore in the comparable quarter last fiscal year, the media company's net profit for the quarter that ended March 2023 was ₹59 lakhs. (Read More)
Coworking spaces are gaining popularity among businesses in India, with demand doubling in the past four years. In Q1 2023, coworking spaces represented a 27% share of the net absorption of 8.2 million sq. ft. across the top seven cities, a significant increase from 14% in Q1 2019.
Bengaluru and the National Capital Region (NCR) accounted for two-thirds of net coworking absorption in Q1 2023, while Pune and Chennai absorbed about 0.52 million sq. ft. of coworking spaces during the same period. The top seven cities experienced a 90% growth in net absorption of coworking spaces, increasing from 1.3 million sq. ft. in Q1 2019 to approximately 2.18 million sq. ft. in Q1 2023. (Read More)
India’s renewable energy giant, Suzlon Group, has secured its second order for the 3 MW product series, inking a deal with Juniper Green Energy Private Limited for a 69.3 MW wind power project in Gujarat.
The project, set in Surendra Nagar district, will comprise 22 wind turbine generators, each boasting a capacity of 3.15 MW, and is slated for completion in 2024.
This marks the maiden order for Suzlon’s largest turbine, the S144-140m with a 3.15 MW rating, in the 3 MW series. Under the agreement, Suzlon will supply the turbines, oversee erection and commissioning, and provide comprehensive operations and maintenance services post-completion. (Read More)
Kotak Mahindra Bank's Q4 PAT jumped by 26.31% YoY and 25.20% QoQ to ₹3,495.59 crore. The lender also declared a dividend of ₹1.5 per equity share for its shareholders. Kotak's net profit was at ₹2,767.4 crore in Q4FY22 and ₹2,791.88 crore in Q3FY23. Meanwhile, in Q4 of FY23, net interest income (NII) which is the difference between interest earned and expended, recorded 34.97% growth to ₹6,102.55 crore as against NII of ₹4,521.4 crore in Q4FY22.
Aurum PropTech Limited has acquired the assets and technology platform from MYRE Capital and launched Aurum WiseX, a digital distribution vertical for Real Estate Investments. Aryaman Vir, Former Founder & CEO, MYRE Capital has been appointed as the CEO of Aurum WiseX.
Under Aurum WiseX, the first platform will be ‘YieldWiseX’, which will offer Commercial Real Estate (CRE) and Lease Rental Discounting (LRD) structured debt along with other innovative frameworks for its customers. As per the planned transition, the existing MYRE Capital team, tech stack, customers and partners will be migrated to the new vertical, Aurum WiseX.
Varun Beverages, one of PepsiCo's biggest franchisees, said on Tuesday that its consolidated profit after tax for the three months ended March 31, 2023, increased by 69% year over year (YoY) to ₹429 crore. In the same quarter of the prior fiscal year, the company had reported a net profit of ₹254 crore.
From ₹2,867.4 crore in March 2022 to ₹3,952.5 crore in the quarter, the company's operating revenue increased by 37.8% year-on-year (YoY).
The board of directors have approved stock split in the ratio 1:2. (Read More)
Nitasha Shankar, Head - PRS Equity Research at YES SECURITIES believes IT stocks may see some more correction and they are not at their lows. She believes Nifty is fairly valued and is attractive at this juncture. In an interview with LiveMint, she also shared her views on how an economic slowdown in the US may affect India. Edited excerpts:
The Varun Beverages Ltd (VBL) board will meet today to discuss a stock split and approve the company's fourth-quarter earnings. The company is the largest franchise bottler for PepsiCo.
The proposal for sub-division/splitting of existing equity shares of the company with a face value of ₹10 each, fully paid, in the manner as may be determined by the board of directors is subject to the approval of equity shareholders of the company and/or any other regulatory/statutory approvals, according to the company in an exchange filing.
In the previous four years, the company had previously given three 1:2 bonuses. (Read More)
A gauge of Chinese stocks listed in Hong Kong wiped out an initial gain in post-holiday trading, as manufacturing data sowed doubts over the strength of the nation’s recovery.
The Hang Seng China Enterprises Index erased a 2.1% advance to fall as much as 1%, with property and consumer stocks leading the charge lower. Hong Kong’s benchmark Hang Seng Index also fluctuated while onshore markets remain closed for a holiday.
An unexpected contraction in manufacturing in April indicates China’s economy may be struggling to sustain growth momentum, although initial data from the Golden Week holiday showed upbeat travel, shopping and Macau casino figures. Payment misses by developers also muddied the outlook for the property sector amid some signs of continued recovery. (Bloomberg)
The American-Canadian digital media and broadcasting company Vice is preparing to file for bankruptcy, New York Times has reported citing two people with knowledge of its operations.
As per the NYT report, the media firm has received interest from five companies and might consider a sale to avoid bankruptcy. The report further added that in the event of a bankruptcy, which could happen in the coming weeks, Vice's debtholder Fortress Investment Group could end up controlling the company. (Read More)
Ultratech Cement Ltd on Friday reported a net profit of ₹1,666 crore for the quarter ended 31 March, a 32.3% decline from ₹2,460.51 crore posted in the same period a year earlier. However, last year’s profit included one-time gains, and excluding the same, the normalized profit stood at ₹1,478 core, Ultratech said. Thus, adjusted for one-offs, its net profit in Q4 grew 12.7% from the year before. The company’s earnings before Ebitda during the quarter at ₹3,322.5 crore was 8% up from a year ago.
Motorcycle maker Royal Enfield posted an 18 per cent growth in total sales in the month of April, 2023. The company sold 73,136 units last month compared to 62,155 units in the April last year.
In a statement, the company said that domestic sales grew 28 per cent to 68,881 units from 53,852 units in the year-ago month. Exports, however, declined by 49 per cent last month to 4,255 units compared to 8,303 months in April 2022.
Royal Enfield CEO B Govindarajan said the company has begun FY24 on a confident footing after closing FY23 on a high note. (Read More)
Akshay Ashok, Research Analyst, Prabhudas Lilladher Pvt Ltd on SBI Cards and Payment Services (SBICARD IN):
Rating: ACCUMULATE | CMP: Rs772 | TP: Rs935
Q4FY23 Result Update - Strong growth in receivables, revolver mix stable
Quick Pointers:
§ Receivables up 30% YoY; GNPA at 2.4% vs 2.2% (Q3FY23).
§ Margins stable at 11.5% vs 11.6% (Q3FY23).
SBI Cards and Payment Services (SBICARD) reported a mixed quarter with higher other income and lower operating expenses driving PAT beat of Rs0.7bn. Strong growth of 41% YoY in spends and 30% YoY in receivables are some of the positives. Company revised their ECL model resulting in additional credit costs of 20bps, but management expects it to moderate gradually. It also looks to add 900k-1mn accounts on quarterly basis, going ahead. Further, average spends of newly acquired customers stands higher in Q4 than earlier existing customers, thereby aiding growth. We maintain ‘Accumulate’ rating and our TP at Rs935 (32x on PE Sep’24E results). Re-rating can happen when revolver mix edges higher and company shows moderation in credit costs, going forward.
In the dynamic Asia-Pacific region, growth is projected to increase to 4.6% this year from the 3.8% recorded in 2022, according to the International Monetary Fund which stated that the growth will be largely led by India and China.
The Washington-based fund, in its Regional Economic Outlook – Asia and Pacific report released on Tuesday, said the region would contribute around 70% of global growth, ANI reported.
"Asia and Pacific will be the most dynamic of the world's major regions in 2023, predominantly driven by the buoyant outlook for China and India," the IMF report said. (Read More)
The rupee gained 10 paise to 81.72 against the US dollar in early trade on Tuesday tracking a weak American currency and a firm trend in domestic equities.
Forex traders said significant foreign fund inflows and crude oil prices below USD 80 a barrel also supported the local unit.
At the interbank foreign exchange, the domestic unit opened at 81.75 against the dollar and then climbed to 81.72, registering a rise of 10 paise over its previous close.
On Friday, the rupee closed at 81.82 against the US currency.
Forex and equity markets were closed on Monday on account of 'Maharashtra Day'.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.12 per cent to 102.03. (PTI)
M&M Financial - 4QFY23 | Beat on PAT led by lower credit cost
Result Update BUY INR 310
M&M Financial Services (MMFS) reported profits of Rs6.84bn (+13.9% YoY, a tad ahead of our estimates of Rs6.2bn) led by lower provisions, though PPOP (at Rs9.4bn) was below our expectations led by higher opex towards collections, technology projections and staff costs. AUM growth at 27% YoY (as disclosed earlier) was strong led by continued momentum in disbursements across product portfolio. Importantly, asset quality for MMFS continues to improve with GS3 at 4.5% (vs 5.9% QoQ) and NS3 at 1.9% (vs 2.5% QoQ). Management indicated strong focus reducing the volatility in asset quality/profitability while being committed towards delivering a on its Mission 2025 – doubling the AUM (over FY22 levels), RoA +2.5%. This is likely to be led by driving a higher share of premium customers (which also mirrors the parent’s newer product profile), increase in share of newer products low credit costs. MMFS stock price has been rewarded with the mgmt’s reinvigorated focus on key profitability and asset quality parameters (+42% over 1yr, +33% over 6m) and incremental returns will be driven predictability of earnings and continued delivery of its stated objectives. A rural slowdown, impact of subpar monsoons remain key monitorable. We like management’s categorical stance on focusing on risk parameters and expect gradual delivery to drive incremental returns. We tweak our earnings to adjust for higher opex and Maintain BUY with target price of INR310 (values MMFS core business at 1.6x FY25e for RoEs of 16.5% for FY25e).
IndiaMART InterMESH | Robust cash collections offers strong earnings visibility
Result Update BUY INR 5,900
IndiaMART’s reported EBITDA of INR 661mn in 4Q was in line with JMFe, as marginal beat on revenue was offset by slight miss on margins. However, what stood out was that the company reported robust cash collections growth of 31% YoY, ahead of JMFe of +24%. Beat was driven by strong up-sells in Gold/Platinum tier suppliers. The management anticipates further opportunities for up-selling and likely category specific price hikes to support 5-7% YoY improvement in realisation in the near term. While the management also expects to maintain a quarterly run-rate of 8k+ net supplier additions in FY24, it said that paid additions growth could slow down from FY25 onwards due to a high base effect. Nevertheless, the commentary suggests that 20%+ cash collections growth in the near term is quite achievable. With a bulk of growth investments (mainly related to sales team expansion) in the base, we expect operating leverage to support 130-150bps annualised margin improvement in the next few years. So, we forecast 21%/28%/23% Revenue/EBITDA/PAT CAGR over FY23-26E. While valuations at 40x/32x FY25/26E PER are no doubt punchy, we expect the stock to still trade at a premium amidst strong earnings visibility.
Amid speculation of US Fed rate hike by 25 bps, gold prices feel the heat of profit booking in early morning deals in domestic and international spot markets. Gold future contract for June 2023 on MCX went off ₹21 per 10 gm and hit ₹59,743 levels in morning deals, around ₹1,600 per 10 gm below its lifetime high of ₹61,371 per 10 gm levels.
On the reason for dip in gold and silver price today, Anuj Gupta, Vice President — Research at IIFL Securities said, “Gold price is trading tepid in early morning deals as the market is expecting 25 bps US Fed rate hike in FOMC meeting. Due to this, we witnessed some rise in US dollar rates on Monday that pulled yellow metal above $2,000 levels in evening deals on Monday." (Read More)
Shares of Adani Green Energy Ltd rose 5% on Tuesday's trading session after the company reported three-fold increase in net profit at ₹974 crore in FY23. The revenue of operations from power supply stood at ₹2,130 crore from ₹1,128 crore in the year-ago period. While, for FY23, revenue from power supply increases by 54% YoY to ₹5,825 crore.
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: India outperformed the rest of Asia and the developed markets in April with a smart rally mainly assisted by sudden change of strategy by the FIIs who have turned big buyers in the market in the last two trading days. The important trigger for this change of FII strategy is the appreciation in the rupee. The rupee which had depreciated to 82.94 to the dollar in late February is now around 81.80 and is expected to appreciate further on India’s improving current account deficit. Also, the good corporate results, particularly from the banking space and record GST collections at ₹1.87 lakh crores are aiding bullish sentiments. The market is resilient and the undercurrent is bullish.
Hyundai Motor India Ltd registered cumulative sales of 58,201 units in April, an increase of 3.5 per cent on a yearly basis.
Of the total sales, 49,701 units were sold domestically and the rest 8,500 units in exports.
The company has attributed this growth to the overwhelming response to the recently launched Hyundai VERNA.
"We are delighted to register a healthy double-digit growth in the domestic market in the month of April," Tarun Garg, COO, of Hyundai Motor India.
"This strong growth has been backed by an overwhelming response to the recently launched all-new Hyundai VERNA that has more than doubled its volumes from its earlier version. We look to carry forward this momentum with the soon-to-be-launched SUV from the Hyundai stable, Hyundai EXTER," Garg said. (ANI)
Amid earning season, fundamental analysts and stock market investors eagerly wait for the announcement of quarterly numbers of their portfolio stock and the business, which they believe has the potential to grow many folds. For such investors, there is a piece of stock market news as a good number of listed companies are going to announce their fourth-quarter results for the recently ended financial year 2022-23. The companies that are going to declare their q4 results today are Tata Steel, Adani Total Gas, Ambuja Cements, Fino Payments, DCM Shriram, KEI Industries, Jet Infra, Punjab & Sind Bank, UCO Bank, Varun Beverages, Yasho Industries, etc. (Read More)
Max Healthcare Institute is reported to have filed a suit in the Bombay High Court against private equity firm TPG after the owners of Care Hospitals neglected Max's bid to favour an offer by the world's largest PE fund Blackstone, said an Economic Times report.
"The takeover battle for Care Hospitals has landed up in the Bombay High Court with Max Healthcare Institute filing a suit against private equity firm TPG after the Care owner spurned Max's bid in favour of an offer by Blackstone, the world's largest PE fund, that was about 15-20 per cent higher," ET reported quoting people with knowledge of the matter. (Read More)
Uday Kotak has commented on JPMorgan acquiring First Republic Bank after regulators had taken over the troubled regional lender. The California Department of Financial Protection and Innovation has said that JPMorgan will now "assume all deposits, including all uninsured deposits, and substantially all assets" of First Republic.
While commenting on this development, Kotak highlighted the need for strong domestic financial institutions backed by reliable domestic capital. According to the banker, India must also nurture such institutions as the US has done. (Read More)
IDFC First Bank has posted a huge surge in its standalone net profit at ₹803 crore for the quarter ended March 2023, against ₹343 crore in the year-ago period.
Net profit jumped 32.7 per cent on a quarterly basis, according to a statement shared with stock exchanges on Saturday evening.
V Vaidyanathan, managing director and chief executive officer, IDFC FIRST Bank, said, "We have built a strong foundation for the bank with diversified customer deposits and diversified loan book. We have registered our highest-ever quarterly profit."
The lender said net interest income grew 35 per cent year-on-year to ₹3,597 crore in the reviewed quarter from ₹2,669 crore in the year-ago period. Its core operating profit grew by 61 per cent to ₹1,342 crore, the lender said. (ANI)
Tata Steel, Adani Total Gas, Ambuja Cements, Varun Beverages, and UCO Bank will be among the stocks in focus as they will be declaring their March quarter earnings today. (Read More)
International Business Machines Corp. Chief Executive Officer Arvind Krishna said the company expects to pause hiring for roles it thinks could be replaced with artificial intelligence in the coming years.
Hiring in back-office functions — such as human resources — will be suspended or slowed, Krishna said in an interview. These non-customer-facing roles amount to roughly 26,000 workers, Krishna said. “I could easily see 30% of that getting replaced by AI and automation over a five-year period."
That would mean roughly 7,800 jobs lost. Part of any reduction would include not replacing roles vacated by attrition, an IBM spokesperson said. (Read More)
Vaishali Parekh has recommended three stocks to buy today, here we list out full details in regard to those intraday stocks:
1] Can Fin Homes: Buy at ₹616, target ₹640, stop loss ₹605;
2] Pidilite Industries: Buy at ₹2419, target ₹2500, stop loss ₹2380; and
3] Castrol India: Buy at ₹119, target ₹124, stop loss ₹117. (Read More)
Mining mogul Anil Agarwal has said his Vedanta group has ample cash flow to service all its debt repayment obligations and that it aims to become a "net zero debt company" in 2-3 years.
Agarwal said questions over Vedanta's debt servicing ability are "absolutely irrelevant" as the group will make USD 9 billion of profits next year on revenue of USD 30 billion, which would be sufficient to meet all obligations.
The comments by the former scrap metal trader turned industrialist come at a time when scrutiny of highly leveraged Indian conglomerates grows following a US short seller attack on the Adani group.
"We have the lowest debt in the world for a group of our size," Agarwal, founder, and chairman of Vedanta Resources, told PTI in an interview here.
And the debt is a result of investing billions of dollars across businesses, he said. "Total debt in the company is USD 13 billion. And we have a profit this year of USD 7 billion. Next year our revenue would be USD 30 billion and we will have USD 9 billion profit" across the group. (PTI)
Adani Green Energy Ltd, the renewable energy division of Adani Group, has reported a consolidated net profit of ₹974 crore in FY2023, a significant jump from the ₹489 crore reported in the previous year. The company's consolidated total income rose to ₹8,633 crore, up from ₹5,548 crore in FY2022.
In Jan-Mar 2023, Adani Green Energy's consolidated net profit surged threefold to ₹508 crore, compared to ₹121 crore in the previous year, while its consolidated total income increased by 88% to ₹2,988 crore from ₹1,587 crore in the year-ago period. Despite this impressive performance, the company also recorded a one-time loss of ₹125 crore during the Jan-Mar quarter. (Read More)
Billionaire Uday Kotak-backed lender has registered double-digit growth in net profit for the fourth quarter of FY23. Kotak Mahindra Bank's Q4 PAT jumped by 26.31% YoY and 25.20% QoQ to ₹3,495.59 crore. The lender also declared a dividend of ₹1.5 per equity share for its shareholders.
Kotak's net profit was at ₹2,767.4 crore in Q4FY22 and ₹2,791.88 crore in Q3FY23.
Meanwhile, in Q4 of FY23, net interest income (NII) which is the difference between interest earned and expended, recorded 34.97% growth to ₹6,102.55 crore as against NII of ₹4,521.4 crore in Q4FY22. However, NII posted a single-digit growth of 7.95% from ₹5,652.92 crore in Q3FY23. (Read More)
India has cut the windfall tax on petroleum crude to 4,100 rupees ($50.14) per tonne from 6,400 rupees per tonne, effective from Tuesday, according to a government notification.
The government left the windfall tax on petrol, diesel and aviation turbine fuel at zero.
The government revises tax rates fortnightly based on oil price fluctuations. (Read More)
The gross GST collection in April 2023 is an all-time high of ₹1,87,035 crore, ₹19,495 crore more than the next highest collection of ₹1,67,540 crore in April 2022.
GST revenues for April 2023 are 12 per cent higher than the GST revenues year-on-year. The highest tax collected on a single day ever was ₹68,228 crore through 9. 8 lakh transactions on April 20, 2023
Of the GST revenue collected in April, CGST is ₹38,440 crore, SGST is ₹47,412 crore, IGST is ₹89,158 crore (including ₹34,972 crore collected on import of goods) and cess is ₹12,025 crore (including ₹901 crore collected on import of goods).
The government has settled ₹45,864 crore to CGST and ₹37,959 crore to SGST from IGST. The total revenue of Centre and the States in the month of April 2023 after regular settlement is ₹84,304 crore for CGST and ₹85,371 crore for the SGST.
"The revenues for April 2023 are 12 per cent higher than the GST revenues in the same month last year," a Finance Ministry release said. (ANI)
U.S. stocks ended little changed on Monday as investors took in the weekend auction of First Republic Bank and braced for this week's expected interest rate hike from the Federal Reserve.
The KBW regional banking index dropped 2.7%, while shares of JPMorgan Chase & Co, which won the auction of failed lender First Republic, rose 2.1%.
JPMorgan will pay the U.S. Federal Deposit Insurance Corp $10.6 billion to take control of most of the regional bank's assets.
Investors have been on edge about the banking system's health following the collapse of two other regional banks in March.
"Hopefully this is sort of the last of the banking crisis, but something else might surface at some point," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York.
Market watchers also digested the latest economic news, which suggested to some that the Fed may need to stick to its tightening cycle for the near term. The Institute for Supply Management (ISM) said on Monday its manufacturing PMI rose last month from March.
The Fed, which has been raising rates to cool inflation, is expected to hike rates an additional 25 basis points on Wednesday.
The Dow Jones Industrial Average fell 46.46 points, or 0.14%, to 34,051.7; the S&P 500 lost 1.61 points, or 0.04%, at 4,167.87; and the Nasdaq Composite dropped 13.99 points, or 0.11%, to 12,212.60. (Reuters)
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