Indices trim losses; banks stocks buck weak trend

The main indices pared losses in mid morning trade. The Nifty traded above the 17,200 mark. Banks and financial services stocks bucked the broader selling pressure.

Ongoing Russia-Ukraine conflict, rising crude oil prices and relentless selling by foreign portfolio investors (FPIs) continued to put pressure on domestic shares.

At 11:25 IST, the barometer index, the S&P BSE Sensex, was down 107.25 points or 0.19% at 57,725.81. The Nifty 50 index was down 44.45 points or 0.26% at 17,231.80.

In the broader market, the S&P BSE Mid-Cap index declined 0.32% while the S&P BSE Small-Cap index lost 1.28%.

The market breadth was weak. On the BSE, 752 shares rose and 2,533 shares fell. A total of 158 shares were unchanged.

Buzzing Index:

The Nifty Bank index added 0.32% to 37,719.40, rising for second trading session. The banking index added 0.5% in weak market.

Federal Bank (up 1.94%), ICICI Bank (up 0.99%), IndusInd Bank (up 0.72%) and HDFC Bank (up 0.34%) were top gainers in banking space.

Stocks in Spotlight:

Equitas Small Finance Bank rose 2.25% to Rs 54.65 after the company said it has raised Rs 550 crore in the qualified institutional placement of equities. The small finance bank sold 10,26,31,087 equity shares to qualified institutional buyers at the issue price of Rs 53.59 each, aggregating to Rs 5,49,99,99,952. The qualified institutions placement (QIP) Issue opened on 14 February 2022 and closed on 18 February 2022. The government of Singapore invested about Rs 155 crore while the Monetary Authority of Singapore put in Rs 36 crore. The balance Rs 359 crore was invested by Nippon Life India Trustee, SBI Mutual Fund, ICICI Prudential, HDFC Mutual Fund and HDFC Trustee Company. The QIP will reduce the promoters holding to 75% and raise public shareholding to a minimum of 25%, as stipulated by the market regulator Securities & Exchange Board of India.

The Phoenix Mills (PML) rose 1.63%. The company announced the execution of non‐binding term sheet to acquire balance 50% equity stake in Classic Mall Development Company (CMDCL) from Crest Ventures and Escort Developers, a 100% subsidiary of Crest Ventures. Currently, PML owns 50% stake in CMDCL while the balance 50% stake is owned by Crest Ventures (46.35%) and Escorts Developers (3.65%); completion of the stake purchase will make CMDCL a subsidiary of PML.

Global Markets:

Most Asian markets declined on Monday, as investors continued to watch the situation surrounding Ukraine.

China on Monday held steady on a benchmark lending rate, with the one-year loan prime rate (LPR) kept unchanged at 3.7%. The five-year LPR was also kept unchanged at 4.6%.

Meanwhile, French President Emmanuel Macron and Russian leader Vladimir Putin on Sunday agreed to work for a ceasefire in eastern Ukraine, as per reports. They also agreed on "the need to favour a diplomatic solution to the ongoing crisis and to do everything to achieve one", adding that both countries' foreign ministers would meet "in the coming days".

US President Joe Biden is also willing to meet Russia's Vladimir Putin "at any time" to defuse Ukraine war tensions, as per reports, warning Russia appeared on the verge of invading its neighbor.

US stock market is closed on Monday for a holiday. Wall Street ended lower on Friday after escalating tensions in Ukraine and US warnings of a potential Russian invasion prompted investors to dump risky assets in the run-up to a long weekend.

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