Nifty ends below 15,000-mark as rising US bond yields spook investors

Domestic equity benchmarks declined for second trading session on Friday. Resurgent worries about rising US bond yields hit global stocks. Firm crude oil prices also spooked investors. Higher crude oil prices could increase fiscal deficit, current account deficit and stoke fuel price inflation. The Nifty closed below the crucial 15,000 mark.

The S&P BSE Sensex, tumbled 440.76 points or 0.87% at 50,405.32. The Nifty 50 index slumped 142.65 points or 0.95% at 14,938.60. Both these indices have fallen a little over 2% each in two consecutive sessions.

ICICI Bank (down 1.80%), HDFC (down 1.55%), HDFC Bank (down 1.52%) and Infosys (down 1.07%) were major drags today.

Selling was broad based. The S&P BSE Mid-Cap index fell 1.89% and the S&P BSE Small-Cap index tumbled 1.50%. Both these indices saw profit taking after rallying over 5% in the past four days.

The market breadth was weak. On the BSE, 1,057 shares rose and 1,929 shares fell. A total of 143 shares were unchanged.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 115,597,805 with 25,69,011 deaths. India reported 176,319 active cases of COVID-19 infection and 157,548 deaths while 108,39,894 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Numbers to Track:

In the commodities market, Brent crude for May 2021 settlement rose $1.55 to $68.29 a barrel. The contract increased 4.1% to settle at $66.74 a barrel in the previous session.

Global oil prices jumped after OPEC and its allies agreed not to increase the supply in April as they await a more substantial recovery in demand amid the COVID-19 pandemic.

The yield on 10-year benchmark federal paper rose to 6.232% as compared to its previous close of 6.212%.

In the foreign exchange market, the partially convertible rupee fell to 73.02, compared with its previous closing of 72.8375.

MCX Gold futures for 5 April 2021 settlement fell 0.32% to Rs 44,398.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, rose 0.33% to 91.93.

Global Markets:

Shares in Europe and Asia declined on Friday amid rising bond yields.

The Chinese government has set its 2021 economic growth target at more than 6%, Premier Li Keqiang said in his annual work report on Friday at the opening of this year's meeting of parliament. China did not set a gross domestic product target last year due to uncertainties arising from the pandemic. The government has set its 2021 target for consumer price inflation at around 3% and its budget deficit goal of around 3.2% of GDP, Li said.

US stocks fell sharply on Thursday after Federal Reserve Chair Jerome Powell failed to reassure investors that the central bank would keep surging bond yields and inflation expectations in check.

On Thursday, Powell said the economic reopening could "create some upward pressure on prices." He said he expects the central bank to be "patient" in terms of acting on policy, even if the economy sees "transitory increases in inflation." Powell noted, however, that the recent rise in yields did catch his attention, as have improving economic conditions.

The 10-year Treasury yield, which has been keeping investors on edge in recent weeks, jumped to 1.54% after Powell's remarks. Last week, the benchmark 10-year soared to a high of 1.6% in a sudden move that sparked a big sell-off in stocks.

Buzzing Indian Segment:

The Nifty Metal index fell 2.70% to 3,869.40. The index has fallen 4.66% in two sessions.

NALCO (down 5.64%), SAIL (down 5.1%), Hindustan Zinc (down 4.42%), MOIL (down 3.3%), Welspun Corp (down 3.25%), JSPL (down 3.25%), Ratnamani Metals & Tubes (down 3.09%), Tata Steel (down 2.99%), Hindalco Industries (down 2.99%), NMDC (down 2.84%), MIDHANI (down 2.75%) and JSW Steel (down 1.47%) declined.

Metal stocks tumbled following a decline in base metal prices at Shanghai and London amid rising bond yields.

Stocks in Spotlight:

Wipro fell 4.20%. The IT major signed an agreement to acquire Capco, a global management and technology consultancy to banking and financial services industry, for $1.45 billion. London-headquartered Capco is a global management and technology consultancy providing digital, consulting and technology services to financial institutions in the Americas, Europe and the Asia Pacific. Its clients include many marquee names in the global financial services industry.

BEML fell 1.91% after the company said that it has appointed Deloitte Haskins & Sells, as consultant for advising, undertaking and implementing demerger of non-core assets of the company.

Max Healthcare Institute gained 1.61% after the company launched a qualified institutional placement (QIP) of equity shares on Thursday (4 March 2021). The QIP issue committee of the board of directors of the company, at its meeting held on 4 March 2021, authorised the opening of the QIP issue and approved the floor price of Rs 190.40 per equity share, the company said in a regulatory filing made after market hours yesterday.

Quick Heal Technologies soared 4.18% after the company said its board will consider a share buyback on 10 March 2021

Shilpa Medicare fell 2.12%. The drug company received United States Food and Drug Administration (USFDA)'s tentative approval for its abbreviated new drug application (ANDA), apremilast tablets, 10 mg, 20 mg, and 30 mg. Apremilast tablets, 10 mg, 20 mg, and 30 mg is a generic equivalent of reference listed drug (RLD) OTEZLA of Celgene, used in the treatment of 'psoriatic arthritis' as recommended in the label approved by FDA. According to IQVIA MAT Q2 2020 data, the US market for apremilast tablets, 10 mg, 20 mg, and 30 mg is approximately US $2.4 billion

Tejas Networks fell 0.54%. The company on Friday announced that GigNet, a leading digital infrastructure company in Mexico, has selected the company's optical networking and broadband access products for their state-of-the-art, high-capacity fiber optic network expansion in the Cancun region of Mexico.

ISGEC Heavy Engineering rose 0.79% after the company said it received an order from Shree Cement to set up waste heat recovery boilers at their Raipur unit. The boilers to be set up at Shree Cement's Raipur unit, will be of two types: a PH boiler to be installed at the pre-heater exhaust, and an AQC boiler to be installed at the cooler exhaust from the 10500 TPD kiln.

Dilip Buildcon fell 4.87%. The road construction company received the letter of acceptance (LoA) on 4 March for two projects worth Rs 2,439 crore from the National Highways Authority of India (NHAI) on Hybrid Annuity basis in Karnataka.

BCPL Railway Infrastructure spurted 1.75% after the company received a Letter of Acceptance (LOA) from Railway Vikas Nigam (RVNL).It is expected to be executed over a period of 45 days. The recent order adds to the strong orderbook position for the company of around Rs 165 crore.

Unichem Laboratories rose 1.14%. Unichem Laboratories announced that it has received ANDA approval for its Guanfacine Tablets, USP 1 mg and 2 mg from the United States Food and Drug Administration (USFDA) to market a generic version of TENEX (Guanfacine) Tablets 1mg and 2 mg of Promius Pharma LLC.

PVR lost 1.21%. The multiplex chain operator announced the launch of its 6-screen property in Forum Centre City Mall, Mysuru on Friday, 5 March 2021. With this opening, PVR strengthens its growth momentum in FY 2020-2021 with 844 screens at 177 properties in 71 cities (India and Sri Lanka).

New Listing:

Shares of Heranba Industries closed at Rs 812.25 per share on the BSE, at a premium of 29.55% as compared to the issue of Rs 627 apiece. The stock was listed at Rs 900, a premium of 43.54% to the initial public offer (IPO) price. The stock hit a high of Rs 944.95 and low of 796.35. On the BSE, 17.15 lakh shares were traded on the counter. The IPO of Heranba Industries The issue was subscribed 83.29 times. The issue opened for bidding on 23 February 2021 and closed on 25 February 2021. The price band for the IPO was set at Rs 626-627 per share.

Primary Market:

The initial public offer (IPO) of MTAR Technologies received bids for 145.78 crore shares as against 72.60 lakh shares on offer, according to the stock exchange data at 17:00 IST on Friday. The issue was subscribed 200.79 times.

The issue opened for bidding on Wednesday, 3 March 2021, and it will close on Friday, 5 March 2021. The price band for the IPO is set at Rs 574-575 per share. An investor can bid for a minimum lot of 26 equity shares and in multiples thereof.

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