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End Session Commentary

Benchmarks end with tepid loss; Nifty ends at 16,951.70

(16:59, 28 Mar 2023)

The headline equity indices ended with minor cuts after a volatile session on Tuesday. Investors were cautious amid fears of further rate tightening from the Reserve Bank of India. The Nifty 50 index opened above 17,000 and hit the day's high of 17,061.75 in early trade. It, however, reversed trend in morning trade and hit the day's low of 16,913.75 in mid-afternoon trade. Banks shares advanced while media, realty and auto shares declined.

The barometer index, the S&P BSE Sensex fell 40.14 points or 0.07% to 57,613.72. The Nifty 50 index lost 34 points or 0.20% to 16,951.70.

Bharti Airtel (down 1.94%), Larsen & Toubro (down 0.95%) and Infosys (down 0.83%) were major drags.

The broader market declined. The S&P BSE Mid-Cap index declined 0.42% while the S&P BSE Small-Cap index was slipped 0.79%.

Sellers outnumbered buyers. On the BSE, 1,042 shares rose and 2,502 shares fell. A total of 100 shares were unchanged.

Numbers to Watch:

The yield on India's 10-year benchmark federal paper rose to 7.324 from 7.312 in previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 82.1650, compared with its close of 82.3150 during the previous trading session.

MCX Gold futures for 5 April 2023 settlement added 0.21% to Rs 58,649.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.25% to 102.61.

The United States 10-year bond yield advanced 0.91% to 3.560.

In the commodities market, Brent crude for May 2023 settlement gained 50 cents or 0.64% to $78.62 a barrel.

Global Markets:

Shares in Europe and Asia advanced on Tuesday as investor fears over the recent banking turmoil continued to show signs of easing.

Policymakers and central bank officials have continued to stress the banking system is not heading for a crash, though jitters remain.

Overnight in the U.S., stocks on Wall Street ended higher - bank stocks broadly rose as investors attempted to move on from the turmoil after First Citizens bought a large chunk of failed Silicon Valley Bank.

Stocks in Spotlight:

One 97 Communications (PayTM) fell 0.61%. Paytm Payments Bank (PPBL) announced that its full KYC wallet customers will be able to make payments on every UPI QR codes and online merchant where UPI payments are accepted. Paytm Payments Bank has the largest scale in India, in terms of mobile transactions.

Kalyan Jewellers slumped 9.77%. On the NSE, 4.73 crore shares of the company changed hands at the counter as against an average trading volume of 28.60 lakh shares in the past one quarter.

According to the media reports, Warburg Pincus, one of the key investors in Kalyan Jewellers, likely offloaded a 2.5% stake in the company through a block deal on Tuesday. Around 2.62 crore shares were said to be sold at a floor price of Rs 110 each.

Aditya Birla Capital rose 1.13%. The company received board approval for sale of its entire 25.65 lakh shares or 50.002% stake in Aditya Birla Insurance Brokers (ABIBL), to Edme Services. Infocyber India, the other shareholder of ABIBL, will also sell its 25.64 lakh shares, or 49.998% stake of the company, to Edme Services. The total enterprise value of the transaction is set at Rs 455 crore.

Adani Enterprises slumped 7.06%. AMG Media Networks (AMNL), a wholly-owned subsidiary of Adani Enterprises, has completed the acquisition of 49% stake in Quintillion Business Media (QMBL) for a cash consideration of Rs 47.84 crore.

Transformers and Rectifiers (India) jumped 6.15% after the company said it has received orders worth Rs 184 crore for transformers from one of the central utility.

PNC Infratech jumped 6.46%. The EPC company has been declared the L1 (Lowest) bidder for a highway project in Uttar Pradesh on hybrid annuity mode (HAM) with a bid project cost of Rs 819 crore. Project is to be constructed in 24 months and operated for 15 years, post construction.

Dilip Buildcon tumbled 4.87%. The company has been declared as L-1 bidder for new HAM project 'Bengaluru - Vijayawada under Bharatmala Pariyojana Phase-I (Package -7) in Andhra Pradesh. The order is worth Rs 780.12 crore.

Carysil slipped 1.34%. It rose as much as 5.22% after the company renewed contract with US-based Karran Inc. for supplying quartz kitchen sink worth about $68 million over the period of five years.

Paras Defence and Space Technologies declined 2.39%. It rose as much as 2.4% after the company said it has secured regulatory license for establishing an industrial undertaking for manufacturing of Red Dot Reflex Sights, Electronic Fuzes comprising of electronics, sensors, mechanical parts excluding Explosive content, Rugged COTS System and Rugged Networking & Communication. The license will be valid for 15 years.

Allcargo Logistics added 1.30%. The company said it will buy a 30% stake in Gati-Kintetsu Express for Rs 406.71 crore. Post completion of this transaction, Allcargo Logistics will hold 30% stake and Gati will continue to hold the existing 70% stake in GKEPL.

Gujarat Ambuja Exports (GAEL) shed 0.69%. It rose as much as 7.08% in early trade after the company announced commissioning of 1200 tons per day Maize processing greenfield project at Malda in West Bengal.