Market Commentary - End-Session
Sensex tanks 736 pts, Nifty ends below 22K as Fed policy looms; TCS sinks 4% As on : 19-Mar-24  17:15

Domestic shares plunged on Tuesday, erasing gains from the previous session. The Nifty 50 shed over 1%, closing below the crucial 21,850 level. Selling pressure gripped all sectors, with IT and pharma leading the decline. Mid and Smallcaps also mirrored the weakness, falling over 1%.

The barometer index, the S&P BSE Sensex tumbled 736.37 points or 1.01% to 72,012.05. The Nifty 50 index declined 238.25 points or 1.08% to 21,817.45.

This selloff can be attributed to investor anxiety ahead of the US Federal Reserve's crucial policy decision on Wednesday. A hawkish message exceeding market expectations could trigger a global market shift. Investors are likely to remain cautious until the Fed's stance becomes clear.

Adding to the jitters, Asian investors are closely monitoring China, where the top securities regulator accused a defaulted developer of inflating revenue, potentially fueling worries about the ongoing real estate crisis.

In the broader market, the S&P BSE Mid-Cap index slipped 1.36% and the S&P BSE Small-Cap index declined 1.04%.

The market breadth was weak. On the BSE, 1,188 shares rose and 2,633 shares fell. A total of 107 shares were unchanged.

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, gained 1.56% to 14.11.

Numbers to Track:

The yield on India's 10-year benchmark federal paper added 0.06% to 7.091 as compared with the previous close of 7.087.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.0375, compared with its close of 82.9075 during the previous trading session.

MCX Gold futures for 5 April 2024 settlement shed 0.14% to Rs 65,518.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies was up 0.53% to 103.98.

The United States 10-year bond yield declined 0.60% to 4.314.

In the commodities market, Brent crude for May 2024 settlement lost 22 cents or 0.25% to $ 86.67 a barrel.

Global Markets on Hold Ahead of Fed Decision:

* European and Asian shares trade mixed as investors await the outcome of the U.S. Federal Reserve's two-day policy meeting starting today.

* Wall Street closed higher on Monday, lifted by tech gains, with all eyes on the Fed's guidance on future interest rates.

Meanwhile:

* China's Evergrande accused of inflating revenue by over $78 billion before its collapse, adding to concerns about the country's property market.

* Japan's central bank hiked interest rates for the first time since 2007.

* Australia's central bank, as expected, left its cash rate unchanged at 4.35% on Tuesday, marking the third consecutive meeting it has held rates steady.

New Listing:

Shares of Popular Vehicles and Services settled at Rs 276.25 on the BSE, representing a discount of 6.36% as compared with the issue price of Rs 295.

The scrip was listed at Rs 292, exhibiting a discount of 1.02% to the issue price.

On the BSE, over 3.82 lakh shares of the company were traded in the counter.

Stocks in Spotlight:

Tata Consultancy Services (TCS) slumped 4.03% after the media reports suggested that Tata Sons sold over 2 crore shares of TCS in Rs 9,000-crore block deal today.

Tata Steel shed 0.64%. Tata Steel UK has decided to cease operations of the Coke Ovens at the Port Talbot plant, in Wales, following a deterioration of operational stability. Tata Steel UK will increase imports of coke to offset the impact of the coke oven closures.

Meanwhile, the steel major also announced that its board has approved fund raising of Rs 2,700 crore by issuing non-convertible debentures (NCDs) on private placement basis.

Grasim Industries declined 1.65%. The company said an investment of Rs 1,250 crore, or $150 million, made by the World Bank Group's private sector arm, the International Finance Corporation (IFC), by way of subscription to non convertible debentures to be issued by the firm.

IOL Chemical & Pharmaceuticals soared 11.48% after Brazilian Health Regulatory Agency (ANVISA) has successfully completed the GMP audit of the company?s 10 APIs manufacturing units situated at Barnala, Punjab. The inspection was conducted from 11th March 2024 to 15th March 2024. At the end of the inspection (ANVISA) gave zero observations.

Bondada Engineering hit an upper circuit of 5% after the company has received a letter of intent (LoI) from the Singareni Collieries Company (SCCL) for grant of work order worth Rs 433 crore.

H.G. Infra Engineering advanced 2.36% after its consortium Stockwell Solar Services joint venture (JV) received four solar projects worth Rs 1,026 crore from Jodhpur Vidyut Vitran Nigam.

L&T Finance Holdings shed 0.61%. The NBFC announced that its board has approved the raising of funds by issuance of non-convertible debentures (NCDs) in one or more tranches, such that at any point of time the NCDs issued and outstanding does not exceed Rs 1,01,000 crore.

Sonata Software rose 0.60%. The company said that it has signed joint go-to-market agreement for five years with Zones to simplify enterprise application. As part of the five-year partnership, Zones and Sonata Software will support cost efficiency and data optimization through joint offerings and delivery of industry-specific solutions.

PC Jeweller hit a lower circuit of 5%. The jewellery maker announced that its board is scheduled to meet on 22 March 2024 to consider the proposal of raising of funds.

JBM Auto gained 1.80% after the company announced that its subsidiary, JBM Ecolife Mobility received an order worth Rs 7,500 crore for procurement, supply, operation and maintenance of 1,390 electric buses.

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