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Indices end with minor loss; broader market ends in green

·8-min read

The benchmark indices ended a volatile session on a flat note on Tuesday. The Nifty managed to close above the 14,900 mark after slipping below that level in intraday. IT and FMCG stocks were in demand.

As per the provisional closing data, the S&P BSE Sensex, fell 31.12 points or 0.06% at 50,363. The Nifty 50 index declined 19 points or 0.13% at 14,910.70.

The broader market outperformed the benchmark indices. The S&P BSE Mid-Cap index added 0.4%. The S&P BSE Small-Cap index rose 0.32%.

The market breadth was almost even. On the BSE, 1,476 shares rose and 1,484 shares fell. A total of 178 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,101.35 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 749.71 crore in the Indian equity market on 15 March 2021, provisional data showed.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 12,02,46,451 with 26,60,721 deaths. India reported 2,23,432 active cases of COVID-19 infection and 1,58,856 deaths while 1,10,27,543 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Economy:

India's overall exports in February 2021 were $27.93 billion, as compared to $27.74 billion in February 2020, exhibiting a positive growth of 0.67%. In Rupee terms, exports were Rs 2,03,201.56 crore in February 2021, registering a positive growth of 2.46%.

Imports in February 2021 were $40.54 billion (Rs 2,94,985.04 crore), which is an increase of 6.96% in dollar terms and 8.86% in rupee terms over imports in February 2020.

The trade deficit for February 2021 was estimated at $12.62 billion as against the deficit of $10.16 billion in February 2020, which is an increase of 24.14%.

Taking merchandise and services together, overall trade deficit for April-February 2020-21 is estimated at $7.80 billion as compared to the deficit of $75.90 billion in April-February 2019-20.

Meanwhile, Ministry of Finance has released the final weekly installment of Rs 4,104 crore to the States to meet the GST compensation shortfall.

Primary Market:

The initial public offer (IPO) of Anupam Rasayan received bids for 30.32 crore shares as against 97.01 lakh shares on offer, according to the stock exchange data at 15:20 IST on Tuesday (16 March 2021). The issue was subscribed 31.26 times. The issue opened for bidding on Friday, 12 March 2021, and it will close today, 16 March 2021. The price band for the IPO is set at Rs 553-555 per share. The offer comprises a fresh issue aggregating up to Rs 760 crore by the company. An investor can bid for a minimum of 27 equity shares and in multiples thereof.

The initial public offer (IPO) of Laxmi Organics received bids for 17.26 crore shares as against 3.25 crore shares on offer, according to the stock exchange data at 15:20 IST on Tuesday (16 March 2021). The issue was subscribed 5.3 times. The issue opened for bidding on today, 15 March 2021, and it will close on Wednesday, 17 March 2021. The price band for the IPO is set at Rs 129-130 per share. An investor can bid for a minimum of 115 equity shares and in multiples thereof. The offer comprises of equity shares aggregating up to Rs 600 crore, comprising a fresh issue of up to Rs 300 crore and an offer for sale of up to Rs 300 crore by the promoter Yellow Stone Trust.

The initial public offer (IPO) of Craftsman Automation received bids for 38.73 lakh shares as against 38.69 lakh shares on offer, according to the stock exchange data at 15:20 IST on Tuesday (16 March 2021). The issue was fully subscribed. The issue opened for bidding on Monday, 15 March 2021, and it will close on Wednesday, 17 March 2021. The price band for the IPO is set at Rs 1488-1490 per share. An investor can bid for a minimum of 10 equity shares and in multiples thereof. The issue comprises of equity shares comprising a fresh issue of Rs 150 crore and an offer for sale of 45,21,450 equity shares by existing shareholders.

Stocks in Spotlight:

Tata Communications slumped 7% after the offer for sale (OFS) opened for non-retail investors today, 16 March 2021. Through the OFS, the Government of India proposes to sell up to 2,85,00,000 equity shares (representing 10% stake), with an option to sell an additional 6.12% stake or 1,74,46,885 equity shares in case of oversubscription. The floor price for the OFS is Rs 1161 per equity share, a 10.51% discount to Tata Comm's closing price of Rs 1297.30 on Monday, 15 March 2021. The total OFS size (base size + green shoe) stands at 4,59,46,885 shares, representing 16.12% of outstanding equity shares of the company, aggregating to Rs 5,334.43 crore. The OFS opened on Tuesday (16 March 2021) for non-retail investors, while both retail as well as non-retail investors will be able to subscribe on Wednesday (17 March 2021). A total of 10% of the total offer size is reserved for retail investors.

As on 15:25 IST, the OFS received subscription for 5,54,99,387 shares. It was subscribed 216.37% on the base non-retail offer size of 2,56,50,000 shares and 134.21% on the total non-retail total offer size (base size+green shoe) of 4,13,52,196 shares.

Aarti Drugs advanced 3% after the company said its board will consider a share buyback on Friday, 19 March 2021.

Titan Company rose 0.73% after the ratings agency ICRA upgraded the company's long-term rating to [ICRA] AAA with stable outlook. The credit rating issuer has also reaffirmed the short-term rating and the rating for the fixed deposit programme of the company.

AU Small Finance Bank spurted 3.78% after the company successfully raised Rs 625.50 crore through qualified institutional placement (QIP) route. The capital raising committee of board of directors of the bank, at their meeting held on Monday (15 March 2021) approved allotment of 50 lakh shares to eligible qualified institutional buyers at the issue price of Rs 1251 per equity share. The QIP issue opened on 9 March 2021 and closed on 15 March 2021.

Godrej Properties fell 0.66%. The QIP issue committee of board of directors of the company approved allotment of 2,58,62,068 equity shares to eligible qualified institutional buyers at the issue price of Rs 1,450 per equity share, against the floor price of Rs 1,513.39 per equity share, aggregating to Rs 3750 crore. The QIP issue opened on 9 March 2021 and closed on 15 March 2021. The company intends to use QIP proceeds to meet the funding requirements for existing and new development projects, to fund business growth, business purposes, capital expenditure and general corporate purposes as per growth- and business-related plans. The company said it also requires funding for servicing, repaying, prepaying and refinancing of loans to reduce cost of indebtedness.

HFCL gained 0.36%. The company said it plans to acquire upto 50% stake in Nimpaa Telecommunications by subscribing its equity shares in one or more tranches. HFCL will pay a cash consideration of Rs 1 crore for acquiring 50% of the diluted paid-up equity share capital of Nimpaa Telecommunications (Nimpaa). The acquisition will be completed by April 2021.

NIIT declined 2.8%. The company said that its US-based subsidiary has signed a managed services agreement with an existing client in the US to provide a range of learning services. NIIT (USA) Inc., USA, a wholly owned subsidiary of NIIT, has signed a managed services agreement with a US based financial services organization (an existing client) to provide a range of learning services.

Shipping Corporation of India (SCI) declined 2.5% after Life Insurance Corporation of India (LIC) sold 93.73 lakh equity shares, or 2.012% equity of the company between 21 October 2020 to 12 March 2021. Post-sale, LIC holds 8.04% stake in SCI from 10.052% held earlier.

Global Markets:

Shares in Europe and Asia advanced on Tuesday as investors focus on the global economic recovery and the latest meeting of the U.S. Federal Reserve.

In US, the Dow and S&P 500 both hit new records on Monday as investors grew optimistic about the economic reopening from the pandemic.

As a part of the $1.9 trillion stimulus package that became law last week, the IRS started processing $1,400 direct payments for millions of Americans, which is expected to add juice to the already recovering economy.

Investors will be gearing up for the Federal Open Market Committee two-day meeting on March 16 and 17. It is reportedly expected that the U.S. central bank may revise up its GDP forecast, following a $1.9 trillion fiscal stimulus package that will send direct payments of up to $1,400 to most Americans. The Fed will also deliver its decision on interest rates.



Source: Capitalmarket.com