Domestic equity benchmarks slumped on Friday, led by broad-based selling pressure. The Nifty closed below the 14,550 mark. All the sectoral indices on the NSE ended in the red. Banks and financial shares witnessed major selling pressure. A spike in domestic and global bond yields coupled with rising coronavirus cases spoiled investors' appetite for risk assets.
The barometer index, the S&P BSE Sensex, slumped 1939.32 points or 3.80% to 49,099.99. The Nifty 50 index tumbled 568.20 points or 3.76% to 14,529.15.
In the broader market, the S&P BSE Mid-Cap index declined 1.75% and the S&P BSE Small-Cap index lost 0.74%. Both the indices outperformed the Sensex.
The market breadth was weak. On the BSE, 1020 shares rose and 1902 shares fell. A total of 179 shares were unchanged.
Investors were also cautious ahead of India's gross domestic product (GDP) data for October-December quarter, to be released later in the day.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 11,30,02,186 with 25,07,624 deaths. India reported 1,55,986 active cases of COVID-19 infection and 1,56,825 deaths while 1,07,50,680 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Numbers to Track:
The yield on 10-year benchmark federal paper rose 6.214% as compared to its previous close of 6.182%.
In the foreign exchange market, the partially convertible rupee fell to 73.4775, compared with its previous closing of 72.43.
MCX Gold futures for 5 April 2021 settlement rose 0.52% to Rs 46,482.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, rose 0.48% to 90.57.
In the commodities market, Brent crude for May 2021 settlement lost 78 cents to $66.10 a barrel. The contract slipped 0.11% or 7 cents to settle at $66.11 a barrel in the previous session.
Global Markets:
Shares in Europe and Asia declined across the board on Friday as global markets were roiled by a sudden spike in bond yields, which sent investors fleeing highly valued segments of the market.
Japan's industrial output rose for the first time in three months in January. Official data released on Friday showed factory output advanced 4.2% in January, boosted by sharp rises in production of electronic parts and general-purpose machinery, as well as a smaller increase in car output.
U.S. stocks dropped sharply Thursday as an outsized surge in bond yields spooked investors, who rushed to dump risk assets, especially high-flying technology names.
The major averages tumbled as the 10-year Treasury yield soared as high as 1.6% in a sudden move that some described as a flash spike. The yield later settled back down to around 1.52%, its highest level since February 2020.
The US economy grew at a 4.1% pace in the final three months of 2020, slightly faster than first estimated, ending a year in which the overall economy, ravaged by a global pandemic, shrank more than in any year in the past seven decades. The 4.1% gain in the gross domestic product — the broadest measure of economic health — is a slight upward revision from 4% growth in the first estimate released a month ago, the Commerce Department reported Thursday.
Buzzing Indian Segment:
The Nifty Bank index tumbled 4.78% to 34,803.60. The index rose 4.1% in the past two sessions.
Axis Bank (down 5.99%), Kotak Mahindra Bank (down 5.88%), RBL Bank (down 5.56%), ICICI Bank (down 4.94%), HDFC Bank (down 4.44%), Indusind Bank (down 4.16%), SBI (down 3.9%), Federal Bank (down 3.36%), PNB (down 2.63%) and IDFC First Bank (down 2.16%) slumped.
Bank of Baroda (BoB) dropped 5.01% to Rs 85.40. The bank's board has approved raising upto Rs 4500 crore from institutional investors through a qualified institutional placement (QIP). The board authorised opening the QIP issue on 25 February 2021. The floor price of the qualified institutional placement is fixed at Rs 85.98 per share. A meeting of the committee is scheduled on 2 March 2021 to consider the issue price.
Stocks in Spotlight:
Nava Bharat Ventures rose 2.98% to Rs 72.65 after the company said its board approved a proposal to buyback equity shares worth upto Rs 150 crore. The company proposes to buyback shares at maximum price of Rs 100 each.
Dilip Buildcon gained 1.96% after the company said it has been declared as lowest (L-1) bidder for two new projects aggregating to Rs 2241 crore in Tamil Nadu and Puducherry. Both the projects have completion period 24 months and operation period of 15 years.
Rain Industries slipped 0.63% after the company's consolidated net profit surged 164.7% to Rs 321.99 crore on 6.7% decrease in net sales at Rs 2,640.23 crore in Q4 December 2020 over Q4 December 2019. Consolidated adjusted EBITDA margin improved to 18.2% in Q4 FY21 as against 16% in Q4 FY20.
Aptech lost 3.07%. The company said that it has decided to exit its institutional (B2B) business. It currently operates in two business segments - retail and institutional. No buyer is identified as yet. The company will take the process forward once the evaluation is completed and suitable expression of interest is received. The company said it intends to complete the exercise within 12-16 weeks.
Mahindra Lifespace Developers rose 0.71%. The company has acquired 7.89 acres of land in Kanakpura Road, Bengaluru to develop a residential project. The project will offer approximately 5 lakh sq. ft. of carpet area. The launch of the project is planned for FY 2022. Kanakpura Road is a prominent residential hub in Bengaluru and one of the city's relatively greener areas.
South Indian Bank surged 10.56% to Rs 9.84. The bank's board has approved issuance of up to 28.30 crore shares to HDFC Life Insurance Company, Kotak Mahindra Life Insurance Company, SBI Life Insurance Company and ICICI Lombard General Insurance Company, at Rs 8.48 per share, aggregating to Rs 239 crore, on a preferential basis.
New Listing:
Shares of RailTel Corporation of India settled at Rs 121.40 on the BSE, a premium of 29.15% over the initial public offer (IPO) price of Rs 94.
The stock was listed at Rs 104.60, a premium of 11.28% to IPO price. The stock hit a high of Rs 125.50 and low of 104.60. On the BSE, 1.59 crore shares were traded on the counter.
The IPO of RailTel Corporation of India was subscribed 42.39 times. The issue opened for bidding on 16 February 2021 and closed on 18 February 2021. The price band for the IPO was set at Rs 93-94 per share.
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