Sensex Falls 627 Points, Nifty Ends Below 14,700; Banking Stocks Witness Selling
Closing

Indian share markets extended losses as the session progressed and ended 1.2% lower.

Benchmark indices ended the last trading session of the financial year 2020-21 (FY21) on a tepid note as profit-booking in banking and finance stocks outweighed buying in realty stocks.

Rising Covid-19 cases, rising bond yields and weak global cues dampened market sentiment in this holiday-shortened week.

After remaining closed on Monday for Holi, the stock market would remain closed on Friday for Good Friday.

At the closing bell, the BSE Sensex stood lower by 627 points (down 1.3%). Meanwhile, the NSE Nifty ended down by 154 points (down 1%).

Bajaj Finserv was among the top gainers today. HDFC and HDFC Bank, on the other hand, were among the top losers today.

SGX Nifty was trading at 14,760, down by 154 points, at the time of writing.

The BSE Mid cap index ended up by 0.1%. The BSE Small cap index ended higher by 0.5%.

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On the sectoral front, finance stocks, banking stocks and power stocks were among the hardest hit.

Realty stocks and consumer durable stocks, on the other hand, witnessed buying interest.

Shares of Galaxy Surfactants and Adani Gas hit their respective 52-week highs today.

SBI share price was in focus today after the lender said it is planning to revamp its entire operational setup for lending to micro, small and medium enterprises (MSMEs) with a view to improve turnaround time (TAT) and customer experience while keeping bad loans in check.

Asian share markets ended on a negative note today. The Nikkei ended lower by 0.9% while the Hang Seng ended down by 0.7%.

US stock futures are trading lower today indicating a weak opening for Wall Street indices with the Dow Futures trading down by 24 points (down 0.1%).

Gold prices for the latest contract on MCX are trading down by 0.1% at Rs 43,840 per 10 grams.

The rupee is trading at 73.11 against the US$.

Note that Indian stock markets registered their best financial year performance in a decade. The BSE Sensex and NSE Nifty rallied 68% and 70.8%, respectively in FY21.

Earlier during FY10, the BSE Sensex had surged 80.5%, while NSE Nifty had rallied 73.7%.

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Speaking of stock markets, in his latest video for Fast Profits Daily, Vijay Bhambwani explains why he is recommending caution in the market at this time.

In the video, Vijay shares his thoughts on why he believe you should temper your aggressive moves in the market.

Tune in to the video below to find out more:

In news from the banking sector, the government has announced it will put in Rs 145 billion in Central Bank of India, Indian Overseas Bank, Bank of India and UCO Bank by issuing non-interest bearing bonds to the state-owned lenders.

Recapitalisation bonds will be issued with six different maturities, and the special securities would be "at par" for the amount as per the application made by the eligible banks.

The step completes the government's capital infusion of Rs 200 billion in public sector banks (PSBs) for the current financial year. In December, it infused Rs 55 billion in Punjab and Sind Bank.

The interest cost for recapitalisation bonds issued by the government was Rs 162.9 billion in financial year 2019-20. This has been estimated at Rs 192.9 billion for the fiscal ending March 31.

To save interest burden on such bonds, the government last year decided to issue zero-coupon bonds for capital infusion of Rs 55 billion into Punjab and Sind Bank.

In other news from the banking sector, the Reserve Bank of India (RBI) today extended the timeline for processing recurring online transactions to September 30, 2021, from March 31, 2021.

To prevent any inconvenience to the customers, RBI said it has decided to extend the timeline for the stakeholders to migrate to the framework by six months.

RBI said, it is noted that the framework has not been fully implemented even after the extended timeline. This non-compliance is noted with serious concern and will be dealt with separately.

In August 2019, RBI had issued a framework for processing of e-mandates on recurring online transactions. Initially applicable to cards and wallets, the framework was extended in January 2020 to cover Unified Payments Interface (UPI) transactions as well.

We will keep you updated on the latest developments from this space. Stay tuned.

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Moving on to news from the FMCG sector, Tata Consumer Products was among the top buzzing stocks today.

Tata Consumer Products entered the NSE Nifty index today. It replaced PSU major GAIL (India). Meanwhile, AU Small Finance Bank replaced Bank of Baroda in the Nifty bank index.

Tata Consumer is the 5th Tata Group Company in NSE Nifty. TCS, Tata Motors, Tata Steel, Titan & Tata Consumer together now have 8.1% weight while HDFC Group companies have a total of 18.8% weightage in the NSE Nifty.

Reports state that the above rejig is expected to result in passive inflows of Rs 6.5 billion in Tata Consumer. Gail, on the other hand, could see outflows of Rs 4.1 billion.

Reports also state that the valuation of NSE Nifty will get cheaper as the index management had made a key change that will henceforth use consolidated earnings of NSE Nifty firms as against the current practice of considering standalone numbers.

Consolidated numbers include aggregated reporting of a firm's entire business, including subsidiaries. Only in cases wherein consolidated financials aren't available, standalone numbers will be considered.

Tata Consumer share price ended the day up by 1%.

Speaking of the FMCG sector, have a look at the chart below which shows the performance of BSE Sensex and BSE FMCG index since 2009:

While the Sensex has offered 393% returns since 2009, the BSE FMCG index has gone up a staggering 532% returns over the same period.

Richa Agarwal, lead Smallcap Analyst at Equitymaster, believes this outperformance could continue for many years.

With a rising population and standards of living, Indian's consumption demand for FMCG products will skyrocket over the coming years.

We are keeping a close eye on FMCG stocks and will keep you updated on all the news from this space. Stay tuned!

To know what's moving the Indian stock markets today, check out the most recent share market updates here.


Sensex Trades Over 400 Points Lower, Dow Futures Down by 18 Points
12:30 pm

Share markets in India are presently trading on a negative note.

The BSE Sensex is trading down by 464 points, down 0.9% at 49,672 levels.

Meanwhile, the NSE Nifty is trading down by 106 points.

UPL and Tata Motors are among the top gainers today. HDFC Bank and HDFC are among the top losers today.

The BSE Mid Cap index is trading up by 0.2%.

The BSE Small Cap index is trading up by 0.3%.

On the sectoral front, stocks from the real estate sector, are witnessing most of the buying interest.

On the other hand, stocks from the finance sector, are witnessing most of the selling pressure.

US stock futures are trading lower today, indicating a negative opening for Wall Street indices.

Nasdaq Futures are trading down 3 points (down 0.03%) while Dow Futures are trading down 18 points (down 0.1%)

The rupee is trading at 73.35 against the US$.

Gold prices are trading up by 0.2% at Rs 43,960 per 10 grams.

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In global markets, gold rates moved lower today after latest official data showed a pick-up in factory activity in China.

Tracking softer global rates, gold prices in domestic markets fell for fifth day today. On MCX, June gold futures fell 0.3% to near one-year low of Rs 44,300. In the previous session, gold had declined 0.5%.

To know more about gold, check out our article on how to invest in gold here: How to Invest in Gold?

Speaking of the stock markets, India's #1 trader, Vijay Bhambwani, talks about how the Nifty could move this year, in one of his latest videos for Fast Profits Daily.

Tune in here to find out more:

Moving on to stock specific news...

Among the buzzing stocks today is KNR Constructions.

KNR Constructions share price jumped over 3% in the morning session on March 31, 2021 after the company received a letter of acceptance (LoA) for a National Highway Authority of India (NHAI) project in Kerala.

The company got the letter of acceptance for the six-laning of the Ramanattukara Junction to start off the Valanchery bypass section of NH-66 (old NH-17) on hybrid annuity mode under Bharatmala Pariyojana in Kerala.

"We herewith intimate to the exchange that the company is in receipt of Letter of Acceptance for six-laning of the Ramanattukara Junction to start of the Valanchery bypass section (old NH-17) from Design Chainage 258+818 (Ex. km 27.840 of Kozhikode bypass) to Design Chainage 298+500 (Ex. km 304.250) on Hybrid Annuity Mode under Bharatmala Pariyojana in the state of Kerala," it said in an exchange filing.

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The project bid cost was Rs 23.6 billion and the company bid was Rs 21.2 billion, it added.

KNR Constructions is a multi-domain infrastructure development organization with more than two decades of experience and executes the construction of technically complex and high value projects across segments such as express ways, national highways, flyovers, bridges and viaducts.

How this pans out remains to be seen. Meanwhile, stay tuned for more updates from this space.

At the time of writing, shares of KNR Constructions were trading up by 3.7% on the BSE.

Moving on to news from the banking sector...

Digital Outage Hits HDFC Bank Customers Again

HDFC Bank on March 30, 2021 said that it was looking into resolving internet and mobile banking issues faced by some customers, according to a tweet by the bank. The bank's response came after some of its customers reported issues in accessing net banking and mobile banking services yet again.

HDFC Bank tweeted, "Some customers are facing intermittent issues accessing our net banking/mobile banking app. We are looking into it on priority for resolution. We apologize for the inconvenience and request you to try again after sometime. Thank you."

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The lender continues to face technical glitches, even as the Reserve Bank of India (RBI) is conducting a special audit of the bank's IT infrastructure. Last year in December, RBI had temporarily barred HDFC Bank from launching new digital banking initiatives and issuing new credit cards after taking a serious view of service outages at the lender over the last two years.

Later, the RBI had appointed an external IT firm for carrying out a special audit of its digital infrastructure. RBI governor Shaktikanta Das had said that the regulator had some concerns about certain deficiencies and it was necessary that HDFC Bank strengthens its IT system before expanding further.

We will keep you posted on updates from this space. Stay tuned.

Note that, HDFC Bank is one that has always adapted to changing times.

HDFC Bank wanted to transform itself from a leader in the physical banking to a leader in online banking. Since then, HDFC Bank has constantly focused on going digital.

In 2004, only 10% of customer transactions were initiated through internet and mobile. The number has gone up to 92% in 2019.

HDFC Bank's Digital Transformation

It is a great example of a company which has taken advantage of its scale and embraced disruption rather than fear it.

These are traits that one should look for in picking stocks. They not only withstand the disruption but also gain from it in the long-run.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.


Sensex Falls 450 Points Tracking Weak Global Cues; HDFC Bank & ICICI Bank Top Losers
09:30 am

Asian share markets are trading on a mixed note today as global financial shares retraced some of their recent losses, driven in part by higher bond yields, and investors awaited a closely watched Chinese factory activity survey.

The Nikkei is trading lower by 0.7% while the Hang Seng is trading down by 0.2%. The Shanghai Composite is down 0.6%.

In US stock markets, Wall Street indices ended down slightly overnight, with investors selling tech-related growth shares after US Treasury yields hit a 14-month high.

The Dow Jones Industrial Average fell 104 points, or 0.3% and the Nasdaq Composite dropped 14 points, or 0.1%.

Back home, Indian share markets have opened on a negative note, following the trend on SGX Nifty and amid weak signals from Asian markets.

The BSE Sensex is trading down by 445 points. Meanwhile, the NSE Nifty is trading lower by 116 points.

NTPC is among the top gainers today. HDFC Bank, on the other hand, is among the top losers today.

The BSE Mid Cap index has opened up by 0.1%. The BSE Small Cap index is trading higher by 0.3%.

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Sectoral indices are trading on a mixed note with stocks in the FMCG sector witnessing buying interest.

Banking stocks, IT stocks and finance stocks, on the other hand, are trading in red.

Shares of APL Apollo Tubes and Prism Johnson hit their 52-week highs today.

The rupee is trading at 73.48 against the US$.

Gold prices are trading down by 0.1% at Rs 43,870 per 10 grams.

The dollar rose to a fresh one-year high versus the yen and traded near multi-month peaks with other rivals as investors bet that massive fiscal stimulus and aggressive vaccinations will help the US lead a global pandemic recovery.

Speaking of stock markets, in his latest video for Fast Profits Daily, Vijay Bhambwani explains why he is recommending caution in the market at this time.

In the video, Vijay shares his thoughts on why he believe you should temper your aggressive moves in the market.

Tune in to the video below to find out more:

In news from the power sector, NHPC is among the top buzzing stocks today.

NHPC, a Miniratna Power PSU on Tuesday said that the Ministry of Power, Government of India has conveyed approval of President of India on 30th March 2021, for investment of Rs 9.4 billion for acquisition of M/s Jal Power Corporation and construction of balance works of 120 MW Rangit-IV Hydro Electric Project located on river Rangit, in West Sikkim district of Sikkim, by NHPC Limited.

The above includes Rs 1.7 billion to be paid by NHPC for acquisition of M/s. JPCL through Corporate Insolvency Resolution Process (CIRP).

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Shares of NHPC rallied as much as 8% yesterday on the back of above news.

NCLT has already approved the resolution plan submitted by NHPC. The National Company Law Tribunal (NCLT), Hyderabad Bench had approved NHPC's resolution plan for taking over the Jal Power Corporation (JPCL) recently.

NHPC had submitted its resolution plan and was declared the successful resolution applicant by the Committee of Creditors (CoC) on 24 January 2020.

NHPC will make upfront payment of Rs 1.7 billion and cost of the project is considered as Rs 9.4 billion.

NHPC share price has opened the day down by 0.2%.

Speaking of the power sector, it is interesting to note that the power exchanged in India is about 4.5% of the overall power production, as can be seen in the chart below:

As per Tanushree Banerjee, India's power sector is currently in transition. It is driven by increasing reliance on short-term contracts and electricity spot markets. This transition to the short-term market is happening due to quickly evolving industry dynamics.

Tanushree believes the Indian power sector will see a surge in spot power volumes due to certain factors.

In August 2020, Tanushree recommended a high quality stock from this space. Subscribers can read the report here (requires subscription).

And if you are not a StockSelect subscriber, here's where you can sign up.

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Moving on to news from cement sector, UltraTech Cement on Tuesday said it has prepaid its long-term loans of Rs 50 billion.

The loan repayment has been done through free cash flows that the company has generated over the last few quarters despite the pandemic, the Aditya Birla Group firm said in a statement.

This is in line with the company's endeavour to maintain optimal capital structure, it added.

However, the company did not share the deadline by which the long-term loans were to be prepaid.

"The loan repayments have been done through free cash flows that the company has generated over the last few quarters despite the challenging circumstances and severe business interruptions during the first quarter of the current fiscal year," it added.

The company reported a revenue of Rs 406.5 billion in 2019-20 and is the largest manufacturer of grey cement, ready mix concrete (RMC) and white cement in India.

UltraTech Cement is also the third-largest cement producer in the world, excluding China, with a consolidated capacity of 116.8 million tonne per annum (MTPA).

UltraTech Cement share price has opened the day up by 0.1%.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.


SGX Nifty Trades Lower, 5 Factors Why Stock Markets Surged, Nazara Technologies Listing, and Buzzing Stocks Today
Pre-Open

Indian share markets witnessed positive trading activity throughout the day yesterday and ended on a strong note.

Benchmark indices witnessed sharp gains with Sensex touching an intraday high of 50,172 and Nifty rising above 14,850-levels.

At the closing bell yesterday, the BSE Sensex stood higher by 1,128 points (up 2.3%).

Meanwhile, the NSE Nifty closed higher by 337 points (up 2.3%).

UPL and JSW Steel were among the top gainers.

Hindalco and Axis Bank, on the other hand, were among the top losers.

The BSE Mid Cap index and the BSE Small Cap index ended up by 1% and 1.3%, respectively.

On the sectoral front, gains were largely seen in the metal sector, IT sector and healthcare sector.

At 8:10 am today, the SGX Nifty was trading down by 68 points, or 0.5% lower at 14,860 levels. Indian share markets are headed for a negative opening today following the negative trend on SGX Nifty.

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Gold prices for the latest contract on MCX were trading up by 1.4% at Rs 44,178 per 10 grams at the time of closing stock market hours yesterday.

Speaking of the stock markets, India's #1 trader, Vijay Bhambwani, talks about how the Nifty could move this year, in one of his latest videos for Fast Profits Daily.

Tune in here to find out more:

Top 5 Factors Why the Stock Markets Were Up Yesterday

US Fed Maintains Dovish Stance: The Federal Reserve is "a long way from raising interest rates at this point", Governor Christopher Waller said on Monday, reinforcing hopes that the central bank is ready to remain dovish as long as coronavirus woes linger.

Mutual Fund Buying Hopes: Market participants are of the belief that in the remaining couple of days of the current fiscal year, mutual fund managers will step up their stock buying to make sure the net asset value (NAVs) of their respective funds end on a higher note and this is fueling optimism in the stock markets.

Positive Global Cues: Major global markets rose yesterday and the positive sentiment spilled to the Indian bourses too.

Asian share markets ended higher yesterday with the Shanghai Composite closing up by 0.6%, while the Nikkei ended up by 0.16%. The Hang Seng ended higher by 0.8%.

Positive Macro Data in the US: Better than expected US GDP data and a decline in the unemployment claims reported last week have boosted stock market sentiments.

The number of Americans filing new claims for unemployment benefits dropped to a one-year low last week as economic activity rebounds after weather-related disruptions in February.

Gross domestic product increased at a 4.3% annualized rate, the Commerce Department said in its third estimate of fourth-quarter GDP growth.

Sectoral Gains: Market participants bought shares across the board with metal, healthcare and IT - all indices witnessing strong gains yesterday.

We will keep you updated on how these factors develop in the coming days and what effect they have on Indian stock markets. Stay tuned!

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Top Stocks in Focus Today

Among the buzzing stocks today will be Adani Transmission.

Shares of Adani Transmission (ATL) hit a new high of Rs 924.4 yesterday as they rallied 6% on the BSE in intra-day trade on the acquisition of Warora-Kurnool Transmission (WKTL) from Essel Infraprojects.

The company said the acquisition was done at an enterprise valuation of Rs 337 billion.

As per the agreement, WKTL will develop, operate, and maintain transmission lines aggregating to around 1,750 circuit kilometres (ckt km). The two significant 765 kV inter-state transmission lines link Warora to Warangal and Chilakaluripeta to Kurnool via Hyderabad, with a new 765/400 kV sub-station at Warangal, and will be built and operated as a part of the agreement.

Dr Reddy's Laboratories will also be among the top buzzing stocks today.

As per an article in The Economic Times, pharma major Dr Reddy's Laboratories expects the Russian coronavirus vaccine Sputnik V to get approval from the Indian regulator in the next few week.

"We expect to get the approval in the next few weeks. It is a two dose vaccine. You take the first dose on day zero and the second one on day 21. The peak immunity develops somewhere between day 28 to day 42," Deepak Sapra, the company's CEO, APIs and Services, said.

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Nazara Technologies Shares List at Over 80% Premium Over Issue Price

Nazara Technologies made a bumper market debut yesterday, as the shares listed at Rs 1,990 on the NSE, an 80.7% premium over the issue price of Rs 1,101. On BSE, the scrip got listed at Rs 1,971, a 79% premium.

The stock made a high of Rs 2,024.90 apiece, gaining almost 84% intraday over the issue price. However, the stock soon succumbed to selling pressure on account of profit booking and hit 20% lower circuit to Rs 1,592.00 on the NSE.

Nazara has become the first gaming company to list in India. The 10.8% stake ace investor Rakesh Jhunjhunwala holds in the company was worth Rs 6.6 billion at listing. In valuation terms, it has become his sixth largest stock bet.

Jhunhunwala did not participate in the offer for sale. He is believed to be sitting on huge gains on his mobile gaming investment. He had invested Rs 1.8 billion in the gaming firm in 2008.

The much-followed Rs 5.8 billion initial public offer (IPO), shares under which were sold between March 17, 2021, and March 19, 2021, was a big hit among investors.

The IPO received a whopping subscription of 176 times, which was the third biggest for an IPO with an issue size of over Rs 2 billion.

High Networth Individuals (HNIs) lapped up the issue, bidding for 390 times their quota limit. The portion reserved for qualified institutional bidders (QIB) was subscribed 104 times, and that for retail investors 75 times.

How the stock of Nazara performs in the coming time remains to be seen. Meanwhile, we will keep you updated on all the developments from this space.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.