Sensex, Nifty50 end lower dragged down by metal, PSU banks, realty

• Except FMCG and media, all the sectoral indices closed in the red on Monday, with metal and realty indices declining the most.
• This sentiment also mirrored in the Nifty50 index where 40 out of the 50 stocks closed in the red.
• Bajaj Finserv, Adani Enterprises, Bajaj Finance, Tata Steel Hindalco Industries and Wipro were among top losers in the 50-stock index.
• Sensex closed 360 points or 0.62% lower at 57,628 while Nifty50 ended 111 points or 0.65% lower at 16,988.

India’s benchmark indices Sensex and Nifty50 closed lower on Monday dragged by losses in shares of metals, PSU bank and realty sectors amid negative global sentiments.

Except FMCG and media, all the sectoral indices closed in the red on Monday, with metal and realty indices declining the most. This sentiment also mirrored in the Nifty50 index where 40 out of the 50 stocks closed in the red.

Bajaj Finserv, Adani Enterprises, Bajaj Finance, Tata Steel Hindalco Industries and Wipro were among top losers in the 50-stock index.

Sensex closed 360 points or 0.62% lower at 57,628 while Nifty50 ended 111 points or 0.65% lower at 16,988.

“The fear of contagion of the financial crisis has kept investors away from the equity markets as the global market faces numerous hurdles. Despite Swiss regulators' intervention to protect the global financial system, investor sentiment remained shaky,” said Vinod Nair, head of research at Geojit Financial Services.

Further, the market is eyeing the upcoming US Fed meeting starting on March 21 to 22. The rate hike decision will be announced on March 22. Comments around the interest rates, banking crisis and the economic situation will be watched closely.

“The market is now awaiting the outcome of the Fed meeting to see how they will respond to the ongoing crisis, particularly in terms of rate hikes. Investors expect the central bank to raise interest rates by 0–25 basis points,” said Nair.

Top gainer and losers on Nifty50
Source: NSE, March 20, 2023

Adani Enterprises was the top loser on the Nifty50 index amid reports of Adani Group suspending work on the ₹34,900 crore petrochemicals project at Mundra in Gujarat.

Tata Consumer Products’ stock was down 1.35% as the Kolkata based FMCG wing of the Tata Group, informed exchanges that it has ceased negotiations with Bisleri for a potential stake in the company. Last November, an ET report said that Bisleri was planning to divest the company and was in talk with Tata Consumer Products for an estimated buyout of ₹6,000-7,000 crore.

Concerns of a contagion in the financial markets continued to play on investors’ minds, despite UBS agreeing to acquire the beleaguered Credit Suisse. Crude oil prices continued to slump, with Brent crude falling 1.78% on Monday to $71.58 per barrel.

Besides, today was the first day to subscribe to the IPO of Udayshivkumar Infra, which has a price band of ₹33-35 per share. The issue will conclude on March 23 and has been subscribed 48% on the first day as of 4:07 pm.

US markets slump, Asian markets down

Markets in the US slumped in Friday trade amid concerns about the health of the country’s banking system. While Dow Jones fell 1.19%, S&P 500 fell 1.1%. The tech-heavy Nasdaq ended lower by 0.74%.

Asian markets also ended in the red on Monday with Hang Seng losing 2.57%, Nikkei 225 down 1.42%, Shanghai Composite down 0.48% and Taiwan Weighted was falling 0.21%.

SEE ALSO:
Udayshivakumar Infra IPO to open on March 20; grey market premium at ₹7 a share
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