March 21, 2022 05:50 PM
The Indian stocks indices ended March 21 in the red amid volatility. The Sensex fell 571.44 points, or 0.99%, to 57,292.49 and the Nifty was down 169.40 points, or 0.98%, at 17,117.60.
Sectorally, only the Nifty Metal and Media indices ended in the green, inching up 1.3 per cent and 0.3 per cent, respectively. The top laggards were the Nifty FMCG index, down 2 per cent, and the Nifty PSU Bank index, down 1.5 per cent.
COALINDIA, HINDALCO, UPL, ONGC, HDFCBANK were the major Nifty Gainers,
BRITANNIA, GRASIM, TATACONSUM, SHREECEM, SBILIFE were the Losers.
Here are four factors pulling the market down:
Russian forces continue to advance on Kyiv, the capital of Ukraine, and were aggressively shelling cities in the face of strong resistance from Ukrainians and their military force, indicating the war was unlikely to end soon. The peace talks between the two sides have made little headway.
Asian stocks markets traded mixed, as participants closely monitored the Ukraine-Russia war. Hong Kong’s Hang Seng and South Korea’s Kospi were down 0.89 percent and 0.77 percent respectively, while Japan’s Nikkei gained 0.65 percent.
European markets also traded mixed with France’s CAC and Britain’s FTSE rising a third of a percent higher, while Germany’s DAX was moderately lower.
Crude oil prices gained strength again due to fear of tight supply after talks between Ukraine and Russia officials failed to make progress. Hopes of China’s Covid situation being less fearful than expected also supported prices.
International benchmark Brent crude futures have remained volatile since after seeing a correction of around 20-odd percent from March highs. Brent was trading at $112.3 a barrel, up 4 percent over March 19 close.
The volatility in prices and oil above $100 is a risk for importers, including India.
In India, the price of diesel for bulk-users has been hiked by about Rs 25 a litre in line with a near 40 percent rise in international oil prices. Retail rates at petrol pumps remain unchanged.
Major selling pressure was seen in banking & financials, FMCG and IT stocks, partly due to profit booking as these stocks have rallied sharply in previous weeks.
The Nifty Bank, financial services and FMCG indices declined a percent each, while IT index was down seven-tenth of a percent.
However, metal bucked the trend, rising 1.5 percent.
Here are the Gainers & Losers:
Maruti Suzuki: CMP: Rs 7,672: The share price ended in the red in line with market sentiment after jumping more than 3 percent in the morning session on March 21. Japan’s Suzuki plans to invest $1.4 billion for EVs at its India factory.
Suzuki Motor holds majority stake in the Indian auto major Maruti Suzuki. Suzuki Motor Gujarat Private will invest Rs 31 billion by 2025 to increase production capacity for battery EV manufacturing and Rs 73 billion for construction of plant vehicle batteries, the company said.
Jubilant Pharmova: CMP: Rs 450.65: The stocks jumped over 10 percent after the company received approval from the US drug regulator for the manufacturing of the generic version of Sinequan that treats depression.
Jubilant Pharma, through its subsidiary Jubilant Cadista Pharmaceuticals Inc, has received the final approval for the abbreviated new drug application (ANDA) doxepin hydrochloride capsules, according to a filing with the BSE by the biopharmaceutical company on March 17.
SMS Pharmaceuticals: CMP: Rs 107: The scrip gained over 11 percent after the company received non-exclusive licence to manufacture and supply of nirmatrelvir through the Medicine Patent Pool (MPP).
Nirmatrelvir, an oral anti-viral COVID-19 drug, has been developed by Pfizer to broaden access to treatment in 95 low and middle-income countries, SMS Pharma told exchanges.
Godrej Properties: CMP: Rs 1,609: The stocks price ended in the green, outperfoming the real estate sector that ended over a percent in the red.
The company achieved sales worth Rs 1,002 crore in FY22 for its township project Riverhills in Mahalunge, Pune. Godrej Properties has sold more than 1,550 homes, accounting for over 1.5 million square feet, in the current financial year for this township project.
Dodla Dairy: CMP: Rs 530: The stocks price surged 16 percent following its acquisition of Sri Krishna Milks stocks. The Hyderabad-based dairy company said it has acquired Karnataka-based Sri Krishna Milks for Rs 50 crore to expand its business.
Dodla Dairy said the company executed an agreement with Sri Krishna Milks Pvt Ltd for the acquisition of a business as a “going concern” and on a slump purchase basis for consideration of Rs 50 crore, according to a BSE filing.