Stock Market Live: Sensex opens flat, Nifty holds 14,900; FMCG stocks jump, banks drag
Stock Market Live: Indian Indices opened flat on Wednesday, tracking a decline in Asian peers as investors awaited the Federal Reserve’s meet. Investors remained cautious about whether the central bank will maintain near-zero interest rates amid the economy’s post-pandemic recovery. Gains in IT and FMCG stocks were capped by losses in the banking and metal sectors.
“The FOMC meet outcome expected today is likely to have an impact on markets. The Fed is likely to emphasize it’s highly accommodative stance and signal that inflation is not a concern. That will be positive. Any departure from this stance can be negative. The US 10 year yield, firm at around 1.62%, will deter equity bulls from going aggressive. The second wave of Covid cases in parts of the country, though not serious, is an area of concern. Issues relating to the Astra Zenaca vaccine in parts of Europe is another concern. FIIs turning buyers again is positive but that is negated by DII selling. In brief, investors have to be cautious”
Opening Bell: Sensex opens flat, Nifty holds 14,900; FMCG stocks jump, banks drag
Indian Indices opened flat on Wednesday, tracking a decline in Asian peers as investors awaited the Federal Reserve’s meet. Investors remained cautious about whether the central bank will maintain near-zero interest rates amid the economy’s post-pandemic recovery. At 9:18 am, the Sensex was down 22 points at 50,341 while the Nifty was up 5 points at 14,915. Gains in IT and FMCG stocks were capped by losses in the banking and metal sectors.
Getting positive reactions from the market; seeing strong demand continuing: Orient Electric
The Orient Electric stock had a great start in 2021 with a 33 percent gain so far. Motilal Oswal is positive on the stock. They have initiated coverage with a Rs 350 target. Rakesh Khanna, Managing Director and CEO of Orient Electric shared his views on the same. “Market has been behaving fairly positive for some time. Q3FY21 was good not only for us but for the entire industry and the FMCG sector has been doing well. Partly because of pent-up demand, partly because people have been staying more home,” he said. He sees fairly strong demand continuing till now. “To some extent, it will be a part of pent-up demand and to some extent, it will be a part of the change of behavior,” he mentioned.
Tepco shares slump 10% after regulator slams breaches at the nuclear station
Tokyo Electric Power (Tepco) shares dropped around 10% after Japan’s atomic regulator found safety breaches at the company’s Kashiwazaki Kariwa station and the industry minister said it will not be able to restart the plant soon. Tepco shares had surged in recent months on hopes it would be able to restart Kashiwazaki Kariwa, the world’s biggest nuclear station, after years of trying to convince regulators and local residents it had learned the lessons of the Fukushima disaster ten years ago. Regulators used their most serious evaluation – known as a red evaluation – of Tepco’s breaches that included failure to protect nuclear materials and security missteps that could have allowed unauthorized personnel access to sensitive areas of Kashiwazaki Kariwa.
RBI slaps Rs 2 crore fine on SBI for contravention of norms
The Reserve Bank of India (RBI) on Tuesday imposed a penalty of Rs 2 crore on State Bank of India (SBI) for contravention of norms, including specific directions to the lender on remuneration to its employees in the form of commission. The penalty has been imposed for contravention of certain sections of the Banking Regulation Act and its specific directions of RBI issued to the bank on payment of remuneration to employees in the form of commission, according to a release. It said the action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.
Kalyan Jewellers IPO subscribed 60% on day 1; retail portion booked 1.1 times
The initial public offering (IPO) of Kalyan Jewellers has been subscribed 60 percent so far on March 16 (Tuesday), the first day of the bidding process. The issue has received bids for 5.72 crore equity shares against the offer size of 9.57 crore shares, as per data available on exchanges. The reserved portion for retail investors was subscribed 1.1 times and that of non-institutional investors was subscribed 20 percent at end of day. Qualified institutional buyers have put in bids for over 1 lakh shares compared to the reserved portion of over 2.72 crore equity shares. The IPO comprises of issuance of fresh equity up to Rs 800 crore and an offer for sale (OFS) worth Rs 375 crore. The last day for subscribing to the issue is March 18.
First up, here is a quick catch up of what happened in the markets on Tuesday
Indian indices ended on a flat note but in the red on Tuesday as gains in IT and FMCG stocks were capped by losses in metals and banks. The Sensex ended 31 points lower at 50,363 while the Nifty fell 19 points to settle at 14,910. Broader markets, however, outperformed benchmarks with the midcap and smallcap indices up 0.3-0.4 percent each. On the Nifty50 index, Asian Paints, Dr Reddy’s, HUL, HCL Tech, and Bharti Airtel were the top gainers while Cipla, Tata Steel, ICICI Bank, BPCL and SBI led the losses. Among sectors, the Nifty IT index rose the most, up 1.3 percent followed by the FMCG index, which gained 1 percent. Meanwhile, Nifty Auto was also in the green for the day. However, losses in Nifty Bank and Nifty Metal down around 1 percent each capped the gains. Nifty Fin Services also lost 0.7 percent during the day.
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