Sensex, Nifty Log Second Worst Day Since March 2020 Amid Russia-Ukraine Crisis

India's stock benchmarks logged their second worst day since March 2020, the month when the country imposed Covid restrictions, due to escalation of geopolitical crisis in Ukraine.

The S&P BSE Sensex and NSE Nifty 50 tumbled nearly 5% after Russia launched a barrage of missile, air and artillery attacks on Ukraine, starting from the eastern separatist-led regions of Donetsk and Luhansk.

Today's decline marked the seventh consecutive session in which the Sensex and Nifty closed with losses. This is the longest losing streak for the two measures since the outbreak of the Covid-19 pandemic. The last time, Sensex and Nifty fell for seven consecutive sessions was on Feb. 2020.

Over the past seven sessions, the Sensex lost over 3,600 points. Both the gauges shed over 6% since Feb. 16.

Today, Sensex fell 4.72% to 54,529.91. The NSE Nifty 50 also closed with losses of similar magnitude at 16,247.95. The move was the biggest since falling 5.7% on May 4, 2020. Tata Motors Ltd. had the largest drop, falling 10.3%. Today, all 50 shares fell.

The broader indices underperformed their larger peers with both the S&P BSE MidCap and S&P BSE SmallCap losing over 5.5%. All the 19 sectoral indices compiled by BSE Ltd. declined with S&P BSE Realty falling 7.27% and S&P BSE Telecom and S&P BSE Auto tumbling over 6%.

The market breadth was skewed in the favour of bears. About 232 stocks advanced, 3,160 declined and 86 remained unchanged.

"Nifty has broken significant support level 16,600 and witnessed significant selling pressure in line with global markets. We believe volatility will remain elevated on account of an external shock and expect March series to witness further negative bias", Sahaj Agrawal, Head of Research - Derivatives at Kotak Securities wrote in a note. "Though the bias is negative, We await derivatives data to establish objective levels before taking a strong positional stance from here on. Investors can use further deep corrections to buy/average and traders to define risk in uncertain times".

No concern over oil supply, but prices remain a worry, an official from Oil Ministry told reporters.

• India is in constant discussions with U.S., others over oil prices.

• India is closely monitoring Russia-Ukraine situation

Source: Bloomberg

Saregama India approved sub-division of one equity share of the company having face value of Rs 10 each to 10 equity shares of face value of Rs 1 each.

• The share split is intended to improve the liquidity of the company's shares in the market.

• The share split is expected to be completed within two months from approval of shareholders.

Source: Exchange Filing

• Zydus group has changed its listed group company's name from Cadila Healthcare to Zydus Lifesciences.

• The company tweaks its logo and adds that the new brand identity represents its inclusiveness.

Source: Exchange Filing

Hindustan Unilever announced plans to separate the roles of chairman and CEO as Unilever Plc's India unit seeks to boost governance standards

• Nitin Paranjpe, currently the Chief Operating Officer, will take over as Non-Executive Chairman.

• Sanjiv Mehta will continue as the Chief Executive and Managing Director.

• The change will be effective from March 31.

Source: Exchange Filing

• Ukraine’s central bank has limited cash withdrawals for citizens to 1,00,000 Hryvnias a day.

• The central bank also suspended foreign exchange market trading.

Source: Bloomberg

India's stock benchmarks tumbled, as the escalation of Russia-Ukraine geopolitical tensions triggered a steep decline in global equities. The S&P BSE Sensex and NSE Nifty 50 fell the most in over 10 months.

The Sensex fell 3% to 55,501.38. The 30-stock gauge shed 2,100 points to an intraday low of 55,147.73. The NSE Nifty 50 also declined by similar magnitude to 16,541.20.

The broader indices underperformed their larger peers with the S&P BSE MidCap and S&P BSE SmallCap shedding 4%. All the 19 sectoral indices compiled by BSE Ltd. declined with S&P BSE Telecom and S&P BSE Realty losing 5%.

The market breadth was skewed in the favour of bears. About 239 stocks advanced, 3,041 declined and 88 remained unchanged.

• Moscow Exchange to resume trading at 10:00 a.m. local time.

• Opening auctions start at 9:50 a.m.

Source: Moscow Exchange website

• UCO Bank down most in 10 months

• Yes Bank down most in five months

• IDFC First Bank fell the most in 10 months

• Indian Overseas Bank fell the most in 17 weeks

• Sun TV down most in 10 months

• Steel Authority of India falls most in five months

• Adani Ports falls most in three months

• Apollo Tyres falls most in 10 months

Source: Bloomberg

Bharat Forge entered into a definitive agreement to acquire JS Autocast Foundry Private Ltd.

• JS Auto is a supplier of critical machined Ductile iron castings for wind, hydraulic, off-highway and automotive applications.

• The company registered sale of Rs 259 crore in FY21.

• The stock fell over 6.4%, the steepest intraday decline in over two months.

• Trading volume on the stock was thrice the 30-day average volume at this time of the day.

Source: Exchange Filing, Bloomberg

A second evacuation flight operated by Air India to Ukraine is turning back after the country shut down its airspace, a representative of Tata-owned airline said.

• Air India's first flight brought back Indian passengers from Ukraine Tuesday night.

Source: Bloomberg

• Ukraine military says five Russian planes and a Russian helicopter were shot down in Luhansk region.

Source: Reuters

• Shares of Indraprastha Gas Ltd. fell nearly 6%, the steepest intraday decline in a month.

• The relative strength index on the stock is at 18, suggesting it may be oversold.

• It is the worst performing stock in the S&P BSE Energy index.

Source: Bloomberg

Maturities across the India sovereign yield curve were little changed in Thursday morning trading.

• The 1-year yield remained unchanged at 4.595%

• The 10-year yield rose 1.7bps to 6.756%

• The 30-year yield rose 0.5bps to 7.127%

• The 1-year-10-year yield spread was 216.1bps, vs previous close 214.4bps

• The NSE Nifty 50 Index fell 2.8%

Source: Bloomberg

• Zelensky says Russia is shelling airports, military sites.

• Intense shelling on troops in East Ukraine.

• Ukraine Defence Ministry says the army is repelling the attack.

Source: Bloomberg

• Bharti Airtel has acquired 10% stake in Aqilliz, a Blockchain as a Service company under the Airtel Startup Accelerator Program.

• Singapore-based Aqilliz developed a patented hybrid blockchain platform, Atom.

• Atom helps brands create secure, consent-based digital solutions.

• Deal value was not disclosed. The deal is expected to close by Aug. 31.

Source: Exchange Filing

• Moscow Exchange suspends trading across all markets.

Source: Bloomberg

Shares of Dr. Reddy's Laboratories fell the most in nearly two weeks to a 52-week low of Rs 4,049.95. Trading volume was nearly twice the 30-day average volume at this time of the day.

• The decline comes as the company has strong presence in Russia.

• Russia accounts for about 10% of the company's revenue.

• DRL partnered with Russian Direct Investment Fund (RDIF) for the development of Sputnik V vaccine.

Source: Bloomberg

Shares of Federal-Mogul Goetze India rose 9% after the company entered into a merger agreement with Pegasus Holdings.

• Trading volume is 36 times the 30-day average volume at this time of the day.

• Share price rose to the highest level in over three months.

• Federal-Mogul Goetze India is the best performer on S&P BSE SmallCap index

Source: Bloomberg, Exchange Filing

• Ukraine urges citizens to hide in shelters.

• Explosions heard in Ukraine's capital Kyiv and the eastern port city of Mariupol.

Source: AFP, Bloomberg

• The consequences for the Russian Federations will be meaningful: UN Secretary General

• The Security Council has the powers given by the charter to get Russia on the table: UN Secretary General

Situation in eastern Ukraine is in danger of spiralling into a major crisis, says India's Permanent Representative To The United Nations Ambassador TS Tirumurti at the UN Security Council meeting on Ukraine Crisis

• Call for immediate de-escalation, restraint from any further action that could worsen situation

• Underline that legitimate security interests of all parties should be fully taken into account

• Over 20,000 Indian nationals, including students, are located in different parts of Ukraine, says India's Permanent Representative Ambassador TS Tirumurti at the UN Security Council meeting on Ukraine Crisis.

• Facilitating the return of all Indian nationals, including students, in Ukraine, as may be required

Source: United Nations Security Council meeting

Indus Towers has 2.36% equity (63.7 million shares) change hands in a large trade.

Details of buyers and sellers are not immediately known.

• In an exchange filing by Indus Towers, Vodafone Group Plc launched a placing of 63.6 million primary shares of Indus through an accelerated book build offering, aggregating to 2.4% of Indus Towers' outstanding share capital.

• Vodafone is also in discussions with one of the largest shareholders of Indus for purchase of 127.1 million Indus shares (4.7% of outstanding share capital) from Vodafone. The terms of the agreement are being finalised.

Source: Exchange Filing, Bloomberg

• Zee Entertainment: Ambit Capital initiated coverage of the stock with a 'buy' recommendation; price target set at Rs 350.

• TTK Prestige raised to 'buy' from 'add' at ICICI Securities; price target set at Rs 1,050.

Source: Bloomberg

India's stock benchmarks declined, amid escalation in Russia-Ukraine tension after Vladimir Putin decided to conduct special operation to "protect" the Donbas region in eastern Ukraine. Oil and gold prices jumped as investors shifted to safe haven assets.

The S&P BSE Sensex fell over 1,300 points (2.3%) at 55,907.64. The NSE Nifty shed 400 points to 16,672.65.

The broader markets almost mirrored their larger peers. All the 19 sectoral indices compiled by BSE Ltd. declined with S&P BSE Telecom and Realty losing over 3%.

The market breadth was skewed in the favour of bears. About 275 stocks advanced, 2,387 declined and 77 remained unchanged.

• U.S. President Joe Biden says Putin has chosen a premeditated war that will bring a catastrophic loss of life and human suffering.

• Russia alone is responsible for the death & destruction this attack will bring.

• The US & its allies will respond in a united & decisive way.

• The world will hold Russia accountable.

Source: ANI

• Mindtree raised to 'hold' from 'sell' at Investec; price target set at Rs 4,020.

Source: Bloomberg

• SGX Nifty 50 Index futures for February deliver fell about 2.7% after a report from the TASS news organization said that Russia has decided to conduct a special operation in Ukraine.

Source: Bloomberg

• Russia initiates ‘military operation’ in Ukraine.

• Putin calls on the Ukraine military to 'lay down its arms'.

• Putin vows retaliation against those who interfere with Russian Ukraine operation

Source: AFP

India’s green energy-related stocks may react after Reliance Industries Chairman Mukesh Ambani says the South Asian country has potential to become a large exporter of such clean resources in 20 years.

• Ambani reiterated that producing green hydrogen at $1/kg is not an impossible goal for Reliance

• In Focus: Reliance Industries and Adani Enterprises, which have already announced plans for transitions to green energy

• Also watch: L&T, ABB India, Hitachi Energy, Gail India, NTPC, Adani Green, Linde India, Bharat Petroleum

Source: Bloomberg

Indian bond traders are expected to parse comments by a central bank official suggesting domestic inflation has peaked, and a pledge that the monetary authority will continue to support growth.

• “Inflation is a case of statistical effects in India,” Reserve Bank of India Deputy Governor Michael Patra said Wednesday. “If you look at the momentum, it is actually declining”.

• Traders are also awaiting minutes of the RBI’s February meeting, where the central bank surprised markets with dovish inflation projections.

• USD/INR fell 0.4% to 74.5663 on Wednesday

• 10-year yields fell 1bp to 6.74% on Wednesday

• Global funds sold a net Rs 3,420 crore of Indian stocks Wednesday: NSE

• They sold Rs 160 crore of sovereign bonds under limits available to foreign investors, and withdrew Rs 67 crore of corporate debt

• State-run banks sold Rs 615 crore of sovereign bonds on Feb. 23: CCIL data. Foreign banks sold Rs 1,450 crore of bonds

Source: Bloomberg

Stocks with exposure to Russia and Ukraine drop after the Kremlin said separatist leaders in eastern Ukraine appealed to Russian President Vladimir Putin for help fighting Ukrainian forces

• The two self-proclaimed republics sought “help in repelling the military aggression of the Kyiv regime,” according to texts published by state-run Tass

• Such a move could open the way for Moscow to deploy troops there

• In Focus: Dr. Reddy's Laboratories, CCL Products, Reliance Industries

Source: Bloomberg

• BofA Global Research cuts the recommendation on Infosys Ltd. ADRs to 'neutral' from 'buy'.

Source: Bloomberg

• Vodafone Idea: Vodafone Group Plc. is in talks to sell around a 5% stake in Indus Towers Ltd. to Bharti Airtel Ltd., PTI reported. The deal is expected to be valued at more than Rs 3,300 crore, and the proceeds will be pumped into the Indian entity Vodafone Idea Ltd.

• Info Edge (India): The company has received the NCLT approval for amalgamation of wholly owned subsidiary High Orbit Careers.

• Power Grid: The company will transfer 26% residual equity shareholding in Power Grid Vizag Transmission and relinquish its right on additional revenue accruing to PowerGrid Parli Transmission Power Grid Warora Transmission and PowerGrid Jabalpur Transmission under change in law to PGInvIT against upfront consideration.

• Vedanta: The Anil Agarwal-led miner will consider declaration of third interim dividend on March 2.

• SKF: CFO Anurag Bhagania has resigned.

• Federal-Mogul Goetze: Tenneco Inc, company’s holding company, has entered a merger agreement with Pegasus Merger, a wholly owned subsidiary of Pegasus Holdings.

Sanofi India Q3FY22 (YoY)

• Revenue down 4% at Rs 687.9 crore Vs Rs 720.3 crore

• Net profit down 27% at Rs 90.4 crore Vs Rs 123 crore

• Ebitda down 24% at Rs 127.20 crore Vs Rs 167 crore

• Margin 18.5% Vs 23.2%

• Declared dividend of Rs 490 per share on the back of divestments and strong domestic growth.