Nifty50: 16,498▼ 107 (-0.6%)
Sensex: 55,102▼ 366 (-0.6%)
- The markets opened with a gap-up but failed to sustain the opening momentum and drifted downwards throughout the day.
- In all, 32 stocks of the Nifty50 pack ended in the red.
- FIIs were net sellers to the tune of nearly ₹45,700 crore in the month of February. Brent crude touched the $116 per barrel mark and the rupee slightly depreciated to ₹76.45 a dollar.
Among the Nifty sectoral indices, IT (+1.2%) and Metal (+1.2%) were the top gainers, while Auto (-2.2%) and Bank (-1.2%) were the top losers.
| Top gainers | Today's change |
| ONGC | ▲ 4.6% |
| UPL | ▲ 4.4% |
| Power Grid | ▲ 2.8% |
| Top losers | Today's change |
| UltraTech Cement | ▼ 6.7% |
| Asian Paints | ▼ 5.1% |
| HDFC Life | ▼ 5.0% |
For more updates on F&O, click here.
Here are the top stories of the day.
Steel players to benefit from surge in prices
Amid the Russia-Ukraine conflict, steel prices in Europe have shot up by 10% in the last two days. Russia is a major exporter of steel in the global markets. With Japanese and Korean mills not having meaningful steel exports, it presents an opportunity to Indian players in the steel industry with a lot of inquiries and orders coming from Europe as well as America, reportedly.
Reportedly, 50% of the input (raw material) costs for the steel industry is towards energy. Coking coal and natural gas prices have risen in the last two weeks which may prompt companies to hike prices to combat input cost pressures.
High crude prices turn sweet for sugar makers
With Brent crude touching $116 per barrel and a steep hike in domestic fuel prices looking imminent, sugar makers find themselves in a sweet spot as ethanol blending may get a boost. At present, the country is dependent on oil imports to meet more than 80% of its oil demands. Ethanol, which is primarily obtained from sugarcane, is a fuel produced by processing organic matter.
According to the Indian Sugar Mills Association (ISMA), the country currently has the capacity to produce 722 crore litres of ethanol a year, which can be increased to 1,500 crore litres a year by 2025. Blending ethanol with fuel can reduce dependence on costly oil imports and provide farmers with additional income.
High costs hit two-wheeler demand
Sales of entry-level vehicles, which reportedly constitute around 75% of the total retail sales, remained in the slow lane as high ownership costs, particularly fuel prices, dented demand. In the month of February, domestic sales of Bajaj Auto and Hero MotoCorp declined 35% and 32% year-on-year, respectively.
TVS Motor also reported a 11% year-on-year decline in domestic sales. As the semiconductor shortage continues to hamper production, analysts are hopeful that the upcoming wedding season and reopening of educational institutions can revive demand in the months ahead.
IPO Corner
Amid the market volatility sparked by the Russia-Ukraine conflict, the LIC IPO may get pushed to the next fiscal. As per media reports, a review meeting of the LIC listing will be held this week. The IPO of LIC is expected to be one of the largest public offerings by an Indian company. It is important to note that the government has been planning to launch the IPO this month.
Good to know
What is a circuit breaker?
A circuit breaker is the band of the upper and lower limit within which an index or stock can move in a trading session. It is decided by the stock market regulator SEBI based on the previous day’s closing of the index or stock. It is a regulatory mechanism to temporarily halt trading on an exchange to curb panic selling and protect investors from extreme price fluctuations. For instance, on 23 March 2020, the Sensex fell by 10% triggering the lower circuit, and trading was halted by 45 minutes.
Click here to join us on Telegram for trading and investment-related videos, daily market updates, details on upcoming IPOs and more.
We'd love your thoughts on this market recap.
Haven't tried out Upstox yet? Click here to open your account now!