Sensex, Nifty extend losses; breadth weak

28 Mar 2022 , 10:40 AM

The benchmark indices were trading with modest losses in morning trade, dragged by banks and IT scrips. The Nifty was trading below its 200-day simple moving average placed at 17,042.74.

At 10:30 IST, the barometer index, the S&P BSE Sensex dropped 447.26 points or 0.78% at 56,914.94. The Nifty 50 index lost 115.65 points or 0.67% at 17,037.35.

The S&P BSE Mid-Cap index fell 0.77%. The S&P BSE Small-Cap index slipped 0.88%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, shares 1,016 rose and 2,195 shares fell. A total of 143 shares were unchanged.

Foreign institutional investors (FIIs) have net sold shares worth Rs 1,507.37 crore, while domestic institutional investors (DIIs) have net bought shares worth Rs 1,373.02 crore on 25 March 2022, as per provisional data on the NSE.

Overseas investors have pulled out a net Rs 1,14,855.97 crore from the Indian markets in the current year so far, amid heightened geopolitical tensions and inflation concerns. Foreign portfolio investors have sold domestic equities worth Rs 48,261.65 crore so far this month, taking the year-to-date tally this year to a massive Rs 1,14,855.97 crore, according to depositories data.

Buzzing Index:

The Nifty Bank index fell 1% to 35,056.25. The index skid 3.55% in four trading sessions.

IDFC First Bank (down 2.51%), RBL Bank (down 2.25%), HDFC Bank (down 1.72%), Kotak Mahindra Bank (down 1.52%) and State Bank of India (SBI) (down 1.11%) were the top losers in the Bank segment.

Stocks in Spotlight:

Bharti Airtel rose 1.28%. The telecom major has entered into an agreement to acquire 7.036% stake in Avaada KNShorapur for Rs 1.74 crore as cash consideration. Avaada KNShorapur acts as a Special Purpose Vehicle (SPV) under Avaada Indiclean to develop, execute, manage and run upto 10 MW Solar Power Generation Plant(s) in Karnataka. The objects and effects of the acquisition are to comply with regulatory requirement for captive power plants under the provisions of Electricity Act 2003 and Indian Electricity Rules 2005 and procurement of cost-effective renewable energy.

Shares of INOX Leisure soared 13.93% while PVR jumped 5.94%. INOX Leisure, PVR announced a merger in which shareholders will receive 3 shares of PVR in exchange of 10 shares in INOX. The board of PVR and INOX Leisure, at their respective meetings held on Sunday (27 March 2022), approved an all stock amalgamation of INOX with PVR. The amalgamation is subject to approval of the shareholders of PVR and INOX respectively, stock exchanges, SEBI and such other regulatory approvals as may be required.

Upon obtaining all approvals, INOX will merge with PVR. INOX shareholders will receive 3 shares in PVR for 10 shares of INOX. Post the merger, PVR promoters will have 10.62% stake while INOX promoters will have 16.66% stake in the combined entity. The board of the merged company would be re-constituted with total board strength of 10 members and both the promoter families having equal representation on the board with 2 board seats each.

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