Domestic equity indexes dropped sharply in the afternoon session.The Nifty has fallen below 16,900. The NSE’s sectoral indexes were all in the negative, with metal, PSU bank, and real estate stocks plunging the most.
The barometer index, the S&P BSE Sensex, was down 746.9 points, or 1.29%, to 57,243 at 13:30 IST. To 16,882.75, the Nifty 50 index fell 217.30 points, or 1.27%.
The S&P BSE Mid-Cap index lost 1.52%, while the S&P BSE Small-Cap index fell 1.31% in the wider market.
Buyers outnumbered sellers. On the BSE, 886 stocks climbed while 2,639 declined. There were 124 shares that remained unchanged.
Investors reacted unfavorably to news of UBS’s rescue of Credit Suisse. According to media sources, Switzerland’s largest bank, UBS, agreed to purchase Credit Suisse on Sunday in an emergency rescue transaction aimed at calming financial market fear caused by the bankruptcy of two US banks earlier this month.
According to the sources, UBS is paying 3 billion Swiss francs ($3.25 billion) for Credit Suisse in an all-share transaction, which is around 60% less than the bank’s value when markets closed on Friday. According to reports, Credit Suisse shareholders would get one UBS share for every 22.48 Credit Suisse shares owned.
Nonetheless, caution reigns ahead of the result of the US Federal Reserve’s meeting later this week. Investors will be watching the activities of the American Central Bank to see how it will continue in its battle against inflation in light of the banking sector shakeup.
Gainers and losers:
The biggest Nifty losers were Bharat Petroleum Company (BPCL) (up 1.85%), Hindustan Unilever (up 0.67%), and Divi’s Laboratories (up 0.63%).
The top Nifty gainers were Bajaj Finserv (down 4.78%), Adani Enterprises (down 4.75%), Hindalco Industries (down 3.54%), Bajaj Finance (down 3.49%), and Tata Motors (down 3.04%).
The share price of Bharat Petroleum Company (BPCL) increased by 1.85%. On a private placement basis, the business claimed it issued 93,561 non-convertible debentures (NCDs) worth Rs 935.61 crore.
BPCL also announced that Krishnakumar Gopalan has been named chairman and managing director (C&MD) of the company, starting on March 17, 2023.According to the Ministry of Petroleum and Natural Gas, Gopalan’s job will last until he retires or until more instructions are given.Gopalan succeeds Arun Kumar Singh, who will step down as chairman in October 2022.
Stocks in the News
HDFC Bank dipped 1.50%, while HDFC fell 0.89%. The National Company Law Tribunal (NCLT) accepted the proposed merger plan of Housing Development Finance Corporation (HDFC) with HDFC Bank on Friday, according to HDFC Bank. On April 4, 2022, HDFC announced its merger with HDFC Bank. According to the merger design, HDFC Bank would be held entirely by public shareholders, with current HDFC shareholders owning 41% of the company.
Tata Steel fell 2.43%. The firm announced the purchase of 1,55,34,738 equity shares of its wholly owned subsidiary, Tata Steel Advanced Materials (TSAML), for approximately Rs 19.90 crore.
Glenmark Pharmaceuticals increased its stake by 0.26%. The pharmaceutical business announced that it has acquired final FDA clearance for Prochlorperazine Maleate tablets, the generic equivalent of GlaxoSmithKline’s Compazine tablets. Prochlorperazine is used to treat nausea, vomiting, and migraines caused by a variety of medical problems.
Markets in Europe and Asia fell on Monday after UBS agreed to purchase rival bank Credit Suisse for $3.2 billion over the weekend.
After decreasing the reserve requirement ratio for practically all banks by 0.25 percentage points last week, the People’s Bank of China kept the 1-year and 5-year lending prime rates constant. The 1-year LPR remained steady at 3.65%, while the 5-year LPR remained stable at 4.3%, both since August last year.
UBS Group AG, Switzerland’s biggest banking firm, has agreed to pay $3.23 billion to purchase the crisis-hit Credit Suisse Group AG. The Swiss authorities played a major role in allowing the transaction in order to avert a banking sector contagion. Credit Suisse shareholders will get one UBS share for every 22.48 Credit Suisse shares held under the agreement. According to UBS, the merged bank would have $5 trillion in invested assets.
Wall Street went down on Friday because investors sold their bank stocks because they were still worried about the US banking industry.