WEEKLY REPORT
The Indian equity markets remained under pressure amid escalating geopolitical tensions between the US and Iran, which led to a sharp jump in crude oil prices. Weak global cues, a declining rupee, and persistent FII selling further weighed on investor sentiment.
During the week, the BSE Sensex slipped 2,368.29 points, or 2.91 percent, to finish at 78,918.90, while the Nifty50 shed 728.2 points, or 2.89 percent, to close at 24,450.45.
During the week, State Bank of India witnessed the largest decline in its market capitalisation, followed by ICICI Bank, Larsen & Toubro, and HDFC Bank. On the other hand, Bharat Electronics, Reliance Industries, and Sun Pharmaceutical Industries saw an increase in their market capitalisation.
Most sectoral indices ended in the red during the week. The Nifty PSU Bank index declined 6.5 percent, followed by the Nifty Realty index, which fell 5 percent. The Nifty Bank, Nifty Media and the Nifty Private Bank shed over 4 percent. However, the Nifty Defence index bucked the trend, gaining nearly 5 percent.
Among the broader market indices, all BSE Large-cap, BSE Mid-cap index, and the Small-cap indices slipped -3.0, -3.0, and -3.3 percent this week.
Foreign Institutional Investors (FIIs) sold equities worth Rs 21,831.19 crore, extending their selling streak to the third consecutive week. Meanwhile, Domestic Institutional Investors (DIIs) remained net buyers, purchasing equities worth Rs 32,786.92 crore, during the week.
The Indian rupee touched a fresh record low against the US dollar this week amid surging crude oil prices. However, it made a strong recovery to end lower by 77 paise at 91.74 on March 6, compared with 90.97 on March 27. During the week, the domestic currency moved within a band of 91.22 to 92.30.
ECONOMY
Japan in Talks with India to Explore Rare Earth Deposits
Japan is in talks with India to jointly explore rare earth deposits, as Tokyo seeks to reduce reliance on China for supplies critical to magnet manufacturing. India recently identified three hard-rock deposits containing about 1.29 million tonnes of rare earth oxides in Rajasthan and Gujarat. The discussions follow a critical minerals cooperation pact signed by the two countries to strengthen supply chains.
Oil Prices Surge as Middle East Conflict Escalates
Oil prices rallied amidst the growing disruption to global oil supplies caused by the U.S.-Israeli war with Iran, with U.S. futures prices rising faster than the international benchmark Brent futures as Washington said it may take action in the futures market to combat rising energy prices. The spike in crude prices triggered volatility across global markets and increased fears of higher inflation and slower economic growth worldwide.
STOCKS IN NEWS
Petronet LNG
Shares of Pertronet LNG dropped over 9 percent this week, after Qatar, who is India’s top supplier of imported natural gas has declared force following a pause in production amid the ongloing crisis in the Middle East.
Interglobe Aviation
Shares of InterGlobe Aviation, the parent of IndiGo, fell almost 5 percent this week amid higher fuel costs and a cancellation of more than 500 flights to the Middle East and select international destinations due to the ongoing Middle East crisis.
Bharat Dynamics
Shares of the Defence manufucaturer went up 3.75 percent this week, making the company a top gainer, as war in West Asia intensified and raised hopes defence spending may rise sharply across regions.
Reliance Industries
Shares of Reliance Industries Ltd rose almost 3 percent over the week as US Secretary of the Treasury Scott Bessent announced that the Treasury Department is issuing a temporary 30-day waiver to allow Indian refiners to purchase Russian oil. The move came as the US seeks to stabilise global energy markets amid rising tensions in the Middle East.
Lodha Developers
Real estate stock Lodha Developers fell over 7 percent as rising crude oil prices and inflation concerns weighed on sentiment for interest-rate-sensitive sectors, leading the stock to face a slip.
Source – Moneycontrol, Reuters
