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Indian benchmark equities indices plunged during the week as Russia invaded Ukraine. The invasion sent global markets into a turmoil and Brent Crude prices breached $100 per barrel. Gold prices also firmed and crossed $1950 per ounce during the week. For the week, the Sensex closed 3.41% lower at 55,858.52 and the Nifty tanked 3.58% to 16,658.40.
Broader markets also bore the brunt of negative global sentiments. For the week, Nifty Media [-7.68%] was the biggest sectoral laggard, followed by PSU Banks [-5.71%], Auto [-4.60%], Realty [-3.41%] and FMCG [-3.30%] stocks.
India VIX, a measure for gauging the market volatility, jumped 20.6% during the week.
FIIs continued to sell their holdings relentlessly in the cash segment. For the week, FIIs were net sellers for Rs 19,843.5 crore and DIIs were net buyers for Rs 21,511.8 crore.
Company News
Reliance Industries Ltd (RIL): The company’s telecom arm Reliance Jio Infocomm will land the multi-terabit India-Asia-Xpress (IAX) undersea cable system in Hulhumale, Maldives, according to a statement. The high capacity and high-speed IAX system will connect Hulhumale directly with world’s major internet hubs in India and Singapore.
Meanwhile, the company is expected to take on Amazon.com Inc, India units of Sony Group Corp and Walt Disney Co for exclusive five-year TV and digital broadcast rights to the two-month series of matches, at a cost that could run to a record Rs 50,000 crore ($6.7 billion), sources familiar with the companies’ plans said, according to Reuters.
Bharti Airtel: The telecom company announced that it has acquired a strategic stake in Singapore-based Blockchain platform Aqilliz for an undisclosed sum. Airtel aims to deploy Aqilliz’s Blockchain technologies at scale across its fast growing adtech (Airtel Ads), digital entertainment (Wynk Music & Airtel Xstream) and digital marketplace (Airtel Thanks App) offerings.
In other news, the telco said it has joined the ‘SEA-ME-WE-6’ undersea cable consortium in a bid to scale up its high-speed global network capacity to serve India’s fast-growing digital economy. Airtel said it is participating as a “major investor” in the SEA-ME-WE-6 and is anchoring 20 per cent of the overall investment in the cable system, which will go live in 2025.
Adani Power Ltd: India’s Supreme Court ruled in favor of the company, saying state-run distribution companies in Rajasthan state have to pay Adani Power Rs 3,048 crore ($405 million) and additional interest to compensate for higher fuel costs. The apex court ruled that four power retailers have to pay Adani Power the money within four weeks, to clear a backlog in payments due since 2013.
InterGlobe Aviation (IndiGo): The company’s promoter Rakesh Gangwal resigned from the board of directors of the IndiGo airline operator with immediate effect. Gangwal in a letter to the board said he planned to slowly dilute his holding in the company over the next five years.
Hero MotoCorp and BPCL: Two-wheeler manufacturer Hero said it has joined hands with Bharat Petroleum Corporation Ltd (BPCL) to set up charging infrastructure for two-wheeled electric vehicles (EVs) across the country. In the first phase, charging stations will be set up across nine cities starting with Delhi and Bengaluru. The network will be then expanded across the country with the aim to establish a high density of charging stations.
Indian Oil Corp (IOC): The company said that it has installed more than 1,000 electric vehicle charging stations (EVCS) across the country. “We have achieved the first of our many milestones towards enabling an EV revolution in the country,” Director, Marketing V. Satish Kumar, said. Indian Oil is planning to provide EV charging facilities at 10,000 fuel stations in the next three years.
Coal India: The state-owned company is considering offering more than 100 closed, discontinued mines to the private sector on revenue sharing basis in due course of time, the coal ministry said. The ministry said that the collaboration with the private sector will enhance productivity and lead to production of additional dry fuel required for the development of the country.
Tata Consultancy Services (TCS): Shares of the IT major closed 3.58% lower on Tuesday after its share buyback period ended today. It had approved a proposal to buy back shares worth up to Rs 18,000 crore. The company had said it will repurchase four crore shares, at Rs 4,500 apiece.
Apollo Hospitals Enterprise: Shares of Apollo Hospitals Enterprise rose 5.74% on Friday, after National Stock Exchange (NSE) announced the company’s inclusion in the benchmark Nifty 50 index, effective from March 31. The company will replace Indian Oil Corporation in Nifty 50 index.
Hindustan Unilever Ltd (HUL): FMCG major has separated the position of chairman of the board and the chief executive officer & managing director (CEO & MD). The change will come into effect from March 31. The FMCG major has announced the appointment of Nitin Paranjpe, currently chief operating officer of Unilever as the non-executive chairman of the company and Sanjiv Mehta will continue as CEO & MD.
Future Group: The Supreme Court on Wednesday asked Amazon and to request the NCLAT to decide a plea challenging the revocation of sanction to the US e-commerce major for its deal with Future group’s firm by the Competition Commission of India. The suggestion was mooted by a bench headed by Chief Justice N V Ramana while adjourning to March 9 the hearing on Amazon’s appeal against the January 5 order of the Delhi High Court.
Jet Airways: Jalan-Kalrock consortium-owned company on Tuesday announced the appointment of former SriLankan Airlines’ CEO, Vipula Gunatilleka as the Chief Financial Officer. “Vipula is an aviation expert and regarded as a turnaround specialist in the industry. He has been shortlisted after a rigorous process run by our Executive Team over the last several months,” said Ankit Jalan, Member of the Monitoring Committee of Jet Airways and part of Jalan-Kalrock Consortium.
Tata Power: The company on Monday said it has collaborated with Germany-based RWE Renewable GmbH to explore potential for a joint development of offshore wind projects in India. A MoU has been signed between Tata Power Renewable Energy Limited, a 100 per cent subsidiary of Tata Power, and RWE Renewables GmbH.
IndiaMart InterMesh: The B2B e-commerce company will acquire 26 per cent stake in industrial e-commerce firm IB Monotaro for Rs 104.2 crore, the company said in a regulatory filing. Japan-based Monotaro will hold a 51.6 per cent stake in IB Monotaro while Emtex Engineering, representing the promoter group and early investors, will hold a 22.4 per cent stake in the company.
Russia-Ukraine Crisis
Russia invaded Ukraine on Thursday after months of a military build-up along its border. The attack has been condemned by global leaders and various sanctions have been announced on Russia by the West.
The invasion came after Russian President Vladimir Putin on Monday recognised two breakaway regions held in eastern Ukraine by pro-Russian rebels as independent states and ordered troops into the territories. In latest developments, Russian forces are closing in on Kyiv, capital of Ukraine, as Moscow’s invasion of Ukraine continues.
Some of the severe sanctions announced this week by Western nations include:
- Asset freezes on major Russian banks namely Sberbank and VTB Bank
- Russian government and companies’ ability to conduct transactions in dollars and pounds have been restricted
- Russia will have limited access to technology with respect to energy, military and other high-tech equipment
- Germany’s decision to halt certification of the Nord Stream 2 gas pipeline
In addition, EU foreign ministers unveiled on Friday sanctions that targeted Russian elites, but the group opted not to curb Russian energy imports. Germany, Italy and other countries objected to cut Russia off from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) international payment system.
Meanwhile, Russia vetoed a resolution by United Nations Security Council condemning the country’s military aggression against Ukraine. No other members of the 15-nation council voted against the resolution. China, India and United Arab Emirates abstained from voting.
Global Markets
In the US markets, major indices closed mostly higher amid volatility sparked by Russia’s invasion of Ukraine. Volatility in the US markets reached two-year high following worsening Russia-Ukraine conflict. However, analysts believed that the fundamentals of US economic and American companies remained healthy.
Meanwhile, bond yields increased and stocks rallied sharply at the end of the week after Russian government’s spokespersons stated that the country was ready for negotiations with Ukraine and it was prepared to send a delegation to Minsk, capital of Belarus, for talks.
For the week, the S&P 500 rose 0.82%, the Dow fell 0.06% and the Nasdaq rose 1.08%.
Chinese markets recorded a weekly loss as the Russia-Ukraine conflict dampened risk sentiment of market participants. The Shanghai Composite index dropped 1.1%, and the large-cap CSI 300 index lsot 1.6%. The People’s Bank of China left the one-year and five-year loan prime rates unchanged. This move by the central surprised some experts who had forecast a decrease in the benchmark lending rate.
Japan’s stock market returns on a weekly basis tracking global markets, with the Nikkei 225 index down 2.38% and the broader Topix fell 2.50%.