Key equity indices snapped their three-day winning run; Sensex fall below 51,000 mark & Nifty closes 165 points down

Benchmark domestic stocks markets fell more than one per cent on Thursday, March 4, 2021, on weak global signals. The fall was dragged by the losses in metal and financial stocks. A rise in US bond yields spoilt the investors' sentiment globally.

The BSE Sensex fell below the 51,000-mark while the NSE Nifty managed to stay above the 15,000 level. The S&P BSE Sensex closed 598.57 points, or 1.16 per cent, down at 50,846.08 and the NSE Nifty fell 164.85 points, or 1.08 per cent, to finish at 15,080.75. The Nifty Bank index lost 565.55 points, or 1.56 per cent, to close at 35.802.50.

The broader market at BSE bucked the trend and the Mid-Cap index ended 0.48 per cent up while the Small-Cap index appreciated 0.80 per cent.

Buyers outpaced sellers. On the BSE, 1,602 shares rose and 1,374 shares fell. On the NSE Nifty 50 index, 12 stocks advanced and 38 stocks declined. The top five gainers on Nifty 50 were UltraTech Cement (up 3.92 per cent), Adani Ports and Special Economic Zone (up 2.97 per cent), Shree Cement (up 2.91 per cent), Grasim (up 2.66 per cent) and Dr Reddy's (up 1.43 per cent). The top five losers on the index were JSW Steel (down 2.95 per cent), HDFC (down 2.64 per cent), Hindalco (down 2.63 per cent), Tata Steel (down 2.52 per cent) and Tata Motors (down 2.44 per cent).

COVID-19 Update

Total Covid-19 confirmed cases worldwide were at 11,51,65,467 with 25,59,576 deaths. India reported 1,73,413 active cases of Covid-19 infection and 1,57,435 deaths while 1,08,26,075 patients have been discharged, data showed.

Primary Market

The initial public offer (IPO) of MTAR Technologies received bids for 7.45 crore shares as against 72.60 lakh shares on offer, according to the stock exchange data at 17:00 IST on Thursday. The issue was subscribed 10.27 times. The issue opened for bidding on Wednesday, March 3, 2021, and it will close on Friday, March 5, 2021. The price band for the IPO is set at Rs 574-575 per share. An investor can bid for a minimum lot of 26 equity shares and in multiples thereof.

Economic Recovery in the US

The US economic recovery continued at a modest pace over the first weeks of this year, with businesses optimistic about the months to come and demand for housing "robust," but only slow improvement in the job market, the Federal Reserve reported. Federal Reserve Chairman Jerome Powell will probably seek to convince suddenly sceptical financial markets on Thursday that the central bank will be ultra-patient in pulling back its support for the economy after the pandemic has ended. Rather than trying to cap rising long-term interest rates, Fed watchers expect Mr Powell to use his appearance at a Wall Street Journal webinar to reaffirm the Fed's determination to meet its revamped employment and inflation goals by keeping monetary policy looser for longer and to make clear he would like to avoid a repeat of last week's disorderly bond market. If the markets and the Fed are in sync, they will work together to attain the central bank's objectives of maximum employment and 2 per cent average inflation under its new strategic framework. Long-term interest rates have climbed this year.