Sensex Today Ends 195 Points Lower; IT Stocks Drag

After opening the lower, Indian share markets turned negative as the session progressed and ended the day lower.

Benchmark indices recouped intra-day losses in Tuesday's trade, led by gains in PSU Banks and auto shares.

At the closing bell, the BSE Sensex stood higher by 195 points (down 0.3%).

Meanwhile, the NSE Nifty closed lower by 49 points (down 0.1%).

Tata Motors, Bharti Airtel, and ONGC were among the top gainers today.

Bajaj Finance, Nestle, and Infosys on the other hand, were among the top losers today.

The GIFT Nifty ended at 22,441 down by 78 points.

Broader markets ended the day lower. The BSE Mid Cap and the BSE Small Cap index ended 0.2% lower.

Sectoral indices are trading positive, with socks in the oil & gas sector and auto sector witnessing buying. Meanwhile, stocks in the media sector and IT sector witnessed selling pressure.

Shares of Bosch, Maruti Suzuki, and ABB India hit their respective 52-week highs today.

The rupee is trading at 82.91 against the US$.

Gold prices for the latest contract on MCX are trading 0.3% higher at Rs 64,650 per 10 grams.

Meanwhile, silver prices are trading 0.4% higher at Rs 73,770 per 1 kg.
 

Tata Motors Shares Rally 8%

In news from the auto sector, shares of Tata Motors on Tuesday rallied 7.9% as investors pinned hopes on better value discovery from the proposed demerger of its passenger vehicle and commercial vehicle businesses.

This notable uptick in share value followed investor enthusiasm spurred by the company's strategic decision to demerge its commercial and passenger vehicle segments into two distinct listed entities. This move aims to enhance the company's ability to capitalize on growth opportunities effectively.

On Monday, the company approved a demerger proposal for Tata Motors, splitting it into two distinct listed entities. The first entity will encompass the commercial vehicles business and its associated investments, while the second will include the passenger vehicles segment, consisting of PV, EV, JLR, and their related investments.

Over the past few years, the Commercial Vehicles (CV), Passenger Vehicles (PV+EV), and Jaguar Land Rover (JLR) businesses of Tata Motors have delivered a strong performance by successfully implementing distinct strategies.

Since 2021, these businesses have been operating independently under their respective CEOs.

Tata Motors has lined up US$ 2 bn to be invested by 2026 to launch 10 new EVs, including the Curvv, Harrier EV, Sierra EV, and the Avinya.

In addition, the company is setting up an ecosystem that will build everything from batteries and charging stations to financing vehicles and finally putting them on the road.

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Tata Motors overpowers Maruti Suzuki to become the largest auto company by market cap. 
 

Why Paytm Share Price is Falling

Moving on to news from the fintech sector, shares of Paytm parent One 97 Communications Ltd fell nearly 3% on 5 March morning after around 58.2 lakh shares, or 0.9% equity, changed hands.

Over the last month, Paytm has fallen over 7%, paring huge losses that followed the RBI's decision severely curtailing the activities of its banking arm.

On 31 January, the RBI imposed major business restrictions on the Paytm Payments Bank citing prolonged history of non-compliance by the Paytm promoters.

the regulatory trouble, which has put a question mark on the existence of the payments bank, shrunk Paytm's UPI market share to 11% in February.

Paytm is India's leading financial services company that offers payments and financial solutions to consumers.

It's an Indian-based mobile internet company and a subsidiary of One97 Communications Limited.
 

Westlife Foodworld Rises 3%

Moving on, Westlife Foodworld stock rose 3% on 5 March after it said FSSAI verified McDonald's India uses 100% Real Cheese.

The Food Safety and Standards Authority of India (FSSAI), the nation's apex regulator for food safety standards under the Ministry of Health and Family Welfare, Government of India, has officially verified the cheese utilized by McDonald's India as '100% Real Cheese.'

As disclosed in a stock exchange filing by Westlife Foodworld (formerly Westlife Development), the FSSAI confirmation substantiates McDonald's claim of using 100% Real Cheese without any cheese analogs or substitutes in its products.

The statement further conveyed, that the confirmation from the FSSAI explicitly states that 'Articles in question contain Cheese or cheese product as a part of the composition and does not contain analog in dairy context in any form.

This clean chit is a testament to McDonald's India's commitment to upholding stringent food quality standards across all its restaurants, at all times, emphasizing the quick-service restaurant firm's dedication to maintaining rigorous food quality standards.


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Disclosure: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity ...

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