After opening the day deep in the red, Indian share markets recovered some losses during closing hours and ended lower.

Benchmark indices crashed today triggered by weak global cues on the lingering worries of contagion risks in the global banking system despite troubled Credit Suisse's acquisition by the UBS Group.

At the closing bell, the BSE Sensex stood lower by 361 points (down 0.6%).

Meanwhile, the NSE Nifty closed lower by 97 points (down 0.6%).

HUL and BPCL were among the top gainers today.

Adani Enterprises and Hindalco, on the other hand, were among the top losers today.

The SGX Nifty was trading at 17,020, down by 141 points, at the time of writing.

Broader markets settled on a weak note. The BSE Midcap fell 1.1% while the BSE SmallCap index ended 1% lower.

Barring FMCG, all other sectoral indices ended in red with stocks in the IT sector, metal sector, and realty sector witnessing most of the selling.

Shares of Godrej Consumer and KPIT Technologies hit their 52-week high today.

Now track the biggest movers of the stock market using the stocks to watch today section. This should help you keep updated with the latest developments...

Asian share markets ended mixed. The Hang Seng ended lower by 2.7% while the Shanghai Composite index fell by 0.5%. The Nikkei ended 1.4% lower.

US stock futures are trading on a mixed note. Dow futures are trading lower by 0.2% while Nasdaq futures are trading higher by 0.1%.

The rupee is trading at 82.6 against the US$.

Gold prices for the latest contract on MCX are trading higher by 0.6% at Rs 59,728 per 10 grams.

Meanwhile, silver prices for the latest contract on MCX are trading up by 0.7% at Rs 68,960 per kg.

Here are three reasons why Indian share markets plunged today.

#1 Mayhem in global financial stocks

The collapse of US lenders Silicon Valley Bank, and Signature Bank, and the takeover of Credit Suisse by Swiss Bank UBS in Europe left investors worried about contagion effects in the global banking system. This propelled investors to exit risky assets like equities, and park in safe-haven areas.

That apart, investor woes lingered after Credit Suisse said that $17.24 billion of its additional tier-1 debt would be written down to zero, on orders of Swiss regulator's rescue merger with UBS.

#2 Uncertainty ahead of upcoming interest rate hikes

The US Federal Reserve will declare its interest rate decision, following its two-day Federal Open Market Committee (FOMC) meeting on Wednesday, 22 March 22023. While some experts peg a smaller, quarter-point increase, others expect a pause in the rate hike cycle due to the recent banking turmoil.

#3 Weak global cues

The banking crisis weakened investor sentiment across the globe. Asia-Pacific markets, for instance, edged lower with Nikkei 225, Hang Seng, and Shanghai Composite indices declining up to 3%.

Equity futures tied to Wall Street, too, turned negative this afternoon.
 

Glenmark Pharma gets USFDA nod to market generic medication

In news from the pharma sector, Glenmark Pharma, on Monday, received approval from the US health regulator to market a generic product used to treat schizophrenia and in some cases, to control severe nausea.

The company has received a nod from the US Food & Drug Administration (USFDA) for Prochlorperazine Maleate Tablets USP, 5 mg and 10 mg.

The Prochlorperazine Maleate Tablet is the generic version of the Compazine Tablets of GlaxoSmithKline.

According to IQVIA data, total sales of Compazine tablets for the 12 months ending in January 2023 stood at US$ 26.9 million (m).

Glenmark Pharmaceuticals is a global pharmaceutical company with a presence across specialty, generics, and OTC businesses.

Glenmark occupies a leadership position in the Indian market for the discovery of new molecules.

In 2023 so far, shares of Glenmark are down by 16.1%. While in the past five years, the stock has experienced a fall of 22.3%

It is amongst the top 4 pharma stocks in India.
 

Why Adani group shares are falling today

Moving on, shares of Adani group companies, including Adani Enterprises, Adani Green Energy, and Ambuja Cements, declined in Monday's trade amid a report the group has suspended work on a Rs 349 bn petrochemical project in Gujarat's Mundra.

Also, there were reports that the group was looking to refinance US$ 1.15 bn of overseas-listed bonds at two group firms, Adani Green Energy and Adani Ports & SEZ, via private placements.

The broader market sentiment too was weak due to concerns over the US banking system ahead of the US Federal Reserve's policy meeting later this week.

A PTI report suggested that the Gautam Adani-led group has decided not to pursue the Gujarat project for the time being.
 

Paras Defence bags order from CSIR

Moving on to news from the defense sector, Paras Defence and Space Technologies, on Monday, bagged an order worth Rs 640 m for an avionics suite for Saras MK-2 aircraft from the Council of Scientific and Industrial Research (CSIR) and National Aerospace Laboratories (NAL).

The avionics suite for the Saras MK-2 aircraft will be delivered in the next financial year. Saras is the first Indian multi-purpose civilian aircraft in the light transport aircraft category designed by the CSIR-NAL.

The avionics suite of the Saras MK-2 aircraft is a complete glass cockpit of the aircraft comprising all the equipment of control, along with an auto-pilot system.

Paras Defence is a leading player in India's Defence and space industry and one of the very few Indian companies with specialized technology competencies like Optics and EMP (Electro-Magnetic Pulse) protection.

Speaking of the defense sector, note that the government's Atmanirbhar Bharat Abhiyan has emphasized the need for self-reliance in security space.

Given the increasing focus on self-reliance, the Ministry of Defense (MoD), has set a target of doubling defense production to US$ 25 bn by 2025.

We believe the defense sector could produce the next set of multibagger stocks over the long run.

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