SENSEX SLIDES 440 PTS; PSU BANKS UNDER PRESSURE

The key domestic indices traded with substantial losses in mid-afternoon trade. The Nifty slipped below the 19,400 level. PSU Bank shares witnessed selling pressure after advancing for the past two trading session.

At 14:28 IST, the barometer index, the S&P BSE Sensex, was down 440.61 points or 0.67% to 65,071.49. The Nifty 50 index declined 131.05 points or 0.67% to 19,397.70.

The broader market underperformed the headline indices. The S&P BSE Mid-Cap index lost 1.63% while the S&P BSE Small-Cap index fell 1.12%.

The market breadth was weak. On the BSE, 1,150 shares rose and 2,482 shares fell. A total of 135 shares were unchanged.

The Reserve Bank Governor-headed six-member Monetary Policy Committee (MPC) meeting is scheduled for 4 to 6 October 2023. The MPC of the Reserve Bank of India (RBI) is likely to maintain a status quo on interest rates, as per reports.

Buzzing Index:

The Nifty PSU Bank index slipped 2.63% to 5,241.80. The index jumped 4.05% in the past two trading sessions.

Punjab & Sind Bank (down 5.42%), Punjab National Bank (down 3.73%), Union Bank of India (down 3.57%), Bank of India (down 3.5%) and Central Bank of India (down 3.43%) were the top losers.

Among the other losers were Canara Bank (down 3.36%), State Bank of India (down 2.62%), Bank of Baroda (down 2.52%), Indian Overseas Bank (down 2.48%) and UCO Bank (down 1.79%).

Numbers to track:

The yield on India`s 10-year benchmark federal paper rose 0.18% to 7.248 from its previous close of 7.235.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.2400, compared with its close of 83.2050 during the previous trading session.

MCX Gold futures for 5 October 2023 settlement shed 0.02% to Rs 56,265.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.08% to 106.93.

The United States 10-year bond yield advanced 0.33% to 4.816.

In the commodities market, Brent crude for September 2023 settlement lost 46 cents or 0.51% to $90.46 a barrel.

Stocks in Spotlight:

Tata Consultancy Services fell 0.44%. The company announced that it has signed a multi-year partnership with British retail giant Asda to support its digital transformation and to implement a new organisation-wide IT operating model, following its divestiture from Walmart.

Reliance Industries shed 0.74%. The UK-based company has decided to sell Superdry`s intellectual property assets, including the SUPERDRY brand and related trademarks in India, Sri Lanka, and Bangladesh to the JV entity.

Dodla Dairy added 3.92% after the company announced that Orgafeed has commenced new manufacturing of cattle feed plant at Kuppam, Chittoor District, Andhra Pradesh, and the capacity of the new plant is 12,000 tons per month.

Yes Bank declined 0.29%. The private lender`s net advances improved to Rs 2,10,576 crore as on 30 September 2023, registering a growth of 9.5% as compared to Rs 1,92,300 crore as on 30 September 2022.

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