BENCHMARKS CRAWL HIGHER AMID VOLATILITY; NIFTY ENDS ABOVE 17,600; VIX DROPS BELOW 19 MARK

The key equity benchmarks ended a volatile session with small gains on Wednesday. Global cues were mixed as investors look forward to Fed Chairman Jerome Powell`s speech on Friday at the Jackson Hole annual economic symposium.

The barometer index, the S&P BSE Sensex added 54.13 points or 0.09% to 59,085.43. The Nifty 50 index gained 27.45 points or 0.16% to 17,604.95.

The Nifty opened in the red and hit the day`s low of 17,499.25 in morning trade. The index traded near the flat line for most part of the session. It recovered in the late trade to settle with minor gains.

Apollo Hospitals Enterprise (up 3.17%), IndusInd Bank (up 2.89%), ONGC (up 1.68%), ICICI Bank (up 1.06%) and NTPC (up 1.04%) were top Nifty gainers.

In the broader market, the S&P BSE Mid-Cap index rose 0.80% while the S&P BSE Small-Cap index gained 0.73%.

The market breadth was strong. On the BSE, 2,112 shares rose and 1,292 shares fell. A total of 142 shares were unchanged.

Meanwhile, the NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, dropped 3.25% to 18.43.

Economy:

India`s GDP growth in the first quarter of the current fiscal will reach double digits to 13% due to a low base and a strong recovery in the contact-intensive sectors as a result of the expanding vaccination coverage, according to an ICRA report.

ICRA anticipates that the services sector will lead sectoral growth in the first quarter of FY23 (+17-19%), followed by the industry (+9-11%). Due to the negative effects of the heat wave in numerous regions of the country, which reduced wheat yield, GVA growth in agriculture, forestry, and fishery is predicted to fall to 1% in the first quarter of FY23 from 4.1% in the fourth quarter of FY22.

Meanwhile, India`s crude oil production during July 2022 was 2453.19 thousand metric tonnes (TMT), which is 5.57% lower than target for the month and 3.76% lower than the production of July 2021.

Natural gas production during July 2022 was 2882.54 million metric standard cubic meters (MMSCM), which is 3.33% lower than the monthly target and 0.40% lower than production of July 2021.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose to 7.287 as compared with 7.281 at close in the previous trading session.

In the foreign exchange market, the rupee was higher against the dollar. The partially convertible rupee was hovering at 79.8150, compared with its close of 79.8350 during the previous trading session.

MCX Gold futures for 5 October 2022 settlement declined 0.10% to Rs 51,364.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, added 0.10% to 108.73.

In the commodities market, Brent crude for October 2022 settlement rose 71 cents or 0.71% at $100.93 a barrel. The contract advanced $3.74 or 3.88% to settle at $100.22 a barrel during the previous trading session.

Global Markets:

Shares in Europe and Asian stocks were mixed on Wednesday, following hawkish comments from a Federal Reserve official.

Minneapolis Fed President Neel Kashkari on Tuesday reportedly reiterated the central bank`s commitment to bringing inflation under control through monetary policy tightening, and said his biggest fear is that the persistence of price pressures is underestimated.

The comments came as markets prepare for a much-anticipated speech from Fed Chairman Jerome Powell on Friday addressing the central bank`s tightening path, following its annual economic symposium in Jackson Hole, Wyoming.

In Europe, investors will be perusing the European Central Bank`s accounts of its latest monetary policy discussions, due to be published on Wednesday.

Meanwhile, concerns over a power shortage in China also weighed on most Asian equities, given the country`s position as a trading hub for the region.

Wall Street ended lower on Tuesday as investors focused on data showing a slowing economy ahead of a US Federal Reserve gathering later this week in Jackson Hole, Wyoming.

Data Tuesday showed sales of new US homes fell for the sixth time this year to the slowest pace since early 2016, while business activity contracted for a second straight month.

Stocks in Spotlight:

New Delhi Television (NDTV) hit an upper circuit limit of 5% to Rs 384.50 after the Adani group launched takeover bid of the media company.

Vishvapradhan Commercial Private Limited (VCPL), wholly owned subsidiary of AMG Media Networks Limited (AMNL), holds warrants of RRPR Holding Private Limited (RRPR), entitling it to convert them into 99.9% stake in RRPR. AMNL is 100% subsidiary of Adani Enterprises Limited (AEL).

VCPL has exercised warrants to acquire 99.5% stake in RRPR. Such acquisition will result in VCPL acquiring control of RRPR. RRPR is a promoter group company of NDTV and holds 29.18% stake in NDTV.

Further, VCPL, along with AMNL & AEL (persons acting in concert), launched an open offer to acquire up to 26% stake in NDTV at Rs 294 per share (based on Sebi`s takeover guidelines), representing a 19.72% discount to NDTV`s Rs 366.20 closing price on the BSE Tuesday (23 August).

Hindalco Industries rose 0.23%. The company`s chairman Kumar Mangalam Birla on Tuesday said the company has earmarked a total capital expenditure of about $8 billion over the next five years in its arm Novelis and India. Novelis has identified potential investment opportunities of approximately $4.5 billion. Birla was speaking at the Hindalco`s 63rd Annual General Meeting on Tuesday (23 August 2022). In the India Business, the company has identified potential investment opportunities of nearly $3 billion.

Maruti Suzuki India shed 0.34%. The car major has recalled 166 Dzire Tour S vehicles manufactured between 6 August 2022 to 16 August 2022 to replace airbag control unit free of cost in these vehicles. �It is suspected that there is a possible defect in Airbag Control Unit, which in rare case might result in malfunctioning during deployment. Customers of suspected vehicles are advised not to drive/use the vehicle till the Airbag Control Unit is replaced,� the company said in a statement.

Chennai Petroleum Corporation advanced 2.66% after the company`s board approved the Proposal for formation of a joint venture company (JVC) with Indian Oil Corporation (IOC) and other seed equity investors. The other seed equity investors include Axis Bank, HDFC Life Insurance Company, ICICI Bank, ICICI Prudential Life Insurance Company and SBI Life Insurance Company. The JVC is being formed for Implementing the 9 MMTPA refinery project at Cauvery Basin Refinery, Nagapattinam District, at an estimated cost of Rs 31,580 crore.

Ugro Capital gained 2.36% after the NBFC announced that the meeting of the investment and borrowing committee of the board is schedule on 26 August 2022 to consider raising funds. The NBFC added that the funds will be raised by way of issuance of non-convertible debentures through private placement basis.

DLF rose 1.06%. The company said that the credit rating agency ICRA has reaffirmed its rating and revised outlook to `positive` from `stable` on the instruments and bank facilities of the company. The agency has reaffirmed the rating of non-convertible debentures, fund-based-term loans, fund-based-working capital facilities and non-fund based-working capital facilities/bank guarantee of the company at "[ICRA] AA-" while revising the outlook on the same to `positive`. It has reaffirmed the rating of DLF`s commercial paper at "[ICRA] A1+".

Aurobindo Pharma added 0.13% after the company`s wholly-owned subsidiary, Eugia Pharma Specialities received US Food & Drug Administration approval for Medroxyprogesterone Acetate injectable suspension. Medroxyprogesterone Acetate injection is indicated for the use by females of reproductive potential to prevent pregnancy.

Monarch Networth Capital jumped 10.84% after the company said that it has raised Rs 252 crore through Monarch Alternative Investment Fund (AIF) in its second category-3 AIF. Monarch Networth Capital is the investment manager and sponsor of Monarch AIF. The entire amount was raised from a set of ultra-high net worth individuals, corporates, and family offices. The first fund was launched in October 2020. The company is planning to foray into the mutual fund business.

Affle (India) rose 2.45% to Rs 1286.05 after a foreign broker reportedly initiated a `buy` call on the company with a price target of Rs 1,495.

Bharat Gears added 1.77% after company`s board approved the issue of bonus shares in the ratio of one bonus equity share against two existing equity shares. The record date for the purpose of the bonus issue is 13 September 2022.

Primary Market:

The initial public offering of airport service aggregator platform Dreamfolks Services oversubscribed 1.96 times on the first day.

The issue, with a price band of Rs 308-326, opened for public subscription today and it will conclude on Friday, 26 August.

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