Benchmarks end with small losses; Nifty holds 17,650 mark

Domestic equity benchmarks wiped initial gains and closed with tiny losses flat on Tuesday. The Nifty 50 index came off the day`s low of 17,587.65 and settled above the 17,650 mark. Metals and oil & gas stocks were in demand. On the other hand, FMCG, banks and financials declined.

The barometer index, the S&P BSE Sensex, declined 48.99 points or 0.08% to 59,196.99. The Nifty 50 index lost 10.20 points or 0.06% to 17,655.60.

Bajaj Finserv (down 2.08%), Kotak Mahindra Bank (down 1.14%), Hindustan Unilever (down 1.08%) and HDFC Bank (down 0.37%) were major drags.

The broader market outperformed the benchmark indices. The S&P BSE Mid-Cap index rose 0.47% while the S&P BSE Small-Cap index added 0.10%.

The market breadth was positive. On the BSE, 1,789 shares rose and 1,665 shares fell. A total of 134 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, fell 0.69% to 19.53.

Economy:

Moody`s Investors Service, on Tuesday, retained its sovereign rating on India at Baa3 with a stable outlook. It said the impact of the Russia-Ukraine conflict, higher inflation and tightening global financial conditions are unlikely to derail India`s economic recovery from the pandemic.

The country`s credit profile reflects key strengths, including its large and diversified economy, with high growth potential, a relatively strong external position, and a stable domestic financing base for government debt.

Numbers to Watch:

The yield on India`s 10-year benchmark federal paper declined to 7.181 as compared with 7.218 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 79.77, compared with its close of 79.78 during the previous trading session.

MCX Gold futures for 5 October 2022 settlement rose 0.01% to Rs 50,437.

The 10-year U.S. Treasury yield was hovering at 3.244%.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, shed 0.01% to 109.82.

In the commodities market, Brent crude for November 2022 settlement fell 36 cents or 0.39% at $92.66 a barrel. The Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, announced on Monday that it will cut output by a modest 100,000 barrels per day in October, roughly 0.1% of global demand.

Global Markets:

The Dow Jones futures were trading 216 points higher, indicating a positive opening in the US markets today.

Shares in Europe and Asia advanced on Tuesday, rebounding after the previous session`s sharp losses.

On Monday, the People`s Bank of China announced it would cut the foreign exchange reserve requirement ratio, or the amount of FX reserves that financial institutions must hold, to improve the ability of financial institutions to use foreign exchange funds.

Meanwhile, the Reserve Bank of Australia raised rates by a half point to 2.35%. That`s the fifth increase in a row since the central bank started raising rates in May. Inflation in Australia stood at 6.1% in the June quarter, above the target range of between 2% and 3%.

US markets were closed on Monday on account of Labor Day.

In Europe, Mary Elizabeth Truss, prominently referred to as Liz Truss, was on September 5 announced as the next prime minister of the United Kingdom, after she defeated rival Rishi Sunak in the Conservative Party leadership race.

Buzzing Segment:

The Nifty Metal index rose 1.32% to 6,064.70. The index has risen 3.16% in three days.

Jindal Steel & Power (up 2.9%), Adani Enterprises (up 2.67%), SAIL (up 2.24%), Tata Steel (up 1.5%), Jindal Stainless (up 1.4%), Vedanta (up 1.38%), NALCO (up 1.26%), Hindustan Copper (up 1.03%), JSW Steel (up 0.54%) and Hindalco Industries (up 0.47%) advanced.

Stocks in Spotlight:

Reliance Industries (RIL) added 0.98%. RIL has signed definitive agreements to acquire a 79.4% stake in SenseHawk Inc for a total transaction value of $32 million, including funding for future growth, commercial rollout of products, and R&D.

Kalpataru Power Transmission (KPTL) rallied 5.93% after the company and its international subsidiaries has secured new orders or notification of awards worth Rs 1,345 crore.

NTPC rose 2.56%. The company said that it has acquired Jhabua Power Company having operational capacity of 600 MW for Rs 925 crore.

Reliance Power jumped 5.79%. The company said that its board will meet on Thursday, 8 September 2022, to consider raising long term resources from domestic and/or global markets.

RateGain Travel Technologies 1.18%. Kuwait`s second largest airline Jazeera Airlines selected the company`s product for airfare pricing insights.

Suzlon Energy added 1.32%. The company has received an order for the development of a 180.6 megawatt (MW) wind power project for Sembcorp`s renewables subsidiary Green Infra Wind Energy. International Conveyors zoomed 11.67%. The company said its board will consider a proposal for buy back of equity shares on 9 September 2022.

Saurashtra Cement fell 2.26%. The company said that due to the high stocks of finished goods inventory at the Gotan Plant (Paints Division), the production at the said factory has been suspended temporarily and with immediate effect. However, the dispatches shall continue from the said factory, it added.

Primary Market:

The initial public offer (IPO) of Tamilnad Mercantile Bank received bids for 1.27 crore shares as against 87.12 lakh shares on offer, according to stock exchange data 16:27 IST on Tuesday (6 September 2022). The issue was subscribed 1.46 times.

The issue opened for bidding on Monday (5 September 2022) and it will close on Wednesday (7 September 2022). The price band of the IPO is fixed at Rs 500-525 per share.

New Listing:

Shares of Dreamfolks Services settled at Rs 462.65, a premium of 41.92% compared with the issue price of Rs 326. The scrip was listed at Rs 505, representing a premium of 54.91% compared with the issue price.

The scrip has hit a high of Rs 550 and a low of Rs 448.50. On the BSE, 16.52 lakh shares of the company changed hands in the counter today.

The initial public offer (IPO) of Dreamfolks Services was subscribed 56.68 times. The IPO, with a price band of Rs 308-326 a share, was open for public subscription during 24 to 26 August 2022.

Post its debut on the domestic bourses, Dreamfolks Services announced its earnings for the quarter ended 30 June 2022.

The company reported a consolidated net profit of Rs 13.43 crore in Q1 FY23 as against a net loss of Rs 1.38 crore recorded in Q1 FY22. Revenue from operations zoomed to Rs 160.26 crore in the first quarter from Rs 24.54 crore in the same period last year.

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