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Benchmarks near day`s low; Nifty slips below 17,600

Published on Sep 22, 2022 11:33

The key equity benchmarks traded near the day`s low with major losses in the mid-morning trade. Negative global cues dented the investor sentiment as Fed hiked rates by 75 bps. The Nifty slipped below the 17,600 level. Private bank shares decline for the second day.

At 11:27 IST, the barometer index, the S&P BSE Sensex, was down 431.1 points or 0.73% to 59,025.68. The Nifty 50 index declined 141.25 points or 0.80% to 17,577.10.

In the broader market, the S&P BSE Mid-Cap index lost 0.55% while the S&P BSE Small-Cap index fell 0.25%

The market breadth was negative. On the BSE, 1,447 shares rose and 1,825 shares fell. A total of 136 shares were unchanged.

Indian Rupee on Thursday hit a fresh record low against US dollar. The currency opened at 80.2775 and touched a fresh all time low of 80.675 and is currently trading at 80.64

Buzzing Index:

The Nifty Private Bank index fell 1.45% to 20,865.90, continuing its falling streak to the second day. The index lost 2.26% in two trading sessions.

Among the components of the Nifty Private Bank index, City Union Bank (down 2.84%), Axis Bank (down 1.43%), ICICI Bank (down 1.4%), HDFC Bank (down 1.31%), Bandhan Bank (down 1.04%), IDFC First Bank (down 0.99%), Federal Bank (down 0.81%), Kotak Mahindra Bank (down 0.8%) and RBL Bank (down 0.51%) were the top losers.

On the other hand, IndusInd Bank (up 0.02%) advanced.

Stocks in Spotlight:

Punjab National Bank rose 0.25% after the public sector lender has raised Rs 658 crore by issuing Basel III compliant additional Tier-1 bonds at a coupon rate of 8.3% per annum, on private placement basis. The bank issued 8.30% unsecured, subordinated, non-convertible, fully paid-up, taxable, Basel Ill compliant additional tier I (AT1) bonds of Rs 1 crore eachm which will qualify as tier I capital.

Spandana Sphoorty Financial rose 0.43% after the company on Wednesday announced that its board has approved the issuance of upto 500 non-convertible debentures (NCDs) aggregating up to Rs 25 crore on a private placement basis with a green shoe option up to Rs 25 crore.

Kirloskar Oil Engines (KOEL) jumped 4.06% after the company announced its plans to acquire balance 24% stake in Ahmedabad-based La-Gajjar Machineries (LGM). La-Gajjar Machineries has been engaged in the manufacturing and sale of submersibles and monoblock pumps and pump sets and stainless-steel pumps in the domestic and export markets since its incorporation in 1981.

Global markets:

Asian stocks were trading lower across the board on Thursday after the U.S. Federal Reserve raised interest rates and signaled further hikes ahead. Australia`s market is closed for a holiday.

The Bank of Japan kept ultra-low interest rates on Thursday and vowed to hold them there, as it swam against a global tide of monetary tightening by central banks that have chosen to fight soaring inflation over support for their fragile economies.

The decision came after the U.S. Federal Reserve delivered its third straight rate increase of 75 basis points on Wednesday and signaled more hikes, underscoring its resolve not to let up in its battle against inflation.

The policy divergence pushed the yen to a fresh 24-year low and past the closely watched 145 to the dollar level, highlighting the dilemma Tokyo faces in trying to support a fragile economy with ultra-low rates without accelerating an unwelcome yen decline that inflates the cost of imports.

Wall Street`s main indexes dropped on Wednesday, as investors digested another supersized Federal Reserve hike and its commitment to keep up increases into 2023 to fight inflation.

The Federal Reserve raised benchmark interest rates by another three-quarter of a percentage point and indicated it will keep hiking well above the current level. That takes the bank`s benchmark overnight rate target range to 3-3.25%.

Federal Reserve Chair Jerome Powell vowed on Wednesday that he and his fellow policymakers would "keep at" their battle to beat down inflation.

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