Benchmarks snap 3-day losing run, Sensex spurts 300 pts, Nifty ends at 17,622.25

The key equity barometers ended with modest gains on Monday. The Nifty closed above the 17,600 level after hitting a day`s low at 17,429.70 in the early trade. PSU bank, media and FMCG stocks were in demand. On the flip side, realty, metal and consumer durables shares were under pressure.

The barometer index, the S&P BSE Sensex, rose 300.44 points or 0.51% to 59,141.23. The Nifty 50 index added 91.40 points or 0.52% to 17,622.25. In past three trading sessions, the Sensex has slipped 2.86% while the Nifty has tumbled 2.98%.

Mahindra & Mahindra (M&M) (up 3.39%), Bajaj Finance (up 3.14%), Adani Ports and Special Economic Zone (up 2.64%), SBI Life Insurance Company (up 2.57%) and Hindustan Unilever (up 2.05%) were major Nifty gainers.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index shed 0.16% while the S&P BSE Small-Cap index declined 0.17%.

The market breadth was negative. On the BSE, 1,709 shares rose and 1,904 shares fell. A total of 136 shares were unchanged.

Investors prepared for an important week, lined up with 13 central bank meetings, with expectations of interest rates rising globally and an ultra-hawkish monetary tightening by the US Fed`s meeting on Wednesday, followed by the Bank of Japan and Bank of England on the next day.

Economy:

Direct tax collections continue to grow at a robust pace, a clear indicator of the revival of economic activity post pandemic, as also the result of the stable policies of the Government, focusing on simplification and streamlining of processes and plugging of tax leakage through effective use of technology. The figures of Direct Tax collections for the FY 2022-23, as on 17.09.2022 show that net collections are at Rs 7,00,669 crore, compared to Rs 5,68,147 crore in the corresponding period of the preceding Financial Year i.e. FY 2021-22, representing an increase of 23%.

Numbers to Watch:

The yield on India`s 10-year benchmark federal paper rose to 7.279 as compared with 7.266 at close in the previous trading session.

In the foreign exchange market, the rupee was lower against the dollar. The partially convertible rupee was hovering at 79.81, compared with its close of 79.78 during the previous trading session.

MCX Gold futures for 5 October 2022 settlement declined 0.43% to Rs 49,170.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, added 0.15% to 109.93.

In the commodities market, Brent crude for November 2022 settlement declined $1.69 or 1.85% at $89.66 a barrel.

Global Markets:

The US Dow Jones index futures were down 266 points, indicating a negative opening in the US stocks today.

Shares in Europe and Asia declined on Monday ahead of major central bank meetings this week.

Data due on Monday includes construction output figures for the euro zone. Luis de Guindos, vice president of the European Central Bank, is also due to make a speech in Madrid at 10:00 a.m. London time.

Later this week, the US Federal Reserve and the Bank of Japan will be announcing their interest rate decisions. Traders are anticipating another sharp rate hike, third consecutive, from the US central bank to tame the rising inflation. The Bank of Japan is expected to keep rates on hold at ultra-low levels, as per reports. Japan`s market is shut for a public holiday.

The Fed`s two-day meeting is due to begin from Tuesday, with markets expecting a 75-basis-point rate hike as the central bank strives to get soaring prices under control.

US stocks ended in the red on Friday, falling to two-month lows as a warning of impending global slowdown from FedEx hastened investors` flight to safety at the conclusion of a tumultuous week.

Buzzing Index:

The Nifty PSU Bank index gained 2.03% to 3,215.95. The index fell 2.35% in the past trading session.

Indian Bank (up 4.08%), Bank of India (up 2.84%), Bank of Baroda (up 2.77%), Punjab National Bank (up 1.89%), State Bank of India (up 1.86%), Union Bank of India (up 1.62%), Punjab & Sind Bank (up 1.26%), UCO Bank (up 1.24%), Bank of Maharashtra (up 1.08%) and Canara Bank (up 1.06%) edged higher.

Stocks in Spotlight:

Maruti Suzuki India rose 0.63%. The company has announced to recall 5,002 super carry vehicles manufactured between 4 May 2022 and 30 July 2022. The auto maker said that the recall is being undertaken for inspection and torquing of a bolt attached to seat belt buckle bracket of co-driver seat. It is suspected that there is a possible defect in bolt torquing, which in a rare case, may loosen in the long run.

Adani Green Energy (AGEL) gained 1.37% after the company said that its subsidiary, Adani Wind Energy MP One has commissioned a 324.4 megawatt (MW) wind power plant in Dhar, Madhya Pradesh. The plant has two 25-year power purchase agreements (PPAs) with Solar Energy Corporation of India (SECI) of 274.4 MW and 50 MW, at Rs 2.83/kwh.

HDFC Life Insurance Company rose 0.26% after the life insurer said that the Mumbai Bench of the National Company Law Tribunal has sanctioned the scheme of amalgamation between Exide Life and the company.

Dish TV India locked in an upper circuit of 10%. The DTH operator on Monday announced that Jawahar Lal Goel, chairman of the company, has tendered his resignation from the company`s board and committees. He shall cease to be the chairman from closure of business hours on 19 September 2022.

Gensol Engineering rose 4.23% after the company said that, in normal course of business, it has closed orders from various reputed clients for the development of solar power projects worth over Rs 531 crore. Aggregating to a capacity of over 121 MWp, these projects will be developed in the states/UTs of Andhra Pradesh, Gujarat, Haryana, Jharkhand, Karnataka, Ladakh, Madhya Pradesh, Maharashtra, Punjab, Rajasthan, Tamil Nadu, Telangana and Uttarakhand.

Indoco Remedies fell 1.35%. The company announced that its clinical research organisation (CRO) AnaCipher has cleared US FDA inspection with zero 483 observations. In an exchange filing made during market hours today, the drug maker said that the company`s CRO AnaCipher was inspected by the United States Food and Drug Administration (US FDA) from 12 September to 16 September 2022.

Indus Towers slipped 3.01% after the company on Saturday announced that Bimal Dayal has tendered his resignation from the chief financial officer (CFO) and managing director (MD) position. Dayal was relieved from his services as MD, CEO and as a director from the board with effect from 17 September 2022 post working hours.

Mafatlal Industries was locked in an upper circuit of 5% after the company on Saturday said that its board has approved 5-for-1 stock split. The company`s board approved sub-division of existing one equity share having face value of Rs 10 each into five equity shares having face value of Rs 2 each, subject to the approval of shareholders.

Indo-National was locked in an upper circuit of 20% after the company said that its subsidiary, Kineco had bagged Rs 113 crore order for supply and installation of modular interiors for Vande Bharat semi-high speed trains, from, Integral Coach Factory, Chennai. Earlier this year, Kineco was also awarded with the largest order of 68 Train Fronts of the same Vande Bharat Trains.

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