Benchmarks trade with deep cuts; PSU banks rise for 2nd day
Published on Sep 01, 2022 12:24
The benchmark indices continued to trade with deep cuts in early afternoon trade. Negative global cues dented the sentiments. The Nifty traded below the 17,600 mark. PSU bank stocks advanced for second consecutive session.
At 12:21 IST, the barometer index, the S&P BSE Sensex, was down 532.96 points or 0.90% to 59,004.11. The Nifty 50 index lost 159.40 points or 0.90% to 17,599.90.
In the broader market, the S&P BSE Mid-Cap index rose 0.43% while the S&P BSE Small-Cap index advanced 0.50%.
The market breadth was strong. On the BSE, 1940 shares rose and 1367 shares fell. A total of 156 shares were unchanged.
The seasonally adjusted S&P Global India Manufacturing Purchasing Managers` Index (PMI) was little-changed from July`s reading of 56.4, posting 56.2 in August 2022. It signalled the second-strongest improvement in operating conditions since last November.
The indices vary between 0 and 100, with a reading above 50 indicating an overall increase compared to the previous month, and below 50 an overall decrease. The indices are then seasonally adjusted.
Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence, said: �Indian manufacturers continued to benefit from the absence of COVID-19 restrictions, with rates of growth for both output and new orders picking up yet again to the strongest since last November.
"This robust performance was complemented by a fourth successive monthly slowdown in the rate of input cost inflation, which slipped to the lowest in a year amid softer pressures from commodity prices. Factory gate charges rose at the second-weakest pace since the start of fiscal year 2022/23, one that was similar to July.
"Firms welcomed the weaker increase in input costs with and upward revision to output forecasts amid renewed hopes that contained price pressures will help boost demand. Inflation concerns, which had dampened sentiment around mid-year, appear to have completely dissipated in August as seen by a jump in business confidence to a six-year high."
The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, jumped 9.27% to 20.44. The Nifty 29 September 2022 futures were trading at 17,644.85, at a premium of 50.7 points as compared with the spot at 17,594.15.
The Nifty option chain for the 29 September 2022 expiry showed maximum Call OI of 22.6 lakh contracts at the 18,000 strike price. Maximum Put OI of 32.7 lakh contracts were seen at 16,500 strike price.
The Nifty PSU Bank index rose 1.06% to 3,035.05. The index has added 3.70% in three sessions.
Bank of Baroda (up 1.53%), Canara Bank (up 1.22%), State Bank of India (up 1.21%), Union Bank of India (up 0.71%), Bank of Maharashtra (up 0.55%) and Punjab National Bank (up 0.42%) advanced.
Meanwhile, UCO Bank (down 0.42%), Punjab & Sind Bank (down 0.32%) and Bank of India (down 0.19%) moved lower.
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