Benchmarks trade with limited losses; European shares decline
Published on Aug 24, 2022 13:29
The domestic equity benchmarks pared all gains and traded with limited losses in afternoon trade. The Nifty traded below 17,550 level. European markets edged lower while markets in Asia traded in a mixed fashion as investors look forward to Fed Chairman Jerome Powell on Friday at the Jackson Hole annual economic symposium.
At 13:27 IST, the barometer index, the S&P BSE Sensex, was down 148.84 points or 0.25% to 58,882.46. The Nifty 50 index lost 46.25 points or 0.26% to 17,531.25.
In the broader market, the S&P BSE Mid-Cap index slipped 0.11% while the S&P BSE Small-Cap index gained 0.43%.
The market breadth was strong. On the BSE, 1963 shares rose and 1346 shares fell. A total of 160 shares were unchanged.
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.
European markets declined while Asian stocks traded mixed on Wednesday as investors assessed whether an escalating economic slowdown will lead the Federal Reserve to temper the pace of monetary tightening.
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.
Wall Street ended down 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% after the Adani group launched a takeover bid on the media company. Vishvapradhan Commercial (VCPL), a wholly owned subsidiary of AMG Media Networks (AMNL), holds warrants of RRPR Holding (RRPR), entitling it to convert them into 99.9% stake in RRPR. AMNL is a 100% subsidiary of Adani Enterprises (AEL). VCPL has exercised warrants to acquire 99.5% stake in RRPR. Such acquisition will result in VCPL acquiring control of RRPR.
Maruti Suzuki India shed 0.94%. 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.
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