Broader markets witness sharp sell-off as key indices decline; metal stocks tumble

The domestic equity barometers hit fresh intraday low in mid-morning trade. The Nifty traded tad above the 18,950 level. Metal shares edged lower

At 11:27 IST, the barometer index, the S&P BSE Sensex, was down 865.82 points or 1.35% to 63,183.24. The Nifty 50 index declined 263 points or 1.38% to 18,859.15.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, jumped 11.55% to 12.62.

In the broader market, the S&P BSE Mid-Cap index fell 2.15% while the S&P BSE Small-Cap index lost 2.41%.

The market breadth was weak. On the BSE, 479 shares rose and 3003 shares fell. A total of 129 shares were unchanged.

The market sell-off has been triggered by the US 10-year bond yield nearing the 5 percent mark, which pulled down the risk levels materially in the region. Geopolitical tensions emanating from West Asia dragged the market lower. The expiry of monthly F&O contracts on the NSE today further added to the volatility.

New Listing:

Shares of IRM Energy were currently trading at Rs 465.80 on the BSE, representing a discount of 7.76% as compared with the issue price of Rs 505. The scrip was listed at Rs 479, exhibiting a discount of 5.15% to the issue price.

So far, the stock has hit a high of 482 and a low of 450.05. On the BSE, over 2.50 lakh shares of the company were traded in the counter so far.

The initial public offer (IPO) of IRM Energy received bids for 20,62,70,910 shares as against 76,24,800 shares on offer, according to stock exchange. The issue was subscribed 27.05 times.

The issue opened for bidding on 18 October 2023and closed on 20 October 2023. The price band of the IPO was fixed at Rs 480-505 per share.

Buzzing Index:

The Nifty Metal index fell 1.66% to 6,395.80. The index had advanced 0.15% to end at 6,503.65 yesterday.

Welspun Corp (down 3.27%), National Aluminium Company (down 2.51%), Hindustan Zinc (down 2.5%), Adani Enterprises (down 2.3%) and Hindustan Copper (down 2.16%) were the top losers.

Among the other losers were Vedanta (down 1.98%), Steel Authority of India (down 1.72%), Ratnamani Metals & Tubes (down 1.69%), Jindal Steel & Power (down 1.65%) and NMDC (down 1.57%).

Stocks in Spotlight:

Chennai Petroleum Corporation fell 2.08%. The company`s standalone net profit zoomed to Rs 1,190.56 crore in Q2 FY24 as against Rs 27.88 crore recorded in Q2 FY23. However, revenue from operations (excluding excise duty) fell 15.2% to Rs 16,544.56 crore in the quarter ended 30 September 2023 from Rs 19,508.82 crore recorded in the corresponding quarter previous year.

Sona BLW Precision Forgings (Sona Comstar) added 3.14%. The company`s consolidated net profit jumped 33.82% to Rs 123.84 crore on 20.61% increase in revenue from operation to Rs 787.46 crore in Q2 FY24 over Q2 FY23.

Global Markets:

Asian stocks are trading lower on Thursday as U.S. shares slumped following a batch of poor corporate earnings.

US stocks dropped on Wednesday as Alphabet shares slid after the Google parent posted disappointing earnings and as US Treasury yields rose, reviving fears that interest rates could stay higher for longer. Traders also kept an eye on the latest comments by US President Joe Biden after he had asked Israel to delay its invasion so that more hostages held by Hamas could be freed.

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