Indices drop on subdued global cues; weak market breadth
Published on Sep 26, 2022 09:26
The key equity indices traded with deep cuts in early trade as index pivotals witnessed significant selling pressure. Weak global cues played the spoilsport. The Nifty traded below the 17,150 level. Shares across sectors declined with auto, metal and bank stocks sliding the most.
At 09:23 IST, the barometer index, the S&P BSE Sensex, was down 613.58 points or 1.06% to 57,485.34. The Nifty 50 index declined 196.10 points or 1.13% to 17,131.25.
In the broader market, the S&P BSE Mid-Cap index fell 1.86% while the S&P BSE Small-Cap index lost 2.05%
The market breadth was weak. On the BSE, 543 shares rose, and 2263 shares fell. A total of 130 shares were unchanged.
The Reserve Bank of India (RBI)`s six-member Monetary Policy Committee is scheduled to meet this week during 28-30 September 2022. RBI Governor Shaktikanta Das will announce the MPC decision on 30 September 2022, the last date of the meeting. The RBI is widely expected to maintain the balancing act between growth and inflation.
In the past three policy reviews, the RBI`s rate-setting panel has raised 140 basis points in total since May this year. Currently, the repo rate, the interest rate at which the RBI lends to the commercial bank, stands at 5.40%.
Stocks in Spotlight:
State Bank of India (SBI) fell 1.35%. The state-run lender on Friday (23 September 2022) announced the allotment of non-convertible, unsecured Basel III compliant Tier 2 bonds Series I of Rs 4,000 crore on private placement basis.
Britannia Industries rose 0.31%. The company on Friday said that its board has elevated Varun Berry as executive vice‐chairman and managing director with immediate effect and also appointed Rajneet Singh Kohli as executive director and chief executive officer.
Anupam Rasayan India slipped 2.34%. The company said that the Gujarat Pollution Control Board has directed the company to pay an interim environmental damage compensation of Rs 1 crore.
Asian stocks are trading sharply lower on Monday as negative sentiment continues to weigh in on markets.
Japan`s factory activity growth hit a 20-month low in September. The au Jibun Bank Flash Japan Manufacturing Purchasing Managers` Index (PMI) slipped to a seasonally adjusted 51 in September from the prior month`s final of 51.5.
US stocks tumbled on Friday as fears grew that a central bank prescription of raising interest rates to tame inflation will drag major economies into recession.
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