Indices slide for 4th day, Nifty closes below 19,700; private banks drag
Published on Sep 22, 2023 18:05
Key equity benchmarks closed with marginal losses, extending the downward trend for the fourth consecutive day. The Nifty dipped below 19,700, despite touching a high of 19,798.65 earlier in the day. Risk-averse sentiment prevailed due to feeble global cues amid rising US bond yields, and concerns over higher rates. Expensive market valuations, rising crude oil prices, a strong US Dollar index, and continuous FII selling further impacted sentiment. However, PSU bank stocks outperformed due to India`s inclusion in JP Morgan`s Government Bond Index.
The barometer index, the S&P BSE Sensex declined 221.09 points or 0.33% to 66,009.15. The Nifty 50 index lost 68.10 points or 0.34% to 19,674.25.
HDFC Bank (down 1.57%), ICICI Bank (down 0.94%) and ITC (down 0.94%) were major drags.
In the broader market, the S&P BSE Mid-Cap index fell 0.14% while the S&P BSE Small-Cap index added 0.04%.
The market breadth was negative. On the BSE, 1,689 shares rose and 1,953 shares fell. A total of 139 shares were unchanged.
The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, declined 1.45% to 10.66.
JPMorgan has announced that it will include Indian government bonds in its emerging market debt index, prompting significant investments into the country. Starting 28 June 2024, India`s local bonds will be added to the index, with a maximum weight of 10%. This move is regarded as a positive step that will deepen India`s bond market, which is crucial amid limited options for global debt investors due to the exclusion of Russia and issues in China. The inclusion is expected to bring billions of dollars into India`s economy.
Numbers to track:
The yield on India`s 10-year benchmark federal paper rose 0.14% to 7.146 from previous close of 7.136.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 82.94, compared with its close of 83.13 during the previous trading session.
MCX Gold futures for 5 October 2023 settlement added 0.08% to Rs 58,871.
The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.26% to 105.64.
The United States 10-year bond yield advanced 0.04% to 4.484.
In the commodities market, Brent crude for November 2023 settlement gained 87 cents or 0.93% to $94.17 a barrel.
Most European markets declined, while Asian stocks had a mixed performance on Friday.
Japan`s headline inflation rate for August was 3.2%, slightly slower than July`s 3.3%, marking the 16th consecutive month that inflation has surpassed the Bank of Japan`s 2% target. The core inflation rate remained unchanged at 3.1%. The Bank of Japan reaffirmed its commitment to maintaining an ultra-accommodative monetary policy until the 2% inflation target is achieved.
Meanwhile, the Bank of England decided to pause its hiking cycle and kept the policy rate at 5.25% due to lower-than-expected inflation data.
In the US, stocks experienced a third consecutive day of losses Thursday, as Treasury yields reached multiyear highs, and concerns grew regarding a potential government shutdown.
Stocks in Spotlight:
Wipro declined 2.32%, following the resignation of its Chief Financial Officer Jatin Dalal.
Aparna C Iyer will replace Jatin Dalal as Wipro`s chief financial officer, effective immediately. Aparna will report to CEO Thierry Delaporte and will join the Wipro executive board.
Jatin Dalal resigned to pursue professional goals outside the organization. He will be relieved from the services of the company with effect from 30 November 2023.
Vedanta slipped 0.66%. The company approved for raising on a private placement basis upto 2,50,000 nos. secured, unrated, unlisted, redeemable, non-convertible debentures (NCDs) of face value Rs 1,00,000/- each aggregating upto Rs 2,500 crores in one or more tranches.
Glenmark Pharmaceuticals fell 3.12%. The pharmaceutical company has entered into a definitive agreement with Nirma to divest 75% stake in its subsidiary, Glenmark Life Sciences (GLS), at a price of Rs 615 per share for an aggregate consideration of Rs 5651.5 crore. Glenmark Pharma will retain 7.84% in GLS after the divestment.
Ultratech Cement shed 1.50%. The company said that it has entered into an agreement with The India Cements for purchase of land admeasuring 73.75 acres located at villages Kantakapalle and Chinnipalem, Mandal Kothavalasa, District Vizianagram, Andhra Pradesh. The said land parcel has been acquired for a consideration of Rs 70 crore.
NBCC (India) rose 1.82%. The company was awarded order for construction of various development work at township and mines of Bhilai steel plant, from SAIL. The value of the order is Rs 100 crore.
Ideaforge Technology added 0.33% after the company announced that it has received order worth about Rs 58 crore from Strategic Marketing for supplying 400 surveillance copter with accessories. The said contract has to be executed within a period of twelve months.
ICICI Lombard General Insurance Company fell 0.91%. The company informed that Bhargav Dasgupta, managing director (MD) & chief executive officer (CEO) of the company has tendered his resignation to pursue a career opportunity outside the country.
Sunteck Realty gained 0.67%. The company said that it has partnered with International Finance Corporation (IFC) to create joint platform to develop mid-income & affordable, green urban sustainable housing with a total investment of upto Rs 750 crore ($ 90 million).
Suzlon Energy declined 1.73%. The firm announced that it has bagged an order for the development of a 29.4 MW of wind installed capacity for 100 MW co‐located wind‐solar hybrid project of BrightNight, a global renewable power producer.
NCC added 0.54%. The company said that its joint venture, J Kumar Infra Projects (JKIL) has awarded contract from Brihanmumbai Municipal Corporation (BMC) for constructing twin tunnel.
Shares of Zaggle Prepaid Ocean Services closed at Rs 158.30 on the BSE, representing a discount of 3.48% as compared with the issue price of Rs 164. The scrip was listed at Rs 162, exhibiting a discount of 1.22% to the issue price. The stock has hit a high of 176 and a low of 155. On the BSE, over 12.49 lakh shares of the company were traded in the counter.
Shares of Samhi Hotels settled at Rs 143.55 on the BSE, representing a premium of 13.93% as compared with the issue price of Rs 126. The scrip was listed at Rs 130.55, exhibiting a premium of 3.61% to the issue price. The stock has hit a high of 146.45 and a low of 127.45. On the BSE, over 19.37lakh shares of the company were traded in the counter.
The initial public offer (IPO) of Manoj Vaibhav Gems N Jewellers received bids for 12.22 lakh shares as against 91.20 lakh shares on offer, according to stock exchange data at 17:00 IST on Friday (22 September 2023). The issue was subscribed 13%.
The issue opened for bidding on Friday (22 September 2023) and it will close on Tuesday (26 September 2023). The price band of the IPO is fixed at Rs 204-215 per share. An investor can bid for a minimum of 69 equity shares and in multiples thereof.
The initial public offer (IPO) of Signatureglobal (India) received bids for 13.36 crore shares as against 1.12 crore shares on offer, according to stock exchange data at 17:00 IST on Friday (22 September 2023). The issue was subscribed 11.88 times.
The issue opened for bidding on Wednesday (20 September 2023) and it will close on Friday (22 September 2023). The price band of the IPO is fixed at Rs 366-385 per share. An investor can bid for a minimum of 38 equity shares and in multiples thereof.
The initial public offer (IPO) of Sai Silks (Kalamandir) received bids for 16.94 crore shares as against 3.84 crore shares on offer, according to stock exchange data at 17:00 IST on Friday (22 September 2023). The issue was subscribed 4.40 times.
The issue opened for bidding on Wednesday (20 September 2023) and it will close on Friday (22 September 2023). The price band of the IPO is fixed at Rs 210-222 per share. An investor can bid for a minimum of 67 equity shares and in multiples thereof.
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