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Indices snap two-day losses; Nifty regains 17,550 mark; M&M jumps over 3.5%

Published on Aug 23, 2022 17:03

The benchmark indices ended the volatile session with modest gains on Tuesday. Bargain hunting emerged after losses in the past two days. The Nifty opened in the red and hit the day`s low of 17,345.20 in early trade. It bounced in early afternoon trade and hit the day`s high of 17,625.55 in late trade. Barring the Nifty IT index, all the sectoral indices ended in the green. Banks, autos and metal shares were in demand.

The barometer index, the S&P BSE Sensex, rose 257.43 points or 0.44% to 59,031.30. The Nifty 50 index added 86.80 points or 0.50% to 17,577.50. Both the indices fell over 2.5% in the past two sessions.

M&M (up 3.78%), Bajaj Finserv (up 2.75%), SBI (up 2.12%), Kotak Mahindra Bank (up 1.96%), Reliance Industries (up 1.57%) and ICICI Bank (up 1.47%) boosted the indices today.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index gained 1.03% while the S&P BSE Small-Cap index rose 0.78%.

The market breadth was strong. On the BSE, 2,112 shares rose and 1,282 shares fell. A total of 156 shares were unchanged.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose to 7.281 as compared with 7.270 at close in the previous trading session.

In the foreign exchange market, the rupee was lower against the dollar. The partially convertible rupee was hovering at 79.87, compared with its close of 79.84 during the previous trading session.

MCX Gold futures for 5 October 2022 settlement slipped 0.04% to Rs 51,140.

The 10-year U.S. Treasury yield was hovering above 3% mark.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, rose 0.09% to 109.14.

In the commodities market, Brent crude for October 2022 settlement rose $1.51 or 1.57% at $97.99 a barrel. The contract fell 24 cents or 0.25% to settle at $96.48 a barrel during the previous trading session.

Global Markets:

Shares in Europe and Asia declined on Tuesday, tracking global sentiment as a fresh surge in European energy prices deepened fears of a recession.

The damage comes after Russia reportedly said it will stop gas supplies to Europe for three days at the end of the month due to an unscheduled maintenance order on its main Nord Stream 1 pipeline.

In Asia, Japan`s manufacturing activity growth slowed to a 19-month low, as new orders continue to decline. The au Jibun Bank Flash Manufacturing Purchasing Managers` Index (PMI) fell to a seasonally adjusted 51.0 in August, down from July`s final of 52.1.

US stocks fell sharply Monday, in its worst day since June, as the summer rally fizzled out and fears of aggressive interest rate hikes returned to Wall Street.

Investors are anticipating what could be a volatile week of trading ahead of Federal Reserve Chairman Jerome Powell`s latest comments on inflation at the central bank`s annual Jackson Hole economic symposium.

Adani Group shares witness steep selling:

Shares of five Adani Group shares fell by 0.32% to 5% after a research firm reportedly said in a report that Adani Group`s debt-funded growth plans could spiral into a massive debt trap.

Adani Power (down 5%), Adani Green Energy (down 4.15%), Adani Wilmar (down 4.73%), Adani Enterprises (down 0.93%) and Adani Ports And Special Economic Zone (down 0.32%) tumbled.

However, Adani Total Gas rose 1.73% and Adani Transmission rose 3.23%.

Adani Group is "deeply overleveraged," with the group investing aggressively across existing as well as new businesses, predominantly funded with debt, the research report reportedly cited.

The aggressive expansion pursued by the Adani Group has put pressure on its credit metrics and cash flow, the research firm said, adding that "In the worst-case scenario, overly ambitious debt-funded growth plans could eventually spiral into a massive debt trap, and possibly culminate into a distressed situation or default of one or more group companies," it added. The group`s aggressive plans, most of which have been fuelled by debt, is making the research firm `cautiously watchful`.

Stocks in Spotlight:

Procter & Gamble Hygiene & Health Care declined 1.78% after the company`s net profit fell 13.12% to Rs 42.55 crore on 1.3% decline in net sales to Rs 776.38 crore in the quarter ended June 2022 over the quarter ended June 2021.

The company said that the fall in profit after tax (PAT) was largely due to commodity cost inflation. For the quarter, both feminine care and healthcare businesses continue to grow and maintain category leadership.

TVS Electronics rallied 7.85%. The hardware and equipment firm executed business transfer agreement with GTID Solutions Development for acquiring their business and intellectual property rights for Rs 2.25 crore. TVS Electronics has acquired the business and IP rights of GTID Solutions Development. The cost of acquisition is Rs 2.25 crore. With this agreement, TVS has entered into mobile POS software solutions and authentication solutions space. It will offer hardware along with required applications, digital payment solutions, cloud computing software solutions etc. to segments like retail, banks and government.

RBL Bank jumped 5.95% to Rs 104.10. The bank said that its board has approved the issue of debt securities on private placement basis, from time to time, upto an amount of Rs 3,000 crore, subject to necessary approvals.

Meanwhile, a domestic broker maintained `buy` rating on RBL Bank stock with a target price of Rs 125 per share.

NTPC gained 1.15%. The state-run power major on Monday declared commercial operation of first part capacity of 10 megawatt (MW) out of 20 MW Gandhar Solar PV project in Gujrat. With this, standalone installed and commercial capacity of NTPC has become 55099 MW, while group installed and commercial capacity of NTPC has become 69464 MW, the company stated.

Unichem Laboratories advanced 4.07% after the company announced that it has received abbreviated new drug application (ANDA) approval for Carbamazepine tablets from USFDA. The United States Food and Drug Administration (USFDA) approved the company to market a generic version of Carbamazepine (Tegretol) tablet of Novartis Pharmaceuticals Corp.

IIFL Finance rose 3.43%. The company said the board of its subsidiary IIFL Home Finance approved the allotment of its equity shares to the subsidiary of Abu Dhabi Investment Authority. IIFL Home Finance`s board considered and approved the allotment of its 53,76,457 fully paid-up equity shares to the investor company for an aggregate consideration of Rs 2,200 crore. Post this transaction, the investor will hold 20% shareholding in IIFL Home Finance.

Sterling and Wilson Renewable Energy gained 4.68% after the company announced that it has bagged an order approximately worth Rs 2,200 crore from NTPC. The company has emerged as the L-1 bidder for the BOS package comprising 4 blocks of the proposed solar PV plant of NTPC Renewable Energy at Khavda RE Power Park, Rann of Kutch, Gujarat with an aggregate capacity of approximately 1570 MW DC. The total bid value, including operations and maintenance (O&M) for 3 years would be approximately Rs 2,200 crore.

Shivalik Bimetal Controls rallied 4.78% after the company said its board will consider a bonus share issue on 29 August 2022.

Power Mech Projects rose 2.66%. The board of Power Mech Projects will meet on Thursday, 25 August 2022, to consider the proposal of raising funds by issuing equity shares on preferential basis to promoter(s) / promoter(s) group.

Sportking India surged 15.32%. The company on Tuesday (23 August) announced that it received an approval for listing its shares on NSE from Wednesday, 24 August 2022.

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