Indices trade with minor cuts, IT stocks under pressure
Published on Aug 23, 2022 11:33
The key equity indices reversed gains and slipped into the negative terrain in the mid-morning trade. Domestic sentiment was dented amid negative global cues. The Nifty traded below the 17,500 level. Auto, PSU bank and pharma stocks advanced while IT, media and FMCG shares declined.
At 11:30 IST, the barometer index, the S&P BSE Sensex, was down 130.77 points or 0.22% to 58,643.10. The Nifty 50 index declined 14.85 points or 0.09% to 17,475.85.
In the broader market, the S&P BSE Mid-Cap index gained 0.32% while the S&P BSE Small-Cap index rose 0.11%.
The market breadth was positive. On the BSE, 1,788 shares rose and 1,404 shares fell. A total of 151 shares were unchanged.
The Nifty IT index fell 2.34% to 28,789.65. The index slipped 4.15% in two trading sessions.
Mphasis (down 4.46%), L&T Technology Services (down 3.44%), Tech Mahindra (down 2.63%), Infosys (down 2.4%), Larsen & Toubro Infotech (down 2.32%), Mindtree (down 2.23%), Wipro (down 1.77%), Tata Consultancy Services (down 1.74%), HCL Technologies (down 1.71%) and Coforge (down 1.7%) declined.
Stocks in Spotlight:
NTPC gained 0.90%. 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.
IIFL Finance rose 0.11% after the company said the board of directors 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.
Shivalik Bimetal Controls rallied 4.86% after the company said its board will consider a bonus share issue on 29 August 2022. The board of Shivalik Bimetal Controls will meet on Monday, 29 August 2022, to consider issuing bonus shares to the equity shareholders.
Asian stocks tumbled on Tuesday after major indexes on Wall Street finished their worst day since June amid mounting rate hike concerns.
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.
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