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Indices trade with small losses; Nifty tad below 17,700

Published on Sep 22, 2022 14:32

The domestic equity benchmarks traded with minor losses in the mid-afternoon trade. Domestic sentiment was dented amid negative global cues. The Nifty traded a tad below the 17,700 level. Media, FMCG and consumer durables stocks rose while bank and financial services shares declined. Trading was volatile due to the expiry of weekly index options on the NSE today.

At 14:29 IST, the barometer index, the S&P BSE Sensex, was down 114.12 points or 0.19% to 59,342.66. The Nifty 50 index declined 22.15 points or 0.13% to 17,696.20.

In the broader market, the S&P BSE Mid-Cap index added 0.24% while the S&P BSE Small-Cap index rose 0.33%

The market breadth was positive. On the BSE, 1,759 shares rose, and 1,639 shares fell. A total of 146 shares were unchanged.

The US Federal Reserve hiked its key interest rate by 75 basis points on Wednesday for the third consecutive time. The central bank`s officials forecast the target range for the benchmark policy rate to rise to 4.4% by the end of 2022 and reach 4.6% in 2023, as per the updated quarterly estimates published in conjunction with the statement.

The central bank has reiterated its commitment to fighting the decades-high inflation and works to push it under the targeted 2% range. The FOMC in its statement on Wednesday underlined that it is `Highly attentive to inflation risks`.

With the 75-bps rate hike on Sept 21, the benchmark policy rate now lies in the 3-3.25% range, the highest level since before the financial crisis of 2008.

The projections by Fed officials indicate a probable fourth 75-bps rate hike in the next FOMC meeting in November.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose to 7.33 as compared with 7.23 at close in the previous trading session.

The Indian Rupee hit a fresh record low against US dollar of 80.775 so far in the day`s trading sessions. The partially convertible rupee was hovering at 80.5575, compared with its close of 79.9675 during the previous trading session.

MCX Gold futures for 5 October 2022 settlement rose 0.79% to Rs 49,832.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, added 0.17% to 110.83.

In the commodities market, Brent crude for November 2022 settlement rose $1.40 or 1.56% at $91.23 a barrel.

Buzzing Index:

The Nifty Media index advanced 1.93% to 2,162.20. The index declined 0.28% in the past trading session.

Among the components of the Nifty Media index, Dish TV India (up 9.76%), Sun TV Network (up 3%), Nazara Technologies (up 2.74%), Saregama India (up 2.49%), Inox Leisure (up 1.62%) PVR (up 1.52%), Zee Entertainment Enterprises (up 1.29%), Network 18 Media & Investments (up 1.14%) and TV18 Broadcast (up 0.12%) were the top gainers.

On the other hand, Hathway Cable & Datacom (down 0.29%) edged lower.

Stocks in Spotlight:

Aptus Value Housing Finance India jumped 6.7% after a foreign brokerage reportedly initiated coverage on the stock with a `buy` rating and a target price of Rs 425. The brokerage reportedly cited that the affordable housing financier could provide strong earnings growth in the coming years driven small size and `good` execution track record that should enable a 29% annualised growth in assets under management over the next three years.

Vascon Engineers jumped 4.93% after CRISIL Ratings assigned `CRISIL BBB/Stable/CRISIL A3+` ratings to the bank facilities of the company worth Rs.453 crore. CRISIL said that the ratings reflect expectation of sustained improvement in the operating performance of VEL because of focus on the stable cash-generating engineering, procurement and construction (EPC) business over the medium term and maintenance of a healthy capital structure and liquidity profile, aided by equity infusion to support the debt protection metrics.

Suzlon Energy rallied 8.08% after the company said that its board will meet on Sunday, 25 September 2022 to consider and approve the terms and conditions of the rights issue including determination of the price. The board in its meeting held on 10 August 2022, had approved issuing of the equity shares by way of a rights issue to the eligible equity shareholders of the company.

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