Indices trim losses, bank stocks decline

The benchmark indices pared losses and traded with minor cuts in early afternoon trade. The Nifty traded above the 17,600 level after hitting the day`s low of 17,484.30 in early trade. IT, FMCG and consumer durables stocks were in demand while auto, bank and realty shares were under pressure. Investors remained cautious ahead of the release of the US Fed`s Beige Book, which summarises the state of the world`s largest economy, due later today.

At 12:29 IST, the barometer index, the S&P BSE Sensex, was down 137.46 points or 0.23% to 59,059.53. The Nifty 50 index lost 34.35 points or 0.19% to 17,621.25.

In the broader market, the S&P BSE Mid-Cap index rose 0.17% while the S&P BSE Small-Cap index advanced 0.61%.

The market breadth was strong. On the BSE, 2,052 shares rose and 1,270 shares fell. A total of 139 shares were unchanged.

Derivatives:

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, rose 0.40% to 19.61. The Nifty 29 September 2022 futures were trading at 17,649.30, at a premium of 28.05 points as compared with the spot at 17,621.25.

The Nifty option chain for the 29 September 2022 expiry showed maximum Call OI of 21.8 lakh contracts at the 18,000 strike price. Maximum Put OI of 33.8 lakh contracts were seen at 16,500 strike price.

IPO Updates:

The initial public offer (IPO) of Tamilnad Mercantile Bank received bids for 1.57 crore shares as against 87.12 lakh shares on offer, according to stock exchange data 12:18 IST on Wednesday (7 September 2022). The issue was subscribed 1.81 times.

The issue opened for bidding on Monday (5 September 2022) and it will close on Wednesday (7 September 2022). The price band of the IPO is fixed at Rs 500-525 per share. An investor can bid for a minimum of 28 equity shares and in multiples thereof.

Buzzing Index:

The Nifty Bank index shed 0.36% to 39,523.35. The index declined 0.71% in two trading sessions.

IndusInd Bank (down 1.54%), Federal Bank (down 1.44%), ICICI Bank (down 0.71%), AU Small Finance Bank (down 0.69%), State Bank of India (down 0.57%), Kotak Mahindra Bank (down 0.53%), HDFC Bank (down 0.13%) edged lower.

On the other hand, Punjab National Bank (up 1.75%), IDFC First Bank (up 0.4%) and Axis Bank (up 0.39%) advanced.

Stocks in Spotlight:

Tata Consultancy Services (TCS) rose 0.76% .The IT major on Wednesday announced that it has been selected by Nokia to reimagine the employee experience for the company`s global workforce in more than 130 countries of operation. Nokia has selected TCS as its transformation enabler to reimagine its human resources processes and enable seamless personalized employee journeys.

Astral gained 0.95%.The National Company Law Tribunal (NCLT) has approved the scheme of amalgamation of subsidiaries of Astral, Resinova Chemie and Astral Biochem with the company. On 5 September 2022, Astral obtained sanction from the NCLT, Ahmedabad Bench the scheme of amalgamation of Resinova Chemie and Astral Biochem with the company and their respective shareholders and creditors.

On 6 September 2022, the company received certified copy from NCLT and has filed the same with the Registrar of Companies on the same day. Hence, the scheme of amalgamation has become effective from 6 September, 2022.

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