Indices trim some losses, oil & gas stocks decline

The key equity indices pared some of the initial losses in the mid-morning trade. The Nifty traded above the 17,950 mark after hitting the day`s low of 17,771.15 in the early trade. Shares of media, metal and PSU bank advanced while IT, realty and oil & gas stocks were under pressure. Domestic sentiment was dented amid negative global cues. The market selloff came amidst hotter than expected inflation report solidifying the chances of aggressive rate hikes from the US Federal Reserve.

At 11:30 IST, the barometer index, the S&P BSE Sensex, was down 420.28 points or 0.69% to 60,150.80. The Nifty 50 index declined 117.60 points or 0.65% to 17,952.45.

In the broader market, the S&P BSE Mid-Cap index fell 0.22% while the S&P BSE Small-Cap index shed 0.07%.

The market breadth was negative. On the BSE, 1,490 shares rose and 1,803 shares fell. A total of 152 shares were unchanged.

Buzzing Index:

The Nifty Oil & Gas index declined 0.69% to 8,238.25. The index fell 0.15% in the past trading session.

Hindustan Petroleum Corporation (HPCL) (down 1.3%), Reliance Industries (RIL) (down 1.19%), Bharat Petroleum Corporation (BPCL) (down 0.89%), Petronet LNG (down 0.85%), Adani Total Gas (down 0.74%), Mahanagar Gas (down 0.72%), Gujarat Gas (down 0.61%), GAIL (India) (down 0.6%), Oil & Natural Gas Corporation (ONGC) (down 0.52%) and Indian Oil Corporation (IOCL) (down 0.42%) edged lower.

On the other hand, Aegis Logistics (up 7.32%), Castrol India (up 0.8%) and Indraprastha Gas (up 0.67%) advanced.

Stocks in Spotlight:

PVR and INOX Leisure rose by 1.87% to 5.36% on reports the Competition Commission of India (CCI) has rejected a complaint against the proposed merger of the multiplex chains. The media reported that the Competition Commission of India (CCI) on Tuesday (13 September) rejected a complaint against the proposed merger of PVR and INOX Leisure, saying apprehension of likelihood of anti-competitive practices by an entity cannot be a subject of probe. Non-profit group CUTS had complained that the proposed merger agreement would have anti-competitive effects on the film exhibition industry and sought a detailed probe against the two entities.

Bajaj Holdings & Investment gained 1.81% after the company declared an interim dividend of Rs 110 per equity share. The board of Bajaj Holdings & Investment on Tuesday, 13 September 2022, declared an interim dividend of Rs 110 per equity share of face value of Rs 10, for the financial year ending 31 March 2023. The company has fixed 23 September 2022 as the record date for the same. The interim dividend will be dispatched on or around Monday, 10 October 2022.

Neuland Laboratories added 0.87. The company said that Deepak Gupta, chief financial officer of the company, has informed the company that he would like to pursue career opportunities outside the company and as such has resigned from the services of the company. The drug maker further said that whilst the company has accepted his resignation, Deepak Gupta will continue to act as the chief financial officer of the company, until the close of business hours on 13 October 2022.

Global Markets:

Asian stocks traded with sharp losses on Wednesday as a white-hot US inflation report dashed hopes for a peak in inflation and fuelled bets that interest rates may have to be raised higher and for longer.

US stocks fell sharply on Tuesday after a key August inflation report came in hotter than expected, hurting investor optimism for cooling prices and a less aggressive Federal Reserve. The report is one of the last the Fed will see ahead of their September 20-21 meeting, where the central bank is expected to deliver its third consecutive 0.75 percentage point interest rate hike to tamp down inflation.

The Dow Jones Industrial Average slid 1,276.37 points, or 3.94%, to close at 31,104.97. The S&P 500 dropped 4.32% to 3,932.69, and the Nasdaq Composite sank 5.16% to end the day at 11,633.57.

Meanwhile, the shareholders of social media giant Twitter on 13 September 2022 approved the $44 billion acquisition deal which was inked by the company with billionaire tycoon Elon Musk. The nod from shareholders comes ahead of the trial next month over whether the $44 billion deal should be completed. The courtroom battle is scheduled to begin on 17 October 2022.

On the macro front, US consumer prices unexpectedly rose in August and underlying inflation accelerated amid rising costs for rents and healthcare. The consumer price index edged up 0.1 percent last month after being unchanged in July. In the 12 months through August, the CPI increased 8.3%. That was a deceleration from July`s 8.5% rise and a 9.1% jump in June.

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