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Market drops for 4th day, Sensex tanks 954 pts, Nifty holds 17,000

Published on Sep 26, 2022 17:23

Equity barometers tanked on Monday, extending losses for the fourth trading session. The Nifty opened over 171 points lower and widened its loss as the trade progressed, tracking weak global cues. The Nifty briefly fell below 200-day moving average to hit the day`s low of 16,978.30 in the intraday. It regained the 17,000 mark in late trade. Investors dumped equities on renewed worries over economic growth amid a high-interest rate scenario. Barring the Nifty IT index, all the sectoral indices on the NSE ended in the red. Metals, realty and auto shares slumped.

The barometer index, the S&P BSE Sensex, dropped 953.70 points or 1.64% to 57,145.22. The Nifty 50 index tumbled 311.05 points or 1.80% to 17,016.30. In four consecutive sessions, the Sensex has slipped 4.31% while the Nifty has tumbled 4.49%.

Maruti Suzuki India (down 5.49%), Tata Steel (down 4.22%), ITC (down 3.96%), Axis Bank (down 3.40%) and NTPC (down 3.35%) were major losers.

In the broader market, the S&P BSE Mid-Cap index fell 2.84% while the S&P BSE Small-Cap index slumped 3.33%.

The market breadth was weak. On the BSE, 656 shares rose, and 2,925 shares fell. A total of 126 shares were unchanged.

Meanwhile, the NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, jumped 6.31% to 21.89.

The Reserve Bank of India (RBI)`s six-member Monetary Policy Committee is scheduled to meet this week during 28-30 September 2022. RBI Governor Shaktikanta Das will announce the MPC decision on 30 September 2022, the last date of the meeting. The RBI is widely expected to maintain the balancing act between growth and inflation.

In the past three policy reviews, the RBI`s rate-setting panel has raised 140 basis points in total since May this year. Currently, the repo rate, the interest rate at which the RBI lends to the commercial bank, stands at 5.40%.

Numbers to Watch:

The yield on India`s 10-year benchmark federal paper declined to 7.366 as compared with 7.393 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 81.67, compared with its close of 81.09 during the previous trading session.

MCX Gold futures for 5 October 2022 settlement added 0.08% to Rs 49,442.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.45% to 113.71.

The United States 10-year bond yield was up 1.83% to 3.765.

In the commodities market, Brent crude for November 2022 settlement rose 58 cents or 0.67% at $85.57 a barrel. The contract dropped $4.31 or 4.76% to settle at $86.15 a barrel during the previous trading session.

Global Markets:

The Dow Jones index futures were down 206 points, indicating a weak opening in the US stocks today.

Shares in Europe and Asia declined on Monday. Investors are cautious as concern for the global growth outlook has been increasing, since inflation remains high and central banks resort to aggressive interest rate hikes to try to tame rising prices.

Japan`s factory activity growth hit a 20-month low in September. The au Jibun Bank Flash Japan Manufacturing Purchasing Managers` Index (PMI) slipped to a seasonally adjusted 51 in September from the prior month`s final of 51.5.

US stocks tumbled on Friday as fears grew that a central bank prescription of raising interest rates to tame inflation will drag major economies into recession.

New Listing:

Shares of Harsha Engineers International closed at Rs 485.90 on the BSE, a premium of 47.24% compared with the issue price of Rs 330.

The scrip was listed at Rs 444, a premium of 34.55% over the initial public offer (IPO) price. The scrip has hit a high of Rs 527.60 and a low of Rs 431. Over 24.98 lakh shares of the company have changed hands in the counter.

The IPO of Harsha Engineers was subscribed 74.70 times. The issue was open between 14th and 16th September 2022. The price band of the IPO was fixed at Rs 314-330 per share.

Buzzing Index:

The Nifty IT index rose 0.57% to 26,743.65. The index declined 1.58% in the past three sessions.

Coforge (up 1.39%), HCL Technologies (up 1.36%), Infosys (up 1.29%), L&T Technology Services (up 1.1%), Mphasis (up 1%), TCS (up 0.6%) and Wipro (up 0.33%) advanced.

Stocks in Spotlight:

Hester Biosciences jumped 12.64% after the company said it has adequate supply of Goat Pox Vaccine in India to immunize cattle against Lumpy Skin disease. Further, ICAR-IVRI have jointly developed a Lumpy Skin Disease vaccine. As soon as the technology is made available, Hester said it will acquire the same and manufacture and commercialize the Lumpy Skin disease vaccine.

State Bank of India (SBI) shed 1.21%. The state-run lender on Friday (23 September 2022) announced the allotment of non-convertible, unsecured Basel III compliant Tier 2 bonds Series I of Rs 4,000 crore on private placement basis.

Britannia Industries lost 0.12%. The company on Friday said that its board has elevated Varun Berry as executive vice‐chairman and managing director with immediate effect and also appointed Rajneet Singh Kohli as executive director and chief executive officer.

Laxmi Organic Industries slumped 4.73%. The company said that its plant located at Mahad Industrial Area, MIDC, Raigad, Maharashtra had been shut down for 21 days from 21 August 2022 to 10 September 2022 to undertake and attend the planned maintenance activities.

Sterlite Technologies dropped 7.59%. The telecom solutions provider announced that Mihir Modi has tendered his resignation from the chief financial officer (CFO) and key managerial personnel position. Modi will be relieved from his duties with effect from the close of business hours of Friday, 14 October 2022, the company informed in an exchange filing.

Hindustan Aeronautics (HAL) declined 3.98%. The company has set up a 208 crore integrated cryogenic engine manufacturing facility (ICMF) in Bengaluru and it will cater to the entire rocket engine manufacturing under one roof for Indian Space Research Organisation (ISRO).

Suzlon Energy slumped 6.16% after the company announced the securities issue committee of the board approved the rights issue. The company will raise Rs 1,200 crore through issuance of 240 crore shares with face value of Rs 2 each at an issue price of Rs 5 per share.

The rights issue price of Rs 5 per equity share is at a discount of 45% to the previous session`s closing price of Rs 9.09.

Suzlon will issue five rights equity shares for every twenty one fully paid-up equity shares held by the eligible equity shareholders of the company, as on the record date as may be notified subsequently (5:21 ratio).

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