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Market snaps 4-day streak, ends with modest losses; Nifty holds 18k

Published on Sep 14, 2022 17:30

The key equity indices ended a volatile session with minor losses on Wednesday, snapping a four-day rising streak. The Nifty managed to close above the 18,000 mark after hitting the day`s low of 17,771.15 in the early trade. Domestic shares opened with deep losses today amid dismal global cues. The selloff followed a hotter-than-expected inflation report in the US, solidifying the chances of aggressive rate hikes from the US Federal Reserve. However, the market erased most of its losses as bargain hunting emerged at lower levels. Banks and metals shares were in demand while IT shares dragged.

The barometer index, the S&P BSE Sensex slipped 224.11 points or 0.37% to 60,346.97. The Nifty 50 index declined 66.30 points or 0.37% to 18,003.75. The Sensex climbed 2.61% while the Nifty gained 2.53% in the past four trading sessions.

Indusind Bank (up 4.23%), NTPC (up 3.32%), Power Grid Corporation of India (up 2.51%) and Kotak Mahindra Bank (up 1.59%) were major Nifty gainers.

State Bank of India rose 2.39% at Rs 571.60. The counter crossed the market capitalisation of Rs 5 lakh crore.

In the broader market, the S&P BSE Mid-Cap index fell 0.10% while the S&P BSE Small-Cap index shed 0.01%.

The market breadth was negative. On the BSE, 1,633 shares rose and 1,843 shares fell. A total of 135 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, jumped 4.62% to 18.28.


India`s inflation based on wholesale price index (WPI) stood at 12.41% in August 2022 compared with 11.64% in August 2021. The WPI grew 13.93% in July 2022, while the figure for June was 16.23%.

"Inflation in August, 2022 is primarily contributed by rise in prices of mineral oils, food articles, crude petroleum & natural gas, basic metals, chemicals & chemical products, electricity, food products etc. as compared to the corresponding month of the previous year," the Ministry of Commerce & Industry said in a statement today.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose to 7.156 as compared with 7.108 at close in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 79.47, compared with its close of 79.1700 during the previous trading session.

MCX Gold futures for 5 October 2022 settlement declined 0.08% to Rs 50,100.

The 10-year U.S. Treasury yield was hovering at 3.464%.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.17% to 109.63.

In the commodities market, Brent crude for November 2022 settlement rose 30 cents or 0.32% at $93.47 a barrel.

Global Cues:

Shares in Europe and Asia declined on Wednesday as a white-hot US inflation report dashed hopes for a peak in inflation and fueled bets that interest rates may have to be raised higher and for longer.

US stocks fell sharply on Tuesday following the US inflation report. 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.

The US consumer price index edged up 0.1% 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.

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.

Buzzing Segment:

The Nifty IT index fell 3.36% to 28,137.60. The index has fallen 3.41% in two days amid fears of recession in the western markets.

Wipro (down 1.34%), HCL Technologies (down 2.39%), Mphasis (down 2.61%), Mindtree (down 2.81%), Tech Mahindra (down 3.09%), TCS (down 3.23%), Larsen & Toubro Infotech (down 3.31%), Coforge (down 3.69%) and L&T Technology Services (down 4.21%) tumbled.

Infosys fell 4.53%. The IT major announced that it has collaborated with Bpost to secure the cloud environment and build robust cyber resilience for Bpost`s mail delivery and logistics services.

Bpost (Belgium Post) is Belgium`s leading postal operator and a growing parcel and omni-commerce logistics partner in Europe, North America, and Asia.

Stocks in Spotlight:

Ambuja Cements rallied 7.85% after the company said its board will consider raising funds on 16 September 2022. The company plans raising funds by way of issue of equity shares, convertibles and/or any other eligible securities, on a rights/preferential or any other permissible mode/ and/or combination thereof as may be considered appropriate.

PVR added 1% while INOX Leisure jumped 4.17% on reports 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.

Vedanta surged 10.01% after the media reported that the company will set up a hub to manufacture Apple iPhones and other television equipment in Maharashtra. In a media interview, Vedanta chairman Anil Agarwal said that the company is expected to enter the electric vehicle space as well.

Meanwhile, Vedanta and electronics manufacturing giant Foxconn signed a memorandum of understanding with the Gujarat government on Tuesday (13 September) to set up a semiconductor and display FAB manufacturing unit in the state.

Bajaj Holdings & Investment surged 7.95% to Rs 7151.80 after the company declared an interim dividend of Rs 110 per equity share. The company has fixed 23 September 2022 as the record date for the same.

KEC International advanced 1.39%. The company has secured new orders of Rs. 1,108 crore across its various businesses.

Hatsun Agro Product declined 2.51%. The meeting of the board of directors of the company is scheduled on 19 September 2022 to consider and approve raising of funds by way of issue of equity shares on a rights issue basis.

Filatex India advanced 2.50% after the company informed that it has been granted a 20-year patent for recycling of Polyethylene Terephthalate (PET) waste. In an exchange filing made after market hours yesterday, the company said that a patent has been granted on 01.09.2022 to the Company for an invention entitled `a process for recycling of Polyethylene Terephthalate (PET) waste` for the period of 20 years with effect from 2 June 2021.

JSW Steel rose 0.35%. The steel major forged a collaboration with German-based engineering and technology company SMS group to explore multiple cutting-edge solutions and R&D projects to reduce carbon emission in its iron and steelmaking operations in India.

Bharat Forge lost 1%. Kalyani Powertrain (KPTL), a wholly owned subsidiary of Bharat Forge, joined hands with Harbinger Motors Inc. (Harbinger), a company revolutionizing the medium-duty commercial electric vehicle industry, to form a joint venture focused on developing electric drivetrain solutions for the commercial vehicle market.

KPI Green Energy fell 2.75%. The company said that it has signed new long term power purchase agreements (PPAs) for sale of 15.88 MW wind-solar hybrid power projects with six clients under independent power producer (IPP) business segment of the company. The company said that the aforementioned clients will be supplied power from its upcoming wind-solar hybrid power project of 16.10 MW (comprising 16.10 MW wind and 10 MWdc solar capacity) at Bhungar site, Mahuva, in Bhavnagar District, Gujarat, under the Gujarat Hybrid Power Policy 2018.

Coromandel International slipped 1.35%. The company said that its venture capital arm Dare Ventures has announced its third investment this year into a differentiated drone startup, Dhaksha Unmanned Systems. The drone company plans to use this funding for talent acquisition, R&D and production scale up.

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