Nifty above 17,900 mark; broader market outperforms

The domestic equity benchmarks further pared losses in afternoon trade. The Nifty reclaimed the 17,900 level, after hitting the day`s low at 17,865.10 in mid-afternoon trade. The Nifty Bank index hit an all time high of 41,840.15 in early trade today, before paring most of the day`s gains. Auto, PSU banks and oil & gas stocks outperformed as IT, pharma and realty stocks edged lower. Trading was volatile due to the expiry of weekly index options on the NSE today.

At 13:21 IST, the barometer index, the S&P BSE Sensex, was down 235.34 points or 0.39% to 60,111.63. The Nifty 50 index declined 72.90 points or 0.4% to 17,930.85.

In the broader market, the S&P BSE Mid-Cap index rose 0.16% while the S&P BSE Small-Cap index added 0.15%.

The market breadth was negative. On the BSE, 1,644 shares rose and 1,773 shares fell. A total of 136 shares were unchanged.

Economy:

Fitch Global Ratings has cut India`s GDP growth forecast expecting a global slowdown and a tighter monetary policy. The ratings agency now expects the Indian economy to grow at 7% in FY23 compared with its earlier projection of 7.8%, according to its report on the global growth outlook. The estimates for FY24 have also been cut to 6.7% against 7.4% earlier.

IPO Update:

The initial public offer (IPO) of Harsha Engineers International received bids for 9.76 crore shares as against 1.68 crore shares on offer, according to stock exchange data 13:24 IST on Thursday (15 September 2022). The issue was subscribed 5.79 times.

The issue opened for bidding on Wednesday (14 September 2022) and it will close on Friday (16 September 2022). The price band of the IPO is fixed at Rs 314-330 per share. An investor can bid for a minimum of 45 equity shares and in multiples thereof.

Stocks in Spotlight:

Larsen & Toubro (L&T) rose 0.38%. The EPC major on Thursday (15 September 2022) announced that its construction arm has secured a `significant` contract for its water & effluent treatment business. As per L&T`s classification, the value of the significant project is Rs 1,000 crore to Rs 2,500 crore.

Maruti Suzuki India added 3.58%. A foreign brokerage has reportedly come out with a note on Maruti Suzuki India, where they increased the target price from 9,500 to 10,500 per share. The new target price represents a premium of 13.2% to the current market price.

As per reports, the global research house believes that Maruti`s new models can do well, backed by good design and feature and strong marketing machinery that has been adopted by the company. The company can give the route to 5 to 6 per cent market share over the next two years, thereby driving a volume CAGR of 14% over the period FY22-25, the report further stated.

Global Markets:

Shares in Europe and Asia mostly edged higher on Thursday after Wednesday`s negative session. In China, the central bank kept its one-year medium-term lending facility (MLF) unchanged at 2.75%.

On Thursday, investors will be looking out for French inflation data for August. The Bank of England was due to have a monetary policy meeting but has delayed this until next week due to the death of Queen Elizabeth II.

US indices ended a choppy session on a modestly higher note. The Dow closed slightly higher, by 30 points, after falling more than 200 points at one point. The S&P 500 rose 0.3%, and the Nasdaq Composite advanced 0.7%.

US Inflation rose more than expected in August as rising shelter and food costs offset a drop in gas prices, the Bureau of Labor Statistics reported Tuesday. The consumer price index, which tracks a broad swath of goods and services, increased 0.1% for the month and 8.3% over the past year. Excluding volatile food and energy costs, CPI rose 0.6% from July and 6.3% from the same month in 2021.

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