Nifty below 17,050 mark, European shares decline, Nykaa spurts over 5%

The headline equity indices continued to trade with moderate losses in the afternoon trade. Negative global cues dampened the investors sentiment. The Nifty traded below the 17,050 mark after hitting day`s high at 17,114.65 in the early trade. Pharma and oil & gas shares were in demand while metal, auto and FMCG stocks witnessed a bit of a selling pressure.

At 13:29 IST, the barometer index, the S&P BSE Sensex, was down 273.69 points or 0.48% to 57,153.23. The Nifty 50 index lost 84.90 points or 0.50% to 17,009.45.

In the broader market, the S&P BSE Mid-Cap index shed 0.09% while the S&P BSE Small-Cap index gained 0.27%.

The market breadth was positive. On the BSE, 1,749 shares rose and 1,689 shares fell. A total of 176 shares were unchanged.

The sell-off being witnessed in equities across Asia follows the Wall Street`s tumultuous performance last week amid concerns of a global recession grew amid tightening monetary policy and jitters in currency and bond markets.

Economy:

India collected Rs 1.48 lakh crore as Goods and Services Tax (GST) in September, registering an increase of 26% from the same month last year, the finance ministry said on October 1. The September GST mop-up was 2.8% higher from August.

India`s eight core infrastructure sectors` output grew 3.3% in August 2022, lowest in past nine months, as against 12.2% in the year-ago period, according to official data released on Friday. The previous low was in November 2021 at 3.2%. The production growth of eight infrastructure sectors - coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity - was 9.8% during April-August this fiscal, compared to 19.4% a year ago.

Gainers & Losers:

Oil and Natural Gas Corporation (ONGC) (up 4.10%), Cipla (up 2.57%), Divi`s laboratories (up 2.36%), Coal India (up 2.26%) and Bharat Petroleum Corporation (BPCL) (up 1.84%) were top Nifty gainers.

Adani Enterprises (down 4.97%), Eicher Motors (down 4.48%), Maruti Suzuki India (down 2.50%), Kotak Mahindra Bank (down 1.96%) and Tata Consumer Products (down 1.68%) were major Nifty losers.

Eicher Motors lost 4.48%. The company said that its unlisted subsidiary VE Commercial Vehicles had sold 6631 units of commercial vehicles in September 2022, which is higher by 9.2% as compared with 6070 units sold in September 2021.

Separately, Eicher Motors informed that it had recorded a growth of 145% in September 2022 with sales of 82,097 motorcycle units as against 33,529 units in the month of September 2021.

Maruti Suzuki India slipped 2.50%. The car major recorded total sales of 1,76,306 units in September 2022, recording a jump of 104.1% as against 86,380 units sold in September 2021. The company said that since the sales volume in September 2021 was adversely impacted due to shortage of electronic components, a year on year comparison may not be meaningful.

Stocks in Spotlight:

Tata Motors shed 0.96%. The auto major`s total domestic sales surged 44% to 80,633 units sold in September 2022 as against 55,988 units sold in September 2021. Total commercial vehicles (CV) (domestic + exports) rose 5% to 34,890 units in September 2022 over 33,258 units in September 2021. Total domestic CV sales in September 2022 stood at 32,979 units, registering a growth of 9% as against 30,258 units sold in September 2021. CV exports slumped 36% to 1,911 units from 3,000 units sold during the period under review.

FSN E-Commerce Ventures (Nykaa) jumped 5.51% after the company said its board on Monday (3 October) approved issuing 5 bonus equity shares for each share held (5:1). The board also approved fixing 3 November 2022, as the record date for the proposed bonus issue. The proposed bonus issue is subject to shareholders` approval by way of postal ballot.

Adani Ports and Special Economic Zone (APSEZ) declined 0.53% after the company said that it has recorded a cargo volume of 26.1 million metric tonnes (MMT) in September 2022, registering a 13% YoY growth. The company said that this volume jump is despite an extended monsoon which adversely impacted the coal demand/imports and the ban/higher duties on rice exports imposed at the beginning of the month.

Global Markets:

Shares in Europe and Asia declined on Monday amid fears that central banks across the world will keep hiking rates until inflation is under control. China markets are closed for the Golden Week holiday, and South Korea`s market is also closed.

Sentiment of Japan`s large manufacturers worsened in the July-to-September quarter, according to the Bank of Japan`s latest quarterly tankan business sentiment survey. The headline index for large manufacturers` sentiment came in at 8, a decline from the previous quarter`s reading of 9.

US stocks dropped on Friday on concerns of hot inflation, rising interest rates and recession fears.

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