NIFTY HOVERS BELOW 19,400; BROADER MKT UNDERPERFORMS

The key equity benchmarks continued to trade near the day`s low in afternoon trade. The Nifty slipped below the 19,400 level. All the sectoral indices on the NSE traded in the red, with PSU bank, realty and media shares declining the most.

At 13:30 IST, the barometer index, the S&P BSE Sensex, was down 585.45 points or 0.89% to 64,926.65. The Nifty 50 index declined 174.20 points or 0.89% to 19,354.55.

The broader market underperformed the headline indices. The S&P BSE Mid-Cap index lost 1.86% while the S&P BSE Small-Cap index fell 1.29%.

The market breadth was weak. On the BSE, 1,116 shares rose and 2,469 shares fell. A total of 145 shares were unchanged.

The Reserve Bank Governor-headed six-member Monetary Policy Committee (MPC) meeting is scheduled for 4 to 6 October 2023. The MPC of the Reserve Bank of India (RBI) is likely to maintain a status quo on interest rates, as per reports.

Gainers & Losers:

Adani Enterprises (up 2.79%), Nestle India (up 1.95%), Eicher Motors (up 1.15%), HDFC Bank (up 1.02%), Hindustan Unilever (up 0.99%) were major Nifty gainers.

Axis Bank (down 3.77%), Ultratech Cement (down 2.80%), NTPC (down 2.74%), State Bank of India (down 2.70%) and IndusInd Bank (down 2.69%) were major Nifty losers.

Nestle India added 1.95% after the company said that its board will consider the sub-division/ split of existing equity shares in its meeting on 19 October 2023. The board of directors will consider the un-audited financial results of the company for the third quarter and nine months ended 30 September 2023.

HDFC Bank added 1.02% after the private lender`s advances aggregated to approximately Rs 23,54,500 crore as of 30 September 2023, recording a growth of around 57.7% as against Rs 14,93,300 crore as of 30 September 2022. HDFC Bank`s gross advances registered a growth of around 44.4% in quarter ended 30 September 2023 from Rs 16,30,000 crore as of 30 June 2023.

Stocks in Spotlight:

Maruti Suzuki India fell 1.85%. The company has received draft Assessment Order for the FY 2019-20 wherein certain additions/ disallowances amounting to Rs 2159.7 crore with respect to returned income (the income disclosed by the Company in its Income Tax return) have been proposed. The company will file its objections before the Dispute Resolution Panel.

Avenue Supermarts jumped 4.18%. The company`s standalone revenue from operations for the quarter ended 30 September 2023 stood at Rs 12,307.72 crore. Revenue from operations stood at Rs 10,384.66 crore in the previous year. The total number of stores as of 30 September 2023 stood at 336.

Vedanta slipped 3.64%. The miner announced that its total aluminum production jumped 2% to 5,94,000 tonnes in Q2 FY24 as compared with 5,84,000 tonnes in Q2 FY23.

Larsen & Toubro declined 2.60%. The EPC major announced that it has secured a `significant` order for its power business, L&T Energy - Power from West Bengal Power Development Corporation. As per Larsen & Toubro`s (L&T) classification, the value of the `significant` project is Rs 1,000 crore to Rs 2,500 crore.

Global Markets:

Most of the European and Asian stocks traded lower on Wednesday after the U.S. 10-year Treasury yield hit its highest level in 16 years. China`s markets remain closed for a weeklong holiday.

The Reserve Bank of New Zealand left its key interest rate unchanged at 5.5%. The Central bank noted that the country`s growth outlook remains subdued even though GDP growth in the June quarter was stronger than forecast.

US stocks tumbled on Tuesday as Treasury yields hit their highest levels since 2007, raising concern higher interest rates would freeze the housing market and tip the economy into a recession.

The 10-year Treasury yield touched 4.8% and 30-year Treasury yield hit 5%, reaching its highest level in 16 years, triggering global bond sell-off and affecting stocks and currencies. The surge in the bond rates is fueled by strong US job openings, hinting at prolonged tight monetory policy from US Fed.

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