Nifty slips below 17,000 mark; IT shares decline

The domestic equity benchmarks traded with significant cuts in morning trade, mirroring the weaknesses in their Asian peers. The Nifty failed to to hold above the 17,000 mark. IT shares witnessed across the board selling.

At 10:20 IST, the barometer index, the S&P BSE Sensex, was down 463.24 points or 0.81% to 56,963.68. The Nifty 50 index declined 109.30 points or 0.64% to 16,985.05.

In the broader market, the S&P BSE Mid-Cap index shed 0.20% while the S&P BSE Small-Cap index was up 0.06%.

The market breadth was strong. On the BSE, 1,667 shares rose and 1,472 shares fell. A total of 178 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.

On the macro front, 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.

Buzzing Index:

The Nifty IT index slipped 1.20% to 26,656.40. The index had advanced 0.60% to end at 26,981.15 on Friday.

Mphasis (down 2.29%), Infosys (down 1.51%), L&T Technology Services (down 1.37%), Persistent Systems (down 1.17%) and Coforge (down 1.02%) were the top index losers.

Among the other losers were HCL Technologies (down 0.99%), Tata Consultancy Services (down 0.68%), Larsen & Toubro Infotech (down 0.67%), Wipro (down 0.27%) and Tech Mahindra (down 0.21%).

Stocks in Spotlight:

Escorts Kubota was up 0.23%. The company`s total tractor sales jumped 38.7% YoY to 12,232 units sold in September 2022 from 8,816 units sold in September 2021. Sales during September almost doubled from 6,111 units sold in August 2022.

SML Isuzu slipped 1.51%. The company`s total sales grew 5% to 752 units in September 2022 as compared with 716 units sold in September 2021. On a sequential basis, total sales were lower by 25% as compared 1,002 units sold in August 2022.

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