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Nifty slips below 17,650 level; bank stocks in demand

Published on Sep 05, 2022 11:27

The key equity benchmarks continued to trade with decent gains in mid-morning trade. The Nifty, however, failed to hold above the 17,650 mark. Bank stocks advanced for second consecutive session.

At 11:24 IST, the barometer index, the S&P BSE Sensex, was up 338.25 points or 0.58% to 59,141.58. The Nifty 50 index added 91.10 points or 0.52% to 17,630.55.

In the broader market, the S&P BSE Mid-Cap index rose 0.35% while the S&P BSE Small-Cap index advanced 0.80%.

The market breadth remained strong. On the BSE, 2227 shares rose and 1138 shares fell. A total of 203 shares were unchanged.

Mixed jobs data in the US coupled with surging gas prices in Europe after Russia shut a major gas exports pipeline weighed on investor sentiment.

Buzzing Index:

The Nifty Bank index advanced 0.71% to 39,702.75. The index has gained 1.02% in two sessions.

Federal Bank (up 3.43%), IDFC First Bank (up 2.37%), Bank of Baroda (up 1.91%), Kotak Mahindra Bank (up 1.69%) and Bandhan Bank (up 1.34%) were the top gainers.

Among the other gainers were ICICI Bank (up 1.19%), Punjab National Bank (up 0.85%), State Bank of India (up 0.47%), HDFC Bank (up 0.45%) and Axis Bank (up 0.26%).

Stocks in Spotlight:

Angel One gained 1.93% to Rs 1,353.60 after the brokerage company said that its client base climbed 81.9% to 11.18 million in August 2022 as against 6.15 million in August 2021. On a sequential basis, the company`s client base rose by 4% month on month (MoM) from 10.75 million clients in July 2022. Angel`s overall average daily turnover (ADTO) rose to Rs 12,38,900 crore in August 2022 (up 20.1% MoM and up 117.9% YoY).

Trident added 3.77%. The company announced that Abhinav Gupta has tendered his resignation from the chief financial officer (CFO) and key managerial personnel position. Gupta was relieved from his services with effect from 3 September 2022 post working hours.

Global markets:

Asian stocks are trading mixed on Monday as investors digest the results of a private survey on Chinese services sector activity. China`s Caixin Services Purchasing Managers` Index came in at 55.0, compared with July`s print of 55.5.

The au Jibun Bank Japan Services Purchasing Managers` Index dropped to a seasonally adjusted 49.5 for August, lower than 50.3 in July. The marginal decline marks the first contraction in service sector business activity since March, S&P said in the report, citing the recent spike in Covid cases in the nation.

US stocks closed lower on Friday, as early gains from a jobs report that showed a labor market that may be starting to loosen gave way to worries about the European gas crisis.

American employers slowed down their hiring in August in the face of rising interest rates, high inflation and sluggish consumer spending. The US government reported on Friday that the economy added 315,000 jobs last month, down from 526,000 in July and below the average gain of the previous three months. The unemployment rate rose to 3.7%, from a half-century low of 3.5% in July.

Meanwhile, the G-7 agreed to explore the prospect of imposing a ban on shipments of Russian oil above a certain price in June. The statement from the G-7 added that the price cap`s effectiveness and impact would be closely monitored and revisited as necessary. The G-7 price cap on Russian oil comes as Western economic powers seek to deplete Russia`s war chest.

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