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Sensex, Nifty at the low point of the day; bank stocks decline

Published on Aug 19, 2022 11:28

The domestic equity indices tumbled and were currently at the day`s low in mid-morning trade as sharp sell-off in bank stocks led the indices lower. The Nifty slipped below the 17,850 mark. Bank stocks witnessed steep profit booking after advancing in the past eight sessions.

At 11:26 IST, the barometer index, the S&P BSE Sensex, was down 368.95 points or 0.61% to 59,929.05. The Nifty 50 index lost 113 points or 0.63% to 17,843.50.

In the broader market, the S&P BSE Mid-Cap index shed 0.52% while the S&P BSE Small-Cap index declined 0.14%.

Among the broader market stocks, Zomato (down 4.84%), Tata Elxsi (down 3.19%), Varun Beverages (down 3.06%), Max Healthcare Institute (down 3.25%) and Jubilant Foodworks (down 2.64%) were the top losers.

Meanwhile, Adani Green Energy (up 6.34%), Affle (India) (up 3.35%), APL Apollo Tubes (up 3.72%), Tata Communications (up 3.36%) and Indian Railway Catering and Tourism Corporation (up 3.61%) outperformed.

The market breadth was negative. On the NSE, 1545 shares rose and 1651 shares fell. A total of 146 shares were unchanged.

Meanwhile, investors continued to assess the Fed`s Wednesday minutes, while data indicated that the U.S. economy remained relatively strong. Most traders peg a higher chance of the Fed adopting another 50 bps rate hike in September than a 75 bps one.

Buzzing Index:

The Nifty Bank index slipped 0.99% to 39,265.50. The index had advanced 5.03% in the past eight sessions.

IndusInd Bank (down 2.22%), Bandhan Bank (down 1.61%), Bank of Baroda (down 1.13%), Federal Bank (down 0.9%) and ICICI Bank (down 0.88%) were the top index losers.

Among the other losers were HDFC Bank (down 0.73%), Punjab National Bank (down 0.73%), State Bank of India (down 0.55%), Axis Bank (down 0.13%) and AU Small Finance Bank (down 0.12%).

Meanwhile, Kotak Mahindra Bank (up 0.92%) and IDFC First Bank (up 0.44%) edged higher.

Stocks in Spotlight:

SecMark Consultancy hit an upper circuit limit of 20% at Rs 188.20 after the company said its board will consider a bonus share issue on 23 August 2022.

Greenpanel Industries gained 1.80% to Rs 458.75. ICRA upgraded the long term and short term ratings on the bank facilities of the company. ICRA said that the ratings upgrade factors in the improvement in Greenpanel Industries` (GIL) financial risk profile as reflected by healthy growth in revenues and operating margins, which along with reduction in debt resulted in strong debt protection metrics in FY2022.

Global Markets:

Asian stocks are trading on a mixed note on Friday against a muted Wall Street looking to revive its recent market rally.

Hong Kong`s economy is recovering after being dealt the heavy blow of a fifth wave of Covid-19 and a two-year recession, according to the international organization ASEAN+3 Macroeconomic Research Office. �The Hong Kong economy is expected to grow modestly by 0.3% in 2022 before expanding strongly by 3.9% in 2023,� AMRO director Jae Young Lee reportedly said on Friday. Japan`s core consumer inflation accelerated in July to its fastest in seven-and-a-half years. The core consumer price index (CPI), which excludes fresh food prices, rose 2.4% in July from a year earlier, matching a median market forecast, government data showed on Friday. That followed a 2.2% gain in June and marked the fastest pace since December 2014, excluding sales tax hike effects.

On Thursday, both Goldman Sachs and Nomura reportedly downgraded their forecasts for China`s GDP growth citing weaker demand, uncertainties stemming from zero-Covid policy and an energy crunch.

The report further stated that the prospects of a post-Omicron rebound for China were poor, especially against a backdrop of a spiraling housing market and slow credit appetite despite policy easing.

US stocks ended higher Thursday as an upbeat sales forecast from Cisco Systems helped to lift the technology sector, while data showed the economy remained relatively strong.

Sales of previously occupied US homes slowed for the sixth consecutive month in July. The National Association of Realtors said Thursday that existing home sales fell 5.9% last month from June to a seasonally adjusted annual rate of 4.81 million.

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