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Sensex, Nifty turn red; auto shares decline

Published on Jan 18, 2022 14:28

The domestic equity benchmarks traded with modest cuts in mid afternoon trade. The Nifty was trading a tad above the 18,250 mark. Auto shares fell across the board.

At 14:25 IST, the barometer index, the S&P BSE Sensex, was down 102.23 points or 0.17% to 61,206.68. The Nifty 50 index lost 53.50 points or 0.29% to 18,254.60.

In the broader market, the S&P BSE Mid-Cap index lost 0.81% while the S&P BSE Small-Cap index fell 0.47%.

The market breadth was negative. On the BSE, 1,486 shares rose and 1,897 shares fell. A total of 95 shares were unchanged.

The media reported that Union Finance Minister N Sitharaman will hold a press conference at 4.30 pm today, 18 January 2022.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper fell to 6.632% as compared with 6.636% at close in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 74.5250, compared with its close of 74.2500 during the previous trading session.

MCX Gold futures for 4 February 2022 settlement shed 0.05% to Rs 47,891.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, rose 0.08% to 95.33.

In the commodities market, Brent crude for March 2022 settlement rose $1.54 or 1.79% to $87.60 a barrel.

Oil prices surged on Tuesday to over seven-year high on worries about possible supply disruptions after Yemen`s Houthi group attacked the United Arab Emirates. The attack has escalated hostilities between the Iran-aligned group and a Saudi Arabian-led coalition.

Buzzing Index:

The Nifty Auto index fell 1.25% to 11,732.30. The index had advanced 2.05% to end at 11,881.25 yesterday.

Maruti Suzuki (down 3.22%), Eicher Motors (down 3.12%), Bajaj Auto (down 1.42%), TVS Motor Company (down 1.30%), Ashok Leyland (down 1.22%), Bharat Forge (down 0.63%), Hero MotoCorp (down 0.15%) and Mahindra & Mahindra (down 0.13%) declined.

Tata Motors shed 0.71% to Rs 521.25. The company has announced a marginal price hike on its passenger vehicles. Effective 19 January 2022, an average increase of 0.9% will be implemented, depending on the variant and model, the auto maker said. While the company is absorbing a significant portion of the increased costs, the steep rise in overall input costs has compelled it to pass on some proportion through this minimal price hike, the company added.

Ramkrishna Forgings was up 0.11% to Rs 1045.30. The company`s standalone net profit surged to Rs 45.12 crore in Q3 FY22 from Rs 16.67 crore in Q3 FY21. Revenue from operations increased by 50.70% YoY to Rs 606.05 crore during the quarter. Further, the company`s board has approved 5-for-1 stock split.

Global markets:

European stocks edged lower while Asian markets mostly declined on Tuesday as global investors remain attuned to the policy direction of the U.S. Federal Reserve and the start of corporate earnings season.

Global markets have been focused of late on assessing the potential speed and trajectory at which the Fed will move to hike interest rates and tighten its ultra-loose pandemic-era monetary policy. The central bank`s increasingly hawkish tone has led to a rise in bond yields, which spiked again on Tuesday and roiled risk assets.

Meanwhile, the Bank of Japan (BOJ) left monetary policy unchanged. The BOJ upgraded its inflation forecasts at its policy meeting on Tuesday, but as inflation is set to remain well below its 2% target in the coming years, it stressed its resolve to maintain its ultra-loose monetary settings. The central bank also revised up next fiscal year`s growth forecast and offered a more upbeat view on the economy than three months ago.

Chinese President Xi Jinping cautioned against a rapid rise in interest rates on Monday that could derail the global recovery from the coronavirus pandemic.

Meanwhile, the Organization of the Petroleum Exporting Countries, or OPEC, is due to release its monthly oil market report on Tuesday where traders are likely to watch for signs that global oil demand has been affected by the surge in Covid cases around the world.

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