Sensex crash 1093 pts, Nifty ends below 17,550 on weak global cues

Equity benchmarks tanked nearly 2% on Friday, tracking dismal global cues. This was the third straight session of losses for the domestic equities. Sentiment was marred by growing expectations of hawkish moves by the Federal Reserve and fears of a global recession.

All sectoral indices on the NSE declined sharply. IT stocks continued to lose investors favour as the Nifty IT index dropped 3.71% today. Interest-rate sensitive realty stocks collapsed. Auto stocks corrected sharply after recent strong gains.

The barometer index, the S&P BSE Sensex, slumped 1,093.22 points or 1.82% to 58,840.79. The Nifty 50 index crashed 346.55 points or 1.94% to 17,530.85. In three consecutive sessions, the Sensex has slipped 2.86% while the Nifty has tumbled 2.98%.

The broader market underperformed the benchmark indices. The S&P BSE Mid-Cap index fell 2.85% while the S&P BSE Small-Cap index declined 2.38%.

The market breadth was weak. On the BSE, 972 shares rose and 2532 shares fell. A total of 106 shares were unchanged.

Meanwhile, the NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, jumped 7.77% to 19.82.

Economy:

A comprehensive new study by the World Bank suggests that the world may be edging toward a global recession in 2023 amid simultaneous rate hikes by central banks across the world.

The World Bank report highlighted that central banks around the world have been raising interest rates this year with a degree of synchronicity not seen over the past five decades�a trend that is likely to continue well into next year.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose to 7.266 as compared with 7.238 at close in the previous trading session.

In the foreign exchange market, the rupee fell against the dollar. The partially convertible rupee was hovering at 79.78, compared with its close of 79.71 during the previous trading session.

MCX Gold futures for 5 October 2022 settlement declined 0.13% to Rs 49,250.

The 10-year U.S. Treasury yield was hovering at 3.469%.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, added 0.20% to 109.96.

In the commodities market, Brent crude for November 2022 settlement rose 47 cent or 0.52% at $91.31 a barrel.

Global Markets:

The US Dow Jones index futures were down 219 points, indicating a weak opening in the US stocks today.

Shares in Europe and Asia declined on Friday as investors digest U.S. economic data and China`s industrial production and retail sales figures for August.

U.K. retail sales fell by 1.6% month-on-month in August, figures reportedly published Friday showed. It was the first month since July 2021 that all main sectors, spanning food and non-food stores, online retail and fuel, saw declines.

China`s latest economic data release showed growth accelerated in August. Retail sales increased 5.4% in August from the same period last year, much higher than July`s 2.7%. Industrial production grew 4.2% last month compared with a year ago. Industrial output came in at 3.8% in July.

US stocks declined overnight as traders absorbed an ugly earnings warning from FedEx. Dow dropped 173 points, or 0.56%, for its lowest close since July 14. The Nasdaq Composite slid 1.43%, while the S&P 500 fell 1.13%.

Shares of FedEx plunged 15% in extended trading after the shipments company withdrew its full-year guidance, and said it will implement cost-cutting initiatives to contend with soft global shipment volumes as "macroeconomic trends significantly worsened."

Buzzing Segment:

The Nifty IT index fell 3.71% to 26,706.45. The index has fallen 8.32% in four sessions.

Mindtree (down 4.81%), Larsen & Toubro Infotech (down 4.75%), Tech Mahindra (down 4.52%), Coforge (down 4.39%), Mphasis (down 3.56%), Wipro (down 3.14%), TCS (down 2.85%) and HCL Technologies (down 2.34%) tumbled.

Infosys fell 3.89%. The IT major`s board will meet on 12 and 13 October 2022 to consider and approve the audited standalone and consolidated financial results for the quarter and half year ending 30 September 2022.

Stocks in Spotlight:

Adani Ports and Special Economic Zone slipped 3.20%. The company said that its wholly owned subsidiary HDC Bulk Terminal (HBTL) has signed a concession agreement with Syama Prasad Mookerjee Port, Kolkata (SMPK) for mechanization of Berth no. 2 at Haldia Port.

UPL tumbled 5.31%. The company announced a joint venture with CleanMax Enviro Energy Solutions to establish a hybrid solar-wind energy power plant of 61.05 megawatt (MW) in Gujarat, India.

Tata Metaliks rallied 2.97%. The company inaugurated phase-I of expansion project of ductile iron (DI) pipe plant at Kharagpur. This Rs 600 crore expansion project will take the company`s ductile iron pipe plant capacity to over 4 lakh tonnes per annum in two phases.

IndusInd Bank gained 2.63% after the private lender said that its board has considered and approved the re-appointment of Sumant Kathpalia as the managing director (MD) & CEO of the bank, for a further period of three years, with effect from 24 March 2023 up to 23 March 2026 (both days inclusive).

CSB Bank advanced 2.53% after the bank appointed Pralay Mondal as its managing director (MD) & chief executive officer (CEO) for a period of three years with effect from 15 September 2022.

Godrej Properties shed 4.14%. The company said that it has achieved record sales worth Rs 1,210 crore through the simultaneous launch of two new projects, Godrej Ascend located at Kolshet Road, Thane and Godrej Horizon located at Dadar - Wadala, Mumbai.

IPO Update:

The initial public offer (IPO) of Harsha Engineers International received bids for 125.96 crore shares as against 1.68 crore shares on offer, according to stock exchange data 17:12 IST on Friday (16 September 2022). The issue was subscribed 74.70 times.

The issue opened for bidding on Wednesday (14 September 2022) and it will close on Friday (16 September 2022). The price band of the IPO is fixed at Rs 314-330 per share. An investor can bid for a minimum of 45 equity shares and in multiples thereof.

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