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Sensex slips 311 pts, Nifty holds 17,500 mark; Nifty VIX climbs to 19.57

Published on Aug 25, 2022 16:49

The benchmark indices ended with modest losses on Thursday. Major selling was witnessed during the final hour of the trading session. PSU banks, realty and consumer durables stocks were in demand while IT, pharma and financial services shares tumbled. Trading was volatile due to expiry of monthly F&O contracts on the NSE today.

The Nifty opened with gains and hit the day`s high of 17,726.50 in afternoon trade. The trend reversed in late trade and the index fell as much as 239 points from the day`s high to hit the day`s low of 17,487.45 in late trade.

The barometer index, the S&P BSE Sensex, shed 310.71 points or 0.53% to 58,774.72. The Nifty 50 index declined 82.50 points or 0.47% to 17,522.45.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.20% while the S&P BSE Small-Cap index gained 0.17%.

The market breadth was positive. On the BSE, 1,905 shares rose and 1,517 shares fell. A total of 132 shares were unchanged.

Meanwhile, the NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, climbed 6.18% to 19.57.

Shree Cement (up 1.32%), Hindalco Industries (up 1.20%), Divi`s Laboratories (up 0.98%), HDFC Life Insurance (up 0.73%) and SBI Life Insurance (up 0.58%) were top Nifty gainers.

Adani Ports & SEZ (down 2.46%), Bajaj Finance (down 1.84%), Cipla (down 1.59%), IndusInd Bank (down 1.40%) and Axis Bank (down 1.25%) were major Nifty losers.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose to 7.295 as compared with 7.286 at close in the previous trading session.

In the foreign exchange market, the rupee was lower against the dollar. The partially convertible rupee was hovering at 79.93, compared with its close of 79.86 during the previous trading session.

MCX Gold futures for 5 October 2022 settlement gained 0.71% to Rs 51,802.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, declined 0.28% to 108.38.

In the commodities market, Brent crude for October 2022 settlement rose 41 cents or 0.41% at $101.63 a barrel. The contract advanced $1 or 1% to settle at $100.22 a barrel during the previous trading session.

Global Markets:

Shares in Europe and Asia advanced across the board on Thursday ahead of Federal Reserve chair Jerome Powell`s speech and US GDP data later this week.

Investors stateside will also be closely watching Thursday`s weekly jobless claims data and Friday`s PCE (personal consumption expenditure) reading, one of the Fed`s favored inflation measures.

In South Korea, the Bank of Korea raised its benchmark interest rate by 25 basis points to 2.50%.

Stocks in Spotlight:

Bharti Airtel fell 0.12%. Singtel said it will retain 29.7% in Airtel and it remains fully committed to Airtel`s next phase of growth. Singtel`s wholly-owned subsidiaries have entered into a share purchase agreement to sell a 3.3% direct stake in regional associate Airtel to Bharti Telecom, a joint venture between Bharti Enterprises and Singtel, at any time before 23 November 2022.

The sale will unlock approximately SGD 2.25 billion as part of the Singtel Group`s capital recycling strategy. After the stake sale, Singtel`s effective holding in Bharti Airtel will fall to 29.7%. Singtel will use the proceeds to fully fund 5G capex needs and growth initiatives in the next few years.

NHPC rallied 3.82% after the company announced the signing of a memorandum between Government of Rajasthan and NHPC Renewable Energy for development of ultra mega renewable energy power park in the state of Rajasthan.

Macrotech Developers fell 1.50% after the company said its board will consider raising of funds upto Rs 250 crore on 29 August 2022. The company is planning to raise funds through issuing non-convertible debentures in one or more tranches.

Samvardhana Motherson International declined 0.08% after the company announced the signing of a Memorandum of Understanding (MoU) Ministry of Investment, Kingdom of Saudi Arabia (MISA). The MoU is aimed at identifying investment development opportunities for industrial and service activities in the Kingdom of Saudi Arabia (KSA).

Aban Offshore hit an upper circuit limit of 20%. The company said it has entered into a settlement agreement with Central Bank of India, one of its financial creditors. As per the terms of the settlement agreement, Aban Offshore has agree to pay the outstanding principal of Rs 121,78,41,258 within 30 days as a final settlement of all the credit facilities.

UNO Minda advanced 2.24%. The board automotive solutions provider approved an investment of Rs 300 crore for expanding its manufacturing capacity of 4W Alloy Wheels and 4W Automotive switches to meet rising demand.

PSP Projects gained 3.07% after the company said that it has been awarded the contracts worth Rs 247.35 crore from Precast and Government segments. "With receipt of the above, the total order inflow for the financial year 2022-23 till date amounts to Rs 1,344.24 crore,� the company said in a statement.

Wipro shed 0.23%. The IT major announced the appointment of Wagner Jesus as country head and managing director for operations in Brazil.

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