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Sensex slips 706 pts, Nifty below 17,600 level, RIL down over 2%

Published on Sep 01, 2022 13:29

The key equity indices traded with steep losses in the afternoon trade. Negative global cues dented the investors sentiment. The Nifty traded below the 17,600 mark. PSU bank, realty and auto stocks advanced while IT, oil & gas and metal shares witnessed a bit of a selling pressure.

At 13:25 IST, the barometer index, the S&P BSE Sensex, was down 706.01 points or 1.19% to 58,831.06. The Nifty 50 index lost 200.75 points or 1.13% to 17,558.55.

In the broader market, the S&P BSE Mid-Cap index rose 0.19% while the S&P BSE Small-Cap index advanced 0.30%.

The market breadth was positive. On the BSE, 1,871 shares rose and 1,462 shares fell. A total of 171 shares were unchanged.

Bajaj Finserv (up 2.29%), Tata Consumer Products (up 1.68%), Asian Paints (up 1.51%), Bharti Airtel (up 1.30%) and Grasim Industries (up 1.24%) were top Nifty gainers.

Hindalco Industries (down 3.42%), ONGC (down 2.85%), Tata Consultancy Services (TCS) (down 2.44%), Tech Mahindra (down 2.42%) and Reliance Industries (RIL) (down 2.35%) were major Nifty losers.


The seasonally adjusted S&P Global India Manufacturing Purchasing Managers` Index (PMI) was little-changed from July`s reading of 56.4, posting 56.2 in August 2022. It signalled the second-strongest improvement in operating conditions since last November.

The indices vary between 0 and 100, with a reading above 50 indicating an overall increase compared to the previous month, and below 50 an overall decrease. The indices are then seasonally adjusted.

Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence, said: �Indian manufacturers continued to benefit from the absence of COVID-19 restrictions, with rates of growth for both output and new orders picking up yet again to the strongest since last November.

"This robust performance was complemented by a fourth successive monthly slowdown in the rate of input cost inflation, which slipped to the lowest in a year amid softer pressures from commodity prices. Factory gate charges rose at the second-weakest pace since the start of fiscal year 2022/23, one that was similar to July.

"Firms welcomed the weaker increase in input costs with and upward revision to output forecasts amid renewed hopes that contained price pressures will help boost demand. Inflation concerns, which had dampened sentiment around mid-year, appear to have completely dissipated in August as seen by a jump in business confidence to a six-year high."

Stocks in Spotlight:

Ashok Leyland advanced 3.90%. The auto major`s total commercial vehicle (CV) sales jumped 51% to 14,121 units in August 2022 from 9,360 units sold in August 2021.

Meanwhile, the media reports suggested that the company bagged orders from major fleets for 1,400 school buses in UAE- the company`s reportedly largest ever supply of school buses in UAE. As per reports, the 55-seater Falcon bus and 32-seater Oyster bus - will be supplied from Ashok Leyland`s manufacturing facility in Ras Al Khaimah, UAE, which is reportedly the only certified local bus making facility in the entire GCC.

Escorts Kubota rose 1.03% after the company`s Agri Machinery Segment in August 2022 sold 6,111 tractors, registering a growth of 7.3% as against 5,693 tractors sold in August 2021. Domestic tractor sales in August 2022 stood at 5,308 units, recording a growth of 7.9% as against 4,920 units sold in August 2021. The company exported 803 tractors (up 3.9% YoY) in August 2022.

Bajaj Auto declined 0.20%. The two wheeler maker`s total sales increased 8% to 4,01,595 units in August 2022 compared with 3,73,270 units sold in August 2021. On a sequential basis, the company`s total sales climbed 13.23% from 3,54,670 units sold in July 2022. During the year, domestic sales jumped 49% to 2,56,755 units while exports fell 28% to 1,44,840 units in August 2022.

Zee Entertainment Enterprises slipped 5.49%. The media major said that it has entered into a strategic licensing agreement with Disney Star, by way of which it will gain licensing of the television broadcasting rights of the International Cricket Council`s Men`s and Under 19 global events. The company entered into this agreement for the period of four years.

Global Markets:

The Dow Jones futures were down 180 points, indicating a negative opening in the US stock market today.

Shares in Eroupe and Asia tumbled on Thursday on concerns about aggressive rate hikes from global policymakers.

The results of a private survey showed China`s factory activity contracted in August. The Caixin/Markit manufacturing Purchasing Managers` Index came in at 49.5 for August, compared to 50.4 in July.

U.S. stocks ended lower on Wednesday as worries about aggressive interest rate hikes from the Federal Reserve persist.

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