Indian equity market ended with steep losses on Wednesday, extending losses to the sixth trading day in a row. Global cues were weak amid persisted worries about aggressive policy tightening by the Fed and its impact on economic growth. Investors awaited the outcome of a key meeting of the RBI's monetary policy committee due this week for domestic cues. Banks, metals and financial services stocks were under pressure. Meanwhile, healthcare, pharma and IT shares bucked the weak market trend.
The barometer index, the S&P BSE Sensex, declined 509.24 points or 0.89% to 56,598.28. The Nifty 50 index lost 148.80 points or 0.87% to 16,858.60.
After a gap-down opening, the Nifty briefly crossed the 17,000 mark in early afternoon trade. However, profit selling at higher levels dragged the index to the session's low of 16,820.40 in late trade. In six consecutive sessions, the Sensex has slipped 5.23% while the Nifty has tumbled 5.38%.
Hindalco Industries (down 3.65%), JSW Steel (down 3.44%), ITC (down 3.09%), Axis Bank (down 2.84%) and Reliance Industries (down 2.74%) were major Nifty losers today.
In the broader market, the S&P BSE Mid-Cap index rose 0.47% while the S&P BSE Small-Cap index advanced 0.43%.
The market breadth was weak. On the BSE, 1335 shares rose and 2092 shares fell. A total of 105 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 2.44% to 22.10.
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Meanwhile, the Reserve Bank of India (RBI)'s six-member Monetary Policy Committee is scheduled to meet this week during 28-30 September 2022. RBI Governor Shaktikanta Das will announce the MPC decision on 30 September 2022, the last date of the meeting. The RBI is widely expected to maintain the balancing act between growth and inflation.
In the past three policy reviews, the RBI's rate-setting panel has raised 140 basis points in total since May this year. Currently, the repo rate, the interest rate at which the RBI lends to the commercial bank, stands at 5.40%.
Numbers to Track:
The yield on India's 10-year benchmark federal paper fell to 7.3905 as compared with 7.359 at close in the previous trading session.
The partially convertible rupee was hovering at 81.90, compared with its close of 81.53 during the previous trading session.
MCX Gold futures for 5 October 2022 settlement fell 0.43% to Rs 49,107.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was slipped 0.45% to 114.62.
The United States 10-year bond yield declined 0.39% to 3.947.
In the commodities market, Brent crude for November 2022 settlement rose 21 cents, or 0.25% at $85.08 a barrel.
Global Markets:
The Dow Jones index futures were down 79 points, indicating a negative opening in the US market today.
Shares in Europe and Asia tumbled on Wednesday as surging borrowing costs fed fears of a global recession.
U.S. stocks gave up early gains to fall deeper into a bear market on Tuesday. The Fed needs to raise interest rates by at least another percentage point this year, Chicago Fed President Charles Evans said on Tuesday.
Stocks in Spotlight:
Krsnaa Diagnostics rose 1.01% after the company said that it has planned to launch 600 diagnostics centers across India to offer specialized healthcare services. The company said it will set up these centres in Maharashtra, Himachal Pradesh, Punjab, West Bengal, Rajasthan, metros, tier 2 and tier 3 cities. The centers will be equipped to offer specialized services in precision medicine, genetics, genomics, and molecular diagnostics, along with the routine investigations of biochemistry and serology, which are commonly used in routine diagnostics tests.
Torrent Pharmaceuticals slipped 2.63%. The pharmaceutical company said that it has entered into definitive agreements to acquire 100% of Curatio Healthcare (Curatio) for Rs 2,000 crore. The consideration includes Rs 115 crore (on the date of signing) of cash and cash equivalents in the acquired business indicating an enterprise value of Rs 1,885 crore. The acquisition offers the pharma company the opportunity to enhance its presence in dermatology with a differentiated portfolio and is a strong strategic fit. The company will add a field force of 600 medical representatives and a distribution network of 900 stockists.
John Cockerill India spurted 4.02% after the company said it secured an order worth over Rs 160 crore from Jindal Steel Odisha.
Larsen & Toubro (L&T) shed 0.38%. The company said that the buildings & factories business of L&T Construction business has been awarded a significant contract from the State Government of Assam on an EPC basis. As per L&T's classification, the value of the significant project is 1,000 crore to 2,500 crore.
Axis Bank slipped 2.84%. The private lender said that it has entered into an indicative and non-binding term sheet with Go Digit Life Insurance for an acquisition of up to 9.94% stake in the life insurer. The bank will invest an amount between Rs 49.90 crore to Rs 69.90 crore, in two tranches, by subscribing to equity shares of the company, for an equity stake of up to 9.94% of the paid-up equity share capital of the company, subject to execution of definitive agreements whose terms and conditions are to be mutually agreed upon, and fulfilment of other terms and conditions.
Godrej Properties fell 0.02%. The company on Wednesday announced that it has acquired a land parcel that is strategically located in the immediate vicinity of Indiranagar and is close to the Old Airport Road and within the Outer Ring Road limits. Based on the current business assumptions, the project will have an estimated booking value potential of approximately Rs 750 crore.
Motherson Sumi Wiring India rose 0.59%. The company said its board will consider the proposal for issue of bonus shares to the equity shareholders of the company on 30 September 2022.
Power Grid Corporation of India gained 1.42%. The PSU company announced that its board approved the appointment of G. Ravisankar as chief financial officer (CFO) of the company with effect from 26 September, 2022.
Max Ventures and Industries added 0.04%. The company announced that its real estate arm Max Estates has onboarded New York Life Insurance Company (NYL), as co-investor for its Office Project at Noida. New York Life proposes to invest Rs 196 crore for a 49% equity stake. Max Estates will be responsible for the final delivery of the project and will be entitled to a development fee on the same.
GOCL Corporation fell 1.64% after the company said it has completed the sale of the balance 12.25 acres of land property situated at Kukatpally, Hyderabad, for Rs 125.11 crore.
IFCI fell 1.74%. The company's board on 27 September 2022 has approved preferential issue of equity share capital for the FY 2022-23 aggregating upto Rs 100 crore to the promoters i.e., Government of India. The Centre, which is the promoter, holds 64.86% stake in IFCI.
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