Sensex drops 784 pts; Nifty below 17,350 level

The key equity barometers continued to trade with moderate losses in a narrow range in the mid-morning trade. The Nifty traded below the 17,350 mark. PSU bank stocks snapped its four day gaining streak. Investor sentiments were dented tracking weak global cues as Fed Chair in his address last week flagged the likely need for restrictive monetary policy to curb high inflation.

At 11:26 IST, the barometer index, the S&P BSE Sensex, was down 783.85 points or 1.33% to 58,050.02. The Nifty 50 index lost 231.55 points or 1.32% to 17,327.35.

In the broader market, the S&P BSE Mid-Cap index declined 1.03% while the S&P BSE Small-Cap index fell 0.81%.

The market breadth was weak. On the BSE, 1,148 shares rose and 2,184 shares fell. A total of 176 shares were unchanged.

Buzzing Index:

The Nifty PSU Bank index slipped 2.21% to 2,909.35, snapping its four days rising streak. The index advanced 6.7% in four trading sessions.

Among the components of the Nifty PSU Bank index, Bank of Baroda (down 3.08%), Indian Bank (down 2.84%), Canara Bank (down 2.84%), Union Bank of India (down 2.82%) and State Bank of India (down 2.14%) were the top losers.

Among the other losers were Bank of India (down 1.83%), UCO Bank (down 1.64%), Central Bank of India (down 1.28%), Punjab National Bank (down 1.26%) and Punjab & Sind Bank (down 0.96%).

Stocks in Spotlight:

Tata Steel declined 2.51%. The steel major has signed a Memorandum of Understanding (MoU) with the Government of Punjab for setting up a 0.75 million tonne per annum (MnTPA) long products steel plant with a scrap-based electric arc furnace (EAF). The company said that this initiative to set up the greenfield facility at Kadiana Khurd, Hitech Valley, Ludhiana in Punjab is a part of Tata Steel's commitment to investing in a circular economy and transitioning to low-carbon steelmaking through the steel recycling route.

Andhra Paper advanced 6.67% after the company's board approved a capital expenditure (capex) plan of Rs 400 crore. Out of the total capex of Rs 400 crore, an estimated amount of Rs 113 crore shall be towards equipment reliability & sustainability of the current levels of production.

L&T Technology Services (LTTS) fell 2.65%. The company on Monday said that it has won a 5-year, multi-million-dollar deal from BMW Group to provide high end engineering services for the company's suite of infotainment consoles targeted for its family of hybrid vehicles. The BMW Group, is the world's leading manufacturer of premium automobiles and motorcycles, and provider of premium financial and mobility services.

Global Markets:

The Dow Jones index futures were down 240 points, indicating a negative opening in the US stocks today.

Asian stocks declined on Monday as the mounting risk of more aggressive rate hikes in the United States.

Profits at China's industrial firms sank in July. Profits at China's industrial firms fell 1.1% in January-July from a year earlier, wiping out the 1% growth logged during the first six months, the National Bureau of Statistics said on Saturday.

US stocks dropped sharply on Friday after Federal Reserve Chair Jerome Powell said in his Jackson Hole speech the central bank won't back off in its fight against rapid inflation.

Fed Chairman Jerome Powell warned that rising interest rates will cause some pain to the U.S. economy, saying higher interest rates likely will persist for some time. He said the Fed's decision in September will depend on the totality of the incoming data and the evolving outlook.

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