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Sensex, Nifty at the low point of the day; auto shares decline

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Capital Market
Last Updated : Sep 07 2022 | 1:16 PM IST

The domestic equity barometers extended losses and hit fresh intraday low in mid-morning trade. The Nifty traded below the 17,550 level. Auto shares witnessed across the board selling for second day in a row. Investors remained cautious ahead of the release of the US Fed's Beige Book, which summarises the state of the world's largest economy, due later today.

At 11:20 IST, the barometer index, the S&P BSE Sensex, was down 367.57 points or 0.62% to 58,829.42. The Nifty 50 index lost 110.80 points or 0.63% to 17,544.80.

In the broader market, the S&P BSE Mid-Cap index rose 0.29% while the S&P BSE Small-Cap index advanced 0.47%.

The market breadth was strong. On the BSE, 1864 shares rose and 1363 shares fell. A total of 156 shares were unchanged.

Buzzing Index:

The Nifty Auto index slipped 1.26% to 13,058.90. The index has fallen 1.41% in two sessions.

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Bharat Forge (down 3.29%), Bajaj Auto (down 2.01%), Tata Motors (down 1.94%), Ashok Leyland (down 1.76%) and Hero MotoCorp (down 1.08%) were the top index losers.

Further, Escorts Kubota (down 1.06%), Mahindra & Mahindra (down 0.98%), Eicher Motors (down 0.86%), Maruti Suzuki India (down 0.79%) and TVS Motor Company (down 0.76%) edged lower.

Stocks in Spotlight:

Shree Pushkar Chemicals & Fertilisers surged 5.37%. The company announced that it has commenced commercial production of one of its plant with respect to Unit V after obtaining all the necessary approvals.

Lupin added 0.61%. The pharma major announced that it has signed an exclusive license and supply agreement with DKSH to commercialize five of Alvotech's proposed biosimilars in the Philippines.

Global markets:

Asian stocks traded lower on Wednesday as investors anticipate the Federal Reserve to give its summary on current economic conditions, also known as the Beige Book.

Australia's real GDP grew 0.9% in the second quarter after rising 0.7% in the previous period, official data showed. The Australian Bureau of Statistics said the continued growth was backed by the first full quarter of reopened borders. The data also showed the Australian economy grew 3.6% over the past year.

Meanwhile, China's exports rose 7.1% in August compared with the same period a year ago, official data showed. Imports ticked up 0.3%, less than 2.3% increase in July.

The country saw a trade surplus of $79.39 billion in August driven by weaker import numbers, after it saw a record $101.26 billion in trade surplus in July.

Following this, a foreign brokerage has reportedly cut its forecast for China's full-year GDP to 2.7%, another downgrade from its previous 2.8% estimate set in August.

As per reports, the new outlook is based on the research firm's analysis that found 12% of China's GDP is affected by Covid controls on a weighted basis, up from 5.3% last week.

Several cities including the tech hub of Shenzhen have reportedly tightened Covid controls in the last few weeks after reporting new local infections. Chengdu has also ordered people to stay home while authorities conduct mass virus testing, the reports added.

Wall Street's main indices closed lower on Tuesday, the first session after the US Labor Day holiday and summer vacations, as traders assessed fresh economic data in volatile trading.

A survey from the Institute for Supply Management (ISM) showed the U.S. services industry picked up in August for the second straight month amid stronger order growth and employment, while supply bottlenecks and price pressures eased.

The Institute for Supply Management said its non-manufacturing PMI edged up to a reading of 56.9 last month from 56.7 in July, the second consecutive monthly increase after three months of declines.

The focus will be on Fed Chair Jerome Powell's speech on Thursday as well U.S. consumer price data next week for clues on the path of monetary policy.

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First Published: Sep 07 2022 | 11:22 AM IST

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