Monday, December 23, 2024 | 02:52 AM ISTEN Hindi

Sensex bounces 599 pts from lows, ends 104 pts down; Nifty tops 18,350

CLOSING BELL: Adani Enterprises, TCS, Axis Bank, Reliance Industries, ICICI Bank, IndusInd Bank, Nestle India, Ultratech Cement, SBI, and Infosys helped the frontline indices rebound

SI Reporter New Delhi

CLOSING BELL

Stock market highlights: Equity markets languished deep in the red for better part of the day, tracking heavy losses in Asian peers. Bank of Japan unexpectedly widened the allowable band for long-term yields to 50 basis points (bps) either side from 25 bps earlier, allowing long-term interest rates to rise.

The S&P BSE Sensex crashed 703 points intra-day before recouping most of the losses to end 104 points, or 0.17 per cent, lower at 61,702. The NSE Nifty50, on the other hand, touched a low of 18,202 intra-day. It, eventually, settled at 18,385, down 35 points or 0.19 per cent.

Adani Enterprises, TCS, Axis Bank, Reliance Industries, ICICI Bank, IndusInd Bank, Nestle India, Ultratech Cement, SBI, and Infosys helped the frontline indices rebound, rising up to 2 per cent. Eicher Motors, SBI Life, HUL, UPL, Hindalco, Tata Motors, Bharti Airtel, M&M, NTPC, L&T, and Adani Ports were the top laggards.

In the broader markets, the BSE MidCap index ended 0.27 per cent lower, while the BSE SmallCap index dipped 0.02 per cent.

Further, the Nifty Auto, Media, and Realty indices closed 0.7 per cent to 1 per cent down, while the Nifty IT and Metal indices eked out gains of about 0.2 per cent.

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Primary markets

KFin Tech: The three day issue of the technology driven financial services platform, providing solutions to the capital markets ecosystem, was subscribed around 70 per cent till 3:30 PM on the second day of the issue. The issue was fully subscribed by QIBs for the quota reserved for them; 2 per cent by NII; and 59 per cent by retail investors.

Elin Electronics: This initial share sale offer, which opened today, was subscribed 22 per cent till 3:30 PM. The issue saw retail quota subscription at 36 per cent and NII at 17 per cent.

Global markets

European markets were lower Tuesday as investors assessed the interest rate outlook for 2023. The Stoxx 600 was down 0.4 per cent in early morning trade, with most sectors and major bourses trading in negative territory.

Meanwhile, markets in the Asia-Pacific fell as the Bank of Japan modified its yield curve control tolerance range while holding its ultra-low benchmark interest rates steady. The Nikkei 225 fell 2.46 per cent, leading losses in the region, and the Topix fell 1.54 per cent. In South Korea, the Kospi fell 0.8 per cent, and the S&P/ASX 200 in Australia also traded 1.54 per cent lower.

4:17 PM

COMMENT: Bank of Japan's widening of yield curve band shakes global markets

The Bank of Japan shocked global markets in a totally unexpected move by raising the upper band limit for the 10 yr yield to 50 bps, which is seen as a step towards a hawkish policy shift. This has aggravated the sell-off in the global market, which was already risk-averse due to mounting recessionary fears following the Fed's comment. In this backdrop, the US GDP numbers expected on Thursday will provide a picture of the strength of the US economy.

Views by Vinod Nair, Head of Research at Geojit Financial Services.

4:15 PM