The domestic equity benchmarks witnessed sharp sell-off and ended the week with deep cuts. Hotter than expected inflation in the US solidified the chances of aggressive rate hikes from the US Federal Reserve. The Nifty settled below the 17,800 level.
In the week ended on Friday, 16 September 2022, the Sensex tumbled 952.35 points or 1.59% to settle at 58,840.79. The Nifty 50 index slumped 302.5 points or 1.68% to settle at 17,530.85. The BSE Mid-Cap index slipped 1.46% to settle at 25,558.21. The BSE Small-Cap index dropped 1.12% to settle at 29,199.39.
Weekly Index Movement:
The market settled with strong gains on Monday. The barometer index, the S&P BSE Sensex, was rose 321.99 points or 0.54% to 60,115.13. The Nifty 50 index gained 103 points or 0.58% to 17,936.35.
Domestic equities cruised higher on Tuesday amid improving risk sentiments. The barometer index, the S&P BSE Sensex, rose 455.95 points or 0.76% to 60,571.08. The Nifty 50 index gained 133.70 points or 0.75% to 18,070.05.
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The key equity indices ended a volatile session with minor losses on Wednesday. The barometer index, the S&P BSE Sensex slipped 224.11 points or 0.37% to 60,346.97. The Nifty 50 index declined 66.30 points or 0.37% to 18,003.75.
Equities retreated from early highs to end with deep losses on Thursday. The barometer index, the S&P BSE Sensex, declined 412.96 points or 0.68% to 59,934.01. The Nifty 50 index declined 126.35 points or 0.70% to 17,877.40.
The headline equity indices crashed on Friday. The S&P BSE Sensex, declined 1093.22 points or 1.82% to 58,840.79. The Nifty 50 index lost 346.55 points or 1.94% to 17,530.85.
Stocks in Spotlight:
Tata Consultancy Services (TCS) slumped 6.49%. The IT major said that it has been chosen by C&S Wholesale Grocers to build a new operations platform on Google Cloud to reduce the company's carbon footprint and enhance the customer experience. C&S has partnered with TCS to reimagine its operations platforms, including customer experience and grocery distribution. TCS will lead the company-wide project and help C&S establish a new cloud-based architecture that will unify its current systems, said TCS.
Tata Consumer Products fell 2.62% after the company on Monday announced its foray into the health supplements segment with the launch of Tata GoFit, a range of health supplements for women.
Ambuja Cements rallied 13.75% after the company said its board will consider raising funds on 16 September 2022. The company plans raising funds by way of issue of equity shares, convertibles and/or any other eligible securities, on a rights/preferential or any other permissible mode/ and/or combination thereof as may be considered appropriate.
JSW Steel shed 0.27%. The steel major forged a collaboration with German-based engineering and technology company SMS group to explore multiple cutting-edge solutions and R&D projects to reduce carbon emission in its iron and steelmaking operations in India.
Infosys tumbled 8.78%. The IT major announced that it has collaborated with Bpost to secure the cloud environment and build robust cyber resilience for Bpost's mail delivery and logistics services. Bpost (Belgium Post) is Belgium's leading postal operator and a growing parcel and omni-commerce logistics partner in Europe, North America, and Asia.
Infosys said that a meeting of the board of directors will be held on 12 and 13 October 2022 to consider and approve the audited standalone and consolidated financial results for the quarter and half year ending 30 September 2022. During the same period, the board will also consider declaration of interim dividend, if any. The financial results and proposal for interim dividend, if any, will be presented to the board of directors on 13 October 2022 for their approval.
Tata Steel rose 0.05%. The steel major said that its board has approved the issue of 20,000 fixed-rate, unsecured, redeemable, rated, listed, non-convertible debentures (NCDs) of face value Rs 10 lakh each, aggregating to Rs 2,000 crore on a private placement basis.
Adani Ports and Special Economic Zone gained 3.38%. The company said that its wholly owned subsidiary HDC Bulk Terminal (HBTL) has signed a concession agreement with Syama Prasad Mookerjee Port, Kolkata (SMPK) for mechanization of Berth no. 2 at Haldia Port.
UPL tumbled 5.16%. The company announced a joint venture with CleanMax Enviro Energy Solutions to establish a hybrid solar-wind energy power plant of 61.05 megawatt (MW) in Gujarat, India. Under this JV, the companies will set-up and operate a hybrid captive power plant with a capacity of 28.05 MW of solar power and 33 MW of wind power. This project will enable UPL to increase its renewable energy usage to 30% of its total global power consumption against 8% currently.
Meanwhile, the company has acquired 26% shareholding in Clean Max Kratos. Clean Max Kratos is engaged in solar/wind power generation. UPL initially acquired 2,600 shares of Rs10 each, 26% stake in Clean Max Kratos for a consideration of Rs 26,000. It will further invest about Rs 39.60 crore in one or more tranches.
IndusInd Bank zoomed 7.97%. The private lender said that its board has considered and approved the re-appointment of Sumant Kathpalia as the managing director (MD) & CEO of the bank, for a further period of three years, with effect from 24 March 2023 up to 23 March 2026 (both days inclusive).
Economy:
Credit growth of commercial banks is at a near nine-year high of 15.5% year-on-year for the week ended 26 August 2022, latest data released by the Reserve Bank of India showed. The credit growth is the highest since 1 November 2013, when it was 16.1%.
In the current financial year so far, banks have extended Rs 5.66 lakh crore by way of loans, representing a growth of 4.8% as compared to -0.5% during the same period last year. Deposit growth was 9.5% YoY, according to the data.
India's consumer price inflation rose to 7% in August from 6.71% in July, figures from the National Statistical Office revealed Monday. In the same period last year, inflation was 5.30%. Food price inflation advanced to 7.62% in August from 6.69% in the previous month. Month-on-month, consumer prices gained 0.52% and food prices moved up 0.75% in August.
Meanwhile, India's industrial production logged an annual growth of 2.4% in July, much weaker than June's 12.7% expansion, data released by the National Statistical Office showed Monday. In the same month of 2021, industrial output had advanced 11. %. Among three main sectors, manufacturing output grew 3.2% and electricity output climbed 2.3%. On the other hand, mining shrank 3.3% from the last year. In the April to July period, industrial production posted an expansion of 10% annually.
India's inflation based on wholesale price index (WPI) stood at 12.41% in August 2022 compared with 11.64% in August 2021. The WPI grew 13.93% in July 2022, while the figure for June was 16.23%.
Fitch Global Ratings has cut India's GDP growth forecast expecting a global slowdown and tighter monetary policy. The ratings agency now expects the Indian economy to grow at 7% in FY23 compared with its previous estimates of 7.8%, according to its report on the global growth outlook. The estimates for FY24 have also been cut to 6.7% against 7.4% earlier.
Global Markets:
The US consumer price index edged up 0.1% last month after being unchanged in July. In the 12 months through August, the CPI increased 8.3%. That was a deceleration from July's 8.5% rise and a 9.1% jump in June.
In China, the central bank kept its one-year medium-term lending facility (MLF) unchanged at 2.75%. China's latest economic data release showed growth accelerated in August. Retail sales increased 5.4% in August from the same period last year, much higher than July's 2.7%. Industrial production grew 4.2% last month compared with a year ago. Industrial output came in at 3.8% in July.
The World Bank yesterday reportedly warned of a global recession in 2023, and said central bank hiking may not be enough to bring down inflation.
New car registrations in the European Union rose in August after thirteen months of declines. Sales increased by 4.4% overall and rose in the key markets of Spain, Italy, Germany and France, though remained well below pre-pandemic levels, the European Automobile Manufacturers' Association reportedly said. In the year to date, total sales volumes are down by 11.9%, largely due to an ongoing semiconductor shortage.
U.K. retail sales fell by 1.6% month-on-month in August, figures reportedly published Friday morning showed. It was the first month since July 2021 that all main sectors, spanning food and non-food stores, online retail and fuel, saw declines.
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