The domestic equity benchmarks declined for the third straight session on Monday, 21 November 2022. The Nifty 50 index opened on a weak note and hovered near the day's low throughout the session. Fears of tighter monetary policy in the US and rising COVID-19 cases in China weighed on sentiment. PSU banks, media and consumer durables stocks were in demand. On the other hand, IT, realty and metal shares declined.
The barometer index, the S&P BSE Sensex, was down 518.64 points or 0.84% to 61,144.84. The Nifty 50 index lost 147.70 points or 0.81% to 18,159.95. Both the indices fell about 1.35% in three consecutive sessions.
Reliance Industries (down 1.83%), Infosys (down 1.61%), HDFC (down 1.80%) and HDFC Bank (down 1.03%) were major drags today.
In the broader market, the S&P BSE Mid-Cap index shed 0.15% while the S&P BSE Small-Cap index rose 0.01%.
The market breadth was weak. On the BSE, 1,510 rose, and 2,083 shares fell. A total of 179 shares were unchanged.
Meanwhile, the NSE's India VIX, a gauge of the market's expectation of volatility over the near term, gained 2.83% to 14.80.
Numbers to Track:
The yield on India's 10-year benchmark federal paper rose to 7.320 as compared with 7.307 at close in the previous trading session.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 81.81, compared with its close of 81.74 during the previous trading session.
MCX Gold futures for 5 December 2022 settlement declined 0.38% to Rs 52,390.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.79% to 107.78.
The United States 10-year bond yield rose 0.48% to 3.836.
In the commodities market, Brent crude for January 2023 settlement fell 45 cents or 0.51% to $87.17 a barrel.
Global Markets:
The Dow Jones index futures were down 94 points, indicating a weak opening in the US stocks today.
Shares in Europe and Asia declined on Monday. Investors continued to assess the trajectory of monetary policy after some tough statements from U.S. Federal Reserve officials.
Japan's core consumer inflation accelerated to a 40-year high in October. The nationwide core consumer price index (CPI) was up 3.6% on a year earlier, exceeding the 3% gain seen in September.
Meanwhile, China left its benchmark lending rate unchanged for a third month in a row, according to an announcement from the People's Bank of China. The one-year loan prime rate is steady at 3.65%, and the five-year rate is also on hold at 4.3%, the notice said.
China is battling Covid-19 outbreaks in cities across the country, including Guangzhou and Chongqing. On Sunday, China reported 24,435 new Covid-19 infections for November 19, down slightly from 24,473 a day earlier but near highs clocked in April when Shanghai was in the midst of an outbreak resulting in a two-month lockdown.
US stocks ended higher on Friday in a choppy trading session, as gains in defensive shares overshadowed energy declines, and investors shrugged off hawkish comments from Federal Reserve officials about interest rate hikes.
Federal Reserve Bank of Boston leader Susan Collins said that, with little evidence price pressures are waning, the Fed may need to deliver another 75-basis point rate hike as it seeks to get inflation under control.
In U.S. economic data, the National Association of Realtors said Friday that existing-home sales fell 5.9% in October, slumping for a ninth straight month. That's down 28.4% from a year earlier.
Meanwhile, the U.S. leading economic index fell 0.8% in October, an eighth straight monthly decline, according to a Conference Board report Friday.
Stocks in Spotlight:
Tata Motors shed 0.59% while Dr Reddy's Laboratories (DRL) fell 1.14%. Tata Motors will replace Dr Reddy's Laboratories in the 30-share benchmark S&P BSE Sensex effective Monday, 19 December 2022.
Indian Energy Exchange (IEX) rallied 4.95% after the power exchange said that its board will consider share buyback on Friday, 25 November 2022. The announcement was made after trading hours on Friday, 18 November 2022.
Easy Trip Planners hit an upper circuit of 20% ahead of the company's record date for the proposed 2-for-1 stock split and the 3:1 bonus shares. The record date for the proposed stock split and bonus share issue is set on Tuesday, 22 November 2022. Shareholders whose names appear in a company's record as on the record day will be entitled for the proposed stock split and bonus issue.
Aarti Industries gained 2.39% and Deepak Fertilisers & Petrochemicals Corporation jumped 7.43% (DFPCL). Aarti Industries and DFPCL on 19 November 2022 announced that they have signed a binding term sheet for a 20-year period for offtake and supply of Nitric Acid. The parties plan to execute the formal agreement before the close of this calendar year. The supply arrangement comes into effect from 1st April 2023.
Aurobindo Pharma declined 1.05% after the pharmaceutical company said that the US drug regulator has issued a 'Form 483' with 10 observations, post the inspection of the compay's Telangana-based unit. The United States Food and Drug Administration (US FDA) inspected the company's unit - IX, an intermediate facility situated at Gundlamachnoor Village, Sangareddy District, Telangana, from 10 November to 18 November 2022.
Kabra Extrusiontechnik hit an upper circuit of 20%. The company said its battery division has partnered with Hero Electric to develop Lithium-ion batteries in India. These battery packs will power Hero Electric Scooters. The target is to supply 300,000 battery packs and chargers in the next financial year based on Hero Electric's projections.
RHI Magnesita India advanced 8.87%. The company announced the acquisition of the Indian refractory business of Dalmia Bharat Refractories in a share-swap deal approximately worth Rs 1,708 crore.
The acquisition will significantly increase RHI Magnesita's presence in the fast-growing Indian refractory market, with forecast steel production growth in India of 12% in 2022 and a 7-8% compound annual growth rate until 2030. It will also add production capacities in important industrial regions in the south and west of India where RHI Magnesita currently has no assets.
Ahluwalia Contracts (India) added 2.08% after the civil construction said that it has secured an order for construction of Lachit Moidam Memorial & Cultural Complex at Lahdoigarh, Jorhat, Assam from Government of Assam, Office of Chief Engineer, PWD, Building Assam,. The project is worth about Rs 120.23 crore. The company added that its order inflow during the FY 2022-23 stood at Rs 3,765 crore, till date.
New Listing:
Shares of Archean Chemical Industries settled at Rs 457.95 on the BSE, representing a premium of 12.52% compared with the issue price of Rs 407.
The scrip was listed at a price of Rs 449, at a premium of 10.32% as compared to the issue price.
The stock has hit a high of 476.05 and a low of 440.05. On the BSE, over 11.19 lakh shares of the company were traded in the counter.
Shares of Five-Star Business Finance settled at Rs 489.50 on the BSE, representing a premium of 3.27% compared with the issue price of Rs 474.
The scrip was listed at a price of Rs 449.95, at a discount of 5.07% as compared to the issue price.
The stock has hit a high of 539.90 and a low of 448.20. On the BSE, over 6.40 lakh shares of the company were traded in the counter.
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