The domestic equity barometers continued to trade with significant losses in afternoon trade. The Nifty, however, held above the 17,500 mark. Auto shares declined for fourth consecutive session.
At 13:25 IST, the barometer index, the S&P BSE Sensex, was at 58,712.37, down 413.99 points or 0.70%. The Nifty 50 index lost 112.90 points or 0.64% to 17,505.25.
In the broader market, the S&P BSE Mid-Cap index was down 0.44% while the S&P BSE Small-Cap index rose 0.24%.
The market breadth was almost even. On the BSE, 1615 shares rose and 1522 shares fell. A total of 175 shares were unchanged.
Cummins India fell 8.48% after the Union Power Ministry urged diesel generating (DG) set users to shift to renewable energy in five years.
The Union Power Ministry on Thursday issued an amendment to the Draft Electricity (Rights of Consumer) Amendment Rules, 2021.
"Consumers, who are using the Diesel Generating sets as essential back up power, shall endeavor to shift to cleaner technology such as RE with battery storage etc in five years from the date of the publication of this amendment or as per the timelines given by the State Commission for such replacement based on the reliability of supply by the distribution company in that city," the Ministry notified.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 233,713,190 with 4,782,640 deaths. India reported 275,224 active cases of COVID-19 infection and 448,339 deaths according to the data from the Ministry of Health and Family Welfare, Government of India.
In the last 24 hours, India records 26,727 new cases. Active cases accounted for less than 1% of total cases, currently at 0.82%. Active caseload stood at 2,75,224, lowest in 196 days. The recovery rate currently stands at 97.86%, highest since March 2020. The country reported 28,246 recoveries in the last 24 hours taking total recoveries to 3,30,43,144.
A total of 89,08,78,472 COVID-19 vaccine doses have been administered in the country so far, with over 64.26 lakh doses being given yesterday, according to the Co-WIN dashboard.
Economy:
The gross GST revenue collected in the month of September 2021 is Rs 1,17,010 crore, up by 23% YoY. Of this, CGST is Rs 20,578 crore, SGST is Rs 26,767 crore, IGST is Rs 60,911 crore (including Rs 29,555 crore collected on import of goods) and Cess is Rs 8,754 crore (including Rs 623 crore collected on import of goods).
The government has settled Rs 28,812 crore to CGST and Rs 24,140 crore to SGST from IGST as regular settlement. The total revenue of Centre and the states after regular settlements in the month of September 2021 is Rs 49,390 crore for CGST and Rs 50,907 crore for the SGST.
Meanwhile, the government's fiscal deficit stood at Rs 4.68 lakh crore or 31.1% of the budget estimates at the end of August, as per data released by the Controller General of Accounts (CGA) on Thursday. Net tax receipts were Rs 6.45 lakh crore while total expenditure was Rs 12.77 lakh crore, the data showed.
Further, the seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) rose to 53.7 in September, from 52.3 in August, highlighting a stronger expansion in overall business conditions across the sector.
Primary Market:
Aditya Birla Sun Life AMC IPO opened for subscription from Wednesday (29 September) and it will close on Friday (1 October). The company is offering 38,880,000 shares (including anchor portion of 11,080,800 equity shares) in the price band of Rs 695 to Rs 712 per share.
As on 13:24 IST, the IPO received bids for 6.63 crore shares as against 2.77 crore shares on offer. The issue was subscribed 2.39 times so far.
The offer comprises of offer for sale comprises sale of 28,50,880 equity shares by Aditya Birla Capital (ABCL) and up to 36,029,120 equity shares by Sun Life AMC. Up to 1,944,000 equity shares have been reserved for allocation to ABCL shareholders. The IPO is a complete offer for sale by existing shareholders and the company will not directly receive any proceeds from the offer.
The company expects that listing of the equity shares will enhance visibility and brand image and provide liquidity to shareholders and will also provide a public market for the equity shares in India.
Aditya Birla Sun Life AMC is currently a 51:49 joint venture between Aditya Birla Capital (ABCL) and Sun Life AMC. The company is the fourth largest asset management companies (AMCs) in India by quarterly average asset under management (QAAUM) since September 2011 and its also the largest non-bank affiliated AMC in India since March 2018.
The company managed total AUM of Rs 2,93,642 crore (closing AUM) under its suite of mutual fund, portfolio management services, offshore and real estate offerings, and approximately 7.18 million investor folios end June 2021.
Buzzing Index:
The Nifty Auto index shed 0.48% to 10,547.80, extending losses for fourth day in a row. The index has declined by 2.02% in four sessions.
Tata Motors (down 1.17%), Bharat Forge (down 1.15%), Eicher Motors (down 0.87%) and Hero MotoCorp (down 0.46%) edged lower. Meanwhile, Mahindra & Mahindra (up 1.56%) and TVS Motor Company (up 0.66%) advanced.
Maruti Suzuki India fell 2.69% to Rs 7,140.75. Owing to a supply constraint of electronic components due to the semiconductor shortage situation, the company expects an adverse impact on vehicle production in the month of October'21 in both Haryana and its contract manufacturing company, Suzuki Motor Gujarat (SMG) in Gujarat. Total production volume across both the locations could be around 60% of normal production.
Maruti Suzuki India said its total sales declined 46.16% year-on-year to 86,380 units in September 2021.
Ashok Leyland slipped 2.84% to Rs 130. The company's total commercial vehicle (CV) sales rose 14% to 9,533 units in September 2021 from 8,332 units in September 2020.
Bajaj Auto shed 0.13% to Rs 3,827.55. The company's total auto sales in September 2021 stood at 4,02,021 units, down by 9% from 441,306 units sold in September 2020.
Escorts lost 1.64% to Rs 1456. The company's total tractor sales declined by 25.6% YoY to 8,816 units in September 2021 from 11,851 units sold in September 2020.
Global Markets:
Shares in Europe declined while Asian markets slipped on Friday, following an overnight drop on Wall Street. Markets in Hong Kong are closed for a holiday on Friday, while those in mainland China are closed for the Golden Week holiday from Friday till October 7.
Global markets have been roiled by fears of persistent high inflation, slowing growth and rising rates.
Japan's factory activity grew at the slowest rate in seven months in September as overall output and new orders shrank due to the fallout from the coronavirus pandemic, a survey showed on Friday. The final au Jibun Bank Japan Manufacturing Purchasing Managers' Index (PMI) in September slipped to 51.5 on a seasonally adjusted basis from 52.7 in the previous month.
Meanwhile in Europe, German inflation hit 4.1% in September 2021, its highest level for 29 years. The data showed that price of energy and food items were the most affected by inflation.
Wall Street ended sharply lower on Thursday wracked by concerns over COVID-19, inflation fears and budget wrangling in Washington.
Investors were also keeping an eye on Washington as Congress passed a bill that would fund the government through early December. The bill would avert a government shutdown but Congress still has not raised the debt ceiling, which Treasury Secretary Janet Yellen says will be reached on October 18.
Yellen and Fed Chair Jerome Powell testified before the House Financial Services Committee on Thursday. Yellen reiterated her call for Congress to raise the debt ceiling, saying that failure to do so would be catastrophic.
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