Market near day's low; Sensex drops 322 pts; IT shares decline

The domestic equity benchmarks traded near the day's low with moderate losses in mid-morning trade amid negative global cues. Investor sentiments were dented after the US Fed hiked rates by 50 basis points. The Nifty traded below the 18,600 mark. PSU banks, oil & gas and auto shares advanced while IT, metal and media shares declined. Trading is expected to be volatile due to expiry of weekly index options on the NSE.

At 11:28 IST, the barometer index, the S&P BSE Sensex, was down 322.09 points or 0.51% to 62,355.82. The Nifty 50 index lost 89.95 points or 0.48% to 18,570.35.

 

In the broader market, the S&P BSE Mid-Cap index slipped 0.03% while the S&P BSE Small-Cap index gained 0.33%.

The market breadth was positive. On the BSE, 1,851 shares rose and 1,493 shares fell. A total of 146 shares were unchanged.

IPO Update:

The initial public offer (IPO) of Abans Holdings received bids for 63,29,455 shares as against 1,28,00,000 shares on offer, according to stock exchange data at 11:21 IST on Thursday (15 December 2022). The issue was subscribed 49%.

The issue opened for bidding on Monday (12 December 2022) and it will close on Thursday (15 December 2022). The price band of the IPO is fixed at Rs 256-270 per share. An investor can bid for a minimum of 55 equity shares and in multiples thereof.

The initial public offer (IPO) of Landmark Cars received bids for 34,16,490 shares as against 80,41,805 shares on offer, according to stock exchange data at 11:21 IST on Thursday (15 December 2022). The issue was subscribed 42%.

The issue opened for bidding on Tuesday (13 December 2022) and it will close on Thursday (15 December 2022). The price band of the IPO is fixed at Rs 481-506 per share. An investor can bid for a minimum of 29 equity shares and in multiples thereof.

Buzzing Index:

The Nifty IT index declined 1.27% to 29,337.95. The index has advanced 2.27% in past two trading sessions.

Among the components of the Nifty IT index, Tech Mahindra (down 1.86%), Infosys (down 1.8%), HCL Technologies (down 1.36%), Coforge (down 1.13%), Tata Consultancy Services (down 1.12%), LTI Mindtree (down 0.82%), Mphasis (down 0.76%), Wipro (down 0.64%) and Persistent Systems (down 0.39%) were the top losers.

On the other hand, L&T Technology Services (up 1.13%) advanced.

Stocks in Spotlight:

Torrent Pharmaceuticals declined 0.29%. The company said that it has entered into a strategic alliance with Boehringer Ingelheim India (BI India) to co- market its anti-diabetic drug and its fixed dose combinations in India. The two companies have entered into a partnership to co-market Cospiaq (Empagliflozin), Cospiaq Met (Empagliflozin+ Metformin) and Xilingio (Empagliflozin+ Linagliptin) in India.

NTPC rose 0.23%. The state-run power major said that it declared commercial operation of second part capacity of 67.73 megawatt (MW) out of 230 MW Ettayapuram Solar PV project at Tamil Nadu. The first part capacity of 162.27 MW has already been declared on commercial operation with effect from 12:00 hrs of 10 December 2022.

Shriram Properties (SPL) advanced 0.48%. announced that it acquired Golden Ira, a plotted development project in North Bengaluru, for Rs 125 crore through its wholly owned subsidiary SPL Housing Projects.

Global markets:

Asian stocks tumbled after the U.S. Federal Reserve raised its benchmark interest rate by 50 basis points to the highest level in 15 years. China's annual Central Economic Work Conference will reportedly be held behind doors for two days until Friday.

China's industrial production for November grew 2.2%, after seeing a growth of 5% in October, according to official data. Retail sales fell 5.9% on an annualized basis, further than a fall of 0.5% the previous month.

US stocks snapped a 2-day winning streak following the decision after Fed Chair Jerome Powell signaled more data was needed before the central bank would meaningfully change its view on inflation.

It will take substantially more evidence to have confidence that inflation is on a sustained downward path, Powell said during his post-meeting news conference. However, Powell said inflation remains a problem. Price pressures remain evident across a broad range of goods and services, Powell added.

The Federal Reserve reinforced its inflation fight Wednesday by raising its key interest rate for the seventh time this year and signalling more hikes to come. The Fed boosted its benchmark rate a half-point to a range of 4.25% to 4.5%, its highest level in 15 years. The policymakers also forecast that their key short-term rate will reach a range of 5% to 5.25% by the end of 2023.

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