Indian equity benchmarks tumbled on Tuesday, extending their fall for the third straight session amid weak global cues. The Nifty 50 index opened above 17250 mark, but edged lower as the day progressed. Intense selling in mid-afternoon trade dragged the index to the day's low of 16,950.30 in late trade. Investors fretted over rising interest rates and an escalation in the Ukraine war. Domestic traders awaited India's retail inflation data for September, due on Wednesday. All the sectoral indices ended in the red with realty, metal and IT shares declining the most.
The S&P BSE Sensex dropped 843.79 points or 1.46% to 57,147.32. The Nifty 50 index lost 257.45 points or 1.49% to 16,983.55. In three consecutive sessions, the Sensex has slipped 1.85% while the Nifty has tumbled 2.01%.
Divi's Laboratories (down 5.05%), JSW Steel (down 3.84%), IndusInd Bank (down 3.76%), Eicher Motors (down 3.50%) and Nestle India (down 3.11%) were major Nifty losers today.
In the broader market, the S&P BSE Mid-Cap index slipped 1.61% while the S&P BSE Small-Cap index declined 1.47%.
The market breadth was weak. On the BSE, 1,084 shares rose and 2,351 shares fell. A total of 128 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 4.42% to 20.49.
Numbers to Watch:
The yield on India's 10-year benchmark federal paper declined to 7.429 as compared with 7.476 at close in the previous trading session.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 82.25, compared with its close of 82.40 during the previous trading session.
MCX Gold futures for 5 December 2022 settlement shed 0.54% to Rs 50,750.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.12% to 113.28.
The United States 10-year bond yield rose 1.23% to 3.933. It retraced from the day's high of 4% mark.
In the commodities market, Brent crude for December 2022 settlement tumbled $2.19 or 2.28% at $94 a barrel. The contract fell $1.77 or 1.73% to settle at $96.19 a barrel during the previous trading session.
Global Markets:
The Dow Jones futures declined 210 points, indicating a negative opening in the US stock market today.
Shares in Europe and Asia declined on Tuesday, following a fourth straight drop in US equities amid persistent concern that rising interest rates and geopolitical threats will crimp global growth.
Stocks slumped in Japan and South Korea as trading resumed after holidays. Besides concern over interest rate hikes from central banks and their impact on economic growth, investors also kept an eye on the developments in Ukraine after multiple explosions hit the center of Ukraine's capital Kyiv.
US stocks fell on Monday as investors worried about the impact of higher interest rates and pulled out of chipmakers after the United States announced restrictions aimed at hobbling China's semiconductor industry.
The mood remains fragile ahead of Thursday's US inflation data, with the case for another 75 basis-point rate hike likely to be strong if the data comes in hotter-than-expected.
Stocks in Spotlight:
Panacea Biotec surged 18.10%. The company announced the receipt of long-term supply awards worth $127.30 million (around Rs 1,040 crore) from UNICEF and Pan American Health Organization (PAHO). The contract is for the supply of WHO pre-qualified fully liquid Pentavalent vaccine, Easyfive-TT (DTwP-HepB-Hib).
Tata Consultancy Services (TCS) fell 1.67%. The IT major reported 10.1% rise in consolidated net profit to Rs 10,431 crore on 4.8% increase in revenue to Rs 55,309 crore in Q2 FY23 over Q1 FY23. The board recommended an interim dividend of Rs 8 per share. The record date for the same is 18 October 2022 and the payment date is 7 November 2022.
Infosys declined 2.65%. The IT major said that its board will consider a share buyback on 13 October 2022. On the same day, the board will also consider Q2 results.
Tata Motors shed 0.67%. The Tata Motors Group global wholesales in Q2 FY23, including Jaguar Land Rover (JLR), stood at 3,35,976 units, rising 33%, as compared to Q2 FY22.
Larsen & Toubro (L&T) lost 1.53%. The EPC major on Tuesday said that the water & effluent treatment business of L&T Construction has secured repeat orders from the Water Resources Department, Government of Odisha. As per L&T's classification, the value of the significant project is Rs 1,000 crore to Rs 2,500 crore.
Adani Ports and Special Economic Zone declined 1.34%. It has received approvals from National Company Law Tribunals (NCLT) Ahmedabad and NCLT Hyderabad for acquiring the remaining 58.1% stake in Gangavaram Port through the composite scheme of arrangement. With this stake purchase, Gangavaram Port (GPL) will become a 100% subsidiary of Adani Ports. This stake purchase is through a share swap arrangement, said the company.
Bajaj Auto slipped 2.47%. The two-wheeler maker announced that its board approved the completion and closure of the share buyback on Monday, 10 October 2022. Bajaj Auto commenced the share buyback on 4 July 2022. The two-wheeler maker said it bought back 64,09,662 equity shares, utilizing an aggregate amount of Rs 2499.96 crore, representing 99.99% of the maximum buyback size. The total amount earmarked for the purpose was up to Rs 2,500 crore.
G M Breweries dropped 6.48%. The company reported a 3.8% rise in net profit to Rs 22.69 crore on 22.35% increase in revenue to Rs 141.86 crore in Q2 FY23 over Q2 FY22.
Automotive Axles rose 0.45% to Rs 2011.85 after Cummins Inc. made an open offer to buy up to 26% stake in the company.
The open offer is for the acquisition of 39.29 lakh fully paid-up equity shares (26% equity) at Rs 1504.43 each.
Cummins Inc owns 35.52% stake in Automotive Axles, which makes open offer mandatory.
BF Investment, the other promoter that holds 35.52% stake in Automotive Axles, surged 3.75% after Cummins Inc made the open offer. BF Investment is a part of $2.5 billion Kalyani Group from Pune.
With the open offer, Cummins Inc will be a co-promoter of Automotive Axles along with the Kalyani group.
Primary Market:
The initial public offer (IPO) of Tracxn Technologies received bids for 1.15 crore shares as against 2.12 crore shares on offer, according to stock exchange data 17:00 IST on Tuesday (11 October 2022). The issue was subscribed 0.54 times.
The issue opened for bidding on Monday (10 October 2022) and it will close on Wednesday (12 October 2022). The price band of the IPO is fixed at Rs 75-80 per share. An investor can bid for a minimum of 185 equity shares and in multiples thereof.
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