The headline equity indices crashed on Friday, extending losses for the third trading session. Negative global cues dampened the investors sentiment. The Nifty ended below the 17,600 level. Selling was wide spread with media, realty and IT stocks falling the most.
As per provisional closing data, the barometer index, the S&P BSE Sensex, was down 1,093.22 points or 1.82% to 58,840.79. The Nifty 50 index lost 346.55 points or 1.94% to 17,530.85. In three consecutive sessions, the Sensex has slipped 2.86% while the Nifty has tumbled 2.98%.
The broader market underperformed the benchmark indices. The S&P BSE Mid-Cap index fell 2.85% while the S&P BSE Small-Cap index declined 2.38%.
The market breadth was weak. On the BSE, 989 shares rose and 2,517 shares fell. A total of 104 shares were unchanged.
Meanwhile, the NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 7.77% to 19.82.
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IPO Update:
The initial public offer (IPO) of Harsha Engineers International received bids for 121.91 crore shares as against 1.68 crore shares on offer, according to stock exchange data 15:21 IST on Friday (16 September 2022). The issue was subscribed 72.29 times.
The issue opened for bidding on Wednesday (14 September 2022) and it will close on Friday (16 September 2022). The price band of the IPO is fixed at Rs 314-330 per share. An investor can bid for a minimum of 45 equity shares and in multiples thereof.
Buzzing Index:
The Nifty Media index slipped 4.07% to 2,081.35. The index tumbled 6.15% in two trading sessions.
Dish TV India (down 5.52%), Inox Leisure (down 5.5%), Zee Entertainment Enterprises (down 4.86%), PVR (down 4.68%), Saregama India (down 4.22%), Network 18 Media & Investments (down 3.97%), TV18 Broadcast (down 3.32%), Sun TV Network (down 2.52%), Nazara Technologies (down 1.63%) slumped.
Stocks in Spotlight:
Adani Ports and Special Economic Zone slipped 3.27%. 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. In February this year, Adani Ports had informed about the receipt of a letter of award (LoA) from Syama Prasad Mookerjee Port, Kolkata, for development and operation of Berth no. 2 on design, build, finance, operate and transfer basis at Haldia Dock complex, Syama Prasad Mookerjee Port, Kolkata.
Infosys fell 4.05%. The IT major 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.
UPL tumbled 5.47%. 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.
Tata Metaliks rallied 3.29%. The company inaugurated phase-I of expansion project of ductile iron (DI) pipe plant at Kharagpur. This Rs 600 crore expansion project will take the company's ductile iron pipe plant capacity to over 4 lakh tonnes per annum in two phases. The new plant is one of the most advanced DI pipe plants with high levels of automation & robotics to make the operations safe and efficient. This new plant will help the company expand its product range and enhance its presence in the fast-growing water infrastructure space that is witnessing a major thrust by the Govt of India through its Jal Jeevan Mission scheme.
SJVN declined 0.93% after the state-owned utilities player awarded the contract for the construction of a 100 MW solar project at Raghanesda in Gujarat to Tata Power Solar Systems. Tata Power Solar Systems (TPSSL), a 100% subsidiary of Tata Power Renewable Energy (TPREL), received the 'Letter of Award' (LoA) of Rs 612 crore for setting up a 100 MW ground-mounted solar project for SJVN. The LoA was awarded through tariff-based competitive bidding. The project will get commissioned within 11 months from the date of receiving of LoA.
IndusInd Bank gained 2.55% after 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).
Godrej Properties shed 4.44%. The company said that it has achieved record sales worth Rs 1,210 crore through the simultaneous launch of two new projects, Godrej Ascend located at Kolshet Road, Thane and Godrej Horizon located at Dadar - Wadala, Mumbai. The company has cumulatively sold 700 plus homes accounting for an area of over 8.08 lakh square feet for both projects launched in Q1 FY23.
CSB Bank advanced 2.53% after the bank appointed Pralay Mondal as its managing director (MD) & chief executive officer (CEO) for a period of three years with effect from 15 September 2022. Pralay Mondal was the deputy managing director of the bank since 17 February 2022 and appointed as the interim managing director & CEO with effect from 1 April 2022, in the absence of a regular managing director & CEO in the bank.
Global Markets:
The US Dow Jones index futures were down 279 points, indicating a negative opening in the US stocks today.
Shares in Europe and Asia declined across the board on Friday as investors digest U.S. economic data and China's industrial production and retail sales figures for August.
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.
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.
US stocks declined overnight as traders absorbed an ugly earnings warning from FedEx. Dow dropped 173 points, or 0.56%, for its lowest close since July 14. The Nasdaq Composite slid 1.43%, while the S&P 500 fell 1.13%.
Shares of FedEx plunged 15% in extended trading after the shipments company withdrew its full-year guidance, and said it will implement cost-cutting initiatives to contend with soft global shipment volumes as "macroeconomic trends significantly worsened."
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