The equity market extended losses to fifth day on Tuesday, ending marginally lower after a volatile session. FMCG, pharma and IT shares advanced while banks and financial services stocks declined. The Nifty settled above the 17,000 mark after hitting the day's low of 16,942.35 in mid-morning trade.
The barometer index, the S&P BSE Sensex, declined 37.70 points or 0.07% to 57,107.52. The Nifty 50 index lost 8.90 points or 0.05% to 17,007.40. In five consecutive sessions, the Sensex has slipped 4.37% while the Nifty has tumbled 4.54%.
Hero MotoCorp (down 2.88%), Adani Ports & SEZ (down 1.96%), Titan Company (down 1.91%), Tata Steel (down 1.90%) and SBI Life Insurance (down 1.41%) were major Nifty losers.
In the broader market, the S&P BSE Mid-Cap index rose 0.01% while the S&P BSE Small-Cap index advanced 0.49%.
The market breadth was positive. On the BSE, 1,868 rose and 1,539 shares fell. A total of 133 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, dropped 1.48% to 21.57.
Investors continue to fear that the US Fed's ultra-hawkish monetary tightening could push the largest economy into recession.
Meanwhile, the Reserve Bank of India (RBI)'s six-member Monetary Policy Committee is scheduled to meet this week during 28-30 September 2022. RBI Governor Shaktikanta Das will announce the MPC decision on 30 September 2022, the last date of the meeting. The RBI is widely expected to maintain the balancing act between growth and inflation.
In the past three policy reviews, the RBI's rate-setting panel has raised 140 basis points in total since May this year. Currently, the repo rate, the interest rate at which the RBI lends to the commercial bank, stands at 5.40%.
Numbers to Track:
The yield on India's 10-year benchmark federal paper fell to 7.297 as compared with 7.359 at close in the previous trading session.
The partially convertible rupee was hovering at 81.58, compared with its close of 81.67 during the previous trading session.
MCX Gold futures for 5 October 2022 settlement added 0.31% to Rs 49,300.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, slipped 0.26% to 113.81.
The United States 10-year bond yield declined 1.41% to 3.825.
In the commodities market, Brent crude for November 2022 settlement rose $1.58 or 1.88% at $85.64 a barrel.
Global Markets:
The Dow Jones index futures were up 250 points, indicating a positive opening in the US market today.
Shares in Europe and Asia advanced on Tuesday after sharp falls on Monday. China's industrial profits for January to August fell 2.1% from the same period a year ago, official data showed.
Wall Street slid deeper into a bear market on Monday, with the S&P 500 and Dow closing lower as investors fretted that the Federal Reserve's aggressive campaign against inflation could throw the US economy into a sharp downturn.
The Bank of England on Monday said it is monitoring financial market developments very closely after a dramatic turmoil saw the British pound. The BOE governor said the central bank's monetary policy committee would make a full assessment at its next scheduled meeting in November, and act accordingly. The MPC will not hesitate to change interest rates as necessary to return inflation to the 2% target sustainably in the medium term, in line with its responsibility, he added.
Stocks in Spotlight:
Hindustan Construction Company (HCC) hit an upper circuit of 20%. The company on Monday said that it completed its debt resolution plan supported by 23 banks and financial institutions. The resolution plan has carved out a significant portion of HCC's debt along with commensurate assets from its balance sheet.
Filatex India jumped 10.71%. The company has commissioned its project for debottlenecking a melt capacity of 50 MT per day and manufacturing lines of 120 MT per day at Dahej plant in Gujarat. In an exchange filing, the company said, Our project for debottlenecking melt capacity of 50 MT per day and manufacturing lines of 120 MT per day POY at Dahej Plant have successfully been commissioned w.e.f. 26th September, 2022.
Nazara Technologies slipped 3.21% after the Tamil Nadu cabinet approved an ordinance to ban online games with stakes in the state. The ordinance will become effective following the governor's approval.
Dish TV India dropped 6.58% after the company said that its shareholders rejected four of six resolutions at an annual general meeting on Monday (26 September 2022). The firm said its AGM adjourned "sine die" without assigning a day for a further meeting.
The company's shareholders rejected resolutions pertaining to adoption of financial statements for fiscal years 2021 and 2022; appointment of new statutory auditor SN Dhawan & Co; and appointment of Rakesh Mohan as non-executive independent director.
Mahindra Logistics (MLL) rose 0.57% after MLL and Rivigo Services (RSPL) announced that they had reached an agreement for purchase of RSPL's B2B express business by MLL. Under the terms of the agreement, MLL will acquire the express business through a Business Transfer Agreement (BTA), including the customers, team and assets of RPSL's B2B express business, RSPL's technology platform and the Rivigo brand. RSPL will continue to own its truck fleet & the rights to the full truck load (FTL) operations. The acquisition will augment MLL's existing B2B express business leveraging Rivigo's strong network, technology and process capabilities.
HFCL gained 2.53% after the company said that it has received the purchase orders aggregating to approx. Rs 202.60 crore from Reliance Retail; Reliance Projects & Property Management Services and also from one of the overseas customer.
Jyoti Structures rose 4.40%. The company secured a contract worth Rs 237 crore from Sterlite Power Transmission for turnkey supply. The order received is for turnkey supply and construction of 400 kilovolt & 220 kilovolt double circuit transmission line in Goa & Karnataka. The contract is valued at Rs 237 crore and is to be commissioned in phased manner by December 2023 and July 2024.
Orient Bell rose 1.94% after the company announced completion of expansion at its Hoskote plant, Bengaluru, Karnataka involving capex of Rs 34 crore well ahead of schedule. With this expansion, the total capacity of the company has increased from 32 million square meters per annum (MSM p.a.) to 33.8 MSM p.a., which includes 10 MSM p.a. of the associated entities.
Shakti Pumps (India) advanced 5.61%. The manufacturer of energy‐efficient pumps and motors said that the company has received advance worth $6 million from Export‐Import Bank of India (EXIM bank) on behalf of the Government of Uganda represented by the Ministry of Water and Environment for supplying solar‐powered water pumping system. The company will begin the project execution from October 2022.
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