Equities retreated from early highs to end with deep losses on Thursday, declining for the second consecutive day. The Sensex and the Nifty lost about 0.7% each as a lack of fresh triggers and subdued global cues weighed on the sentiment. The mid-cap space, however, showed some resilience. Trading was volatile due to the expiry of weekly index options on the NSE today.
Pharma and technology counters were under pressure. Gains came from some old economy names like Adani Ports, NTPC, Power Grid Corp. Auto shares also performed well. Tyre stocks zoomed across the board.
The barometer index, the S&P BSE Sensex, declined 412.96 points or 0.68% to 59,934.01. The Nifty 50 index declined 126.35 points or 0.70% to 17,877.40.
The broader indices outperformed the barometers. The S&P BSE Mid-Cap index rose 0.31% while the S&P BSE Small-Cap index added 0.06%.
The market breadth was negative. On the BSE, 1,639 shares rose and 1,859 shares fell. A total of 122 shares were unchanged.
Economy:
Fitch Global Ratings has cut India's GDP growth forecast expecting a global slowdown and tighter monetary policy. The ratings agency now expects the Indian economy to grow at 7% in FY23 compared with its previous estimates of 7.8%, according to its report on the global growth outlook. The estimates for FY24 have also been cut to 6.7% against 7.4% earlier.
Numbers to Track:
The yield on India's 10-year benchmark federal paper rose to 7.242 as compared with 7.155 at close in the previous trading session.
In the foreign exchange market, the rupee was lower against the dollar. The partially convertible rupee was hovering at 79.735, compared with its close of 79.52 during the previous trading session.
MCX Gold futures for 5 October 2022 settlement declined 0.36% to Rs 49,836.
The 10-year U.S. Treasury yield was hovering at 3.451%.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, shed 0.04% to 109.61.
In the commodities market, Brent crude for November 2022 settlement fell 61 cents or 0.65% at $93.49 a barrel.
Global Markets:
Most shares in Europe and Asia advanced on Thursday after Wednesday's negative session. In China, the central bank kept its one-year medium-term lending facility (MLF) unchanged at 2.75%.
On Thursday, investors will be looking out for French inflation data for August. The Bank of England was due to have a monetary policy meeting but has delayed this until next week due to the death of Queen Elizabeth II.
US indices ended a choppy session on a modestly higher note. The Dow closed slightly higher, by 30 points, after falling more than 200 points at one point. The S&P 500 rose 0.3%, and the Nasdaq Composite advanced 0.7%.
US Inflation rose more than expected in August as rising shelter and food costs offset a drop in gas prices, the Bureau of Labor Statistics reported Tuesday. The consumer price index, which tracks a broad swath of goods and services, increased 0.1% for the month and 8.3% over the past year. Excluding volatile food and energy costs, CPI rose 0.6% from July and 6.3% from the same month in 2021.
Stocks in Spotlight:
Tyre stocks were in demand amid hopes that the recent correction in Indian Rupee, crude prices and price increases could aid the recovery in EBITDA margin.
JK Tyre & Industries (up 17.64%), MRF (up 7.79%) and Apollo Tyres (up 6.58%) rallied.
CEAT hit an upper circuit of 20% after the company's management laid out the strategic roadmap in its annual investor meet on Wednesday (14 September). Increasing market share across key segments and ramping up exports are some of the key focus areas for the management. The company expects EBITDA margin recovery to be at least 10-12% v/s 6% in 1QFY23 and 7.6% in FY22.
Vedanta advanced 2.83% after the company it has been declared as the highest bidder for Ghogharpalli and its Dip Extension coal block, located in Sundargarh district, Odisha under Tranche V of commercial coal block auction conducted by Ministry of Coal. The coal block is an optimal fit for the company's Jharsuguda smelter given its logistical location and annual capacity. The mine has total reserves of 1,288 million tonnes and an estimated per annum capacity of 20 million tonnes.
Tata Steel declined 1.92%. The steel major said that its board has approved the issue of 20,000 fixed-rate, unsecured, redeemable, rated, listed, non-convertible debentures (NCDs) of face value Rs 10 lakh each, aggregating to Rs 2,000 crore on a private placement basis.
Maruti Suzuki India gained 3.23%. A foreign broker has reportedly come out with a note on Maruti Suzuki India, where they increased the target price from 9,500 to 10,500 per share.
As per reports, the broker believes that Maruti's new models can do well, backed by good design and feature and strong marketing machinery that has been adopted by the company. The company can give the route to 5 to 6% market share over the next two years, thereby driving a volume CAGR of 14% over the period FY22-25, the report stated.
Balaji Amines rose 1.61% after the company announced commissioning of a greenfield project along with construction of two new plants. The speciality chemical manufacturer said the Phase 1 of 90-acre greenfield project (Unit IV) has been completed. The di-methyl carbonate (DMC) or propylene carbonate (PC), and propylene glycol (PG) plant will be ready to commence commercial production by the end of September 2022. The company said that it estimates an annual production capacity of 15,000 tons of DMC or PC and 15,000 tons PG.
New Listing:
Shares of Tamilnad Mercantile Bank settled at Rs 508.45 on the BSE, a discount of 0.3% compared with the issue price of Rs 510.
The scrip was listed at Rs 510, matching the initial public offer (IPO) price. The scrip has hit a high of Rs 519 and a low of Rs 484.50 during the day. Over 2.24 shares of the company changed hands in the counter till now
The IPO of Tamilnad Mercantile Bank was subscribed 2.86 times. The issue was open between 5th September to 7th September 2022. The price band of the IPO was fixed at Rs 500-525 per share.
Primary Market:
The initial public offer (IPO) of Harsha Engineers International received bids for 17,45,50,545 shares as against 1,68,63,795 shares on offer, according to stock exchange data 17:00 IST on Thursday (15 September 2022). The issue was subscribed 10.35 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.
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