The domestic equity benchmarks ended with modest losses on Thursday, mirroring the weakness in other Asian indices. The Nifty managed to settle above the 17,750 mark after hitting the day's low of 17,688.50. Barring the PSU Bank index, all the sectoral indices on the NSE ended in the red. Auto, media and metal shares declined the most.
The barometer index, the S&P BSE Sensex, tumbled 372.32 points or 0.62% to 59,636.01. The Nifty 50 index lost 133.85 points or 0.75% to 17,764.80.
Larsen & Toubro (down 2.74%), Bajaj Finance (down 1.82%) and TCS (down 1.37%) were major drags.
Selling was broad based. The BSE Mid-Cap index shed 1.68% and the BSE Small-Cap index slipped 1.52%.
The market breadth was weak. On the BSE, 1038 shares rose and 2289 shares fell. A total of 135 shares were unchanged.
The NSE's VIX index, a gauge of market's expectation of volatility over the near term, fell 0.81% to 14.86.
Traders booked profits ahead of the long weekend. The domestic stock market will remain shut on Friday (19 November 2021) on account of Guru Nanak Jayanti.
Numbers to Watch:
The yield on 10-year benchmark federal paper fell to 6.345% as compared with 6.361% 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 74.30, compared with its close of 74.28 during the previous trading session.
MCX Gold futures for 3 December 2021 settlement fell 0.35% to Rs 49,118.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, fell 0.11% to 95.73.
In the commodities market, Brent crude for January 2022 settlement fell 18 cents at $80.10 a barrel. The contract fell $2.15, or 2.61% to settle at $80.28 a barrel in the previous trading session.
Foreign Markets:
Most shares in Europe advanced while most Asian shares declined on Thursday.
The US stock market finished lower on Wednesday as investors opted to lock in gains on concerns about an earlier than expected rate hike by the U.S. Federal Reserve amid high inflation.
The Commerce Department released a report on Wednesday showing an unexpected decrease in new residential construction in the U.S. in the month of October, although the report also showed a bigger than expected spike in building permits.
The report showed housing starts slid by 0.7% to an annual rate of 1.520 million in October after tumbling by 2.7% to a revised rate of 1.530 million in September.
Meanwhile, building permits spiked by 4% to an annual rate of 1.650 million in October after plummeting by 7.8% to a revised rate of 1.586 million in September.
New Listings:
Shares of One 97 Communications (Paytm) settled at a lower circuit of 20% at Rs 1564.15 on the BSE. The scrip's closing price represents a discount of 27.25% compared with the IPO price of Rs 2150. The scrip was listed at Rs 1955, a discount of 9.07% to the issue price. The scrip hit a high of 1961.05 in the trading session. Over 10.06 lakh shares of the company changed hands in the counter on the BSE.
The initial public offer (IPO) of Paytm was subscribed 1.89 times. The issue opened for bidding on 8 November and it closed on 10 November. The price band of the IPO was fixed at Rs 2080 to Rs 2150 per share.
Shares of Sapphire Foods India closed at Rs 1216.05 on the BSE, a premium of 3.06% as compared to the issue price of Rs 1180. The scrip was listed at Rs 1311, a premium of 11.1% to the issue price. The scrip has hit a high of 1,383.60 and a low of 1,160 during the session. Over 5.31 crore shares of the company changed hands in the counter on the BSE.
The IPO of Sapphire Foods India received bids for 6,39,45,000 shares as against 96,63,468 shares on offer. The issue was subscribed 6.62 times.
Buzzing Index:
The Nifty Auto index fell 2.61% to 11,747.45. The index had advanced 3.20% in the past two sessions.
Bosch (down 5.78%), Ashok Leyland (down 4.73%), Tata Motors (down 3.81%), M&M (down 3.5%), Bharat Forge (down 3.15%), Eicher Motors (down 2.85%), Amara Raja Batteries (down 2.71%), Hero Motocorp (down 2.41%), MRF (down 2.36%), TVS Motor Company (down 2.28%), Maruti Suzuki India (down 2.11%), Bajaj Auto (down 1.11%), Exide Industries (down 0.73%), Balkrishna Industries (down 0.47%) and Tube Investments of India (down 0.08%) declined.
According to data shared by the Federation of Automobile Dealers Associations (FADA) on Thursday, the automobile industry has faced the worst festive season this year, in the last decade, and segments like passenger vehicles (PVs) and two-wheelers (2W) have degrown by double digits on a year-on-year (y-o-y) basis.
The 42 day festive season saw PV retail sales declining (26% y-o-y) to 3,24,542 units this year as compared to 4,39,564 units in the same period last year.
Similarly, the two-wheeler sales also declined by more than 18% y-o-y to 15,79,642 units during the festive period this year as against 19,38,066 units in the festive season 2020.
"Semi-conductor shortage which was already a full-blown crisis showed its true colours when in spite of an above healthy demand, we could not cater to customer's need as SUV, compact-SUV and luxury categories witnessed a huge shortage of vehicles. On the other hand, entry-level cars saw subdued demand as customers in this category continued to conserve money due to their family's healthcare needs, Vinkesh Gulati, President, FADA said.
Sharing the near-term outlook, Gulati said that even though the festive period is now over, there is still a huge backlog of order in the PV segment. If PV manufacturers are able to realign supply with demand, we can still see a good year end retail. It also urges to roll out attractive schemes for customers so that demand especially in the entry level category can be revived, he added.
Meanwhile, Escorts surged 10.60% to Rs 1802.90 after the company said that Kubota Corporation will increase its stake in the company. "As part of this Kubota Corporation shall increase its equity stake in Escorts by subscribing to new equity shares proposed to be issued by Escorts and shall become a joint promoter along with existing promoter of Escorts," the company said in a statement.
To reflect the spirit of joint partnership, upon completion of this transaction, the name of the company shall be changed to 'Escorts Kubota', subject to regulatory approvals.
Stocks in Spotlight:
Vedanta slumped 8.51%. The board of Vedanta has decided that the company should undertake a comprehensive review of the corporate structure and evaluate a full range of options and alternatives for unlocking value and simplification of corporate structure. The company intends to separate its aluminium, steel, and oil and gas businesses, and publicly list them.
Rajesh Exports fell 2.97%. The company bagged an order worth Rs 782 crore of designer range of jewellery from Germany, expected to be completed by March 2022.
Cadila Healthcare fell 1.97%. The company received final nod from USFDA and 180-day exclusivity for Nelarabine injection used to treat certain types of Leukemia and Lymphoma.
Bharat Heavy Electricals (Bhel) declined 2.66%. The company said that a cooperation agreement was signed between the company and Zorya Mashproekt, Ukraine at New Delhi. The cooperation agreement aims to cooperate for establishing the local manufacture of the marine GTs and RGs for requirement of the Indian Navy. In addition to above, the cooperation agreement also aims to cooperate for supporting Indian Navy in Maintenance & repair of marine GTs and RGs of ZM make in their fleet.
Seacoast Shipping Services surged 9.69% to Rs 178.85. The company said its board will consider a stock split on 24 November 2021.
K P I Global Infrastructure added 0.72%. The company has bagged an order for executing solar power project of 1.80 MWdc capacity from Shabnam Petrofils, Surat under 'Captive Power Producer (CPP)' segment of the company.
Primary Market:
The initial public offer (IPO) of Go Fashion (India) received bids for over 4.84 crore shares as against 80.79 lakh shares on offer, according to stock exchange data at 16:30 IST on Thursday (18 November 2021). The issue was subscribed 5.99 times.
The issue opened for bidding on 17 November 2021 and it will close on 22 November 2021. The price band of the IPO is fixed at Rs 655-690.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
