Shares decline further; auto shares tumble

Key equity indices extended early losses and hit fresh intraday low in morning trade. At 10:28 IST, the barometer index, the S&P BSE Sensex, was down 645.27 points or 1.71% at 37,023.15. The Nifty 50 index was down 184.60 points or 1.66% at 10,947.25.

Investor sentiment took a hit after US Federal Reserve Vice Chairman Richard Clarida told the media on Wednesday that the U.S. economy remains in a deep hole of joblessness and weak demand, and called for more fiscal stimulus. Clarida added that the central bank will not raise interest rates until it sees 2% inflation for at least a few months and full employment is reached. Meanwhile, rising COVID-19 infections in Europe and uncertainties over U.S. presidential elections also worried investors.

 

In the broader market, the S&P BSE Mid-Cap index fell 2.10% while the S&P BSE Small-Cap index slipped 2.01%.

The market breadth was weak. On the BSE, 431 shares rose and 1674 shares fell. A total of 99 shares were unchanged.

Buzzing Index:

The Nifty Auto index fell 2.39% to 7,507.40. The index has tumbled 8% in four sessions.

Tata Motors (down 4.53%), Ashok Leyland (down 4.48%), Mahindra & Mahindra (down 4.02%), Maruti Suzuki (down 3.11%), TVS Motor Compan (down 2.06%), Bharat Forge (down 2.03%), Bajaj Auto (down 1.45%), Eicher Motors (down 0.99%) and Hero MotoCorp (down 0.63%) declined.

Stocks in Spotlight:

Zydus Wellness rose 2.58% to Rs 1763 after it launched its qualified institutional placement (QIP) on Wednesday and set the floor price at Rs 1,775.85 per equity share for the issue. The pharmaceutical company's finance and administration committee is scheduled to meet on Monday, 28 September 2020, to consider and approve the issue price of the equity shares to be allotted to qualified institutional buyers pursuant to the QIP issue.

HDFC fell 1.18% at Rs 1647.45. The housing finance major on Wednesday said it will raise up to Rs 5,000 crore by issuing bonds on a private placement basis.

ONGC slipped 1.55% to Rs 66.60 after a massive fire broke out at the company's plant in Surat (Gujarat) in the early hours on Thursday. "A fire was observed in the Hazira Gas processing plant in the morning today. Fire has been brought under control. There is no casualty or injury to any person," ONGC said in a tweet. "Fire at Hazira Plant has been completely extinguished. Efforts are being made to resume normal operations at the earliest," it added.

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