Nifty settles below 25,400; IT shares underpressure; VIX rallies 6.21%

The domestic equity indices ended with minor losses on Wednesday, snapping a two-days gaining streak. The Nifty closed below the 25,400 level after hitting the days high of 25,482.20 in afternoon trade. Financial services, bank and private bank shares advanced while IT, pharma and oil & gas shares declined.

As per provisional closing, the S&P BSE Sensex was down 131.43 points or 0.16% to 82,948.23. The Nifty 50 index fell 41 points or 0.16% to 25,377.55.

The Sensex and Nifty clocked an all-time high of 83,326.38 and 25,482.20, respectively in afternoon trade.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index fell 0.71% and the S&P BSE Small-Cap index declined 0.52%.

 

The market breadth was weak. On the BSE, 1,526 shares rose and 2,442 shares fell. A total of 102 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 6.21% to 13.37.

IPO Update :

The initial public offer (IPO) of Western Carriers (India) received bids for 27,00,83,235 shares as against 2,08,68,467 shares on offer, according to stock exchange data at 15:20 IST on Wednesday (18 September 2024). The issue was subscribed 12.94 times.

The issue opened for bidding on Friday (13 September 2024) and it will close on Thursday (19 September 2024). The price band of the IPO is fixed between Rs 163 to Rs 172 per share. An investor can bid for a minimum of 87 equity shares and in multiples thereof.

The initial public offer (IPO) of Northern Arc Capital received bids for 38,65,09,533 shares as against 2,14,78,290 shares on offer, according to stock exchange data at 15:20 IST on Wednesday (18 September 2024). The issue was subscribed 18 times.

The issue opened for bidding on Monday (16 September 2024) and it will close on Thursday (19 September 2024). The price band of the IPO is fixed between Rs 249 to 263 per share. An investor can bid for a minimum of 57 equity shares and in multiples thereof.

The initial public offer (IPO) of Arkade Developers received bids for 63,51,15,030 shares as against 2,37,75,719 shares on offer, according to stock exchange data at 15:20 IST on Wednesday (18 September 2024). The issue was subscribed 26.71 times.

The issue opened for bidding Monday (16 September 2024) and it will close on Thursday (19 September 2024). The price band of the IPO is fixed between Rs 121 to 128 per share. An investor can bid for a minimum of 110 equity shares and in multiples thereof.

Buzzing Index:

The Nifty IT fell 3.05% to 42,089.30. The index declined 3% in three consecutive trading sessions.

Mphasis (down 5.52%), Tata Consultancy Services (down 3.51%), L&T Technology Services (down 3.24%), Persistent Systems (down 3.23%), HCL Technologies (down 3.13%), Infosys (down 3.01%), Tech Mahindra (down 2.85%), Wipro (down 2.43%), Coforge (down 2%) and LTIMindtree (down 1.43%) declined.

Stocks in Spotlight:

Torrent Power soared 8.42% after the company announced that it has emerged as a successful bidder and has received letter of intent (LOI) for a pump storage project from MSEDCL. The Maharashtra State Electricity Distribution Company (MSEDCL) will procure energy storage capacity of 1,500 MW from pumped hydro storage project for a period of 40 years.

Reliance Infrastructure hit an upper circuit of 20% after the company announced significant progress in settling its outstanding debts from Rs 3,831 crore to Rs 475 crore.

NTPC shed 0.54%. The company said that the Union Government has accorded approval to the proposal for the formation of Anushakti Vidhyut Nigam (ASHVINI), a joint venture between the company and Nuclear Power Corporation of India (NPCIL). The government has also approved exemption to NPCIL to invest more than Rs 500 crore and exemption to NTPC to invest more than Rs 5000 crore in a single JV/subsidiary company.

Aurobindo Pharma declined 1.08%. The company's a stepdown subsidiary, Eugia Pharma Specialities received establishment inspection report (EIR) from the US drug regulator for its manufacturing facility situated in Parawada Mandal, Andhra Pradesh.

Lupin fell 1.97%. The company announced that it has entered into a non-exclusive patent license agreement with Takeda Pharmaceutical Company (Takeda), to commercialize Vonoprazan Tablets in the Indian market.

Vonoprazan is a novel potassium-competitive acid blocker (P-CAB). Unlike traditional acid suppressants like PPIs, Vonoprazan offers unique attributes like complete proton pump inhibition with the first dose, longer duration of action resulting in effective control of nocturnal acid breakthrough and meal-independent dosing.

Ceigall India advanced 3.72% after the company said that it has emerged as lowest bidder (L1) for two projects in Uttar Pradesh for an aggregate value of Rs 2,498.5 crore.

Inox Wind (IWL) advanced 1.37% after the company announced that it has received a letter of intent (LoI) from IGREL Renewables (IGREL) for execution of 550 MW wind capacity on turnkey basis.

Vakrangee zoomed 11.58% after the company informed strategic corporate agency tie-up with Star Health & Allied Insurance Co. (Star Health Insurance), to offer health insurance products across its network.

REC rose 0.16%. The company said that it has signed non-binding memorandum of understandings (MoUs) with Renewable Energy (RE) developers aggregating about Rs 1.12 lakh crore, which will be implemented over a period of 5 years.

Global Markets:

Most European stocks declined on Wednesday as investors assessed key data from the region. UK August Consumer Prices increased 2.2% year-on-year and UK August Core CPI rose 3.6% year-on-year, according to data from the Office for National Statistics.

Asian shares ended higher as traders await the Federal Reserves rate decision due Wednesday stateside and assessed economic data from Japan. Indonesian central banks rate decision is also due later in the day.

While Chinese markets remained relatively stable after resuming trading from an extended break, investors also looked ahead to the Bank of Japan's policy meeting later in the week. The BoJ is expected to maintain current interest rates but may adopt a more hawkish stance, signaling potential future rate hikes.

Japans imports and exports in August rose 2.3% and 5.6%, respectively, from a year ago, according to Japans Ministry of Finance.

In the United States, stock markets closed mixed on Tuesday as uncertainty persisted regarding the magnitude of the Federal Reserve's anticipated rate cut. The Dow Jones Industrial Average fell 0.04% while the S&P 500 rose 0.3%, reversing momentum from earlier in the day, when they were at or near record levels. The Nasdaq Composite, meanwhile, finished higher by 0.2%.

Market participants are widely expecting the Fed to reduce interest rates, with opinions divided between a 25 or 50 basis point cut. However, bets on a larger 50 basis point reduction have been gaining momentum. Additionally, the Fed's announcement is anticipated to signal the beginning of an easing cycle, which is generally positive for risk-oriented stock markets.

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