Market Wrap Podcast, Sep 1: Here's all that happened in the markets today

A favourable GDP data print for the first quarter of the financial year 2021-22 resulted in a strong positive opening for the benchmark indices, which pushed them to new record high levels. But soon profit-taking ensued, driving both Sensex and Nifty lower for the day. Furthermore, a weak manufacturing PMI print and moderation in GST collections in August also dampened the mood.

The GST mop-up in August stood at Rs 1,12,020 crore as against Rs 1,16,393 crore in July according to the data released by the finance ministry. Meanwhile, the factory activities lost momentum in August due to Covid-induced curbs and rising input costs, showed IHS Markit Purchasing Managers' Index (PMI) as the figure fell to 52.3 in the month from 55.3 in July.

Amid this backdrop, BSE barometer Sensex cracked 580 points from a record high of 57,919 touched to end at 57,338, down 214 points. The NSE Nifty closed the day at 17,076, down 56 points. The index had touched a new high of 17,226 in the intraday session.

In the 30-pack Sensex, 18 stocks closed in the red with M&M, Tata Steel, Bajaj Finserv and TCS as top losers. Asian Paints, Nestle India, Axis Bank and DRL were the best performers.

The broader markets outperformed the benchmarks, with BSE Midcap closing near record-high levels, up 0.92 per cent. The BSE Smallcap index added 0.22 per cent.

On the sectoral front, Nifty Metal and IT indices bled over 1 per cent each, with the former snapping its three-day winning run. On the other hand, Nifty Realty surged over 5 per cent and was the best performing index. The auto index ended flat amid a mixed bag show in August month and as companies flagged chip shortages.

In stock-specific news, shares of AU Small Finance Bank rebounded nearly 7 per cent after a 13 per cent crash on Tuesday as the management clarified on the recent exits in the bank, including on the resignation of internal audit head, Sumit Dhir.  The bank in an exchange filing on August 31, 2021, said Dhir resigned following personal reasons. The scrip recouped gains and ended 2 per cent higher on BSE.

Shares of Oberoi Realty surged 11 per cent to Rs 778.05 on the BSE following the announcement of the inclusion of shares in the F&O segment, effective October 1.

Likhita Infrastructure rose 4 per cent after the company received orders worth Rs 145.86 crore from Indradhanush Gas Grid for laying & construction of steel gas pipeline and terminals along with associated facilities for sections 5 & 9 of the North-East Gas Grid (NEGG) Project.

BHEL added nearly 5 per cent as the company said it has secured the largest ever order worth Rs 10,800 crore from NPCIL.

Meanwhile, in the primary market, the IPO by Ami Organics sailed through amid a strong response from retail investors and QIBs. Overall, the issue was subscribed nearly 2 times at the end of Day 1. Vijay Diagnostic IPO however started off on a weak note as the IPO garnered only 30 per cent bids on the first day of issue. Both IPOs close on Friday.

Now, going into trade on Thursday, stock-specific activity and global cues will continue to influence market trajectory. Auto stocks will remain in focus amid the release of August sales figures. Oil market companies will also hog the limelight amid the outcome of the Opec+ meet due later today. Investors must also brace for higher volatility amid the weekly F&O expiry.