The headline equity indices ended near the flat line after a volatile session on Tuesday. The Nifty closed below the 17,100 level after hitting the day's high of 17,176.45 in the early trade. Oil & gas, pharma and IT stocks advanced. On the other hand, metal, financial services and bank shares were under pressure.
As per provisional closing data, the barometer index, the S&P BSE Sensex, was down 37.70 points or 0.07% to 57,107.52. The Nifty 50 index declined 8.90 points or 0.05% to 17,007.40. In five consecutive sessions, the Sensex has slipped 4.37% while the Nifty has tumbled 4.54%.
In the broader market, the S&P BSE Mid-Cap index rose 0.01% while the S&P BSE Small-Cap index advanced 0.49%.
The market breadth was positive. On the BSE, 1,887 rose and 1,518 shares fell. A total of 135 shares were unchanged.
Concerns continued to persist among the investor community that the US Fed's ultra-hawkish monetary tightening to tame the red-hot inflation could push the largest economy into recession.
Meanwhile, the Reserve Bank of India (RBI)'s six-member Monetary Policy Committee is scheduled to meet this week during 28-30 September 2022. RBI Governor Shaktikanta Das will announce the MPC decision on 30 September 2022, the last date of the meeting. The RBI is widely expected to maintain the balancing act between growth and inflation.
In the past three policy reviews, the RBI's rate-setting panel has raised 140 basis points in total since May this year. Currently, the repo rate, the interest rate at which the RBI lends to the commercial bank, stands at 5.40%.
Buzzing Index:
The Nifty Oil & Gas index rose 1.13% to 7,693.60. The index slipped 3.08% in the past three trading sessions.
Indraprastha Gas (up 7.1%), Mahanagar Gas (up 6.72%), Gujarat Gas (up 6.41%), Gujarat State Petronet (up 3.8%), Bharat Petroleum Corporation (up 1.97%), GAIL (India) (up 1.89%), Indian Oil Corporation (up 1.29%), Hindustan Petroleum Corporation (up 0.95%), Oil & Natural Gas Corpn (up 0.89%) and Reliance Industries (up 0.75%) edged higher.
Stocks in Spotlight:
Mahindra Logistics (MLL) rose 1.18% after MLL and Rivigo Services (RSPL) announced that they had reached an agreement for purchase of RSPL's B2B express business by MLL. Under the terms of the agreement, MLL will acquire the express business through a Business Transfer Agreement (BTA), including the customers, team and assets of RPSL's B2B express business, RSPL's technology platform and the Rivigo brand. RSPL will continue to own its truck fleet & the rights to the full truck load (FTL) operations. The acquisition will augment MLL's existing B2B express business leveraging Rivigo's strong network, technology and process capabilities.
Filatex India jumped 11.63%. The company has commissioned its project for debottlenecking a melt capacity of 50 MT per day and manufacturing lines of 120 MT per day at Dahej plant in Gujarat. In an exchange filing, the company said, “Our project for debottlenecking melt capacity of 50 MT per day and manufacturing lines of 120 MT per day POY at Dahej Plant have successfully been commissioned w.e.f. 26th September, 2022.”
HFCL gained 2.75% after the company said that it has received the purchase orders aggregating to approx. Rs 202.60 crore from Reliance Retail; Reliance Projects & Property Management Services and also from one of the overseas customer.
The telecom company has received a purchase order of Rs 167.60 crore from Reliance Retail and Reliance Projects & Property Management Services for supply of optical fibre cables (OFC). The domestic order has to be executed by March 2023.It has bagged another purchase order of Rs 35 crore from one of the overseas customer for supply of various types of OFC & its related accessories. The international order has to be executed by March 2023.
Hindustan Construction Company (HCC) hit an upper circuit of 20%. The company said that it has completed its debt resolution plan supported by 23 banks and financial institutions. The resolution plan has carved out a significant portion of HCC's debt along with commensurate assets from its balance sheet.
Jyoti Structures locked in an upper circuit of 5%. The company secured a contract worth Rs 237 crore from Sterlite Power Transmission for turnkey supply. The order received is for turnkey supply and construction of 400 kilovolt & 220 kilovolt double circuit transmission line in Goa & Karnataka. The contract is valued at Rs 237 crore and is to be commissioned in phased manner by December 2023 and July 2024.
Orient Bell rallied 4.30% after the company announced completion of expansion at its Hoskote plant, Bengaluru, Karnataka involving capex of Rs 34 crore well ahead of schedule. With this expansion, the total capacity of the company has increased from 32 million square meters per annum (MSM p.a.) to 33.8 MSM p.a., which includes 10 MSM p.a. of the associated entities.
Shakti Pumps (India) advanced 4.98%. The manufacturer of energy‐efficient pumps and motors said that the company has received advance worth $6 million from Export‐Import Bank of India (EXIM bank) on behalf of the Government of Uganda represented by the Ministry of Water and Environment for supplying solar‐powered water pumping system. The company will begin the project execution from October 2022.
Global Markets:
The Dow Jones index futures were up 181 points, indicating a positive opening in the US market today.
Shares in Europe traded mixed while Asian stocks advanced on Tuesday after sharp falls on Monday. China's industrial profits for January to August fell 2.1% from the same period a year ago, official data showed.
Wall Street slid deeper into a bear market on Monday, with the S&P 500 and Dow closing lower as investors fretted that the Federal Reserve's aggressive campaign against inflation could throw the US economy into a sharp downturn.
The Bank of England on Monday said it is monitoring financial market developments “very closely” after a dramatic turmoil saw the British pound. The BOE governor said the central bank's monetary policy committee would make a “full assessment” at its next scheduled meeting in November, “and act accordingly.” “The MPC will not hesitate to change interest rates as necessary to return inflation to the 2% target sustainably in the medium term, in line with its” responsibility, he added.
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