Benchmarks end with limited losses; auto shares edge lower

7 Sep 2022 , 03:35 PM

The domestic equity benchmarks ended with limited losses after a volatile session on Wednesday. After opening slightly above 17,500 mark, the Nifty managed to pare most losses as it closed above the 17,600 level. While autos, banks and financials witnessed significant selling, pharma, healthcare and consumer durable stocks managed to end with decent gains. As per provisional closing data, the barometer index, the S&P BSE Sensex, slipped 168.08 points or 0.28% to 59,028.91. The Nifty 50 index lost 31.20 points or 0.18% to 17,624.40. In the broader market, the S&P BSE Mid-Cap index rose 0.46% while the S&P BSE Small-Cap index advanced 0.73%. The market breadth was strong. On the BSE, 2140 shares rose and 1315 shares fell. A total of 125 shares were unchanged. Investors remained cautious ahead of the release of the US Feds Beige Book, which summarises the state of the worlds largest economy, due later today. Primary Market: The initial public offer (IPO) of Tamilnad Mercantile Bank received bids for 2.33 crore shares as against 87.12 lakh shares on offer, according to stock exchange data 15:24 IST on Wednesday (7 September 2022). The issue was subscribed 2.68 times. The issue opened for bidding on Monday (5 September 2022) and it will close on Wednesday (7 September 2022). The price band of the IPO is fixed at Rs 500-525 per share. An investor can bid for a minimum of 28 equity shares and in multiples thereof. Buzzing Index: The Nifty Auto index fell 1.07% to 13,084.05. The index has fallen 1.22% in two sessions. Tata Motors (down 2.58%), Bajaj Auto (down 2.1%), Ashok Leyland (down 1.88%), Escorts Kubota (down 1.77%) and Bharat Forge (down 1.5%) were the top losers. Among the other losers were Mahindra & Mahindra (down 1.3%), Maruti Suzuki India (down 1.16%), TVS Motor Company (down 1.15%), Bosch (down 0.84%) and Eicher Motors (down 0.68%). Meanwhile, Tube Investments of India (up 1.9%) and Sona BLW Precision Forgings (up 1.54%) edged higher. Stocks in Spotlight: InterGlobe Aviation (IndiGo) fell 1.71%. The company on Tuesday announced that Petrus Johannes Theodorus Elbers has joined the company as chief executive officer (CEO). Bharti Airtel fell 1.37% on high volumes after the counter reported multiple block deals in initial trade today, 7 September 2022. According to the media reports, 10.4 crore Bharti Airtel shares, or 1.9% equity, changed hands in opening trade today. Lupin added 2.07%. The pharma major announced that it has signed an exclusive license and supply agreement with DKSH to commercialize five of Alvotechs proposed biosimilars in the Philippines. Astral jumped 4.44%.The National Company Law Tribunal (NCLT) has approved the scheme of amalgamation of subsidiaries of Astral, Resinova Chemie and Astral Biochem with the company. On 5 September 2022, Astral obtained sanction from the NCLT, Ahmedabad Bench the scheme of amalgamation of Resinova Chemie and Astral Biochem with the company and their respective shareholders and creditors. On 6 September 2022, the company received certified copy from NCLT and has filed the same with the Registrar of Companies on the same day. Hence, the scheme of amalgamation has become effective from 6 September, 2022. Coal India (CIL) advanced 2.53%. The government-owned coal miner said that its production increased by 44.6 million tonnes (MTs) in just 5 months and 4 days of the ongoing fiscal, as of 4 September, eclipsing the previous best of 44.5 MTs registered in FY16, which though was for the entire year. Arvind SmartSpaces jumped 5.28% after Quant Mutual Fund acquired 1.18% stake in the company via bulk deal on the BSE yesterday. Paras Defence and Space Technologies gained 2.72% after the company said that it has entered into an exclusive teaming agreement with ELDIS Pardubice s.r.o., Czech Republic to provide Turnkey Anti-Drone Systems for Civilian Airports in India. Global markets: Shares in Europe slumped while Asian stocks traded lower on Wednesday as investors anticipate the Federal Reserve to give its summary on current economic conditions, also known as the Beige Book. Australias real GDP grew 0.9% in the second quarter after rising 0.7% in the previous period, official data showed. The Australian Bureau of Statistics said the continued growth was backed by the first full quarter of reopened borders. The data also showed the Australian economy grew 3.6% over the past year. Meanwhile, Chinas exports rose 7.1% in August compared with the same period a year ago, official data showed. Imports ticked up 0.3%, less than 2.3% increase in July. The country saw a trade surplus of $79.39 billion in August driven by weaker import numbers, after it saw a record $101.26 billion in trade surplus in July. Following this, a foreign brokerage has reportedly cut its forecast for Chinas full-year GDP to 2.7%, another downgrade from its previous 2.8% estimate set in August. As per reports, the new outlook is based on the research firms analysis that found 12% of Chinas GDP is affected by Covid controls on a weighted basis, up from 5.3% last week. Several cities including the tech hub of Shenzhen have reportedly tightened Covid controls in the last few weeks after reporting new local infections. Chengdu has also ordered people to stay home while authorities conduct mass virus testing, the reports added. Wall Streets main indices closed lower on Tuesday, the first session after the US Labor Day holiday and summer vacations, as traders assessed fresh economic data in volatile trading. A survey from the Institute for Supply Management (ISM) showed the U.S. services industry picked up in August for the second straight month amid stronger order growth and employment, while supply bottlenecks and price pressures eased. The Institute for Supply Management said its non-manufacturing PMI edged up to a reading of 56.9 last month from 56.7 in July, the second consecutive monthly increase after three months of declines. The focus will be on Fed Chair Jerome Powells speech on Thursday as well U.S. consumer price data next week for clues on the path of monetary policy. Powered by Capital Market – Live News