Nifty above 17,500; broader markets outperform

23 Aug 2022 , 01:32 PM

The domestic equity benchmarks pared all losses and traded with decent gains in afternoon trade. Domestic sentiment was dented amid negative global cues. The Nifty traded above the 17,500 level after hitting days low at 17,345.20 in the morning trade. Auto, metal and PSU banks advanced while IT and media stocks witnessed some bit of selling. At 13:30 IST, the barometer index, the S&P BSE Sensex, was up 194.17 points or 0.33% to 58,968.04. The Nifty 50 index added 70.60 points or 0.4% to 17,561.30. Mahindra & Mahindra (up 3.42%), Bajaj Finserv (up 2.98%), Hindalco (up 2.97%), Grasim (up 2.06%) and Eicher Motors (up 2.03%) were the top Nifty gainers. Infosys (down 1.90%), TCS (down 1.64%), HCL Tech (down 1.51%), Tech Mahindra (down 1.48%) and Wipro (down 0.89%) were the top Nifty losers. In the broader market, the S&P BSE Mid-Cap index gained 0.69% while the S&P BSE Small-Cap index rose 0.48%. The market breadth was positive. On the BSE, 1,960 shares rose and 1,338 shares fell. A total of 163 shares were unchanged. Meanwhile, Shares of seven Adani Group shares fell by 0.13% to 5% after a research firm reportedly said in a report that Adani Groups debt-funded growth plans could spiral into a massive debt trap. Adani Power (down 5%), Adani Green Energy (down 4.42%), Adani Wilmar (down 3.21%), Adani Transmission (down 1.68%), Adani Ports and Special Economic Zone (down 1.23%), Adani Total Gas (down 0.93%) and Adani Enterprises (down 0.13%) edged lower. Adani Group is deeply overleveraged, with the group investing aggressively across existing as well as new businesses, predominantly funded with debt, the research report reportedly cited. The aggressive expansion pursued by the Adani Group has put pressure on its credit metrics and cash flow, the research firm said, adding that In the worst-case scenario, overly ambitious debt-funded growth plans could eventually spiral into a massive debt trap, and possibly culminate into a distressed situation or default of one or more group companies, it added. The groups aggressive plans, most of which have been fuelled by debt, is making the research firm cautiously watchful. Global Markets: European markets were lower on Tuesday morning, tracking global sentiment as a fresh surge in European energy prices deepened fears of a recession. The damage comes after Russia reportedly said it will stop gas supplies to Europe for three days at the end of the month due to an unscheduled maintenance order on its main Nord Stream 1 pipeline. Meanwhile, Asian stocks tumbled on Tuesday after major indexes on Wall Street finished their worst day since June amid mounting rate hike concerns. Japans manufacturing activity growth slowed to a 19-month low, as new orders continue to decline. The au Jibun Bank Flash Manufacturing Purchasing Managers Index (PMI) fell to a seasonally adjusted 51.0 in August, down from Julys final of 52.1. US stocks fell sharply Monday, in its worst day since June, as the summer rally fizzled out and fears of aggressive interest rate hikes returned to Wall Street. Investors are anticipating what could be a volatile week of trading ahead of Federal Reserve Chairman Jerome Powells latest comments on inflation at the central banks annual Jackson Hole economic symposium. Powered by Capital Market – Live News