Nifty settles above 17,600 level, broader market outperforms

24 Aug 2022 , 03:48 PM

The domestic equity benchmarks ended with minor gains after a volatile session on Wednesday. Realty, media and private bank stocks were in demand. On the other hand, IT, pharma and consumer durables shares were under pressure. Investors looked forward to Fed Chairman Jerome Powells speech on Friday at the Jackson Hole annual economic symposium. The Nifty opened in the red and hit the days low of 17,499.25 in morning trade. The index traded near the flat line in most part of the session. It staged a gradual recovery and bounced back in the late trade to settle with minor gains. As per provisional closing data, the barometer index, the S&P BSE Sensex, was up 54.13 points or 0.09% to 59,085.43. The Nifty 50 index gained 27.45 points or 0.16% to 17,604.95. The broader market outperformed the benchmark indices. The S&P BSE Mid-Cap index rose 0.80% while the S&P BSE Small-Cap index gained 0.73%. The market breadth was strong. On the BSE, 2,111 shares rose and 1,297 shares fell. A total of 138 shares were unchanged. Meanwhile, the NSEs India VIX, a gauge of the markets expectation of volatility over the near term, dropped 3.25% to 18.43. Economy: Indias GDP growth in the first quarter of the current fiscal will reach double digits to 13% due to a low base and a strong recovery in the contact-intensive sectors as a result of the expanding vaccination coverage, according to an ICRA report. ICRA anticipates that the services sector will lead sectoral growth in the first quarter of FY23 (+17-19%), followed by the industry (+9-11%). Due to the negative effects of the heat wave in numerous regions of the country, which reduced wheat yield, GVA growth in agriculture, forestry, and fishery is predicted to fall to 1% in the first quarter of FY23 from 4.1% in the fourth quarter of FY22. Meanwhile, Indias crude oil production during July 2022 was 2453.19 thousand metric tonnes (TMT), which is 5.57% lower than target for the month and 3.76% lower than the production of July 2021. Natural gas production during July 2022 was 2882.54 million metric standard cubic meters (MMSCM), which is 3.33% lower than the monthly target and 0.40% lower than production of July 2021. Buzzing Index: The Nifty Private Bank index rose 1.71% to 20,153.45. The index advanced 2.86% in two trading sessions. RBL Bank (up 14.17%), IDFC First Bank (up 5.32%), Bandhan Bank (up 5.11%), Federal Bank (up 3.41%), IndusInd Bank (up 2.75%), ICICI Bank (up 1%), Kotak Mahindra Bank (up 0.52%), HDFC Bank (up 0.47%), Axis Bank (up 0.4%) edged higher. Stocks in Spotlight: New Delhi Television (NDTV) hit an upper circuit limit of 5% after the Adani group launched takeover bid of the media company. Vishvapradhan Commercial Private Limited (VCPL), wholly owned subsidiary of AMG Media Networks Limited (AMNL), holds warrants of RRPR Holding Private Limited (RRPR), entitling it to convert them into 99.9% stake in RRPR. AMNL is 100% subsidiary of Adani Enterprises Limited (AEL). VCPL has exercised warrants to acquire 99.5% stake in RRPR. Such acquisition will result in VCPL acquiring control of RRPR. Maruti Suzuki India shed 0.36%. The car major has recalled 166 Dzire Tour S vehicles manufactured between 6 August 2022 to 16 August 2022 to replace airbag control unit free of cost in these vehicles. ?It is suspected that there is a possible defect in Airbag Control Unit, which in rare case might result in malfunctioning during deployment. Customers of suspected vehicles are advised not to drive/use the vehicle till the Airbag Control Unit is replaced,? the company said in a statement. Hindalco Industries declined 0.13%. The companys chairman Kumar Mangalam Birla on Tuesday said the company has earmarked a total capital expenditure of about $8 billion over the next five years in its arm Novelis and India. Novelis has identified potential investment opportunities of approximately $4.5 billion. Birla was speaking at the Hindalcos 63rd Annual General Meeting on Tuesday (23 August 2022). In the India Business, the company has identified potential investment opportunities of nearly $3 billion. Chennai Petroleum Corporation advanced 2.68% after the companys board approved the Proposal for formation of a joint venture company (JVC) with Indian Oil Corporation (IOC) and other seed equity investors. The other seed equity investors include Axis Bank, HDFC Life Insurance Company, ICICI Bank, ICICI Prudential Life Insurance Company and SBI Life Insurance Company. The JVC is being formed for Implementing the 9 MMTPA refinery project at Cauvery Basin Refinery, Nagapattinam District, at an estimated cost of Rs 31,580 crore. Ugro Capital gained 2.55% after the NBFC announced that the meeting of the investment and borrowing committee of the board is schedule on 26 August 2022 to consider raising funds. The NBFC added that the funds will be raised by way of issuance of non-convertible debentures through private placement basis. DLF rose 1.11%. The company said that the credit rating agency ICRA has reaffirmed its rating and revised outlook to positive from stable on the instruments and bank facilities of the company. The agency has reaffirmed the rating of non-convertible debentures, fund-based-term loans, fund-based-working capital facilities and non-fund based-working capital facilities/bank guarantee of the company at [ICRA] AA- while revising the outlook on the same to positive. It has reaffirmed the rating of DLFs commercial paper at [ICRA] A1+. Aurobindo Pharma added 0.07% after its wholly owned subsidiary, Eugia Pharma Specialities received US Food & Drug Administration approval for Medroxyprogesterone Acetate injectable suspension. Medroxyprogesterone Acetate injection is indicated for the use by females of reproductive potential to prevent pregnancy. Monarch Networth Capital jumped 11.05% after the company said that it has raised Rs 252 crore through Monarch Alternative Investment Fund (AIF) in its second category-3 AIF. Monarch Networth Capital is the investment manager and sponsor of Monarch AIF. The entire amount was raised from a set of ultra-high net worth individuals, corporates, and family offices. The first fund was launched in October 2020. The company is planning to foray into the mutual fund business. Global Markets: Shares in Europe tumbled while Asian stocks traded mixed on Wednesday as investors assessed whether an escalating economic slowdown will lead the Federal Reserve to temper the pace of monetary tightening. Minneapolis Fed President Neel Kashkari on Tuesday reportedly reiterated the central banks commitment to bringing inflation under control through monetary policy tightening, and said his biggest fear is that the persistence of price pressures is underestimated. The comments came as markets prepare for a much-anticipated speech from Fed Chairman Jerome Powell on Friday addressing the central banks tightening path, following its annual economic symposium in Jackson Hole, Wyoming. In Europe, investors will be perusing the European Central Banks accounts of its latest monetary policy discussions, due to be published on Wednesday. Wall Street ended down on Tuesday as investors focused on data showing a slowing economy ahead of a US Federal Reserve gathering later this week in Jackson Hole, Wyoming. Data Tuesday showed sales of new US homes fell for the sixth time this year to the slowest pace since early 2016, while business activity contracted for a second straight month. Powered by Capital Market – Live News