Sensex drops 420 pts on weak global signals; Nifty holds 18k, VIX down over 2%

10 Nov 2022 , 04:54 PM

The domestic equity market tumbled on Thursday, tracking weak global peers. Investors around the world digested the U.S. midterm elections results and looked ahead to US CPI data. Any uptick in US inflation numbers would fuel concerns of further rate hikes by the US Fed. All the sectoral indices on the NSE ended in the red. Autos, PSU banks and consumer durables shares corrected. The S&P BSE Sensex, was down 419.85 points or 0.69% to 60,613.70. The Nifty 50 index lost 128.80 points or 0.71% to 18,028.20. Trading was volatile during expiry of weekly index options on the NSE. The Nifty 50 index opened above 18,000 mark and immediately hit the days high of 18,103.10 in early trade. Soon profit selling emerged at higher levels, which dragged the index to the days low of 17,969.40 in afternoon trade. However, fag-end buying pushed the index above the 18,000 mark. The NSEs India VIX, a gauge of markets expectation of volatility over the near term, declined 2.18% to 15.57. Tata Motors, Axis Bank and M&M were major Nifty losers, sliding about 3.07% to 4.61%. HeroMoto Corp, HDFC Bank and Kotak Mahindra Bank were top Nifty gainers, rising by 1.07% to 2.39%. The broader market underperformed the headline indices. The S&P BSE Mid-Cap index fell 1.02% while the S&P BSE Small-Cap index shed 1.05%. The market breadth was weak. On the BSE, 1,261 shares rose and 2,203 shares fell. A total of 128 shares were unchanged. Numbers to Track: The yield on Indias 10-year benchmark federal paper declined to 7.349 as compared with 7.387 at close in the previous trading session. In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 81.7900, compared with its close of 81.4700 during the previous trading session. MCX Gold futures for 5 December 2022 settlement added 0.12% to Rs 51,569. The US Dollar index (DXY), which tracks the greenbacks value against a basket of currencies, was up 0.31% to 110.90. The United States 10-year bond yield fell 0.78% to 4.110. In the commodities market, Brent crude for January 2023 settlement declined 91 cents or 0.98% at $91.74 a barrel. Global Markets: Shares in Europe and Asia stocks declined on Thursday as investors around the world digested incoming results from the U.S. midterm elections and looked ahead to key inflation data. Data on the U.S. consumer price index (CPI) is due on Thursday. Wall Street ended lower on Wednesday. Following the US midterm elections, the Republican party Thursday remained close to winning enough seats to gain a majority in the House, but the control of the Senate remained up for grabs. Either party could secure a Senate majority with wins in both Nevada and Arizona ? where the races were too early to call. President Joe Biden said there was a strong possibility that the Senate majority could come down to a runoff in Georgia next month. Stocks in Spotlight: Aurobindo Pharma slumped 11.69% after the company informed that its director P. Sarath Chandra Reddy has been arrested by Enforcement Directorate (ED). The media reported that ED has arrested Sarath Reddy in connection with its probe into the alleged irregularities in the scrapped liquor policy of the Delhi Government. Reddy reportedly had a role in the cartelisation of licenses and alleged kickbacks in the liquor licensing process. Axis Bank fell 3.54% to Rs 843.40. The government, through the Specified Undertaking of the Unit Trust of India (SUUTI), is offering 4,65,34,903 shares, or its entire 1.55% stake, in the private lender. The floor price for the sale has been set at Rs 830.63, a 5% discount to the stocks closing price of Rs 874.35 on Wednesday, 9 November 2022. The OFS opened on Thursday (10 November 2022) for non-retail investors, while both retail as well as non-retail investors will be able to subscribe on Friday (11 November 2022). Narayana Hrudayalaya advanced 3.62% after the healthcare players consolidated net profit stood at Rs 168.9 crore in Q2 FY23, translating into YoY growth of 69.9% and QoQ growth of 52.6% respectively. Consolidated total operating income was Rs 1141.60 crore for Q2 FY23 as against Rs 940.70 crore in the corresponding period of the previous year, reflecting an increase of 21.4% YoY and 10.5% QoQ respectively. Gujarat Pipavav Port jumped 7.78% after the companys standalone net profit (excluding exceptional items) rose 47% to Rs 74.6 crore in Q2 FY23 from Rs 50.8 crore registered in the same period last year. Revenue from operations rose 17% year on year to Rs 209.7 crore in Q2 FY23 from Rs 179.9 crore posted in Q2 FY22. Deepak Nitrite slumped 9.55% after the specialty chemical makers consolidated net profit declined 31.4% to Rs 174.47 crore despite of a 16.7% rise in net sales to Rs 1,961.65 crore in Q2 FY23 over Q2 FY22. Piramal Enterprises tumbled 8.65%. The company reported a consolidated net loss of Rs 1536 crore in Q2 FY23 as against a net profit of Rs 427 crore in Q2 FY22. Total income increased 37% Rs 997 crore in Q2 FY23 over Q2 FY22. Lupin rallied 3.69% after the company reported a consolidated net profit of Rs 129.7 crore in Q2 FY23 as against a net loss of Rs 2,098 crore recorded in Q2 FY22. Sales rose by 2.2% YoY to Rs 4,091.2 crore during the quarter. While Total Formulations revenue rose by 2.8% to Rs 3,841.3 crore, API revenue declined by 6.7% to Rs 249.9 crore in Q2 FY23. TVS Srichakra spurted 9.04% after the companys consolidated net profit rose 51.01% to Rs 38.22 crore on 20.56% increase in net sales to Rs 833.5 crore in Q2 September 2022 over Q2 September 2021. Pidilite Industries rose 0.25% after the company reported 11.3% decline in consolidated net profit to Rs 332.44 crore despite of 14.7% rise in net sales to Rs 3,011.15 crore in Q2 FY23 over Q2 FY22. Gujarat Alkalies & Chemicals dropped 7.75% after the companys consolidated net profit declined 18.8% to Rs 60.54 crore in Q2 FY23 from Rs 74.57 crore posted in Q2 FY22. Consolidated revenue from operations jumped 36.5% YoY to Rs 1,127.26 crore in Q2 FY23. Kalyan Jewellers India declined 4.10%. The jewellery retailers consolidated net profit surged 54.78% to Rs 106.38 crore on 20.22% jump in revenue from operations to Rs 3472.9 crore in Q2 FY23 over Q2 FY22. Precision Wires fell 5.38% after companys net profit declined 2.07% to Rs 14.66 crore, despite 2.08% rise in revenue from operations to Rs 721.31 crore in Q2 FY23 over Q2 FY22. The board of Precision Wires has approved a proposal to issue 1 bonus equity share for every 2 equity shares held by the shareholders of the company as on the record date. The bonus shares would be credited within 2 months from the date of approval in board meeting i.e. by 9 January 2023. IPO Updates: The initial public offer (IPO) of Five-Star Business Finance received bids for 97,80,252 shares as against 3,04,88,966 shares on offer, according to stock exchange data at 16:55 IST on Thursday (10 November 2022). The issue was subscribed 32%. The issue opened for bidding on Wednesday (9 November 2022) and it will close on Friday (11 November 2022). The price band of the IPO is fixed at Rs 450 to 474 per share. An investor can bid for a minimum of 31 equity shares and in multiples thereof. The IPO of Archean Chemical Industries received bids for 2,80,99,260 shares as against 1,99,57,325 shares on offer, according to stock exchange data 16:55 IST on Thursday (10 November 2022). The issue was subscribed 1.41 times. The issue opened for bidding on Wednesday (9 November 2022) and it will close on Friday (11 November 2022). The price band of the IPO is fixed at Rs 386 to 407 per share. An investor can bid for a minimum of 36 equity shares and in multiples thereof. The IPO of Kaynes Technology India received bids for 24,26,675 shares as against 1,04,70,246 shares on offer, according to stock exchange data 16:55 IST on Thursday (10 November 2022). The issue was subscribed 23%. The issue opened for bidding on Thursday (10 November 2022) and it will close on Monday (14 November 2022). The price band of the IPO is fixed at Rs 559 to 587 per share. An investor can bid for a minimum of 25 Equity Shares and in multiples thereof. Powered by Capital Market – Live News