Sensex slides 200 pts; Nifty settles below 17,250; VIX jumps 4.3%

10 Oct 2022 , 03:44 PM

The key equity benchmarks ended with moderate losses on Monday. The Nifty settled below the 17,250 level. Barring the Nifty IT index, all the sectoral indices on the NSE traded in the red. Negative global cues dampened the investor sentiments. As per provisional closing data, the barometer index, the S&P BSE Sensex, declined 200.18 points or 0.34% to 57,991.11. The Nifty 50 index lost 73.65 points or 0.43% to 17,241. In the broader market, the S&P BSE Mid-Cap index slipped 0.87% while the S&P BSE Small-Cap index declined 0.58%. The market breadth was negative. On the BSE, 1,460 shares rose and 2,099 shares fell. A total of 170 shares were unchanged. The IT major, Tata Consultancy Services (TCS) gained 1.84% ahead of its Q2 earnings due later today. The NSEs India VIX, a gauge of the markets expectation of volatility over the near term, jumped 4.30% to 19.6225. Economy: Indias forex reserves dropped by $4.9 billion and the countrys reserves declined for a ninth consecutive week for the week ended September 30, 2022. They were $537.52 billion at the end of the previous week. The fall in the foreign exchange reserves can be attributed to a fall in the Foreign Currency Assets (FCA), which is a major component of the overall reserves, according to the Weekly Statistical Supplement released by RBI. Foreign currency assets fell $4.41 billion to $472.81 billion for the same period. Primary Market: The initial public offer (IPO) of Tracxn Technologies received bids for 37.20 lakh shares as against 2.12 crore shares on offer, according to stock exchange data 15:30 IST on Monday (10 October 2022). The issue was subscribed 0.17 times. The issue opened for bidding on Monday (10 October 2022) and it will close on Wednesday (12 October 2022). The price band of the IPO is fixed at Rs 75-80 per share. An investor can bid for a minimum of 185 equity shares and in multiples thereof. Buzzing Index: The Nifty IT index added 1.06% to 28,027.60. The index has declined 0.70% in the previous session. Persistent Systems (up 2.63%), Tata Consultancy Services (up 1.94%), Larsen & Toubro Infotech (up 1.29%), Wipro (up 1.15%), Coforge (up 1.12%), L&T Technology Services (up 1.03%), Infosys (up 0.94%), Tech Mahindra (up 0.72%), Mphasis (up 0.68%) and HCL Technologies (up 0.65%). Stocks in Spotlight: One 97 Communications (Paytm) rose 2.47%. The company said that its lending business witnessed a 224% year on year (YoY) growth during the quarter ending September 2022. The number of loans disbursed through the companys platform zoomed 224% YoY to 9.2 million loans in the quarter ended September 2022, while the value of loans disbursed grew 482% YoY to Rs 7,313 crore ($894 million). The company said that its loan distribution business (in partnership with top lenders) continues to witness accelerated growth with disbursements through its platform stood at an annualised run rate of Rs 34,000 crore in the month of September. Jaiprakash Associates spurted 10.47% after the company said its board decided to divest significant cement business. Jaiprakash Associates announced, with a view to give thrust to the ongoing efforts of the Company to reduce its debt, the Board of Directors in their meeting held today, the 10th October, 2022, have, inter-alia, decided to divest Companys significant Cement business. JSW Steel rose 0.12%. The Mumbai-based steel making company said that the Groups combined crude steel production for Q2 FY23 was 5.68 million tonnes, registering a growth of 12% YoY. Tata Motors slipped 3.81%. Tata Motors said that Jaguar Land Rovers retail sales in Q2 stood at 88,121 vehicles, an increase of 9,296 units or 11.8% as compared with the previous quarter ending 30 June 2022. The retail sales are, however, lower by 4.9% in comparison to the second quarter of FY22. Power Grid Corporation of India (PGCIL) fell 0.19%. PGCIL on Friday announced that its wholly owned subsidiary, Powergrid Bhind Guna Transmission has commissioned a transmission project in Madhya Pradesh. IDBI Bank spurted 9.13%. The government invited bids for privatising the bank. The Government of India (Gol) has kicked off the process for strategic disinvestment of IDBI Bank with the transfer of management control. The government has issued a preliminary information memorandum to invite expressions of interest from prospective buyers. GoI, acting through Department of Investment and Public Asset Management (DIPAM), has engaged KPMG India as the legal advisors for providing advisory services and managing the transaction. The government is offering to sell 30.48% of its stake in the bank, and Life Insurance Corporation of India (LIC) will 30.24%, aggregating to 60.72% of IDBI Banks share capital, along with transfer of management control in the lender. Currently, GoI holds 45.48% and LIC holds 49.24% of the total equity share capital of IDBI Bank. Computer Age Management Services (CAMS) advanced 2.97% after the company announced that its board will meet on Monday, 17 October 2022 for considering of enhancing its equity investment in CAMS Financial Information Services. CAMS Financial Information Services (CAMSFINSERV) is a wholly owned subsidiary of CAMS. Suzlon Energy declined 0.26%. Suzlon Energy announced that its board has approved the appointment of Vinod R.Tanti as the chairman & managing director of the company, with immediate effect, for a period of 3 years up to 6 October 2025. International Travel House jumped 12.44% after the company reported a net profit of Rs 4.52 crore in Q2 FY23 as against a net loss of Rs 3.67 crore in Q2 FY22. Revenue from operations rose by 92.59% YoY to Rs 45.38 crore during the quarter. Global markets: Stocks in Europe and Asia traded lower on Monday after a surprise drop in US unemployment quashed any thought of a pivot on policy tightening ahead of a reading on inflation which is expected to see core prices move higher again. Chinese investors return from a week-long break. Markets in Japan, South Korea, Taiwan and Malaysia are closed today for holidays. US stocks tumbled on Friday after data showed the unemployment rate declined in September, sparking fear that the Federal Reserve would continue hiking rates aggressively. The US economy added 263,000 jobs last month, showing a steady slowdown from the blistering pace in 2020 and 2021, the Labor Department said in the closely-watched report. The unemployment rate slipped two-tenths of a percentage point to 3.5 percent. Geopolitical tensions added to the uncertainty as markets waited to see how the Kremlin might respond to the blast that hit Russias only bridge to Crimea. Later this week, the Bank of Korea will announce its benchmark interest rate decision, Singapore is set to announce its GDP estimate for the third quarter and China releases inflation data. Powered by Capital Market – Live News