Sensex slides 311 pts, Nifty ends below 17,550, NSE VIX jumps over 6%

25 Aug 2022 , 03:46 PM

The benchmark indices ended with modest losses on Thursday. Major selling was witnessed during the final hour of the trading session. PSU bank, realty and consumer durables stocks were in demand while IT, pharma and financial services shares were under pressure. Trading was volatile due to expiry of monthly F&O contracts on the NSE today. The Nifty opened higher and traded with modest gains for most part of the session. It tumbled as much as 191.55 points to hit the days low of 17,487.45 in late trade. As per provisional closing data, the barometer index, the S&P BSE Sensex, was down 310.71 points or 0.53% to 58,774.72. The Nifty 50 index declined 82.50 points or 0.47% to 17,522.45. The broader market outperforms the frontline indices. The S&P BSE Mid-Cap index rose 0.20% while the S&P BSE Small-Cap index gained 0.17%. The market breadth was positive. On the BSE, 1,913 shares rose and 1,505 shares fell. A total of 136 shares were unchanged. Meanwhile, the NSEs India VIX, a gauge of the markets expectation of volatility over the near term, climbed 6.18% to 19.57. IPO Updates: The initial public offer (IPO) of Dreamfolks Services received bids for 4,30,45,650 shares as against 94,83,302 shares on offer, according to stock exchange data at 15:21 IST on Thursday (25 August 2022). The issue was subscribed 4.54 times. The IPO, with a price band of Rs 308-326 a share, will remain open for public subscription during 24 to 26 August 2022. An investor can bid for a minimum of 46 equity shares and in multiples thereof. Buzzing Index: The Nifty IT index fell 0.95% to 28,585.50. The index lost 4.83% in three trading sessions. Mindtree (down 1.05%), Infosys (down 1.04%), Tata Consultancy Services (down 0.99%), Mphasis (down 0.92%), L&T Technology Services (down 0.91%), HCL Technologies (down 0.65%), Larsen & Toubro Infotech (down 0.46%), Coforge (down 0.19%), Wipro (down 0.06%) edged lower. Wipro shed 0.06%. The IT major announced the appointment of Wagner Jesus as country head and managing director for operations in Brazil. During his tenure in Wipro, Wagner has played a pivotal role in both local and global accounts and has successfully established relationships within the region. He has acted as a catalyst for significant change within the company and is an influential leader spearheading the companys most recent acquisitions while driving growth in Brazil. Stocks in Spotlight: Bharti Airtel rose 0.55%. Singtel said it will retain 29.7% in Airtel and it remains fully committed to Airtels next phase of growth. Singtels wholly-owned subsidiaries have entered into a share purchase agreement to sell a 3.3% direct stake in regional associate Airtel to Bharti Telecom, a joint venture between Bharti Enterprises and Singtel, at any time before 23 November 2022. The sale will unlock approximately SGD 2.25 billion as part of the Singtel Groups capital recycling strategy. After the stake sale, Singtels effective holding in Bharti Airtel will fall to 29.7%. Singtel will use the proceeds to fully fund 5G capex needs and growth initiatives in the next few years. NHPC rallied 3.68% after the company announced the signing of a memorandum between Government of Rajasthan and NHPC Renewable Energy for development of ultra mega renewable energy power park in the state of Rajasthan. The memorandum of understanding (MoU) provides a framework under which the parties may collaborate and cooperate for setting up of 10 GW renewable energy parks (UMREPP)/ projects at sites identified inside Rajasthan, by optimum utilization of resources and knowledge base of both parties; they could develop the renewable energy park & projects in the areas identified; and the renewable energy projects would be developed either on EPC or developer mode by NHPC REL. Macrotech Developers fell 1.41% after the company said its board will consider raising of funds upto Rs 250 crore on 29 August 2022. The board of directors of the company will consider raising funds through issuing non-convertible debentures in one or more tranches Lupin slipped 2.30%. The pharma major announced that it has entered into a deed of assignment with Boehringer Ingelheim International GmbH for the acquisition of brands Ondero and Ondero Met, including trademark rights associated with the brands. The brands Ondero and Ondero Met are related to medicines for the diabetic segment. The pharma major said that this will enable the company to provide comprehensive treatment options for diabetes management. The cost of acquisition of these brands stood at Rs Euro 26 million and the indicative time period for acquisition is expected to be completed by the end of August 2023. Samvardhana Motherson International declined 0.20% after the company announced the signing of a Memorandum of Understanding (MoU) Ministry of Investment, Kingdom of Saudi Arabia (MISA). The MoU is aimed at identifying investment development opportunities for industrial and service activities in the Kingdom of Saudi Arabia (KSA). Aban Offshore hit an upper circuit limit of 20%. The company said it has entered into a settlement agreement with Central Bank of India, one of its financial creditors. As per the terms of the settlement agreement, Aban Offshore has agree to pay the outstanding principal of Rs 121,78,41,258 within 30 days as a final settlement of all the credit facilities. UNO Minda advanced 2.55%. The board automotive solutions provider approved an investment of Rs 300 crore for expanding its manufacturing capacity of 4W Alloy Wheels and 4W Automotive switches to meet rising demand. PSP Projects gained 2.89% after the company said that it has been awarded the contracts worth Rs 247.35 crore from Precast and Government segments. With receipt of the above, the total order inflow for the financial year 2022-23 till date amounts to Rs 1,344.24 crore,? the company said in a statement. Global Markets: The Dow Jones futures were up 150 points, indicating a positive opening in the US stock market today. Shares in Europe and Asia advanced across the board on Thursday ahead of the Jackson Hole symposium kicking off stateside. Hong Kongs session resumed in the afternoon after trading was delayed in the morning due to a typhoon warning. Investors are awaiting the three-day Jackson Hole economic symposium that starts Thursday with Federal Reserve Chair Jerome Powell slated to speak Friday morning. Fed watchers expect him to reinforce the central banks goal of squashing inflation and keeping expectations about future price gains in check. Investors stateside will also be closely watching Thursdays weekly jobless claims data and Fridays PCE (personal consumption expenditure) reading, one of the Feds favored inflation measures. In South Korea, the Bank of Korea raised its benchmark interest rate by 25 basis points to 2.50%. Wall Street ended higher on Wednesday, lifted by gains in energy stocks and Intuit while investors awaited the US Federal Reserves Jackson Hole conference this week. Powered by Capital Market – Live News