The domestic equity benchmark indices ended lower on Monday amid negative global cues. The market started with a gap-down and remained in negative territory throughout the session, ending near the day's low. However, buying in PSU banks, auto and power restricted the losses. Global equities faced challenges due to growth concerns, and investors took a cautious approach ahead of central bank meetings in multiple countries. The anticipation of the outcome of the US Federal Reserve meeting added to market participants' caution.
The barometer index, the S&P BSE Sensex declined 241.79 points or 0.36% to 67,596.84. The Nifty 50 index lost 59.05 points or 0.29% to 20,133.30.
HDFC Bank (down 1.98%), Infosys (down 1.40%) and Reliance Industries (down 0.98%) were major drags.
In the broader market, the S&P BSE Mid-Cap index shed 0.27% while the S&P BSE Small-Cap index fell 0.60%.
The market breadth was weak. On the BSE, 1,642 shares rose and 2,143 shares fell. A total of 162 shares were unchanged.
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, shed 0.61% to 10.84.
The Indian equity market will be closed on Tuesday, 19 September, for Ganesh Chaturthi.
Economy:
India posted a merchandise trade deficit of $24.2 billion in August 2023, the largest gap in ten months and above market expectations of $21 billion. Exports contracted by 6.9% YoY to $34.5 billion, while imports declined by 5.2% YoY to $58.6 billion.
India's services surplus in August 2023 was steady at $12.5 billion as exports and imports remained firm at $26.4 billion and $13.9 billion, respectively.
India's foreign exchange reserves fell to an 11-week low of USD 593.90 billion as of September 8 - a decrease of $5 billion from the previous week.
Numbers to Tracks:
The yield on India's 10-year benchmark federal paper fell 0.13% to 7.149 from previous close of 7.158.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.3100, compared with its close of 83.1625 during the previous trading session.
MCX Gold futures for 5 October 2023 settlement added 0.26% to Rs 59,147.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.11% to 105.20.
The United States 10-year bond yield advanced 0.51% to 4.344.
In the commodities market, Brent crude for November 2023 settlement rose 56 cents or 0.60% to $94.49 a barrel.
Global Markets:
Markets in Europe and Asia declined on Monday as investors look ahead to a week of central bank decisions.
The U.S. Federal Reserve's decision is expected early Thursday in Asia, while Australia's central bank will release its minutes for its 5 September 2023 policy meeting on Tuesday.
On Friday, the Bank of Japan will conclude its monetary policy meeting and traders will be looking for clarity on when the BOJ will start to shift its ultra-easy monetary policy. Elsewhere, the People's Bank of China is also expected to release its loan prime rate decisions on Friday.
US stocks fell Friday as investors wrapped up a volatile week ahead of the Federal Reserve's policy meeting.
On the economic front, the University of Michigan's consumer sentiment survey showed one-year inflation expectations dropped to 3.1% in September, tied for the lowest since January 2021. Also, the five-year outlook fell to 2.7%, matching its lowest since December 2020.
Stocks in Spotlight:
Tata Steel declined 1.21%. Tata Steel and the UK government announced a joint agreement to invest in electric arc furnace steelmaking at the Port Talbot site with a capital cost of 1.25 billion euro inclusive of a grant from the UK Government of up to 500 million euro.
Vedanta added 0.02%. The diversified minerals company announced that it's committee of directors will meet on Thursday, 21 September 2023 to consider the proposal for issuance of non-convertible debentures (NCDs) on a private placement basis.
Bharat Electronics (BEL) rallied 3.10%. BEL announced that it has received an order from Cochin Shipyard for supply of various equipments worth Rs 2,118.57 crore and additional orders worth Rs 886 crore for upgradation of missiles.
Genesys International Corporation surged 3.31% to Rs 373.15 after the company said it secured a Rs 67 crore project in Saudi Arabia from AL Moammar Information Systems Co.
HFCL advanced 1.96% after the company said that it has secured an order from Madhya Pradesh Jal Nigam aggregating to Rs 1015 crore.
Brigade Enterprises fell 1.52%. The company said that its subsidiary has signed an agreement to acquire for acquiring 5 acres 35.25 guntas of land parcel located at Venkatala Village, Bangalore, for a sum of Rs 123.50 crore.
Capacite lnfraprojects gained 2% after it received repeat order from Raymond for project - Codename Xception at Thane worth Rs 281 crore.
Indian Oil Corporation (IOCL) rose 0.69% after the company's board has approved additional investment of Rs 903.52 crore in its joint venture.
VA Tech Wabag advanced 2.15% after the company announced that it has entered into a Memorandum of Understanding (MoU) with Al Jomaih Energy and Water (AEW), a leading developer of energy and water projects in the Middle East.
New Listing:
Shares of Jupiter Life Line Hospitals closed at Rs 1,075.25 on the BSE, representing a premium of 46.29% as compared with the issue price of Rs 735.
The scrip was listed at Rs 960, exhibiting a premium of 30.61% to the issue price.
The stock hit a high of 1,107.50 and a low of 960. On the BSE, over 8.51 lakh shares of the company were traded in the counter.
IPO Update:
The initial public offer (IPO) of Samhi Hotels received bids for 33.30 crore shares as against 6.25 crore shares on offer, according to stock exchange data at 17:00 IST on Monday (18 September 2023). The issue was subscribed 5.33 times.
The issue opened for bidding on Thursday (14 September 2023) and it will close on Monday (18 September 2023). The price band of the IPO is fixed at Rs 119-126 per share. An investor can bid for a minimum of 119 equity shares and in multiples thereof.
The initial public offer (IPO) of Zaggle Prepaid Ocean Services received bids for 24.28 crore shares as against 1.93 crore shares on offer, according to stock exchange data at 17:00 IST on Monday (18 September 2023). The issue was subscribed 12.57 times.
The issue opened for bidding on Thursday (14 September 2023) and it will close on Monday (18 September 2023). The price band of the IPO is fixed at Rs 156-164 per share. An investor can bid for a minimum of 90 equity shares and in multiples thereof.
The initial public offer (IPO) of Yatra Online received bids for 94.27 lakh shares as against 3.09 crore shares on offer, according to stock exchange data at 17:00 IST on Monday (18 September 2023). The issue was subscribed 30%.
The issue opened for bidding on Friday (15 September 2023) and it will close on Wednesday (20 September 2023). The price band of the IPO is fixed at Rs 135-142 per share. An investor can bid for a minimum of 105 equity shares and in multiples thereof.
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