Indian equity indices ended with major losses on Thursday, sliding for the third consecutive trading session. The Nifty closed below the 19,750 level. Barring the Nifty Media index, all the sectoral indices on the NSE ended in the red. Trading was volatile due to expiry of weekly index options on the NSE.
As per provisional closing data, the barometer index, the S&P BSE Sensex slipped 570.60 points or 0.85% to 66,230.24. The Nifty 50 index lost 159.05 points or 0.80% to 19,742.35.
The broader market underperformed the headline indices. The S&P BSE Mid-Cap index declined 0.99% while the S&P BSE Small-Cap index lost 0.98%.
The market breadth was weak. On the BSE, 1,318 shares rose and 2,335 shares fell. A total of 140 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, slipped 2.78% to 10.82.
After a two-day Federal Open Market Committee (FOMC) meeting, the US Federal Reserve announced its interest rate decision and kept the benchmark interest rates unchanged at 5.25% to 5.50%, while indicating that the majority of officials still anticipate one more quarter percentage point increase in interest rates before the end of the year.
The US central bank also updated its forecast for the benchmark interest rate, indicating that rates will now remain higher for longer than previously anticipated.
Economy:
The Organisation for Economic Cooperation and Development (OECD) has revised its GDP growth projection for India in the FY24 to 6.3% from earlier projection of 6%.
According to RBI, Indian households saved 19% less in FY23 compared to FY22 on a net basis, with the net savings falling to just 5.1% of GDP in FY23 from 7.2% of GDP in FY22.
The RBI has directed credit information companies (CICs) to set out a common data quality index (DQI) for commercial and microfinance segments, which will help in assessing the quality of data submissions by credit institutions (CIs) to CICs.
New Listing:
Shares of EMS closed at Rs 279.75 on the BSE, representing a premium of 32.58% as compared with the issue price of Rs 211.
The scrip was listed at Rs 281.55, exhibiting a premium of 33.44% to the issue price.
The stock has hit a high of 290.85 and a low of 268.60. On the BSE, over 18.21 lakh shares of the company were traded in the counter so far.
IPO Update:
The initial public offer (IPO) of Signatureglobal (India) received bids for 1.24 crore shares as against 1.12 crore shares on offer, according to stock exchange data at 15:27 IST on Thursday (21 September 2023). The issue was subscribed 1.11 times.
The issue opened for bidding on Wednesday (20 September 2023) and it will close on Friday (22 September 2023). The price band of the IPO is fixed at Rs 366-385 per share. An investor can bid for a minimum of 38 equity shares and in multiples thereof.
The IPO of Sai Silks (Kalamandir) received bids for 1.12 crore shares as against 3.84 crore shares on offer, according to stock exchange data at 15:27 IST on Thursday (21 September 2023). The issue was subscribed 0.29 times.
The issue opened for bidding on Wednesday (20 September 2023) and it will close on Friday (22 September 2023). The price band of the IPO is fixed at Rs 210-222 per share. An investor can bid for a minimum of 67 equity shares and in multiples thereof.
Stocks in Spotlight:
Infosys rose 0.87%. Infosys and NVIDIA announced that they have expanded their strategic collaboration with the aim to help enterprises worldwide, drive productivity gains with generative AI applications and solutions.
SJVN plunged 12.84%. The government will offload a 4.92% stake in SJVN at a floor price of Rs 69 per share through a two-day offer for sale. OFS opens for non-retail investors on September 21 and retail investors on September 22.
Cipla slipped 2.34%. An inspection was conducted by the United States Food and Drug Administration (USFDA) at the manufacturing facility of InvaGen Pharmaceuticals Inc., wholly owned subsidiary of the company from 11 to 19th September 2023. On conclusion of the inspection, InvaGen has received 5 inspectional observations in Form 483.
Tata Power Company fell 2.18%. The company said that its subsidiary, Tata Power Renewable Energy has signed an agreement with Dugar Power to entered into Nepal's rapidly evolving renewable energy sector.
Zydus Lifesciences shed 1.39%. The company has received final approval from the United States Food and Drug Administration (USFDA) for Clindamycin Phosphate Gel USP, 1%. Clindamycin Phosphate Gel is used to treat acne.
Biocon declined 2.38%. The biopharmaceuticals company said that its subsidiary Biocon Biologics has been granted marketing authorization in the European Union (EU) by European Commission (EC) for YESAFILI, a biosimilar of Aflibercept.
DCB Bank rose 1.81% after HDFC Asset Management Company secured the Reserve Bank of India's approval to acquire upto 9.5% of the paid-up share capital or voting rights of the bank.
Kalpataru Projects International fell 1.82%. A meeting of the Executive Committee of the Board of Directors of the Company is scheduled to be held on 25th September 2023, to consider and approve the proposal for the raising of funds by way of issuance of Non-Convertible Debentures on private placement basis.
Karur Vysya Bank added 0.93% after HDFC Asset Management Company secured the Reserve Bank of India's approval to acquire upto 9.5% of the paid-up share capital or voting rights of the bank.
Sheela Foam dropped 2.96%. The company announced that its board approved the opening of qualified institutional placement (QIP) of equity shares with the floor price of Rs 1,133.99 per share.
Apollo Tyres slipped 3% after the Bias and OTR tyres production at its manufacturing facility in Limda, Gujarat has been stopped due to certain concerns amongst shop floor employees relating to renewal of long-term settlement agreement.
Global Markets:
Markets in Europe and Asia declined across the board after the U.S. Federal Reserve held its benchmark policy rate, but said it will raise interest rates one more time this year, according to the central bank's projections. Projections showed the central bank expects to hike rates to a median of 5.6% by the end of 2023, up from the current range between 5.25% and 5.5%.
US stocks ended lower on Wednesday as investors digested the Fed's moves. The Federal Reserve left interest rates unchanged at the conclusion of its two-day meeting Wednesday. However, the central bank signaled it still expects one more hike before the end of the year and fewer cuts than previously indicated next year. The final increase, if realized, would be the last in this cycle, according to the Fed's projections.
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