Domestic equity barometers tanked on Wednesday, sliding for the second consecutive trading session. The Nifty settled around the 19,900 level. All the sectoral indices on the NSE ended in the red with metal, financial services and bank stocks declining the most.
As per provisional closing data, the barometer index, the S&P BSE Sensex dropped 796 points or 1.18% to 66,800.84. The Nifty 50 index lost 231.90 points or 1.15% to 19,901.40.
In the broader market, the S&P BSE Mid-Cap index declined 0.33% while the S&P BSE Small-Cap index slipped 0.51%.
The market breadth was negative. On the BSE, 1,558 shares rose and 2,100 shares fell. A total of 145 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, advanced 2.69% to 11.13.
Nervousness prevailed on the bourses ahead of the release of latest monetary policy decision by the U.S. Federal Reserve. The U.S. central bank is widely expected to keep interest rates steady at a range of 5.25% to 5.50% after raising them at 11 of its past 12 meetings in a bid to cool inflation.
But uncertainty reigns over what the Fed will do in following meetings this year, especially as rising energy prices threaten to lead to an unwelcome return of elevated inflation.
Economy:
India's net FDI declined from $17.3 billion in April July 2022 to $5.7 billion in April-July 2023 on account of moderating gross FDI and a rise in repatriation.
Despite weakening global prospects, the Indian economy is displaying resilience led by private consumption, fixed investment and robust public sector capital expenditure, as per RBI Bulletin's 'State of the Economy' article.
The Asian Development Bank trimmed its annual growth forecast for several countries in Asia because of China's property crisis and climate related risks. China is expected to grow by 4.9% in 2023, down from an earlier forecast of 5%. India is still projected to be among the region's best performers with a forecasted growth rate of 6.3% (down from 6.4%).
New Listing:
Shares of R R Kabel closed at Rs 1,196.65 on the BSE, representing a premium of 15.62% as compared with the issue price of Rs 1,035.
The scrip was listed at Rs 1,179, exhibiting a premium of 13.91% to the issue price.
The stock has hit a high of 1,212.80 and a low of 1,137.60. On the BSE, over 8.84 lakh shares of the company were traded in the counter.
IPO Update:
The initial public offer (IPO) of Yatra Online received bids for 3.92 crore shares as against 3.09 crore shares on offer, according to stock exchange data at 15:27 IST on Wednesday (20 September 2023). The issue was subscribed 1.27 times.
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.
The initial public offer (IPO) of Signatureglobal (India) received bids for 28.77 lakh shares as against 1.12 crore shares on offer, according to stock exchange data at 15:27 IST on Wednesday (20 September 2023). The issue was subscribed 0.26 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 initial public offer (IPO) of Sai Silks (Kalamandir) received bids for 22.54 lakh shares as against 3.84 crore shares on offer, according to stock exchange data at 15:27 IST on Wednesday (20 September 2023). The issue was subscribed 0.06 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:
Tata Motors shed 0.09%. The company announced that it will increase prices of its vehicles, effective 1 October 2023, up to 3%. The price increase is to offset the residual impact of the past input costs, and will be applicable across the entire range of commercial vehicles.
HDFC Bank slipped 3.84%. The Reserve Bank of India (RBI) approved the re-appointment of Sashidhar Jagdishan as the managing director and chief executive officer of the bank for a period of three years with effect from 27 October 2023 to 26 October 2026.
The bank had held analysts meet on Monday (Sept 18) where it indicated that HDFC's individual gross NPA stood at 1% for the June quarter compared 0.75% in March, while non-individual gross NPA ratio saw a sharp spike from 2.9% in March to 6.7% in June.
Adani Green Energy shed 0.21%. The power generation company announced that its board has approved the execution of a binding termsheet between the company, Adani Green Energy Twenty Three (AGE23L) and TotalEnergies SE (Total).
The company said that the purpose of a binding termsheet is to provide for further investment by Total (either directly or through its affiliates) of $300 million to form a new 50:50 joint venture (JV) company with the company and modify certain terms of its investment in AGE23L.
Blue Star surged 12.75%. The company announced that its board approved the opening of qualified institutional placement (QIP) of equity shares with the floor price of Rs 784.55 per share.
Power Grid Corporation of India gained 2.45%. The company said that a meeting of its board is scheduled to be held on 25 September 2023 to consider issue of non-convertible bonds under private placement.
SJVN jumped 7.24% after the company announced that it has signed a memorandum of understanding (MoU) with PFC for financial assistance to various diversified portfolio of projects.
Prakash Industries rallied 6.87%. The company said that subsequent to the In-principle Stage-I approval under the Forest (Conservation) Act, 1980, the Ministry of Environment, Forest and Climate Change, Government of India has granted Environmental Clearance (EC) for its Bhaskarpara Commercial Coal Mine in Chhattisgarh.
Aurobindo Pharma declined 0.37%. The pharmaceutical company announced that it has received a Form 483 from the United States Food and Drug Administration (US FDA) following an inspection of Unit IV formulation manufacturing facility situated Menakuru Village in Andhra Pradesh, from 13 to 19 September 2023. The Form 483 issued to its wholly owned subsidiary, APL Healthcare lists one observation.
Caplin Point Laboratories fell 1.80%. The drug maker informed that Caplin Steriles has been granted final approval from the United States Food and Drug Administration (US FDA) for its abbreviated new drug application (ANDA) Norepinephrine Bitartrate injection. The said drug is used for restoration of blood pressure in adult patients with acute hypotensive states.
Global Markets:
Markets in Europe advanced on Wednesday, by a slowing in U.K. inflation while investors await the latest monetary policy decision by the U.S. Federal Reserve.
Data released earlier Wednesday showed that U.K. consumer inflation rose 0.3% on the month in August, with the year-on-year headline figure unexpectedly falling to 6.7% from 6.8% in July.
Meanwhile, Asian stocks ended mixed as China left its one-year and five-year loan prime rates unchanged. China's one-year and five-year loan prime rates were held at 3.45% and 4.2% respectively.
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 ended lower on Tuesday ahead of the Fed's decision. The US Federal Reserve began its two-day policy meeting on Tuesday and will announce its interest rate decision on Thursday.
The central bank is widely expected to hold rates steady, but investors will be paying close attention to the summary of economic projections and the press conference of Fed chair Jerome Powell for clues about what might happen in the months ahead.
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