The domestic equity market experienced significant declines on Thursday due to various factors, including the monthly F&O expiry and the semi-annual rejig of Nifty 50 stocks. The Nifty settled below the 19,550 mark after hitting the day's high of 19,766.65 in early trade. IT and FMCG shares were among the top losers, and both midcap and smallcap indices also dropped.
One of the primary drivers of the selling was concerns over rising oil prices, which raised apprehensions among investors regarding their impact on various industries. Traders fear that if crude oil prices remain above $90, it could negatively impact operational margins. Amidst this backdrop, market participants were closely watching the US GDP data and the speech by the FED chief, as these served as important indicators for future market trends. Additionally, the influence of higher interest rates and rising US bond yields played a role in keeping Foreign Institutional Investors (FIIs) in a selling mode, contributing to the negative sentiment in the market.
The barometer index, the S&P BSE Sensex declined 610.37 points or 0.92% to 65,508.32. The Nifty 50 index lost 192.90 points or 0.98% to 19,523.55.
Infosys (down 1.91%), ITC (down 1.87%) and Reliance Industries (down 1.48%) were major drags.
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, jumped 10.68% to 12.82.
In the broader market, the S&P BSE Mid-Cap index fell 1.19% while the S&P BSE Small-Cap index shed 0.34%.
The market breadth was negative. On the BSE, 1,504 shares rose and 2,158 shares fell. A total of 128 shares were unchanged.
Numbers to watch:
The yield on India's 10-year benchmark federal paper rose 0.82% to 7.23 from its previous close of 7.171.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.2125, compared with its close of 83.2225 during the previous trading session.
MCX Gold futures for 5 October 2023 settlement declined 0.25% to Rs 57,525.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.28% to 106.37.
The United States 10-year bond yield added 0.15% to 4.638.
In the commodities market, Brent crude for November 2023 settlement lost 54 cents or 0.57% to $93.82 a barrel.
Global Markets:
Most European shares declined while most Asian stocks settled mixed as an uptick in Treasury yields and oil prices dented investor sentiment on Wall Street.
South Korea's markets are closed for a public holiday.
US stocks finished the day mixed on Wednesday. Investors will watch for economic data on jobless claims, home sales and the GDP on Thursday, before turning attention to the latest personal consumption expenditures price index reading due Friday.
New Listing:
Shares of Yatra Online settled at Rs 135.95 on the BSE, representing a discount of 4.26% as compared with the issue price of Rs 142.
The scrip was listed at Rs 130, exhibiting a discount of 8.45% to the issue price.
The stock has hit a high of 138.50 and a low of 127.40. On the BSE, over 7.43 lakh shares of the company were traded in the counter.
Stocks in Spotlight:
JSW Steel shed 1.51%. The steel major on Friday announced that it has acquired the remaining 50% stake in NSL Green Steel Recycling (NSL) from National Steel Holding (NSHL).
Aurobindo Pharma fell 0.7%. The company's wholly owned subsidiary, Auro Vaccines has entered into a Licence Agreement with Hilleman Laboratories Singapore Pte. Limited to develop, manufacture and commercialize a pentavalent vaccine candidate used in children vaccination.
Dixon Technologies (India) declined 1.17% after the company's wholly owned subsidiary, Padget Electronics has entered into an Agreement with Xiaomi to carry out manufacturing of smart phones and other related products for Xiaomi. The manufacturing shall take place at Padget's manufacturing facility situated at Noida.
Gensol Engineering gained 0.74%. Gensol EV Lease bagged an order for more than 500 Tata Ace cargo electric vehicles (EVs) valued at Rs 75 crore from an all-electric logistics company. Gensol EV Lease is an EV-focused leasing solutions provider and a subsidiary of Gensol Engineering.
NBCC (India) skid 0.83% after the company has announced sale of Commercial Built-up space in World Trade Centre, New Delhi at Nauroji Nagar through e-auction. The area offered for sale is 14.75 lakh square feet and the value of the area offered is Rs 5,716.43 crore.
KP Energy hit upper circuit of 5% after the company said that it has commissioned the 10.5 MW (Phase-V) ISTS-connected wind power project at Sidhpur site in Gujarat's Dwarka for Apraava Energy.
IPO Update:
The initial public offer (IPO) of Valiant Laboratories received bids for 54.25 lakh shares as against 76.23 lakh shares on offer, according to stock exchange data at 15:36 IST on Thursday (28 September 2023). The issue was subscribed 71%.
The issue opened for bidding on Wednesday (27 September 2023) and it will close on Tuesday (3 October 2023). The price band of the IPO is fixed at Rs 133-140 per share. An investor can bid for a minimum of 105 equity shares and in multiples thereof.
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