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Benchmarks end with minor cuts; Harsha Engineers IPO subscribed 2.25 times
(16:03, 14 Sep 2022)

The headline equity indices ended with minor losses after a volatile session on Wednesday. The Nifty managed to close above the 18,000 mark after hitting the day's low of 17,771.15 in the early trade. Banks, metals and financial stocks ended higher while IT stocks witnessed steep pressure. Domestic shares opened with steep losses today amid dismal global cues. The selloff followed a hotter-than-expected inflation report in the US, solidifying the chances of aggressive rate hikes from the US Federal Reserve.

As per provisional closing data, the barometer index, the S&P BSE Sensex, slipped 224.11 points or 0.37% to 60,346.97. The Nifty 50 index declined 66.30 points or 0.37% to 18,003.75.

In the broader market, the S&P BSE Mid-Cap index fell 0.10% while the S&P BSE Small-Cap index shed 0.01%.

The market breadth was negative. On the BSE, 1685 shares rose and 1789 shares fell. A total of 137 shares were unchanged.

Economy:

India's inflation based on wholesale price index (WPI) stood at 12.41% in August 2022 compared with 11.64% in August 2021. The WPI grew 13.93% in July 2022, while the figure for June was 16.23%.

Inflation in August, 2022 is primarily contributed by rise in prices of mineral oils, food articles, crude petroleum & natural gas, basic metals, chemicals & chemical products, electricity, food products etc. as compared to the corresponding month of the previous year, the Ministry of Commerce & Industry said in a statement today.

Primary Market:

The initial public offer (IPO) of Harsha Engineers International received bids for 3.78 crore shares as against 1.68 crore shares on offer, according to stock exchange data 16:00 IST on Wednesday (14 September 2022). The issue was subscribed 2.25 times.

The issue opened for bidding today (14 September 2022) and it will close on Friday (16 September 2022). The price band of the IPO is fixed at Rs 314-330 per share. An investor can bid for a minimum of 45 equity shares and in multiples thereof.

Buzzing Index:

The Nifty IT index slipped 3.36% to 28,137.60. The index has declined 3.41% in two sessions.

L&T Technology Services (down 4.26%), Coforge (down 3.76%), Tata Consultancy Services (down 3.37%) and Larsen & Toubro Infotech (down 3.34%) were the top index losers.

Among the other losers were Mphasis (down 2.9%), Tech Mahindra (down 2.85%), Mindtree (down 2.82%), HCL Technologies (down 2.45%) and Wipro (down 1.5%).

Infosys tumbled 4.53%. The IT major announced that it has collaborated with Bpost (Belgium Post), a leading postal operator and growing parcel and omni-commerce logistics partner in Europe, to secure the cloud environment and build robust cyber resilience for Bpost's mail delivery and logistics services.

Stocks in Spotlight:

Ambuja Cements rallied 7.85% after the company said its board will consider raising funds on 16 September 2022. The board of Ambuja Cements is scheduled to meet on 16 September 2022, to consider raising funds by way of issue of equity shares, convertibles and/or any other eligible securities, on a rights/preferential or any other permissible mode/ and/or combination thereof as may be considered appropriate.

JSW Steel rose 0.35%. The steel major forged a collaboration with German-based engineering and technology company SMS group to explore multiple cutting-edge solutions and R&D projects to reduce carbon emission in its iron and steelmaking operations in India.

Bharat Forge lost 0.99%. Kalyani Powertrain (KPTL), a wholly owned subsidiary of Bharat Forge joined hands with Harbinger Motors Inc. (Harbinger), a company revolutionizing the medium-duty commercial electric vehicle industry, to form a joint venture focused on developing electric drivetrain solutions for the commercial vehicle market.

KEC International advanced 1.39%. KEC International has secured new orders of Rs. 1,108 crore across its various businesses.

Hatsun Agro Product declined 3.16%. The meeting of the board of directors of the company is scheduled on 19 September 2022 to consider and approve raising of funds by way of issue of equity shares on a rights issue basis.

Filatex India advanced 2.50% after the company informed that it has been granted a 20-year patent for recycling of Polyethylene Terephthalate (PET) waste. In an exchange filing made after market hours yesterday, the company said that a patent has been granted on 01.09.2022 to the Company for an invention entitled 'a process for recycling of Polyethylene Terephthalate (PET) waste' for the period of 20 years with effect from 2 June 2021.

PVR added 0.99% while INOX Leisure jumped 5.25% on reports the Competition Commission of India (CCI) has rejected a complaint against the proposed merger of the multiplex chains. The media reported that the Competition Commission of India (CCI) on Tuesday (13 September) rejected a complaint against the proposed merger of PVR and INOX Leisure, saying apprehension of likelihood of anti-competitive practices by an entity cannot be a subject of probe. Non-profit group CUTS had complained that the proposed merger agreement would have anti-competitive effects on the film exhibition industry and sought a detailed probe against the two entities.

KPI Green Energy fell 2.75%. The company said that it has signed new long term power purchase agreements (PPAs) for sale of 15.88 MW wind-solar hybrid power projects with six clients under independent power producer (IPP) business segment of the company. The company said that the aforementioned clients will be supplied power from its upcoming wind-solar hybrid power project of 16.10 MW (comprising 16.10 MW wind and 10 MWdc solar capacity) at Bhungar site, Mahuva, in Bhavnagar District, Gujarat, under the Gujarat Hybrid Power Policy 2018.

Coromandel International slipped 1.64%. The company said that its venture capital arm Dare Ventures has announced its third investment this year into a differentiated drone startup, Dhaksha Unmanned Systems. The drone company plans to use this funding for talent acquisition, R&D and production scale up.

Global Markets:

The US Dow Jones index futures were up 92 points, indicating a positive opening in the US stocks today.

Shares in Europe and Asia declined on Wednesday as a white-hot US inflation report dashed hopes for a peak in inflation and fuelled bets that interest rates may have to be raised higher and for longer.

US stocks fell sharply on Tuesday following the US inflation report. The Dow Jones Industrial Average slid 1,276.37 points, or 3.94%, to close at 31,104.97. The S&P 500 dropped 4.32% to 3,932.69, and the Nasdaq Composite sank 5.16% to end the day at 11,633.57.

The US consumer price index edged up 0.1% last month after being unchanged in July. In the 12 months through August, the CPI increased 8.3%. That was a deceleration from July's 8.5% rise and a 9.1% jump in June.

Meanwhile, the shareholders of social media giant Twitter on 13 September 2022 approved the $44 billion acquisition deal which was inked by the company with billionaire tycoon Elon Musk. The nod from shareholders comes ahead of the trial next month over whether the $44 billion deal should be completed. The courtroom battle is scheduled to begin on 17 October 2022.

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