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Sensex drops 413 pts, Nifty settles below 17,900
(15:47, 15 Sep 2022)

The domestic equity barometers ended with steep losses after a volatile session on Thursday. The Nifty closed below 17,900 level after hitting the day's high of 18,096.15 in the early trade. Auto and metal stocks advanced while media, IT and pharma stocks witnessed a bit of a selling pressure. Trading was volatile due to the expiry of weekly index options on the NSE today.

As per provisional closing data, the barometer index, the S&P BSE Sensex, was down 412.96 points or 0.68% to 59,934.01. The Nifty 50 index declined 126.35 points or 0.70% to 17,877.40

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.31% while the S&P BSE Small-Cap index added 0.06%.

The market breadth was negative. On the BSE, 1,701 shares rose and 1,797 shares fell. A total of 122 shares were unchanged.

Fitch slashes India's FY23 GDP growth forecast to 7% from 7.8%:

Fitch Global Ratings has cut India's GDP growth forecast expecting a global slowdown and tighter monetary policy. The ratings agency now expects the Indian economy to grow at 7% in FY23 compared with its previous estimates of 7.8%, according to its report on the global growth outlook. The estimates for FY24 have also been cut to 6.7% against 7.4% earlier.

IPO Update:

The initial public offer (IPO) of Harsha Engineers International received bids for 13.91 crore shares as against 1.68 crore shares on offer, according to stock exchange data 15:24 IST on Thursday (15 September 2022). The issue was subscribed 8.25 times.

The issue opened for bidding on Wednesday (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.

New Listing:

Shares of Tamilnad Mercantile Bank were currently trading at Rs 508.90 at 15:30 IST on the BSE, a discount of 0.22% compared with the issue price of Rs 510.

The scrip was listed at Rs 510, matching the initial public offer (IPO) price. So far, the scrip has hit a high of Rs 519 and a low of Rs 484.50. Over 2.24 lakh shares of the company have changed hands in the counter till now

The IPO of Tamilnad Mercantile Bank was subscribed 2.86 times. The issue was open between 5th September to 7th September 2022. The price band of the IPO was fixed at Rs 500-525 per share.

Buzzing Index:

The Nifty Media index declined 2.22% to 2,168.50. The index added 3.24% in three trading sessions.

PVR (down 4.22%), Inox Leisure (down 2.61%), Network 18 Media & Investments (down 2.18%), TV18 Broadcast (down 2.16%), Zee Entertainment Enterprises (down 1.97%), Dish TV India (down 1.8%), Saregama India (down 1.72%), Sun TV Network (down 1.36%), Hathway Cable & Datacom (down 0.57%) and Nazara Technologies (down 0.03%) slumped.

Stocks in Spotlight:

Vedanta advanced 3.45% after the company it has been declared as the highest bidder for Ghogharpalli and its Dip Extension coal block, located in Sundargarh district, Odisha under Tranche V of commercial coal block auction conducted by Ministry of Coal. The coal block is an optimal fit for the company's Jharsuguda smelter given its logistical location and annual capacity. The mine has total reserves of 1,288 million tonnes and an estimated per annum capacity of 20 million tonnes.

Tata Steel declined 2.06%. The steel major said that its board has approved the issue of 20,000 fixed-rate, unsecured, redeemable, rated, listed, non-convertible debentures (NCDs) of face value Rs 10 lakh each, aggregating to Rs 2,000 crore on a private placement basis. The NCDs would be issued in two different series. Series-1 Debenture will comprise of 5,000 NCDs of face value Rs 10 lakh each aggregating Rs 500 crore. Series-2 Debenture will comprise of 15,000 NCDs of face value Rs 10 lakh each aggregating Rs 1,500 crore.

Maruti Suzuki India gained 2.74%. A foreign brokerage has reportedly come out with a note on Maruti Suzuki India, where they increased the target price from 9,500 to 10,500 per share. The new target price represents a premium of 13.2% to the current market price.

As per reports, the global research house believes that Maruti's new models can do well, backed by good design and feature and strong marketing machinery that has been adopted by the company. The company can give the route to 5 to 6 per cent market share over the next two years, thereby driving a volume CAGR of 14% over the period FY22-25, the report further stated.

Larsen & Toubro rose 0.01% after the EPC major announced that its construction arm has secured a 'significant' contract for its water & effluent treatment business. As per Larsen & Toubro's (L&T) classification, the value of the significant project is Rs 1,000 crore to Rs 2,500 crore. The water & effluent treatment business of L&T construction has secured a repeat order from the Department Of Water Resources, Government of Odisha, to execute a pressurized underground pipeline irrigation network system for the Right Command of Lower Suktel Irrigation project.

Balaji Amines rose 1.37% after the company announced commissioning of a greenfield project along with construction of two new plants. The speciality chemical manufacturer said the Phase 1 of 90-acre greenfield project (Unit IV) has been completed. The di-methyl carbonate (DMC) or propylene carbonate (PC), and propylene glycol (PG) plant will be ready to commence commercial production by the end of September 2022. The company said that it estimates an annual production capacity of 15,000 tons of DMC or PC and 15,000 tons PG.

Alkem Laboratories shed 0.86%. The pharmaceutical company announced that the USFDA had issued Form 483 was issued to us with 2 observations after the pre-approval inspection of its St.Louis facility. The company said that its manufacturing facility at St.Louis, USA was inspected by United States Food and Drug Administration (USFDA) from 6 September 2022 to 14 September 2022. At the end of the inspection, the pharmaceutical company was issued a Form 483 with 2 observations by the US drug regulator.

HFCL added 0.19%. The company has received the advance purchase orders ('APO') aggregating to about Rs 447.81 crore, consisting Rs 341.26 crore order from Bharat Sanchar Nigam (BSNL) and a Rs 106.55 crore order from RailTel Corporation of India (RailTel).

KPI Green Energy gained 2.82% after the company received a new order for executing wind-solar hybrid power project of 4.20 megawatt from Nouveau Jewellery LLP. The order comprises of 4.20 megawatt wind turbine capacity and 3 megawatt defined conditions solar capacity under captive power producer (CPP) business segment of the company.

Global Markets:

Most European shares advanced while Asian stocks traded mixed on Thursday after Wednesday's negative session. In China, the central bank kept its one-year medium-term lending facility (MLF) unchanged at 2.75%.

On Thursday, investors will be looking out for French inflation data for August. The Bank of England was due to have a monetary policy meeting but has delayed this until next week due to the death of Queen Elizabeth II.

US indices ended a choppy session on a modestly higher note. The Dow closed slightly higher, by 30 points, after falling more than 200 points at one point. The S&P 500 rose 0.3%, and the Nasdaq Composite advanced 0.7%.

US Inflation rose more than expected in August as rising shelter and food costs offset a drop in gas prices, the Bureau of Labor Statistics reported Tuesday. The consumer price index, which tracks a broad swath of goods and services, increased 0.1% for the month and 8.3% over the past year. Excluding volatile food and energy costs, CPI rose 0.6% from July and 6.3% from the same month in 2021.

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