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Sensex slides 230 pts, Nifty ends below 18,360, auto stocks under pressure
(15:49, 17 Nov 2022)

The headline equity indices ended with modest losses after a volatile session on Thursday. Trading was volatile due to the expiry of weekly index options on the NSE today. Barring the Nifty PSU Bank index, all the sectoral indices on the NSE were in the red.

After opening in red, the Nifty 50 index pared losses and hit the day's high of 18,417.60 in the morning trade. However, the index dropped and edged lower as the session progressed. The fag end selling dragged the index lower to settle below the 18,360 mark.

As per provisional closing data, the barometer index, the S&P BSE Sensex, was down 230.12 points or 0.37% to 61,750.60. The Nifty 50 index lost 65.75 points or 0.36% to 18,343.90.

In the broader market, the S&P BSE Mid-Cap index lost 0.33% while the S&P BSE Small-Cap index shed 0.27%.

The market breadth was negative. On the BSE, 1,515 shares rose and 1,994 shares fell. A total of 107 shares were unchanged.

Buzzing Index:

The Nifty Auto index fell 1.36% to 12,927.40. The index shed 1.73% in two trading sessions.

Mahindra & Mahindra (down 2.37%), Tube Investments of India (down 2.2%), Ashok Leyland (down 2.2%), Eicher Motors (down 1.98%), Tata Motors (down 1.78%), Maruti Suzuki India (down 1.63%), Bajaj Auto (down 1.43%), TVS Motor Company (down 0.96%), Sona BLW Precision Forgings (down 0.36%) and Bharat Forge (down 0.27%) declined.

On the other hand, Samvardhana Motherson International (up 1.25%) ,Balkrishna Industries (up 1.15%) and Bosch (up 0.22%) edged higher.

Tata Motors declined 1.78%. India's largest commercial vehicle manufacturer will supply the 52-seater fully built BS6 diesel buses in a phased manner, as per the contract. Tata Motors said the e-bidding process was carried out through the Government tender process. Tata Motors also offers its flagship initiative, Sampoorna Seva, a bouquet of service offerings including Repair Time Assurance, Breakdown Assistance, Insurance and Accidental Repair Time, Extended Warranty, and other add-on services for vehicle maintenance and upkeep.

Meanwhile, Thierry Bolloré tendered his resignation as the CEO of Jaguar Land Rover Automotive Plc, UK (JLR), a wholly owned subsidiary of Tata Motors, due to personal reasons, with effect from 31 December 2022.

Stocks in Spotlight:

R Systems International surged 14.55% after the after global investment firm Blackstone acquired a majority stake in the company for $359 million (Rs 2,904 crore). The private equity funds managed by Blackstone have signed definitive agreements with Satinder Singh Rekhi and other current promoters to purchase a majority stake in R Systems.

Blackstone has launched an open offer for acquisition of up to 5,71,73,476 fully paid-up equity shares of face value of Re 1 each, representing 48.33% of the voting share capital of target company from all the public shareholders of the target company at an offer price of Rs 246 by BCP Asia II Topco II . (acquirer) along with Blackstone Capital Partners Asia II L.P (PAC).

One 97 Communications (Paytm) tumbled 10.72% on high volumes after the counter reported multiple block deals in initial trade today, 17 November 2022. The media reported that Japanese conglomerate SoftBank Group plans to sell 2.9 crore shares, or 4.5%, of Paytm through a block deal on Thursday (17 November 2022). The price range for the sale has been set at Rs 555-601. The sale will likely fetch SoftBank at least Rs 1,628.9 crore ($200 million). As of 30 September 2022, SoftBank held a 17.45% stake in Paytm through SVF India Holdings (Cayman).

Tata Power Company shed 1.47%. Tata Power Solar Systems (TPSSL), a wholly owned subsidiary of Tata Power Company has tied up with Union Bank of India (UBI) to help MSME (micro, small and medium enterprises) sector switch to solar solutions. The objective of this collaboration is to improve access to green energy and save on the cost of electricity, thus making MSMEs more profitable. It will be implemented under UBI's solar scheme called 'Union Solar', which was launched on a pan-India level to relieve the MSME's from the stress of higher power costs and grid exigencies.

Timken India hit an upper circuit of 20% after the company said it will set up new facility at Bharuch in Gujarat to manufacture spherical roller bearings (SRB) and cylindrical roller bearings (CRB) and components thereof. Timken India already has manufacturing plant at Bharuch, Gujarat wherein primarily tapered roller bearings (TRB) and its components are manufactured. At the same premises wherein existing plant is situated, new facility will be set up to manufacture SRB and CRB and components thereof which will enhance manufacturing capacity of the company. For the proposed new facility, the company will invest about Rs 600 crore from internal accruals. The commercial production is expected from January 2025.

Suven Life Sciences jumped 5.81% after the pharma company announced the randomiation of first patient in the Phase-3 global clinical trial of Masupirdine for the treatment of agitation in patients with dementia of the Alzheimer's type. Masupirdine, a serotonin-6 receptor antagonist is being developed for the treatment of agitation in patients with dementia of the Alzheimer's type.

The trial is a multicenter, randomized, double-blind, placebo-controlled study planned across 50 sites in the North America and Europe. The study will enroll around 375 patients who will be randomized in a 1:1:1 ratio to receive masupirdine for 12 weeks.

Hindustan Zinc rose 1.61% after the company's board approved second dividend of Rs 15.50 per equity share on Wednesday, 16 November 2022 for the financial year ending 31 March 2023. The company has fixed 24 November 2022 as the record date for the same.

Global Markets:

Most shares in Europe and Asia declined as investors tried to assess the outlook for Federal Reserve policy following stronger-than-expected retail sales data.

US stocks fell on Wednesday after stronger-than-expected U.S. retail sales clouded the inflation outlook and hopes that the Federal Reserve could ease its aggressive interest rate hikes.

Retail sales jumped 1.3% in October to $694.5 billion, led by higher gas prices and auto sales. Sales were up 0.9% when excluding gas and auto sales. The data showed the ongoing resilience of the consumer despite elevated inflation and higher interest rates.

Meanwhile, global markets are watching developments in Ukraine as the fallout from a missile hitting Polish territory continues. NATO said it was likely that Ukrainian air defenses were trying to intercept Russian missiles when the incident happened on Tuesday evening.

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