Barometers turn rangebound, auto stocks decline

The benchmark indices traded in a narrow range with deep cuts in the mid-morning trade. Negative global cues dampened the investors sentiment. The Nifty traded below the 17,700 level. All the sectoral indices on the NSE were in the red with IT, auto and media stocks falling the most.

At 10:29 IST, the barometer index, the S&P BSE Sensex, was down 680.75 points or 1.14% to 59,253.26. The Nifty 50 index lost 202.25 points or 1.13% to 17,675.15.

In the broader market, the S&P BSE Mid-Cap index fell 1.19% while the S&P BSE Small-Cap index declined 0.81%.

The market breadth was weak. On the BSE, 1,180 shares rose and 2,129 shares fell. A total of 129 shares were unchanged.

IPO Update:

The initial public offer (IPO) of Harsha Engineers International received bids for 23.50 crore shares as against 1.68 crore shares on offer, according to stock exchange data 11:21 IST on Friday (16 September 2022). The issue was subscribed 13.94 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.

Buzzing Index:

The Nifty Auto index fell 1.63% to 13,098.95. The index added 0.71% in the past trading session.

Hero MotoCorp (down 3.91%), Balkrishna Industries (down 3.09%), MRF (down 3.09%), Mahindra & Mahindra (down 2.79%), Bharat Forge (down 2.64%), Tata Motors (down 2.1%), Escorts Kubota (down 1.62%), TVS Motor Company (down 1.23%), Tube Investments of India (down 1.13%) and Bajaj Auto (down 1.09%) edged lower.

Stocks in Spotlight:

Godrej Properties declined 1.88%. The company said that it has achieved record sales worth Rs 1,210 crore through the simultaneous launch of two new projects, Godrej Ascend located at Kolshet Road, Thane and Godrej Horizon located at Dadar - Wadala, Mumbai. The company has cumulatively sold 700 plus homes accounting for an area of over 8.08 lakh square feet for both projects launched in Q1 FY23.

UPL fell 2.01%. The company announced a joint venture with CleanMax Enviro Energy Solutions to establish a hybrid solar-wind energy power plant of 61.05 megawatt (MW) in Gujarat, India. Under this JV, the companies will set-up and operate a hybrid captive power plant with a capacity of 28.05 MW of solar power and 33 MW of wind power. This project will enable UPL to increase its renewable energy usage to 30% of its total global power consumption against 8% currently.

Meanwhile, the company has acquired 26% shareholding in Clean Max Kratos. Clean Max Kratos is engaged in solar/wind power generation. UPL initially acquired 2,600 shares of Rs10 each, 26% stake in Clean Max Kratos for a consideration of Rs 26,000. It will further invest about Rs 39.60 crore in one or more tranches.

Global Markets:

The US Dow Jones index futures were down 183 points, indicating a negative opening in the US stocks today.

Asian shares declined on Friday as investors digest U.S. economic data and China's industrial production and retail sales figures for August.

US stocks declined overnight as traders absorbed an ugly earnings warning from FedEx. Dow dropped 173 points, or 0.56%, for its lowest close since July 14. The Nasdaq Composite slid 1.43%, while the S&P 500 fell 1.13%.

Shares of FedEx plunged 15% in extended trading after the shipments company withdrew its full-year guidance, and said it will implement cost-cutting initiatives to contend with soft global shipment volumes as "macroeconomic trends significantly worsened."

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