Benchmarks hit fresh intraday low; PSU banks tumble

The benchmark indices declined further and hit fresh intraday low in morning trade. Weak global cues played the spoilsport. The Nifty traded tad above the 17,050 level. PSU banks witnessed selling for fourth consecutive session.

At 10:18 IST, the barometer index, the S&P BSE Sensex, was down 825.89 points or 1.42% to 57,273.03. The Nifty 50 index declined 267.30 points or 1.54% to 17,060.05.

In the broader market, the S&P BSE Mid-Cap index fell 3.19% while the S&P BSE Small-Cap index lost 3.66%

The market breadth was weak. On the BSE, 481 shares rose, and 2810 shares fell. A total of 126 shares were unchanged.

The Reserve Bank of India (RBI)'s six-member Monetary Policy Committee is scheduled to meet this week during 28-30 September 2022. RBI Governor Shaktikanta Das will announce the MPC decision on 30 September 2022, the last date of the meeting. The RBI is widely expected to maintain the balancing act between growth and inflation.

In the past three policy reviews, the RBI's rate-setting panel has raised 140 basis points in total since May this year. Currently, the repo rate, the interest rate at which the RBI lends to the commercial bank, stands at 5.40%.

Buzzing Index:

The Nifty PSU Bank index tumbled 4.09% to 2,928.85. The index has declined 9.36% in the past four sessions.

Indian Bank (down 4.44%), Bank of Baroda (down 4.23%), Punjab National Bank (down 4.19%), Central Bank of India (down 3.64%) and Bank of India (down 3.6%) were the top losers.

Among the other losers were Union Bank of India (down 3.51%), Bank of Maharashtra (down 3.31%), Canara Bank (down 3.08%), Indian Overseas Bank (down 2.81%) and State Bank of India (down 2.29%).

Stocks in Spotlight:

Goa Carbon fell 1.49%. The company on Friday (23 September 2022) announced that its board will consider a rights issue of shares on Thursday, 29 September 2022.

Laxmi Organic Industries slumped 4.30%. The company said that its plant located at Mahad Industrial Area, MIDC, Raigad, Maharashtra had been shut down for 21 days from 21 August 2022 to 10 September 2022 to undertake and attend the planned maintenance activities.

Hester Biosciences surged 10.58%. The company said it has adequate supply of Goat Pox Vaccine in India to immunize cattle against Lumpy Skin disease.

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