Benchmarks trade with modest losses; breadth turns negative

The headline equity benchmarks traded with moderate losses in the morning trade. The Nifty slipped below the 17,050 mark. Pharma and healthcare stocks advanced while bank, financial services and realty stocks declined.

At 10:28 IST, the barometer index, the S&P BSE Sensex, was down 353.39 points or 0.61% to 57,272.52. The Nifty 50 index lost 109.10 points or 0.64% to 17,014.50.

In the broader market, the S&P BSE Mid-Cap index fell 0.66% while the S&P BSE Small-Cap index declined 0.40%.

The market breadth was negative. On the BSE, 1207 shares rose and 1873 shares fell. A total of 145 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 542.36 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 85.32 crore in the Indian equity market on 12 October, provisional data showed.

Earnings Today:

Infosys (down 0.32%), Mindtree (down 1.15%), Angel One (down 0.72%), Cyient (down 1.46%), and Den Networks (up 0.31%) will announce their financial results for Q2 FY23 later in the day.

Economy:

India's consumer price inflation rose to a five-month high of 7.41 percent in September from 7.00 percent in August, data from the National Statistical Office showed on Wednesday. In the same period last year, inflation was 4.35 percent. The inflation rate was well above the Reserve Bank of India's medium term target of 4.0 percent.

Industrial production in India declined 0.8 percent year-over-year in August, reversing a 2.2 percent rise in July, official data showed. Further, this was the first decrease since February 2021. Among three main sectors, mining output fell the most, by 3.9 percent, followed by a 0.7 percent contraction in manufacturing production. On the other hand, electricity production registered a positive growth of 1.4 percent. In the April to August period, the industrial production posted an expansion of 7.7 percent annually.

Buzzing Index:

The Nifty PSU Bank index declined 1.21% to 2,946.60. The index rose 1.51% in the past trading session.

Among the components of the Nifty PSU Bank index, Bank of India (down 1.48%), Bank of Baroda (down 1.35%), Punjab National Bank (down 1.24%), Canara Bank (down 1.24%) and Union Bank of India (down 1.03%) were the top losers.

Among the other losers were UCO Bank (down 0.85%), Bank of Maharashtra (down 0.83%), State Bank of India (down 0.81%), Punjab & Sind Bank (down 0.66%) and Central Bank of India (down 0.51%).

Stocks in Spotlight:

Maharashtra Seamless advanced 5.22% after the company announced that its board will meet on Monday, 17 October 2022 to consider issue of bonus shares and sub division of the company's existing equity shares of Rs 5 each. On 17 October 2022, the board will also consider the unaudited financial results for the quarter ended 30 September 2022.

Adani Ports and Special Economic Zone declined 1.74%. The company said that it has received letter of award (LoA) from West Bengal Industrial Development Corporation, Kolkata, for development of deep-sea port at Tajpur, West Bengal. The deep-sea port would be developed on a design, build, finance, operate and transfer basis.

Suven Life Sciences rose 1.98% after the company said its board approved the terms of its upcoming rights issue. The company proposes to issue 7,26,91,239 rights shares worth Rs 399.80 crore. The rights issue price is Rs 55 per equity share, which is 24% discount to the ruling maket price.

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