Indices trade with significant cuts; market breadth positive

The domestic equity benchmarks traded with significant losses in early trade amid heavy selling in key index pivotals. The Nifty traded tad above the 17,550 level. Bank and financials led the losses while pharma, metal and FMCG shares managed to trade in the green.

At 09:22 IST, the barometer index, the S&P BSE Sensex, was down 261.99 points or 0.44% to 58,857.73. The Nifty 50 index declined 75.25 points or 0.43% to 17,554.55.

In the broader market, the S&P BSE Mid-Cap index shed 0.25% while the S&P BSE Small-Cap index lost 0.04%

The market breadth was positive. On the BSE, 1,362 shares rose, and 1,112 shares fell. A total of 121 shares were unchanged.

Stocks in Spotlight:

Tata Steel rose 2.89%. The board of directors of Tata Steel has approved amalgamation of all metal companies of Tata group into Tata Steel. The companies that will be merged with Tata Steel are Tata Steel Long Products (down 8.41%), The Tinplate Company of India (down 3.99%), Tata Metaliks (down 2.10%), TRF (down 5%), The Indian Steel & Wire Products, Tata Steel Mining and S & T Mining Company.

Reliance Industries (RIL) shed 0.30%. Reliance New Energy (RNEL), a wholly owned subsidiary of RIL has signed definitive agreements to invest in Caelux Corporation (Caelux), a company headquartered in Pasadena, California, in the United States of America, engaged in the development of perovskite-based solar technology. RNEL will invest USD 12 million to acquire 20% stake in Caelux.

Hero MotoCorp rose 0.58%. The company has made an upward revision in the ex-showroom prices of its motorcycles and scooters, with immediate effect i.e. 22 September 2022. The price revision has been necessitated to partially offset the impact of cost inflation. The price revision will be up to Rs. 1,000 and the exact quantum of increase will vary by model and market.

Global markets:

Asian stocks edged lower on Friday as investors continue to weigh the Federal Reserve's aggressive stance. Japan markets were closed for a holiday Friday.

US stocks ended lower on Thursday, falling for a third straight session as investors reacted to the Federal Reserve's latest aggressive move to rein in inflation by selling growth stocks, including technology companies.

The US current account deficit narrowed sharply in the second quarter amid a surge in goods exports, data showed on Thursday. The Commerce Department said that the current account deficit, which measures the flow of goods, services and investments into and out of the country, contracted 11.1% to $251.1 billion last quarter. The current account gap represented 4% of gross domestic product, down from 4.6% in the January-March quarter.

The Bank of England raised its key interest rate to 2.25% from 1.75% on Thursday and said it would continue to "respond forcefully, as necessary" to inflation, despite the economy entering recession. The BoE's Monetary Policy Committee voted 5-4 to raise rates to 2.25%.

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