Indices trim some losses, metal stocks tumble

The benchmark indices pared some losses and traded with minor cuts in morning trade. The Nifty traded above the 16,900 mark after hitting the day's low of 16,850.15 in the morning trade. Media, FMCG and consumer durables stocks were in demand while metal, bank and IT shares corrected .

At 10:30 IST, the barometer index, the S&P BSE Sensex, was down 131.67 points or 0.23% to 57,424.23. The Nifty 50 index lost 37.05 points or 0.22% to 16,935.10.

The broader market underperformed the headline indices. The S&P BSE Mid-Cap index fell 0.49% while the S&P BSE Small-Cap index slipped 0.89%.

Sellers outnumbered buyers. On the BSE, 940 shares rose and 2,214 shares fell. A total of 119 shares were unchanged.

Investors sentiment was dented amidst risks of contagion in the global financial sector, after fresh turbulence at Credit Suisse. Credit Suisse announced that it will borrow up to 50 billion Swiss francs ($53.68 billion) from the Swiss National Bank in what it called "decisive action" to boost its liquidity.

The decision comes shortly after shares of the lender fell sharply on Wednesday after its largest investor, Saudi National Bank said it could not provide more financial assistance because of regulatory constraints.

Buzzing Index:

The Nifty Metal index slipped 2.43% to 5,480.25. The index gained 1.80% in the past trading session.

Jindal Steel & Power (down 5.02%), Tata Steel (down 4.28%), Welspun Corp (down 4.19%), Hindalco Industries (down 4%), Hindustan Copper (down 3.7%), National Aluminium Company (down 3.64%), Steel Authority of India (down 3.54%), JSW Steel (down 3.38%), Vedanta (down 3.33%) and Ratnamani Metals & Tubes (down 2.22%).

Stocks in Spotlight:

Patanjali Foods dropped 4.15% after stock exchanges freeze shares of the company's promoter groups for not complying with the regulator's minimum public shareholding norms. The NSE and the BSE have frozen 29.25 crore shares of Patanjali Foods, representing 80.82% of the equity, held by promoters and group entities, for not complying with the regulator's minimum public shareholding norms within the stipulated deadline.

JSW Energy declined 1.59%. The finance committee of the company's board approved the allotment of 25,000 unsecured, redeemable, rated, listed, taxable, non-convertible debentures having face value of Rs 1 lakh each, at coupon rate of 8.45%, aggregating to Rs 250 crore. The tenure of instrument is 2 years 11 months and 26 days and date of maturity is 13 March 2026. NCDs will be listed on BSE.

NACL Industries rallied 3.31% after the company's subsidiary received environment clearance for establishing manufacturing facility in Andhra Pradesh. The said facility would be involved in the manufacturing of various agrochemicals, synthetic organic chemicals and fluorine based chemicals with a production capacity of 264.615 TPD and co-generation power plant (6 MW).

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