Market turns range bound; Nifty below 17,150

The key equity barometers continued to trade in a narrow range with major losses in the mid-morning trade. Weak global cues dampened the investor sentiments. The Nifty traded below the 17,150 level. All the sectoral indices on the NSE traded in the red, with FMCG, auto and financial services stocks declining the most.

At 11:28 IST, the barometer index, the S&P BSE Sensex, was down 630 points or 1.08% to 57,560.89. The Nifty 50 index lost 195.75 points or 1.13% to 17,118.90.

In the broader market, the S&P BSE Mid-Cap index declined 0.96% while the S&P BSE Small-Cap index slipped 0.54%.

The market breadth was weak. On the BSE, 1248 shares rose and 2075 shares fell. A total of 170 shares were unchanged.

Buzzing Index:

The Nifty Auto index fell 1.22% to 12,606.20. The index rose 2.75% in the past two sessions.

Among the components of the Nifty Auto index, Tata Motors (down 3.98%), Ashok Leyland (down 3.45%), Hero MotoCorp (down 2.98%), Samvardhana Motherson International (down 1.56%) and Sona BLW Precision Forgings (down 1.38%) were the top losers.

Among the other losers were TVS Motor Company (down 1.35%), Bajaj Auto (down 1.32%), MRF (down 1.2%), Mahindra & Mahindra (down 0.93%) and Bosch (down 0.89%).

Stocks in Spotlight:

Jaiprakash Associates rose 2.99% after the company said its board decided to divest significant cement business. Jaiprakash Associates announced, "with a view to give thrust to the ongoing efforts of the Company to reduce its debt, the Board of Directors in their meeting held today, the 10th October, 2022, have, inter-alia, decided to divest Company's significant Cement business."

Artson Engineering rallied 5.08% after the company announced that it has received a purchase order worth Rs 42.76 crore from Kutch Copper (wholly owned subsidiary of Adani Enterprises). In an exchange filing, the company said that it has secured Rs 42.76 crore purchase order from Kutch Copper (100% subsidiary of Adani Enterprises) to manufacture & supply of 10 nos. gas to gas heat exchangers.

Atul Auto surged 8.69% after the company said its board approved raising upto Rs 115 crore through issue of fully convertible warrants. The board approved issuing 58,08,080 fully convertible warrants, aggregating upto Rs 115 crore. The company will issue the warrants on preferential issue basis to three specified investors.

Global markets:

Stocks in Asia tumbled across the board on Monday after a surprise drop in US unemployment quashed any thought of a pivot on policy tightening ahead of a reading on inflation which is expected to see core prices move higher again.

Chinese investors return from a week-long break. Markets in Japan, South Korea, Taiwan and Malaysia are closed today for holidays.

US stocks tumbled on Friday after data showed the unemployment rate declined in September, sparking fear that the Federal Reserve would continue hiking rates aggressively.

The US economy added 263,000 jobs last month, showing a steady slowdown from the blistering pace in 2020 and 2021, the Labor Department said in the closely-watched report. The unemployment rate slipped two-tenths of a percentage point to 3.5 percent.

Geopolitical tensions added to the uncertainty as markets waited to see how the Kremlin might respond to the blast that hit Russia's only bridge to Crimea.

Later this week, the Bank of Korea will announce its benchmark interest rate decision, Singapore is set to announce its GDP estimate for the third quarter and China releases inflation data.

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