Nifty drops below 17,500; breadth negative

Key benchmark indices are trading on a weak note in early trade after seeing a gap-down opening. The Nifty dropped below the 17,500 level. At 9:20 IST, the barometer index, the S&P BSE Sensex, was down 508.89 points or 0.86% at 58,617.47. The Nifty 50 index fell 141.75 points or 0.8% at 17,476.4.

The broader market saw selling as well. The S&P BSE Mid-Cap index was down 0.2% while the S&P BSE Small-Cap index fell 0.16%.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 963 shares rose and 1231 shares fell. A total of 102 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 2,225.60 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 97.18 crore in the Indian equity market on 30 September, provisional data showed.

Stocks in Spotlight:

Maruti Suzuki India fell 2.06%. The automobile maker said owing to a supply constraint of electronic components due to the semiconductor shortage situation, the company is expecting an adverse impact on vehicle production in the month of October 2021 in both Haryana and its contract manufacturing company, Suzuki Motor Gujarat Private Limited (SMG) in Gujarat. Though the situation is quite dynamic, the company has currently estimated that the total vehicle production volume across both locations could be around 60% of normal production.

Adani Green Energy rose 2.78%. The company said that Adani Renewable Energy (MH) Energy, a wholly-owned subsidiary of the company has completed acquisition of 100% of the share capital and all the securities of Vento Energy Infra from Essel Green Energy.

Global Markets:

Asian markets slipped on Friday following an overnight drop on Wall Street. Markets in Hong Kong are closed for a holiday on Friday, while those in mainland China are closed for the Golden Week holiday from Friday till October 7.

Japan's factory activity grew at the slowest rate in seven months in September as overall output and new orders shrank due to the fallout from the coronavirus pandemic, a survey showed on Friday. The final au Jibun Bank Japan Manufacturing Purchasing Managers' Index (PMI) in September slipped to 51.5 on a seasonally adjusted basis from 52.7 in the previous month.

Wall Street ended sharply lower on Thursday wracked by concerns over COVID-19, inflation fears and budget wrangling in Washington.

Investors were also keeping an eye on Washington as Congress passed a bill that would fund the government through early December. The bill would avert a government shutdown but Congress still has not raised the debt ceiling, which Treasury Secretary Janet Yellen says will be reached on October 18.

Yellen and Fed Chair Jerome Powell testified before the House Financial Services Committee on Thursday. Yellen reiterated her call for Congress to raise the debt ceiling, saying that failure to do so would be catastrophic.

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