Nifty ends tad above 17,000 mark; IT shares outperform

The domestic equity benchmarks ended with deep cuts after a weak session on Monday. Frail Asian cues played spoilsport. The Nifty closed tad above the 17,000 level after hitting the day's low at 16,978.30 in mid-morning trade. Barring the Nifty IT index, all the other sectoral indices on the NSE were in the red.

As per provisional closing data, the barometer index, the S&P BSE Sensex, dropped 953.70 points or 1.64% to 57,145.22. The Nifty 50 index tumbled 311.05 points or 1.8% to 17,016.30.

The broader market underperformed the benchmark indices. The S&P BSE Mid-Cap index fell 2.84% while the S&P BSE Small-Cap index slumped 3.33%

Sellers outnumbered buyers. On the BSE, 656 shares rose, and 2,925 shares fell. A total of 126 shares were unchanged.

The Reserve Bank of India (RBI)'s six-member Monetary Policy Committee is scheduled to meet this week during 28-30 September 2022. RBI Governor Shaktikanta Das will announce the MPC decision on 30 September 2022, the last date of the meeting. The RBI is widely expected to maintain the balancing act between growth and inflation.

In the past three policy reviews, the RBI's rate-setting panel has raised 140 basis points in total since May this year. Currently, the repo rate, the interest rate at which the RBI lends to the commercial bank, stands at 5.40%.

New Listing:

Shares of Harsha Engineers International closed at Rs 482.85 on the BSE, a premium of 46.32% compared with the issue price of Rs 330.

The scrip was listed at Rs 444, a premium of 34.55% over the initial public offer (IPO) price. So far, the scrip has hit a high of Rs 527.60 and a low of Rs 431. Over 24.95 lakh shares of the company have changed hands in the counter till now.

The IPO of Harsha Engineers was subscribed 74.70 times. The issue was open between 14th and 16th September 2022. The price band of the IPO was fixed at Rs 314-330 per share.

Buzzing Index:

The Nifty IT index rose 1.40% to 26,965.95. The index had declined 1.58% in the past three sessions.

Coforge (up 1.51%), Infosys (up 1.15%), HCL Technologies (up 1.15%), Mphasis (up 1.08%), L&T Technology Services (up 0.87%), Tata Consultancy Services (up 0.47%) and Wipro (up 0.14%) advanced.

Meanwhile, Mindtree (down 0.51%), Tech Mahindra (down 0.29%) and Larsen & Toubro Infotech (down 0.25%) edged lower.

Stocks in Spotlight:

State Bank of India (SBI) shed 0.91%. The state-run lender on Friday (23 September 2022) announced the allotment of non-convertible, unsecured Basel III compliant Tier 2 bonds Series I of Rs 4,000 crore on private placement basis.

Britannia Industries lost 0.13%. The company on Friday said that its board has elevated Varun Berry as executive vice‐chairman and managing director with immediate effect and also appointed Rajneet Singh Kohli as executive director and chief executive officer.

Hester Biosciences jumped 10.35%. The company said it has adequate supply of Goat Pox Vaccine in India to immunize cattle against Lumpy Skin disease.

Anupam Rasayan India added 0.16%. The company said that the Gujarat Pollution Control Board has directed the company to pay an interim environmental damage compensation of Rs 1 crore. Laxmi Organic Industries slumped 4.76%. The company said that its plant located at Mahad Industrial Area, MIDC, Raigad, Maharashtra had been shut down for 21 days from 21 August 2022 to 10 September 2022 to undertake and attend the planned maintenance activities. Sterlite Technologies dropped 7.62%. The telecom solutions provider announced that Mihir Modi has tendered his resignation from the chief financial officer (CFO) and key managerial personnel position. Modi will be relieved from his duties with effect from the close of business hours of Friday, 14 October 2022, the company informed in an exchange filing.

Hindustan Aeronautics (HAL) declined 4.34%. The company has set up a 208 crore integrated cryogenic engine manufacturing facility (ICMF) in Bengaluru and it will cater to the entire rocket engine manufacturing under one roof for Indian Space Research Organisation (ISRO).

Global markets:

Most of the stocks in Europe advanced while Asian stocks were trading sharply lower on Monday. Investors are cautious as concern for the global growth outlook has been increasing, since inflation remains high and central banks resort to aggressive interest rate hikes to try to tame rising prices.

Japan's factory activity growth hit a 20-month low in September. The au Jibun Bank Flash Japan Manufacturing Purchasing Managers' Index (PMI) slipped to a seasonally adjusted 51 in September from the prior month's final of 51.5.

US stocks tumbled on Friday as fears grew that a central bank prescription of raising interest rates to tame inflation will drag major economies into recession.

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