The domestic equity benchmarks ended with deep cuts after a volatile session on Monday. Negative global cues dampened the investors sentiment. The Nifty closed below the 16,900 mark. after hitting day's high at 17,114.65 in the early trade. Metals, autos and bank stocks led the losses while pharma and healthcare stocks managed to end in the green.
As per provisional closing data, the barometer index, the S&P BSE Sensex, dropped 638.11 points or 1.11% to 56,788.81. The Nifty 50 index slumped 207 points or 1.21% to 16,887.35.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 6.99% to 21.37.
In the broader market, the S&P BSE Mid-Cap index fell 1.24% while the S&P BSE Small-Cap index lost 0.54%.
The market breadth was positive. On the BSE, 1,446 shares rose and 2,102 shares fell. A total of 156 shares were unchanged.
The sell-off being witnessed in equities across Asia follows the Wall Street's tumultuous performance last week amid concerns of a global recession grew amid tightening monetary policy and jitters in currency and bond markets.
Economy:
The seasonally adjusted S&P Global India Manufacturing Purchasing Managers' Index (PMI) stood at 55.1 in September 2022, expanding for the fifteenth month in a row. The headline figure, however, slipped from 56.2 in August, though pointed to a solid rate of growth.
Factory orders continued to increase at the end of the second fiscal quarter, stretching the current sequence of expansion to 15 months. New export orders rose further in September. The increase was marked, the sixth in consecutive months and the fastest since May.
Meanwhile, India collected Rs 1.48 lakh crore as Goods and Services Tax (GST) in September, registering an increase of 26% from the same month last year, the finance ministry said on October 1. The September GST mop-up was 2.8% higher from August.
India's eight core infrastructure sectors' output grew 3.3% in August 2022, lowest in past nine months, as against 12.2% in the year-ago period, according to official data released on Friday. The previous low was in November 2021 at 3.2%. The production growth of eight infrastructure sectors - coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity - was 9.8% during April-August this fiscal, compared to 19.4% a year ago.
Buzzing Index:
The Nifty Metal index tumbled 3.02% to 5,593.95. The index had advanced 2.68% in the past two sessions.
Adani Enterprises (down 8.59%), National Aluminium Company (down 3.79%), Welspun Corp (down 3.09%), Hindalco Industries (down 2.37%) and Jindal Steel & Power (down 2.09%) were the top index losers.
Among the other losers were Hindustan Copper (down 1.92%), JSW Steel (down 1.2%), Tata Steel (down 0.91%), Hindustan Zinc (down 0.88%) and Steel Authority of India (down 0.78%).
Concurrently, APL Apollo Tubes (up 2.54%) and Jindal Stainless (up 2.36%) edged higher.
Stocks in Spotlight:
Ashok Leyland slipped 1.21%. The Hinduja Group company's total commercial vehicle (CV) sales climbed 84% to 17,549 units in September 2022 from 9,533 units sold in September 2021. Sequentially, the company's total CV sales jumped 24.28% in September 2022 from 14,121 units sold in August 2022.
Bajaj Auto shed 0.14%. The two wheeler maker's total sales declined 2% to 3,94,747 units in September 2022 compared with 4,02,021 units sold in September 2021. On a sequential basis, the company's total sales dropped by 1.71% from 4,01,595 units sold in August 2022.
Maruti Suzuki India fell 3.04%. The car major recorded total sales of 1,76,306 units in September 2022, recording a jump of 104.1% as against 86,380 units sold in September 2021. The company said that since the sales volume in September 2021 was adversely impacted due to shortage of electronic components, a year on year comparison may not be meaningful.
Eicher Motors tumbled 5.63%. The company said that its unlisted subsidiary VE Commercial Vehicles had sold 6631 units of commercial vehicles in September 2022, which is higher by 9.2% as compared with 6070 units sold in September 2021.
Separately, Eicher Motors informed that it had recorded a growth of 145% in September 2022 with sales of 82,097 motorcycle units as against 33,529 units in the month of September 2021.
Escorts Kubota declined 1.83%. The company's total tractor sales jumped 38.7% YoY to 12,232 units sold in September 2022 from 8,816 units sold in September 2021. Sales during September almost doubled from 6,111 units sold in August 2022.
TVS Motor Company lost 3.25%. The 2-wheeler maker's total sales rose by 9% in September 2022 with sales of 379,011 units as against 347,156 units in the month of September 2021. Total two-wheelers sales grew 9% to 361,729 units in September 2022 as compared to 332,511 units sold in September 2021. Domestic two-wheeler sales stood at 283,878 units in September 2022, registering a growth of 16% from 244,084 units sold in the same period last year.
Hero MotoCorp lost 0.67%. The two-wheeler major's total sales declined 1.95% to 519,980 units in September 2022 as against 530,346 units sold in September 2021. Sequentially, this translates into a growth of 12.4% over the month of August 2022, when the company had sold 462,608 units.
Tata Motors fell 1.75%. The auto major's total domestic sales surged 44% to 80,633 units sold in September 2022 as against 55,988 units sold in September 2021.
Coal India advanced 1.27%. The state-run coal major closed the first half of the current fiscal producing 299 million tonnes (MTs), up 19.7% as against 250 MTs of H1 last year.
FSN E-Commerce Ventures (Nykaa) jumped 5.51% after the company said its board on Monday (3 October) approved issuing 5 bonus equity shares for each share held (5:1). The board also approved fixing 3 November 2022, as the record date for the proposed bonus issue.
Adani Ports and Special Economic Zone (APSEZ) dropped 4.34%. The company said that it has recorded a cargo volume of 26.1 million metric tonnes (MMT) in September 2022, registering a 13% YoY growth. The company said that this volume jump is despite an extended monsoon which adversely impacted the coal demand/imports and the ban/higher duties on rice exports imposed at the beginning of the month.
Zydus Lifesciences gained 5.77%. The company's US subsidiary, Zydus Pharmaceuticals (USA) Inc. received final approval from the United States Food and Drug Administration (USFDA) to market Mirabegron extended-release tablets. Zydus Life was one of the first ANDA applicants to submit a substantially complete ANDA with a paragraph IV certification for Mirabegron extended-release tablets and therefore is eligible for 180 days of shared generic drug exclusivity for the drug.
Global Markets:
Shares in Europe and Asia declined on Monday amid fears that central banks across the world will keep hiking rates until inflation is under control. China markets are closed for the Golden Week holiday, and South Korea's market is also closed.
Sentiment of Japan's large manufacturers worsened in the July-to-September quarter, according to the Bank of Japan's latest quarterly tankan business sentiment survey. The headline index for large manufacturers' sentiment came in at 8, a decline from the previous quarter's reading of 9.
US stocks dropped on Friday on concerns of hot inflation, rising interest rates and recession fears.
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