Benchmark indices ended with steep losses on Friday, declining for the fourth session in a row. The Nifty managed to close above the 17,500 mark after hitting the day's low of 17,452.90. Global stocks declined amid the spread of the contagious delta variant of COVID-19, surging long-term bond yields and strong dollar.
The S&P BSE Sensex, declined 360.78 points, or 0.61% to 58,765.58. The Nifty 50 index fell 86.10 points or 0.49% to 17,532.05.
Bajaj Finserv (down 3.45%), Bajaj Finance (down 1.94%), HDFC (down 1.54%) and HDFC Bank (down 0.81%) were major drags.
In the broader market, the S&P BSE Mid-Cap index fell 0.11% while the S&P BSE Small-Cap index rose 0.48%.
The market breadth was positive. On the BSE, 1809 shares rose and 1420 shares fell. A total of 179 shares were unchanged.
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, slumped 6.48% to 17.21.
The Sensex fell 2.18% and the Nifty fell 1.81% in the four consecutive sessions.
Numbers to Track:
In the foreign exchange market, the partially convertible rupee fell to 74.1275 from its previous closing of 74.23.
MCX Gold futures for 5 October 2021 settlement fell 0.13% to Rs 46,265.
The yield on India's 10-year benchmark federal paper (06.10 GS 2031) rose to 6.247%, compared with 6.223% at close in the previous trading session.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.03% to 94.20.
In the commodities market, Brent crude for December 2021 settlement was down 39 cents or 0.50% to $77.92 a barrel.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 233,713,190 with 4,782,640 deaths. India reported 275,224 active cases of COVID-19 infection and 448,339 deaths according to the data from the Ministry of Health and Family Welfare, Government of India.
In the last 24 hours, India records 26,727 new cases. Active cases accounted for less than 1% of total cases, currently at 0.82%. Active caseload stood at 2,75,224, lowest in 196 days. The recovery rate currently stands at 97.86%, highest since March 2020. The country reported 28,246 recoveries in the last 24 hours taking total recoveries to 3,30,43,144.
A total of 89,08,78,472 COVID-19 vaccine doses have been administered in the country so far, with over 64.26 lakh doses being given yesterday, according to the Co-WIN dashboard.
Economy:
The gross GST revenue collected in the month of September 2021 stood at Rs 1,17,010 crore, up by 23% year on year. Of this, CGST is Rs 20,578 crore, SGST is Rs 26,767 crore, IGST is Rs 60,911 crore (including Rs 29,555 crore collected on import of goods) and Cess is Rs 8,754 crore (including Rs 623 crore collected on import of goods).
The government settled Rs 28,812 crore to CGST and Rs 24,140 crore to SGST from IGST as regular settlement. The total revenue of Centre and the states after regular settlements in the month of September 2021 is Rs 49,390 crore for CGST and Rs 50,907 crore for the SGST.
Meanwhile, the government's fiscal deficit stood at Rs 4.68 lakh crore or 31.1% of the budget estimates at the end of August, as per data released by the Controller General of Accounts (CGA) on Thursday. Net tax receipts were Rs 6.45 lakh crore while total expenditure was Rs 12.77 lakh crore, the data showed.
Further, the seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) rose to 53.7 in September, from 52.3 in August, highlighting a stronger expansion in overall business conditions across the sector.
Global Markets:
European shares fell across the board while most Asian markets closed in the red on Friday, following an overnight drop on Wall Street.
German inflation hit 4.1% in September 2021, its highest level in 29 years. The data showed that price of energy and food items were the most affected by inflation.
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."
New Listing:
Shares of Paras Defence and Space Technologies hit an upper circuit of 5% at Rs 498.75 on the BSE, a premium of 185% as compared with the initial public offer (IPO) price of Rs 175 per share. The stock was listed at a price of Rs 475 per share, a premium of 171.43% to the issue price. On the BSE, over 7.57 lakh shares of the company were traded in the counter.
The IPO of Paras Defence and Space Technologies was subscribed 304.26 times. The issue opened for bidding on 21 September 2021 and closed on 23 September 2021. The price band of the IPO was fixed at Rs 165-175 per share.
September Auto Sales:
Maruti Suzuki India fell 2.39% after the company said its total sales declined 46.16% year-on-year to 86,380 units in September 2021. Total sales in the month include domestic sales of 66,415 units (down 55.74% YoY), sales to other OEM of 2,400 units (down 6.54% YoY) and exports of 17,565 units (up 124.21% YoY). The company said its sales volume in September 2021 was adversely impacted due to shortage of electronic components.
Amid the semiconductor shortage, the car major is expecting an adverse impact on vehicle production in October 2021 in both Haryana and its contract manufacturing company, Suzuki Motor Gujarat (SMG), in Gujarat. It estimates that the total vehicle production volume across both locations could be around 60% of normal production.
Tata Motors rose 0.05%. The Tata Group announced that its sales in the domestic & international market for Q2 FY22 stood at 1,71,270 vehicles, up by 55.2% from 1,10,345 units during Q2 FY21.
TVS Motor Company rose 2.83%. The company registered sales growth of 6% with 347,156 units sold in September 2021 as against sales of 327,692 units in the month of September 2020.
Eicher Motors fell 0.70%. The company said that its subsidiary VE Commercial Vehicles (VECV) has sold 6,070 units in September 2021, registering a growth of 73.1% on a YoY basis.
Ashok Leyland fell 2.39%. The company's total commercial vehicle (CV) sales rose 14% to 9,533 units in September 2021 from 8,332 units in September 2020.
Bajaj Auto rose 0.32%. The company's total auto sales in September 2021 stood at 4,02,021 units, down by 9% from 441,306 units sold in September 2020.
Escorts fell 0.58% after the company's total tractor sales declined by 25.6% YoY to 8,816 units in September 2021 from 11,851 units sold in September 2020.
Stocks in Spotlight:
Zee Entertainment Enterprises (ZEEL) lost 2.44%. The company said it will not convene the extraordinary general meeting (EGM) called by Invesco. The company said the decision has been taken in the best interest of the company, shareholders and stakeholders. ZEEL board met today, 1 October 2021, to deliberate the course of action in relation to the requisition notice issued by Invesco Developing Markets Fund and OFI Global China Fund on 11 September 2021. Punit Goenka did not attend, participate, or vote in the board meeting. Based on legal advice from the company's counsel, the ZEEL board unanimously concluded that the requisition notice is not valid, as it suffers from multiples legal infirmities.
The board decision came a day after the Mumbai bench of the National Company Law Tribunal (NCLT) directed ZEEL to consider positively the requisition for an extraordinary general meeting (EGM) made by shareholder Invesco under the Companies Act. It also directed ZEEL to "comply with section 100 of the Companies Act" and posted Invesco's application for compliance on 4 October 2021.
Cummins India fell 7.5% after the Union Power Ministry urged diesel generating (DG) set users to shift to renewable energy in five years. The Union Power Ministry on Thursday issued an amendment to the Draft Electricity (Rights of Consumer) Amendment Rules, 2021. The Ministry has advised consumers using DG sets to shift to a cleaner technology, such as renewable energy with battery storage, in five years.
"Consumers, who are using the Diesel Generating sets as essential back up power, shall endeavor to shift to cleaner technology such as RE with battery storage etc in five years from the date of the publication of this amendment or as per the timelines given by the State Commission for such replacement based on the reliability of supply by the distribution company in that city," the Ministry notified.
GMR Infrastructure soared 7.17% after the airports regulator reportedly allowed GMR Hyderabad International Airport to gradually increase user development fee (UDF) from 1 April 2022. The media reported that the Airports Economic Regulatory Authority has allowed GMR Hyderabad International Airport (GHIAL), which manages Rajiv Gandhi International Airport, to gradually increase UDF on embarking domestic as well as international passengers from 1 April 2022.
Linde India rose 0.62%. The company said its board approved setting-up a 250 tonnes per day (TPD) merchant air separation unit at Dahej in Gujarat, to secure growth in the gases business in Western markets and deliver cost savings. The board has approved a capital expenditure of Rs 138.6 crore towards the plan.
Phillips Carbon Black fell 0.84% to Rs 265.15. The company launched its QIP issue on Thursday and approved the floor price of Rs 255.85 per share. The floor price is at a discount of 4.31% to Thursday's closing price.
Bank of India rose 2.07%. The state-owned bank on Thursday said it has raised Rs 1,800 crore by issuing Basel-III-compliant bonds on a private placement basis.
G R Infraprojects rose 3.29% after the company received Letter of Award (LoA) for the construction of four/six lane Greenfield Ludhiana - Rupnagar National Highway in Punjab on Hybrid Annuity Mode. The bid project cost is Rs 951 crore and the completion period for the project is 730 days from appointed date. The operation period is set for 15 years from commercial operation date.
Primary Market:
Aditya Birla Sun Life AMC IPO opened for subscription from Wednesday (29 September) and it will close on Friday (1 October). The company is offering 38,880,000 shares (including anchor portion of 11,080,800 equity shares) in the price band of Rs 695 to Rs 712 per share.
As on 16:36 IST, the IPO received bids for 14.54 crore shares as against 2.77 crore shares on offer. The issue was subscribed 5.23 times so far.
Aditya Birla Sun Life AMC is currently a 51:49 joint venture between Aditya Birla Capital (ABCL) and Sun Life AMC. The company is the fourth largest asset management companies (AMCs) in India by quarterly average asset under management (QAAUM) since September 2011 and its also the largest non-bank affiliated AMC in India since March 2018.
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