The key equity barometers ended with modest gains after a volatile session on Tuesday. Barring the Nifty IT index, all the sectoral indices on the NSE ended in the green.
As per provisional closing data, the barometer index, the S&P BSE Sensex, was up 257.43 points or 0.44% to 59,031.30. The Nifty 50 index added 86.80 points or 0.50% to 17,577.50.
The Nifty opened in the red and hit the day's low of 17,345.20 in early trade. It witnessed recovery from early afternoon trade. The index bounced back in the late trade to hit the day's high of 17,625.55.
The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index gained 1.03% while the S&P BSE Small-Cap index rose 0.78%.
The market breadth was strong. On the BSE, 2,118 shares rose and 1,274 shares fell. A total of 158 shares were unchanged.
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The Nifty Oil & Gas index rose 1.42% to 8,162.40. The index slipped 3.26% in three trading sessions.
GAIL (India) (up 2.2%), Indraprastha Gas (up 1.94%), Adani Total Gas (up 1.87%), Reliance Industries (up 1.64%), Petronet LNG (up 1.48%), Oil & Natural Gas Corpn (up 1.36%), Gujarat Gas (up 0.46%), Bharat Petroleum Corporation (up 0.24%) advanced.
On the other hand, Hindustan Petroleum Corporation (down 1.64%), Indian Oil Corporation (down 0.28%),edged lower.
Adani Group shares witness steep selling:
Shares of five Adani Group shares fell by 0.55% to 5% after a research firm reportedly said in a report that Adani Group's debt-funded growth plans could spiral into a massive debt trap.
Adani Power (down 5%), Adani Green Energy (down 4.75%), Adani Wilmar (down 4.80%), Adani Ports and Special Economic Zone (down 0.61%), and Adani Enterprises (down 0.55%) edged lower.
Adani Group is "deeply overleveraged," with the group investing aggressively across existing as well as new businesses, predominantly funded with debt, the research report reportedly cited.
The aggressive expansion pursued by the Adani Group has put pressure on its credit metrics and cash flow, the research firm said, adding that "In the worst-case scenario, overly ambitious debt-funded growth plans could eventually spiral into a massive debt trap, and possibly culminate into a distressed situation or default of one or more group companies," it added. The group's aggressive plans, most of which have been fuelled by debt, is making the research firm 'cautiously watchful'.
Stocks in Spotlight:
Procter & Gamble Hygiene & Health Care declined 1.35% after the company's net profit fell 13.12% to Rs 42.55 crore on 1.3% decline in net sales to Rs 776.38 crore in the quarter ended June 2022 over the quarter ended June 2021.
The company said that the fall in profit after tax (PAT) was largely due to commodity cost inflation. For the quarter, both feminine care and healthcare businesses continue to grow and maintain category leadership.
TVS Electronics rallied 7.98%. The hardware and equipment firm executed business transfer agreement with GTID Solutions Development for acquiring their business and intellectual property rights for Rs 2.25 crore. TVS Electronics has acquired the business and IP rights of GTID Solutions Development. The cost of acquisition is Rs 2.25 crore. With this agreement, TVS has entered into mobile POS software solutions and authentication solutions space. It will offer hardware along with required applications, digital payment solutions, cloud computing software solutions etc. to segments like retail, banks and government.
RBL Bank jumped 6.21% after the bank said that its board has approved the issue of debt securities on private placement basis, from time to time, upto an amount of Rs 3,000 crore, subject to necessary approvals.
NTPC gained 1.50%. The state-run power major on Monday declared commercial operation of first part capacity of 10 megawatt (MW) out of 20 MW Gandhar Solar PV project in Gujrat. With this, standalone installed and commercial capacity of NTPC has become 55099 MW, while group installed and commercial capacity of NTPC has become 69464 MW, the company stated.
Unichem Laboratories advanced 4.7% after the company announced that it has received abbreviated new drug application (ANDA) approval for Carbamazepine tablets from USFDA. The United States Food and Drug Administration (USFDA) approved the company to market a generic version of Carbamazepine (Tegretol) tablet of Novartis Pharmaceuticals Corp.
IIFL Finance rose 2.85%. The company said the board of directors of its subsidiary IIFL Home Finance approved the allotment of its equity shares to the subsidiary of Abu Dhabi Investment Authority. IIFL Home Finance's board considered and approved the allotment of its 53,76,457 fully paid-up equity shares to the investor company for an aggregate consideration of Rs 2,200 crore. Post this transaction, the investor will hold 20% shareholding in IIFL Home Finance.
Sterling and Wilson Renewable Energy gained 4.36% after the company announced that it has bagged an order approximately worth Rs 2,200 crore from NTPC. The company has emerged as the L-1 bidder for the BOS package comprising 4 blocks of the proposed solar PV plant of NTPC Renewable Energy at Khavda RE Power Park, Rann of Kutch, Gujarat with an aggregate capacity of approximately 1570 MW DC. The total bid value, including operations and maintenance (O&M) for 3 years would be approximately Rs 2,200 crore.
Shivalik Bimetal Controls rallied 4.46% after the company said its board will consider a bonus share issue on 29 August 2022. The board of Shivalik Bimetal Controls will meet on Monday, 29 August 2022, to consider issuing bonus shares to the equity shareholders.
Global Markets:
European shares were trading mixed on Tuesday, tracking global sentiment as a fresh surge in European energy prices deepened fears of a recession.
The damage comes after Russia reportedly said it will stop gas supplies to Europe for three days at the end of the month due to an unscheduled maintenance order on its main Nord Stream 1 pipeline.
Meanwhile, Asian stocks tumbled on Tuesday after major indexes on Wall Street finished their worst day since June amid mounting rate hike concerns.
Japan's manufacturing activity growth slowed to a 19-month low, as new orders continue to decline. The au Jibun Bank Flash Manufacturing Purchasing Managers' Index (PMI) fell to a seasonally adjusted 51.0 in August, down from July's final of 52.1.
US stocks fell sharply Monday, in its worst day since June, as the summer rally fizzled out and fears of aggressive interest rate hikes returned to Wall Street.
Investors are anticipating what could be a volatile week of trading ahead of Federal Reserve Chairman Jerome Powell's latest comments on inflation at the central bank's annual Jackson Hole economic symposium.
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