The headline equity indices ended with deep cuts on Monday. Negative global cues dampened the investors sentiment. The Nifty closed below the 17,500 level. Selling was wide spread, with realty, metal and PSU bank stocks declining the most.
As per provisional closing data, the barometer index, the S&P BSE Sensex, was down 872.28 points or 1.46% to 58,773.87. The Nifty 50 index lost 267.75 points or 1.51% to 17,490.70.
In the broader market, the S&P BSE Mid-Cap index fell 1.80% while the S&P BSE Small-Cap index shed 1.17%.
The market breadth was weak. On the BSE, 1,264 shares rose and 2,274 shares fell. A total of 168 shares were unchanged.
Meanwhile, The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, climbed 4.11% to 19.04.
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Buzzing Index:
The Nifty PSU Bank index declined 2.08% to 2,789.60. The index slipped 4.91% in three trading sessions.
Canara Bank (down 3.45%), Punjab National Bank (down 2.85%), Bank of India (down 2.11%), State Bank of India (down 1.83%), Bank of Baroda (down 1.74%), Indian Bank (down 1.74%), Union Bank of India (down 1.62%), Bank of Maharashtra (down 1.43%), Punjab & Sind Bank (down 1.32%) and Indian Overseas Bank (down 1.15%) declined.
Central Bank of India gained 1.96% after the PSU bank said that it has entered into a strategic co-lending partnership with Protium Finance and lncred Financial Services (IFSL) to offer loans to MSME borrowers at competitive rates. The state-owned lender said that the partnership will provide greater expansion of portfolio to these finance companies.
Stocks in Spotlight:
Larsen & Toubro (L&T) fell 2.82%. The EPC major said that the hydrocarbon-onshore division of L&T Energy business has been awarded a large contract from Indian Oil Corporation (IOCL). As per L&T's classification, the value of the large project is 2,500 crore to 5,000 crore.
The scope of the project involves setting up a residue hydrocracker unit (RHCU) for this P-25 project. The RHCU is licensed by Axens (France) with a capacity of 2.5 million metric tonne per annum and will upgrade the vacuum residue (VR) to high-value commercial products (mainly diesel). The contract is awarded through international competitive bidding on a lump sum turnkey (LSTK) basis.
Meanwhile, on 20 August 2022, L&T said that it has commissioned a green hydrogen plant at its AM Naik Heavy Engineering Complex in Hazira, Gujarat on Friday post market hours. The production of green hydrogen based on an alkaline electrolysis process has on 20 August 2022. The plant will produce 45 Kg of green hydrogen daily, which will be used for captive consumption in the company's Hazira manufacturing complex.
One97 Communications (Paytm) rose 0.57%. Shareholders of One97 Communications, which operates the financial services platform Paytm, have approved the re-appointment of Vijay Shekhar Sharma as managing director and chief executive officer of the company.
Shares of Adani Power hits an upper circuit of 5% after the company said that it has agreed to acquire DB Power, which owns and operates a running 2x600 MW thermal power plant at Janjgir Champa District in Chhattisgarh. Adani Power said that the proposed transaction is subject to receipt of approval from the Competition Commission of India and any other approvals as may be identified following the due diligence exercise to be conducted with respect to DPPL and DB Power. The initial term of the MOU shall be till 31 October 2022, which may be extended by mutual agreement.
Gillette India advanced 3.02% to Rs 5,485.05 after the company's standalone net profit jumped 145.5% to Rs 67.59 crore on 26.8% increase in revenue operations to Rs 552.89 crore in quarter ended June 2022 over quarter ended June 2021.
The company said net sales was driven by its superiority strategy and strong brand fundamentals. The profit after tax (PAT) was supported by strong sales growth and productivity in the current quarter, as well as higher investment in brand building activities in the base period.
Ratnamani Metals & Tubes shed 0.81%. The company said that it has received new orders aggregating to Rs 1,186 crore in the first fortnight of current month. The company has bagged domestic orders aggregating to Rs 1083 crore to be executed over next 4 to 24 months.
Shilpa Medicare rose 0.54% after the company said that its subsidiary, Shilpa Biologicals (SBPL), has completed the phase 3 Human Clinical studies of its first biosimilar, the 100mg/ml high concentration (HC) Adalimumab biosimilar. The company said that it has submitted the dossier to the Central Drugs Standard Control Organisation (CDSCO) for review and grant of marketing/manufacturing license.
Greenlam Industries rallied 3.57% after the company announced that its recently acquired laminate manufacturing facility in Gujarat had commenced commercial production on 20 August 2022. On June 22, the company had informed regarding purchase of laminate manufacturing facility situated at Village Oran, TaIuka Prantij, District Sabarkantha, Gujarat. The said manufacturing facility currently has an installed capacity of 3.4 million laminate sheet per annum. It has potential to generate revenue of Rs 150 crore per annum on full capacity utilization.
Global Markets:
The Dow Jones index futures were down 307 points, indicating a negative opening in the US stocks today.
Shares in Europe and Asia tumbled on Monday as concerns over aggressive Fed hikes reemerged.
The People's Bank of China cut its one-year benchmark lending rate by 5 basis points and its five-year rate by 15 basis points, according to an online statement. That brings the one-year loan prime rate to 3.65% and the five-year LPR to 4.3%.
US stocks fell on Friday with traders anxious about inflation and what the Federal Reserve will do to combat it.
Fed Chairman Jerome Powell is expected to speak at the central bank's annual symposium in Jackson Hole, Wyoming this week, and shed some light on the pace of future interest rate hikes.
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