The markets opened on a choppy note led by weakness in index-heavyweight IT stocks amid tepid cues from global markets. Though the indices were up at opening bell with Sensex 71.08 points or 0.12 percent at 58,350.60 and the broader Nifty50 was up 13.70 points or 0.08 percent at 17,375.80 on September 8, it declined soon after.
At 9.26 AM, the Sensex was down 39.40 points or 0.68 percent at 58,240.08. The Nifty was 23.15 points down or 0.13 percent at 17,338.95−23.
Infosys was the top loser in the Sensex pack, shedding over 1 per cent, followed by PowerGrid, HCL Tech, TCS, Tech Mahindra, Maruti and Bajaj Auto. On the other hand, Bharti Airtel, IndusInd Bank, NTPC, Axis Bank, ITC, ICICI Bank, SBI and Bajaj Finance were among the gainers.
IndusInd bank was up 1.73 points at Rs 1019, Bharti Airtel 1.30 percent at Rs 679.40, Hindustan Unilever 0.71 percent at Rs 2795.45, Bajaj Finance 0.68 percent up at Rs 7506, HDFC 0.49 percent at Rs 2850 and HDFC Bank 0.41 percent at Rs 1575.65 points.
PowerGrid was (-) 1.39 percent at Rs 170.80, Infosys (-)0.91 percent at Rs 1691.05, Maruti (-) 0.63 percent at Rs 6833.15, Sun Pharma (-) 0.53 at Rs 765.55, TCS (-) 0.33 percent at Rs 3802, and Tech Mahindra (-) 0.24 percent at Rs 1432.05.
In the previous session, the 30-share index settled 17.43 points or 0.03 per cent lower at 58,279.48, the broader NSE Nifty fell 15.70 points or 0.09 per cent to 17,362.10.
Asian stocks trade mixed
Asian stocks were mixed Wednesday after a dip in US shares on concern that the delta coronavirus variant is slowing the economic recovery from the pandemic. Tokyo stocks are trading lower as investors seek to lock-in profit after the recent rallies seen in the market
Economy shows growth
Revised gross domestic product (GDP) data by the Cabinet Office released on Wednesday showed the economy grew an annualised 1.9 percent in April-June, beating economists’ median forecast for a 1.6 percent gain and the initial estimate of a 1.3 percent expansion.
Gold retreated over 1.9 percent on Tuesday and is on course for its biggest intraday drop in a month, as a buoyant dollar and higher yields took the shine off the metal. A selloff across bond markets has intensified in part due to a flood of debt sales. The 10-year U.S. Treasury yield trimmed an advance but remained above 1.36 percent.
Japan’s economy saw 1.9 percent annualized growth, higher than the initial estimate for a 1.3 percent rise, revised government data showed Wednesday. The revised GDP estimate was higher than economists median forecast in a Reuters poll for a 1.6 percent annualized growth.
Sebi introduces T+1 settlement cycle on optional basis
Capital markets regulator Sebi on Tuesday introduced T+1 settlement cycle for completion of share transactions on optional basis in a move to enhance market liquidity.
Currently, trades on the Indian stock exchanges are settled in two working days after the transaction is done (T+2). The regulator has decided to provide flexibility to stock exchanges to offer either T+1 or T+2 settlement cycle for completion of share transactions, according to a circular.
The stock exchange may choose to offer T+1 settlement cycle on any of the scrips, after giving an advance notice of at least one month, regarding change in the settlement cycle, to all stakeholders, including the public at large, and also disseminating the same on its website.
After opting for T+1 settlement cycle for a scrip, the stock exchange will have to mandatorily continue with the same for a minimum period of six months.
Thereafter, in case the stock exchange intends to switch back to T+2 settlement cycle, it will do so by giving one-month advance notice to the market.
Fuel prices unchanged
The oil marketing companies (OMC) kept petrol and diesel prices unchanged for the second consecutive day on Wednesday.
According to Indian Oil Corporation, the price of petrol and diesel remains unchanged at Rs 101.19 and Rs 88.62 per litre in Delhi. Across the country as well the petrol and diesel prices remained static on Monday but their retail rates varied depending on the level of local taxes in a particular state.
In Mumbai, the petrol price is stable at Rs 107.26 per litre on Thursday while diesel rates also remain unchanged at Rs 96.19 a litre. In Chennai, petrol is priced at Rs 98.96 a litre and in Kolkata Rs 101.62 a litre. Diesel is also priced at Rs 93.26 and Rs 91.71 per litre in both cities respectively.
Under the pricing formula adopted by oil companies, rates of petrol and diesel are to be reviewed and revised by them on a daily basis. The new prices become effective from morning at 6 AM.
International oil benchmark Brent crude fell 0.10 per cent to $71.62 per barrel.
ICRA maintains stable outlook on banking
Domestic rating agency India Ratings on Tuesday maintained a stable outlook on the banking sector for 2021-22 while it expects an increase in stressed assets in retail and MSME segments by end-March. It estimates gross non-performing assets (GNPA) of the banking sector to be at 8.6 percent and stressed assets at 10.3 per cent for fiscal 2021-22.
"We have maintained a stable outlook on the overall banking sector for the rest of FY22, supported by the continuing systemic support that has helped manage the system-wide COVID-19 linked stress," the rating agency said in its mid-year banks outlook released on Tuesday.
Sebi on Tuesday tweaked the client level position limits for trading in cross-currency futures and options contracts. Position limit refers to the highest number of options or futures contracts an investor is allowed to hold on one underlying security.
Based on feedback received from stock exchanges and clearing corporations and upon a review of the same, it has been decided to revise the client level position limits, per stock exchange, Sebi said in a circular.
Chemspec Chemicals, Northern Arc Capital IPOs
Chemspec Chemicals and Northern Arc Capital have received capital markets regulator Sebi's approval to raise funds through initial share sales. The two companies had filed their preliminary IPO papers with the Securities and Exchange Board of India (Sebi) in July. Chemspec Chemicals and Northern Arc Capital obtained the regulator's observations on August 30 and September 3, respectively, an update with Sebi showed on Monday.
In Sebi parlance, the issuance of observations implies its go-ahead for the initial public offering (IPO). The Rs 700-crore IPO of Chemspec Chemicals is entirely an offer for sale by promoters, according to the draft red herring prospectus (DRHP).
Two stocks under F&O ban
Two stocks - Indiabulls Housing Finance and NALCO - are under the F&O ban for September 7. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.