Market started Thursday session on a mixed note. The benchmark indices opened with minor gains. The benchmark BSE Sensex was donw 16.76 points or 0.28 percent at 59,396.51.The Nifty was hovering around 17,700. The Nifty Bank opens lower.
At 09:16 AM, the Sensex was up 43.29 points or 0.07 percent at 59,456.56, and the Nifty was up 8.10 points or 0.05 percent at 17,719.40. About 1326 shares have advanced, 340 shares declined, and 80 shares are unchanged.
Reliance Industries was the top loser in the Sensex pack, shedding around 1 per cent, followed by PowerGrid, Kotak Bank, Maruti, Bajaj Auto and Axis Bank.
On the other hand, Dr Reddy’s, Tata Steel, L&T, NTPC, Bharti Airtel and HUL were among the gainers.
In the previous session, the 30-share index closed 254.33 points or 0.43 per cent lower at 59,413.27, and Nifty declined 37.30 points or 0.21 per cent to 17,711.30.
Foreign institutional investors (FIIs) were net sellers in the capital market as they offloaded shares worth Rs 1,896.02 crore on Wednesday, as per exchange data.
Fuel prices up
The oil marketing companies (OMCs) hiked the prices of petrol and diesel across the metros on Thursday after a day's pause. Petrol price has been increased by around 25-30 paise whereas diesel prices raised by 28-32 paise per litre.
In Delhi, petrol prices were increased by 25 paise from Rs 101.39 per litre to Rs 101.64 per litre, whereas diesel has become dearer by 30 paise from Rs 89.57 per litre to Rs 89.87 per litre.
Fuel prices differ from state to state depending on the incidence of local taxes such as value-added tax (VAT) and freight charges.
In Mumbai, the retail price of petrol jumped to Rs 107.71 per litre on Thursday. Diesel price also increased in the city by 31 paise per litre to reach Rs 97.52 a litre, the highest among metros.
In Chennai, petrol is retailed at Rs 99.36 and diesel at Rs 94.45 per litre while in Kolkata, petrol costs Rs 102.17 and diesel Rs 92.97 per litre.
Fuel prices in the country have been hovering at record levels on account of 41 increases in its retail rates since April this year. It fell on few occasions but largely remained stable.
Aditya Birla Sun Life AMC IPO subscribed 56% on Day 1
The initial public offer of Aditya Birla Sun Life AMC Limited received 56 per cent the subscription on the first day on Wednesday. The initial share sale received bids for 1,54,80,400 shares against 2,77,99,200 shares on offer, according to data available with the NSE.
The Retail Individual Investors (RIIs) category was fully subscribed (1.09 times) and non-institutional investors 14 per cent. The Initial Public Offer (IPO) is of 3,88,80,000 equity shares.
The initial share-sale is entirely an offer for sale, wherein two promoters -- Aditya Birla Capital and Sun Life (India) AMC Investments -- will divest their stake in the asset management firm.
The price range for the offer, which would conclude on October 1, is at Rs 695-712 per share. Aditya Birla Sun Life AMC on Tuesday said it has collected Rs 789 crore from anchor investors. At the upper end of the price band, the initial share sale is expected to fetch Rs 2,768.25 crore.
Asia-Pacific trade mixed
Shares in Asia-Pacific traded mixed on Thursday morning as investors reacted to the release of Chinese factory activity data for September.
Nikkei 225 slipped 0.67 percent, while the Topix index declined 0.65 percent. South Korea’s Kospi dipped 0.17 percent.
China's factory activity better than expected in September
China’s factory activity fared better than expected in September, stabilising after a slump in August, a business survey showed on Thursday, with a smaller decline in production countering an uptick in demand.
The Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) rose to 50.0 in September from 49.2 the month before, versus analyst expectations of 49.5 in a Reuters poll. The 50-mark separates growth from contraction on a monthly basis.
India's external debt up
India's external debt rose modestly by 2.1 percent year-on-year to $570 billion as of March-end 2021, notwithstanding the COVID-19 pandemic, according to the finance ministry. External debt-to-GDP ratio rose marginally to 21.1 percent from 20.6 percent as at end-March 2020.
Reserves to external debt ratio, however, increased to 101.2 percent from 85.6 percent during the same period, thereby consolidating the country's position as a net creditor to the world, as per the status report on India's external debt released by the ministry.
Swing pricing in bond funds
To protect the interests of debt fund investors from large redemptions by other investors, Securities Exchange Board of India (SEBI) has introduced swing pricing in bond funds. The regulator has announced the swing pricing framework for bond funds units except overnight funds, gilt funds and gilt funds with 10-year maturity schemes.
SEBI had floated a consultation paper on swing pricing in July 2021. After incorporating the feedback on the consultation paper and deliberations in the Mutual Fund Advisory Committee (MFAC) the regulator has decided to implement the swing pricing only on the redemptions of Rs 2 lakh and more from the scheme at a PAN level. The swing pricing – partial for normal times and full swing pricing for times of market dislocations- will be implemented from March 1, 2022.
Oil prices slip
Oil prices slipped on Wednesday after US crude inventories rose by more than anticipated, even as OPEC plans to maintain its deliberate approach to adding supply to the market.
US crude stockpiles unexpectedly rose last week following a strong start to the week in oil prices amid global energy crunch in natural gas.
Brent crude settled down 45 cents to $78.64 a barrel, after reaching $80 on Tuesday. US oil prices ended down 46 cents, or 0.6 percent, to $74.83 a barrel.
India expects double-digit growth in current year
The Indian government plans to focus on fiscal consolidation while pushing up state capital spending to bolster growth prospects, a top government economic adviser said on Wednesday.
India expects to achieve double-digit growth in the current year and economic reforms are likely to push future growth prospects, Krishnamurthy Subramanian, chief economic adviser at the finance ministry, said at a virtual summit of US and Indian industry captains.
India is among key markets globally with cross border real estate investment projections of $2.5 billion in the year 2022, Knight Frank’s Active Capital report 2021 has said. US, UK, Germany, France, and the Netherlands are forecast to be top destinations for cross border real estate investment in 2022.
One stock – Sun TV Network – is under the F&O ban for September 30. 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.
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