Sensex, Nifty Fall Dragged By I.T., Banking Stocks; FPIs Stay Net Sellers
Live updates from Indian markets on Aug. 29.
KEY HIGHLIGHTS
Closing Bell
India's stock benchmarks nearly halved the day's losses, after getting off to a weak start, as global markets withered following the comments of U.S. Federal Reserve officials at Jackson Hole annual economic symposium. Federal Reserve Chair Jerome Powell hinted that the higher interest rate regime could continue for prolonged period as he reiterated the need for monetary stimulus to arrest the surge in inflation.
Information Technology, Banking and Metal stocks fell the most while FMCG stocks bucked the trend in a weak market.
The Sensex lost over 850 points to 57,972.62. The 30-stock gauge shed nearly 1,500 points to an intraday low of 57,367.47. The Nifty fell nearly 1.5% to 17,312.90. Today 11 stocks rose, 39 fell. Tech Mahindra, Infosys, Wipro, HCL Technologies and Tata Consultancy Services were among the top laggards, while Reliance Industries closed with 0.8% losses in a volatile session in which the company held its 45th AGM.
The broader indices outperformed their larger peers with the MidCap gauge falling 0.8% and SmallCap index losing 0.57%. Barring FMCG, Energy and Oil & Gas, all the other 16 sectoral indices compiled by BSE Ltd. declined with I.T. measure losing over 3.3%.
The market breadth was skewed in the favour of bears. About 1,453 stocks rose, 2,041 fell and 209 remained unchanged.
Foreign Investors Net Sellers
Overseas investors stayed net sellers for the second day in a row. They snapped out of three days of net buying to turn net sellers on Friday, last week.
The longest buying stretch by FPIs in this so far, lasted 13 days from July 28 to August 17.
As per data from the National Stock Exchange, foreign portfolio investors net sold equities worth Rs 561.22 crore today.
While, domestic institutional investors net sold equities worth Rs 144.08 crore today.
Institutions have net bought Rs 11,447.47 crore worth of equities so far in August and net sold equities worth Rs 36,992.22 as yet in 2022.
10-Year Bond Yield Rises
Yield on the 10-year bond rose 6bps to 7.27% before easing off those levels to close at 7.25%.
Source: Bloomberg
Rupee Erases Most Of The Intraday Losses
Rupee depreciated 26 paise to record low 80.13 during the session.
The Indian currency recovered in the final two hours to almost erase all the losses to close at 79.97.
Source: Bloomberg
RIL Swings To Losses In Volatile Session
Shares of Reliance Industries erased gains and is trading nearly 1% lower in a volatile session. The index heavyweight, however has outperformed the stock benchmark Nifty which fell 1.4%.
Trading volume is nearly twice the 30-day average.
Of the 38 analysts tracking the company, 31 maintain 'buy', five suggest 'hold' and three recommend 'sell'. The return potential of the stock is 10.9%.
Source: Bloomberg
RIL Announces New Giga Plant For Power Electronics
Reliance Industries announces new giga factory for power electronics.
Reliance Acrylonitrile production to start next year.
Solar giga plant in Jamnagar to start output in 2024.
Jamnagar solar module factory to have 20 Giga Watt per year by 2026.
Formed partnerships with Lithiumwerks, Faradion and Ambri
Aim to start battery pack production by 2023.
Reliance Industries in talks with partners for collaboration on electrolysers.
Reliance Industries aims to start transition from Grey to Green Hydrogen by 2025.
Reliance Industries to set up 20 Giga Watt solar generation capacity.
REC Solar expanding capacity to 1.8 Giga Watt in Singapore.
Reliance aims to raise battery pack producing capacity to 50 GWh by 2027.
