Sensex, Nifty Fall For Fourth Day Dragged By Metals, Auto, Realty, Power Stocks; FPIs Stay Net Sellers
Live updates from India's equity markets on Sept. 26.
Closing Bell
India' stock benchmarks declined for the fourth day in a row, dragged by metals, auto, realty, power, utilities stocks as the post-Fed rate hike sell-off extended.
The Sensex lost over 950 points (1.64%) to 57,145.22. The 30-stock gauge fell over 1060 points to an intraday low of 57,708.38. The Nifty 50 declined 1.8% (311.05 points) to 17,016.30. The 50-stock gauge fell below 17,000 in intraday trade for the first time in two months.
Today 43 stocks fell, seven rose. Tata Motors, Hindalco, Adani Ports, Maruti Suzuki and Eicher Motors were the top laggards.
Asian Paints, HCL Tech, Infosys, Divi's Labs, Ultratech Cement, TCS and Wipro were the Nifty 50 stocks that closed with gains.
The broader indices underperformed their larger peers with MidCap gauge losing 2.8% and SmallCap measure shedding over 3.3%. Barring Information Technology and Teck indices, all the other 17 sectoral gauges declined. Metal, Power, Realty, Utilities lost over 4% while Auto measure fell nearly 4%.
The market breadth is skewed in favour of bears. About 657 stocks fell, 2,927 rose and 123 remained unchanged.
Foreign Investors Net Sellers
Overseas investors sold the highest worth of Indian equities in 14 weeks and stayed net sellers for the fourth straight day on Monday.
As per data from the National Stock Exchange, foreign portfolio investors net sold equities worth Rs 5,101.3 crore today.
Domestic institutional investors, remained net buyers for the fifth straight day and bought equities worth Rs 3,532.18 crore today, making it the highest worth of net buying by DIIs in 14 weeks too.
Institutions have net sold Rs 6,038.46 crore worth of equities this month so far and Rs 39,521.54 crore worth of Indian equities till date in 2022.
10-Year Bond Yield Falls In The Final Hour
Yield on the 10-year bond rose 3bps to 7.42% during the session.
The 10-year bond yield fell in the final hour and closed 3bps lower at 7.36%.
Source: Bloomberg
Rupee Slides To Fresh Low
Indian currency fell 67 paise (0.83%) to record low 81.66 against the U.S. dollar, during the session.
The Rupee ended the session at 81.63, a fresh closing low.
Rupee has depreciated against the greenback in each of the last four sessions.
Source: Bloomberg
Power Grid Erases Intraday Losses
Shares of Power Grid erased intraday losses and gained over 3.3%.
Trading volume is 11.1 times the 30-day average. The relative strength index is at 27, suggesting it may be oversold.
The volatility in the stock comes after CNBC-TV18 reported that Finance Ministry said that there was no proposal for Power Grid buying stak in REC.
On Thursday, Jefferies noted reports indicating that Power Ministry is in talks with Power Grid to purchase PFC's 52.63% stake (Rs 14,400 crore) in REC. The global brokerage firm said PFC should ideally finance power projects through stake sale proceeds, and added Power Grid had sufficient cash and reiterated positive view on the 1-year and medium-term transmission spend growth story.
However, Jefferies observed that the purchase of PFC's stake in REC was a near-term dampener and could adversely impact FY23-25E EPS by 3-5%.
The stock fell 8% on Friday followed by 8% today ahead of the reversal.
Of the 25 analysts tracking the company, 19 maintain 'buy', five suggest 'hold' and one recommends 'sell'. The return potential of the stock is 19.2%.
Source: Bloomberg, CNBC-TV18
