On Friday last week, Indian share markets extended losses as the session progressed and ended deep in the red.
Benchmark indices slumped as all sectors came under pressure. Indian markets lost Rs 4.8 tn as markets went into tailspin amid fears of global recession.
Key indices crumbled as heavy selling pressure was seen in energy, finance, telecom, and realty stocks.
At the closing bell on Friday, the BSE Sensex stood lower by 1,021 points (down 1.7%).
Meanwhile, the NSE Nifty closed down by 302 points (down 1.7%).
Divi’s Laboratories, Sun Pharma and Tata Steel were among the top gainers.
Power Grid Corporation, Apollo Hospital, and Hindalco on the other hand, were among the top losers.
The broader markets ended on a negative note. The BSE Midcap was down 2.3% and the BSE SmallCap index ended lower by 1.9%.
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All sectors ended on a negative note with stocks in the finance sector, realty sector, telecom sector and energy sector witnessing most of the selling.
Defensive sectors were also not spared as pharma stocks and FMCG stocks also fell.
Shares of Page Industries, ITC, and Tube Investments of India hit their 52-week high on Friday.
The rupee was trading at 81.01 against the US$ on Friday.
Gold prices for the latest contract on MCX were trading down by 0.8% at Rs 50,000 per 10 grams, at the time of Indian market closing hours on Friday.
Gold price is falling for a long time now and the question on everyone’s mind is when will the safe haven get its mojo back.
At 7:45 AM today, the SGX Nifty was trading down by 160 points, or 1% lower at 17,170 levels.
Indian share markets are headed for a gap-down opening today following the trend on SGX Nifty.
Speaking of stock markets, chartist Brijesh Bhatia does a complete analysis of today’s market and what to expect today, in the video below.
Top Buzzing Stocks Today
Vodafone Idea will be among the top buzzing stocks today.
As per a leading financial daily, Vodafone Idea is facing trouble finalising deals for 5G equipment supplies and tower tenancies with vendors asking the cash-strapped telco to clear their 4G-related dues and fork out advance payments for fresh contracts.
Vodafone Idea owes around Rs 30 bn to Finnish equipment supplier Nokia and up to Rs 10 bn to Sweden’s Ericsson in 4G-network-related dues.
The telecom joint venture between UK’s Vodafone Group Plc. and India’s Aditya Birla Group (ABG) also owes around Rs 70 bn to tower company Indus Towers and Rs 20 bn to American Tower Co. (ATC).
Sterling and Wilson Solar share price will also be in focus today.
Sterling and Wilson Solar Solutions (SWSS), the US subsidiary of Sterling and Wilson Solar (SWSL), has signed a Memorandum of Understanding (MoU) with Nigerian government, along with its consortium partner Sun Africa, for setting up of solar PV power plants aggregating 961 MWp.
Market participants will also track shares of IOC.
Indian Oil Corp (IOC) is planning maintenance at its 300,000 barrels per day (bpd) Panipat refinery in northern India, which includes a shutdown of a naphtha hydrocracker for about 80 days and half of its crude processing for about a month.
Poll Shows RBI to Raise Rates
The Reserve Bank of India (RBI) is set to raise interest rates again this week with a slim majority of economists in a Reuters poll expecting a half-point hike and some others expecting a smaller 35 basis point rise.
There was a wide consensus that the RBI will raise rates at the 30 Sept meeting, although there were differences over how far it would go with inflation accelerating to 7% and with the rupee depreciating.
Last week, the US Fed delivered its third straight 75 basis point hike and has shown no signs of slowing down, sending the dollar index to a new two-decade high and more downward pressure on the rupee.
Check out our editorial on how a repo rate hike impacts the stock market.
Tata Steel Merger
Last week, Tata Steel’s board approved merging six subsidiaries and an associate company into it, seeking to consolidate the metals and mining business and simplify the holding structure.
A Tata Steel statement said the consolidation would enhance management efficiency, drive sharper strategic focus and improve agility across businesses.
The consolidation of downstream operations would enable growth in value-added segments by leveraging Tata Steel’s nationwide marketing and sales network.
Following these developments, shares of Tata Steel Long Products slumped up to 10%, while Tinplate was down 6%. TRF fell 5% and Tata Metaliks also lost 3%.
The remaining three companies – The Indian Steel & Wire Products Limited, Tata Steel Mining Limited and S&T Mining are not listed.
The selloff in the Tata group stocks can be attributed to the share swap ratio as part of the amalgamation scheme.
Tata Steel will give 67 shares for every 10 shares of Tata Steel Long Products and 17 shares for every 10 shares of TRF.
In the case of Tinplate, Tata Steel will give 33 shares for every 10 shares. And for Tata Metaliks, Tata Steel will give 79 shares for every 10 shares.
The merger is likely to be completed by the end of FY24 following shareholder and regulatory approvals.
Nestle’s Big Bet on India
Global food & beverage conglomerate Nestle SA plans to invest Rs 50 bn in India in the next three-and-a-half years by 2025, its CEO Mark Schneider said on Friday.
The move will help the company to accelerate its core business in the country and leverage new opportunities for growth.
The investment would be on capex, setting up new plants, acquisitions and expansion of the product portfolio of the company.
Nestle, which currently operates 9 plants across India is also looking at new locations to set up manufacturing capacity.
To know what’s moving the Indian stock markets today, check out the most recent share market updates here.
For information on how to pick stocks that have the potential to deliver big returns,
Indian Share Market Update: Top Gainers and Losers
What else is happening in the markets today? Dig in…
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( With inputs from equitymaster)