The key equity indices extended losses and hit the day's low in morning trade. The Nifty traded tad above the 19,250 level. Bank stocks witnessed significant selling pressure.
The barometer index, the S&P BSE Sensex, was down 416.33 points or 0.64% to 64,836.01. The Nifty 50 index lost 131.55 points or 0.68% to 19,255.15.
In the broader market, the S&P BSE Mid-Cap index fell 0.69% while the S&P BSE Small-Cap index declined 0.45%.
The market breadth was weak. On the BSE, 1284 shares rose and 1983 shares fell. A total of 164 shares were unchanged.
Investor sentiment took a hit after the RBI, in its latest minutes, hinted that further rate hikes could be a possibility due to re-emerging of inflationary pressures. Although, RBI expects vegetable prices shocks to calm ahead, however, it sees risks to the food and the overall inflation outlook from El Nino conditions, volatile global food prices and skewed monsoon distribution. And hence, RBI said these factors warrant a close monitoring.
Buzzing Index:
The Nifty Bank index fell 0.85% to 44,118.55. The index had advanced 1.14% in the past two sessions.
IndusInd Bank (down 1.47%), Punjab National Bank (down 1.43%), Axis Bank (down 0.77%), State Bank of India (down 0.62%) and ICICI Bank (down 0.6%) were the top losers.
Among the other losers were HDFC Bank (down 0.52%), Bank of Baroda (down 0.5%) and Kotak Mahindra Bank (down 0.28%).
On the other hand, Bandhan Bank (up 1.28%), Federal Bank (up 0.92%) and AU Small Finance Bank (up 0.7%) moved up.
Numbers to Watch:
The yield on India's 10-year benchmark federal paper rose 0.10% to 7.200 from its previous close of 7.193.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.6900, compared with its close of 82.5625 during the previous trading session.
MCX Gold futures for 5 October 2023 settlement fell 0.16% to Rs 58,716.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.26% to 104.25.
The United States 10-year bond yield advanced 0.33% to 4.253.
In the commodities market, Brent crude for October 2023 settlement added 30 cents or 0.36% to $83.66 a barrel.
Stocks in Spotlight:
DB Realty fell 2.62%. The company sold its entire stake in unit Royal Netra Constructions for Rs 2.55 crore to Man Infraconstruction and Platinumcorp Constructions.
Garden Reach Shipbuilders & Engineers lost 1.01%. The company signed an MoU with DEMPO Group, Goa, to launch a collaboration model to build commercial vessels in their shipyards in Goa and Bhavnagar, Gujarat.
Astra Microwave Products jumped 5.09%. The company got orders worth Rs 158 crore from ISRO, DRDO, and DPSU for the supply of satellite sub-systems, airborne radar, sub-systems of radar, and EW projects.
Prakash Industries slipped 2.60%. The company received the Environment Ministry's approval for the Bhaskarpara coal mine in Chhattisgarh, which will reduce costs and boost revenue through the open market sale of coal.
ADF Foods advanced 0.53%. The company set 11 September 2023 as the record date for the stock split in the ratio of 5:1.
Reliance Industries (RIL) shed 0.47%. RIL and Oberoi Hotels and Resorts will jointly manage three properties across India and the UK. Properties include Anant Vilas in Mumbai, Stoke Park in the UK, and a new project in Gujarat.
Bharat Electronics (BEL) gained 1.27%. The Defence Acquisition Council (DAC) has accorded 'Acceptance of Necessity' for the procurement and installation of an electronic warfare (EW) suite on Mi-17 V5 helicopters. The EW suite will be procured from BEL.
Shoppers Stop slumped 9.58%. The company's MD and CEO, Venu Nair, has resigned effective 31 August 2023 due to personal reasons. Homestop chief Kavindra Mishra has been promoted as executive director and CEO for a period of three years, effective 1 September 2023.
Global Markets:
The US Dow Jones index futures were up 45 points, indicating a positive opening in the US stocks today.
Asia-Pacific markets fell across the board as investors prepared for signals on U.S. monetary policy from central bankers' comments at the Jackson Hole meeting on Friday, including a speech by U.S. Federal Reserve chair Jerome Powell.
In Asia, the core inflation rate for Japan's capital Tokyo came in at 2.8% for August, slightly below the market expectation of 2.9%. This is the lowest growth rate seen in Tokyo's core inflation since September 2022.
Overall inflation for Tokyo came in at 2.9%, lower than the 3.2% seen in July.
On Thursday in the U.S., all three major indexes fell as the tech fueled rally ended, with the Dow Jones Industrial Average seeing its worst day since March, while the S&P 500 and the Nasdaq Composite saw their biggest one-day loss since Aug. 2.
The Dow closed 1.08% lower and the S&P 500 lost 1.35%. The Nasdaq saw the largest loss, shedding 1.87%.
All of the S&P sectors were in the red on Thursday, with information technology, consumer discretionary and communication services being the biggest laggards of the market. Financials made a short-lived recovery in the afternoon, rising just above flat.
Philadelphia Federal Reserve President Patrick Harker has reportedly said on Thursday that he doesn't see the need for further interest rate hikes and could see cuts happening in 2024 depending on data.
Initial jobless claims last week fell more than expected, the Labor Department reported Thursday. First-time filings for unemployment benefits totaled 230,000 for the period ended Aug. 19, a decrease of 10,000 from the previous week and less than the Dow Jones estimate for 240,000.
Continuing claims, data for which runs a week behind, totaled 1.702 million, a slight decrease but a bit higher than the widely reported market estimate of 1.69 million.
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