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Benchmark equity indices closed lower for the second week in a row as investors were concerned over elevated oil prices, higher inflation and rising bond yields. For the week, the Sensex fell 0.27% to 65,828.41 and the broader Nifty 50 index lost 0.18% to close at 19,638.30. For the month, the Nifty 50 index was up 2% and the Sensex gained 1.54%.
Broader markets outperformed benchmark indices. The BSE Midcap index gained 1.23% to close at 32,340.71 and the BSE Smallcap index gained 1.36% to close at 37,562.23.
Top gainers among Nifty sectoral indices were Healthcare [2.8%], Realty [2.52%], Pharma [2.35%], Metal [1.15%], and PSU Bank [0.83%]. Top losers were IT [-3.41%], Media [-1.04%], Consumer Durables [-0.52%], and Auto [-0.31%]
During the week, FIIs were net sellers for Rs 8430.8 crore and DIIs were net buyers for Rs 8143.4 crore in the cash segment. During the month of September 2023, FIIs were net seller for Rs 26,692.16 crore and DIIs were net buyers for Rs 20,312.65 crore in the cash segment.
The Indian rupee rose 15 paise to close at Rs 83.04 against the US dollar on Friday. During the week, international crude oil prices touched a high of $95 per barrel, before easing on Friday.
Company News
Larsen & Toubro (L&T): The Heavy Civil Infrastructure business vertical of L&T construction has won a mega order from Mumbai Metropolitan Region Development Authority (MMRDA), for the design and construction of an Underground Road tunnel Project between Orange gate, Eastern Free Way to Marine Drive Coastal Road at Mumbai. The major scope of work for project comprises of design & construction of twin road tunnels, using Tunnel Boring Machines (TBMs), connecting these tunnels to the existing elevated Eastern Freeway at Orange Gate near its southern terminal through transition ramps and to the Marine drive at Mumbai. Shares of the company rose 1.61% in intraday trading to hit a record high of Rs 3058.35 per share.
Infosys: The IT bellwether has announced a collaboration with Microsoft to jointly develop industry-leading solutions that leverage Infosys’ Topaz, and American tech giant’s Azure OpenAI Service and Azure Cognitive Services. Both organisations are bringing together their artificial intelligence (AI) capabilities to enhance enterprise functions with AI-enabled solutions across multiple industries.
Separately, Infosys announced the launch of Infosys Cobalt Airline Cloud (ICAC), a first-of-its-kind industry cloud offering designed for commercial airlines to help them accelerate their digital transformation journey.
Multi Commodity Exchange of India (MCX): Shares of the company plunged nearly 9% in intraday trading after the Securities and Exchange Board of India ordered the exchange to keep proposed Go-Live of commodity derivatives platform in abeyance. The development comes after a writ petitions filed by Chennai Financial Markets and Accountability on the commodity derivatives platform is pending before Madras High Court for disposal. However, MCX can continue to conduct the mock tests on the platform pending further directions in the matter from SEBI. The shares recouped some losses to ended 2.23% lower to Thursday’s closing price.
Indian Oil Corporation (IOC): The company’s board has approved formation of 50:50 joint venture company between the company or its subsidiaries and EverEnviro Resource Management. Further, the company also received the board’s nod for formation of 50:50 joint venture company between the company or its subsidiaries and GPS Renewables. Both the JV companies will be involved in setting up compressed biogas plants, subject to necessary regulatory approvals.
Reliance Industries, Airtel, Vodafone Idea: RIL’s Jio gained 39.1 lakh users in July as against a net addition of 22.7 lakh users in June. Airtel gained 15.2 lakh users in July compared with a net addition of 14.1 lakh users in June. Vodfone Idea lost 13.2 lakh users in July as against a net lost of 12.9 lakh users in June. Jio’s market share stood at 38.6%, Airtel’s market share stands at 32.74%, and Vodafone Idea’s market share was at 19.9%.
Adani Green Energy, Adani Energy Solutions: Abu Dhabhi-based International Holding Company have entered into a definitive agreement with a buyer to offload their investments in Adani Green Energy and Adani Energy Solutions (formerly known as Adani Transmission).
Ashok Leyland: The bus and truck manufacturer announced that it has secured an order for 1,282 fully built buses from Gujarat State Road Transport Corporation (GSRTC). Under the terms of the order, Ashok Leyland will deliver 55-seater fully assembled BS VI diesel buses in a phased manner. These buses will feature the advanced iGen6 BS VI technology, featuring a robust 147 kW (197 hp) H-series engine, which in turn shall enhance safety and comfort, and reduce the overall cost of ownership (TCO).
Apollo Hospitals Enterprise: The company’s wholly owned subsidiary, Apollo Multispecialty Hospitals, has acquired the assets relating to a partially built hospital in Sonapur, Kolkata, with a total capacity of 325 beds. The company has acquired the assets from Future Oncology Hospital and Research Centre for a total consideration of Rs 102 crore and the acquisition is being fully funded through internal accruals. The first phase of the hospital with 225 beds built over 1.75 lakh square feet will be commissioned in the next 12 months.
Vedanta: The company plans to split its units into newly listed entities, Bloomberg reported citing sources. The official announcement regarding the split will come in a few days. The company’s businesses including aluminium, oil and gas, iron, and steel will be listed as separate, pure-play entities as part of the move.
Dr Reddy’s Laboratories: The company’s board has approved the incorporation of a wholly-owned subsidiary with an authorized and paid-up share capital of Rs 10 lakhs. The proposed subsidiary will carry on the business related to medical nutrition, specialized nutrition, nutraceuticals, vitamins, minerals, herbals and supplements, and related foods or drugs.
IndusInd Bank: The lender announced a multi-year association with the International Cricket Council (ICC) as a Global Partner for the highly awaited ICC Men’s Cricket World Cup 2023 and future ICC Men’s events. As a Global Partner for ICC Men’s Cricket World Cup 2023, IndusInd Bank will access an array of exciting activities and promotions for its customers, employees and for cricket fans.
Economy News
India’s current account deficit (CAD) narrowed to USD 9.2 billion (1.1% of GDP) in Q1FY24, from USD 17.9 billion (2.1% of GDP) in Q1FY23, but it was higher than USD 1.3 billion (0.2% of GDP) in the preceding quarter, according to data released by the Reserve Bank of India. The data also showed that net foreign direct investment dropped to USD 5.1 billion in the reported quarter from USD 13.4 billion a year earlier. Net foreign portfolio investment recorded inflows of USD 15.7 billion in Q1FY24 as against net outflows of US$ 14.6 billion in Q1FY23.
Global Markets
Wall Street ended lower as rising oil prices stoked fresh concerns of higher inflation and increasing probability of a the US government shutdown dampened investors’ optimism. For the week, the S&P 500 fell 0.74%, the Dow Jones Industrial Average lost 1.34%, and the Nasdaq gained 0.06%. For the month, the S&P 500 tanked 4.87%, the Dow Jones Industrial Average tumbled 3.49%, and the Nasdaq plummeted 5.81%. Meanwhile, the yield on the benchmark 10-year US Treasury note peaked above 4.6% on Wednesday.
On the economic front, the real US gross domestic product (GDP) expanded at an annual rate of 2.1% in the second quarter, the government data’s final estimates showed on Thursday (28 September 2023). The core personal consumption expenditures (PCE) index, which excludes volatile food and energy components, increased 3.9% YoY in August as against 4.3% (upwardly revised) annual inflation rate clocked in July. On a MoM basis, the core PCE inflation stood at 0.1%, which was below expectations. Orders for durable goods gained 0.2% last month, while July data was revised lower to show orders for durable goods fell 5.6% instead of 5.2% as previously reported. Orders increased 4.2% year-on-year in August.
Japan’s stock markets closed in the red, with the Nikkei 225 index falling 1.7% and the broader Topix index losing 2.2% due to negative global cues after oil prices soared. Meanwhile, the Japanese government announced new economic stimulus plan which would focus on capital investment in new growth fields such as batteries and semiconductors. The Japanese Yen traded in the JPY 148 range against the US dollar. The yield on the 10-year Japanese government bond (JGB) rose to 0.76% from 0.74% at the end of the previous week.
Chinese stocks fell during the holiday-truncated week as investors’ optimism was dented due to lack positive trigger with respect to the country’s economy. For the week, the CSI 300 index fell 1.32% and Shanghai Composite index lost 0.7% and the Hang Seng index tanked 1.37%.
Stock markets in mainland China were closed Friday and will remain to be closed next week also on account of 10-day holiday for the Mid-Autumn Festival and National Day. Chinese markets will reopen on October 9.