Business News Highlights: Stock Market Closes In Red, Nifty Down Below 19,750 Level
Business News Highlights: Please follow this space for all the breaking news and latest updates from the Stock Market, economy and corporate world.
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Business News Highlights: Hello and welcome to ABP Live's Business LIVE blog. Please follow this space for all the breaking news and latest updates from the Stock Market, economy, and the corporate world.
On Wednesday, the key equity benchmarks, Sensex and Nifty, saw the second consecutive day of losses, primarily due to the selling of heavyweight stocks like Reliance and HDFC Bank. Analysts have attributed this downturn to a broad sell-off in global markets, which exerted downward pressure on domestic markets.
Furthermore, there was a sense of caution among investors ahead of the forthcoming announcement from the US Federal Reserve, which contributed to the overall negative sentiment. At the closing bell, the S&P BSE Sensex had dropped by 796 points, equivalent to 1.18 per cent, settling at 66,800.84. Similarly, the Nifty saw a decline of 231.90 points, or 1.15 per cent, closing at 19,901.40.
September 21 trading session will mark the weekly options expiry for Nifty50 contracts.
The US Federal Reserve after a two-day Federal Open Market Committee (FOMC) meeting left the benchmark interest rates unchanged at 5.25 per cent - 5.50 per cent, a 22-year high.
Jefferies' Mahesh Nandurkar, as per a CNBC TV18 report, said that while political continuity is expected in 2024, rising oil prices are creating fiscal pressures. This may lead to a reallocation towards social spending, potentially increasing pressure on public sector disinvestment. Jefferies has adjusted its investment strategy accordingly.
In terms of technical analysis, experts noted that the Nifty 50 faced resistance at 19,900 and exhibited signs of temporary oversold conditions, possibly leading to rangebound trading in the near future.
IPO Updates
EMS Limited, an infrastructure company specializing in sewerage solutions, will be listing on September 21. The company's initial public offering (IPO) received substantial investor interest, with a subscription rate of 75.28 times. Qualified institutional buyers subscribed 153.02 times their allotted quota, while high net-worth individuals subscribed 82.32 times, and retail investors subscribed 29.79 times their allocated quota.
Hi-Green Carbon Ltd., the flagship company of Radhe Group of Energy with a price band of Rs 71-75 per share will be open for public subscription from September 21 to September 25. At the upper end of the price band, the IPO is expected to raise up to Rs 52.80 crore. The company's shares will be listed on NSE Emerge.
Mangalam Alloys Limited, a stainless steel and special alloy producer, is set to go public on September 21. The company aims to raise Rs 54.91 crore, and its shares will be listed on the NSE EMERGE platform.
Centre Mandates Weekly Sugar Stock Disclose For Traders/Wholesalers, To Combat Hoarding, Keep Prices In Check
The government has made it mandatory to disclose weekly sugar stocks by Traders/Wholesalers, Retailers, Big Chain Retailers, Processors.
"This mandatory weekly stock disclosure for these entities is another proactive step in Government of India's efforts to maintain a balanced and fair sugar market. By preventing hoarding and speculation, GoI is aiming to ensure that sugar remains affordable for all consumers. This proactive measure empowers regulatory authorities to closely monitor stock levels and take prompt action against any potential market manipulation," said the Ministry of Consumer Affairs, Food & Public Distribution.
Bank of England Pauses Interest Rate Hikes
The Bank of England on Thursday decided to keep its main interest rate unchanged after almost two years of consecutive rate hikes, responding to an unexpected drop in inflation, reported Associated Press
"At its meeting ending on September 20 2023, the MPC voted by a majority of 5–4 to maintain Bank Rate at 5.25 per cent. Four members preferred to increase Bank Rate by 0.25 percentage points, to 5.5 per cent. The Committee also voted unanimously to reduce the stock of UK government bond purchases held for monetary policy purposes, and financed by the issuance of central bank reserves, by £100 billion over the next twelve months, to a total of £658 billion," the Bnak said in its statement
Sweden's Central Bank Raises Key Interest Rate As Inflation Persists
Sweden's central bank on Thursday raised its key interest rate by a quarter point to 4 per cent, citing persistent inflationary pressures, despite a recent decrease in inflation, reported PTI. Inflation is slowing, especially in energy and food prices, but service costs are still climbing rapidly. The Swedish krona is weak, reaching historic lows against the euro and the US dollar. In August, inflation was 7.5 per cent, a drop from July's 9.3 per cent, but well above the central bank's 2 per cent target. Further rate increases are anticipated, according to the bank's forecast.
Govt Extends Mandatory Transport Vehicle Fitness Testing To October 2024
The government has extended the mandatory fitness testing for transport vehicles through a registered Automated Testing Station (ATS) to October 1, 2024, as per a Ministry of Road Transport and Highways (MoRTH) notification.
The ATS system is now the sole method for conducting vehicle fitness testing, and it is required to be operational within the jurisdiction of the registering authority. Initially, the Ministry had announced the mandatory ATS-based fitness testing for heavy goods and passenger vehicles starting April 1, 2023.
Rupee Closes At 83.09 Against US Dollar
The rupee on Thursday closed at 83.09 against the US dollar versus Wednesday’s closing of 83.07.
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