References trade at minor discounts; European markets retreat slightly

Major equity indices traded with minor declines in afternoon trading. The Nifty traded above the 17,200 level. Stocks across all sectors declined, with consumer staples, consumer durables, media and real estate stocks falling the most.

As of 1:26 p.m. IST, the barometer index, the S&P BSE Sensex, was down 293.66 points or 0.50% at 57,897.63. The Nifty 50 index lost 104.80 points or 0.61% to 17,209.85.

In the broader market, the S&P BSE Mid-Cap Index was down 1% while the S&P BSE Small-Cap Index was down 0.60%.

The scope of the market was small. On BSE, 1,315 stocks rose and 2,170 stocks fell. A total of 152 stocks remained unchanged.

Primary market:

Tracxn Technologies’ initial public offering (IPO) has received bids for 23.90 lakh of shares against 2.12 crores of shares on offer, according to stock market data as of 1:18 PM IST on Monday (October 10, 2022). The issue was subscribed 0.11 times.

The issue opened for auction on Monday (October 10, 2022) and will close on Wednesday (October 12, 2022). The IPO price range is set at Rs 75-80 per share. An investor can bid for a minimum of 185 shares and multiples thereof.

Actions in the spotlight:

JSW Steel lost 0.99%. The Mumbai-based steel company said the group’s combined crude steel output for the second quarter of FY23 was 5.68 million tonnes, registering 12% year-on-year growth.

Tata Motors fell 4.02%. Tata Motors said Jaguar Land Rover retail sales in the second quarter were 88,121 vehicles, an increase of 9,296 units or 11.8% from the previous quarter ending June 30, 2022. Sales retail, however, were 4.9% lower compared to the second quarter of FY22.

Hero MotoCorp slips 2.65%. The two-wheeler major has launched the Vida V1 electric scooter. The ex-showroom prices of two variants of the electric scooter, Vida V1 Plus and Vida V1 Pro, have been set at Rs 1.45 lakh and Rs 1.59 lakh respectively.

Power Grid Corporation of India (PGCIL) rose 0.33%. PGCIL announced on Friday that its wholly owned subsidiary, Powergrid Bhind Guna Transmission, has commissioned a transmission project in Madhya Pradesh.

One 97 Communications (Paytm) jumped 4.32%. The company’s lending activity grew 224% year-on-year (YoY) in the quarter ending September 2022. The number of loans disbursed through the company’s platform soared 224% year-on-year to reach 9.2 million loans in the quarter ending September 2022, while the value of disbursed loans increased by 482% year-on-year to reach 7,313 crore rupees ($894 million).

IDBI Bank jumped 9.13%. The government has launched a tender to privatize the bank. The Government of India (Gol) has initiated the process of strategic divestment of IDBI Bank with the transfer of management control. The government has published a preliminary information memorandum to invite potential buyers to express their interest. The Government of India, acting through the Department of Investment and Public Assets Management (DIPAM), engaged KPMG India as legal advisors to provide advisory services and manage the transaction.

The government proposes to sell 30.48% of its stake in the bank, and Life Insurance Corporation of India (LIC) will buy 30.24%, totaling 60.72% of the share capital of IDBI Bank, as well as the transfer of the management control to the lender. Currently, GoI owns 45.48% and LIC owns 49.24% of the total share capital of IDBI Bank.

Global Markets:

Stocks in Europe and Asia fell on Monday after a surprise drop in unemployment in the United States quashed any hint of a pivot on policy tightening ahead of an inflation reading that is expected to see core prices increase again.

Chinese investors are coming back from a week-long break. Markets in Japan, South Korea, Taiwan and Malaysia are closed today for the holidays.

U.S. stocks fell on Friday after data showed the unemployment rate fell in September, raising fears the Federal Reserve will continue to hike rates aggressively.

The U.S. economy added 263,000 jobs last month, showing a steady slowdown from the blistering pace of 2020 and 2021, the Labor Department said in the closely watched report. The unemployment rate slipped two tenths of a percentage point to 3.5%.

Geopolitical tensions added to the uncertainty as markets waited to see how the Kremlin might react to the explosion that hit Russia’s only bridge to Crimea.

Later this week, the Bank of Korea will announce its decision on the benchmark interest rate, Singapore is expected to announce its GDP estimate for the third quarter and China will release inflation data.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)