Tracking declines in global markets, benchmark indices fell for a second day as investors panicked over a possible spillover of China’s Evergrande debt crisis and a collapse in commodity prices ahead of the outcome of the US Federal Reserve policy meeting.
The BSE Sensex was down 525 points (down 0.9%) at the closing bell.
Meanwhile, the NSE Nifty closed down 188 points (1.1%).
Hindustan Unilever and ITC were among the top gainers today.
On the other hand, Tata Steel and JSW Steel were among themtop losers Today.
At the time of writing the news, SGX Nifty was trading at 17,379 with a fall of 226 points.
BSE Midcap index and BSE Smallcap index both closed down 1.8%.
Sectoral indices closed on a negative note with the metal sector, realty sector and power sector being the biggest selling pressure.
On the other hand, buying interest was witnessed in FMCG stocks.
Shares of Tata Alexi and KEI Industries today hit their 52-week highs.
Rupee is trading at 73.74 against US Dollar.
Gold prices are trading up 0.4% for the latest contract on MCX ₹46,159 per 10 grams.
Here are 5 factors that caused the Indian stock market to fall today:
China’s Lehmann moment: The fate of Chinese property giant Evergrande, and $300 billion in its liabilities, is in the balance with bond interest payments due Thursday. If it fails to pay, it could have wide-ranging consequences.
Weak global cues: Major Asian stock markets, including Japan, China and Korea, remained closed today on account of a public holiday.
Other Asian stock markets closed on a negative note today.
Concerns about the health of China’s economy and Beijing’s crackdown on tech firms continued to haunt the sector, with stocks in Hong Kong’s Hang Seng index falling more than 3% to their lowest in nearly 11 months.
In addition, US stock futures fell, pointing to an extension of recent losses on Wall Street as concerns about China’s debt-ridden asset sector spread to global markets.
Futures for the S&P 500 dropped 1.2% today after the broad stock gauge posted its biggest two-week drop since February. Futures on the Dow Jones Industrial Average fell 1.7% and contracts on the technology-focused Nasdaq-100 fell 1.1%.
Interest Rate Decision: Central banks in the European Union, Japan, the UK, Switzerland, Sweden, Norway, Indonesia, the Philippines, Taiwan, Brazil, South Africa, Turkey and Hungary will meet this week, creating some uncertainty.
Norges Bank is expected to be the first in the G10 to raise interest rates.
consumer sentiment: US consumer sentiment remained stable in early September, but consumer outlook remains gloomy amid a tight bout of inflation, a survey showed on Friday.
Benefit Booking: Apart from the above, losses were also witnessed as the stock market succumbed to profit-booking.
Today, most of the profit-booking was seen in the metal sector, with stocks like Tata Steel and JSW Steel dragging the benchmark index.
We will keep you updated on how these factors evolve and their impact on the Indian stock markets in the coming days. stay tuned!
Lupine tops the news of pharma sector Gulzar Stock Today.
Lupine shares fell 4% on the BSE in intra-day trade today after the pharmaceutical company said its Goa facility has received seven observations from the US drug regulator.
The US Food and Drug Administration (USFDA) inspected its Goa facility between 6-18 September 2021 and closed it with seven observations.
The Goa plant was inspected in March 2017 and a warning letter was received from the USFDA for the facility. The stock had hit a 52-week low ₹856 10 November 2020.
Lupine said in a statement,
We are confident of addressing comments satisfactorily and are committed to complying with Good Manufacturing Practice standards at all our facilities.
Lupine also has the Mandideep, Pithampur and Somerset facility under a warning letter while the Tarapur facility is under an official action indicated status.
These seven observations may affect investor sentiment for the Goa unit, which has been under regulatory watch for four years.
Shares of Lupine have lost 2.7% so far this year, much weaker than the benchmark Sensex, which has gained 23.6% in the same period.
Lupine’s share price ended the day down 2% on the BSE.
Moving on to the news in the IT sector…
Wipro Launches Wipro-Google Cloud Innovation Arena
Wipro has partnered with Google Cloud to launch the Wipro-Google Cloud Innovation Arena in Bangalore to facilitate cloud services, ensure seamless cloud adoption and accelerate innovation.
The innovation hub will provide a unique combination of people, processes and platforms to create the experience of the future for customers globally.
Jason Eichenholz, Senior Vice President, Global Head of Ecosystems and Partnerships, Wipro, said,
We are excited to strengthen our partnership with Google Cloud and leverage the Wipro-Google Cloud innovation sector to enhance cloud capabilities, build solutions across industries, and help our customers streamline their processes and workflows. looking forward to
He said the innovation sector is the latest example of Wipro’s continued commitment to providing customers with world-class resources and support and a vision for their cloud future.
Last week, Wipro bagged a multi-year contract from Kuala Lumpur-headquartered Maxis Broadband, a leading convergence solutions provider to provide IT-managed services for hybrid infrastructure and application maintenance.
Meanwhile, Wipro has joined peers TCS and Infosys in aggressively hiring across India and offering salary hikes in the range of 70-120% to full-stack engineers, as the Covid 19 pandemic has resulted in workloads. -From-home model required. Trained technical manpower.
Share price of Wipro ended the day down 0.4% on the BSE.
Speaking of stocks, here is an example of the four stages that a stock goes through during its life cycle. The cycle repeats itself after the stock has passed through all these stages.
see full image
This cycle defines everything in the markets. If you master this cycle, nothing can stop you from making huge profits.
This article is syndicated from equitymaster.com
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