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IT, Banks, and Metals are the largest drags on the indices, with the Sensex down roughly 900 points and the Nifty above 16,200

Stock Market Live Updates: All sectoral and broad indices are under pressure, with Nifty IT, metals, and banks among the largest losers.

Fitch Upgrades India’s Outlook to Stable and Reaffirms the ‘BBB-‘ Rating

Fitch Ratings has upgraded India’s Long-Term Foreign-Currency Issuer Default Rating (IDR) from Negative to Stable and confirmed the rating at ‘BBB-‘. Despite near-term headwinds from the global commodity price shock, we believe that negative risks to medium-term growth have decreased as a result of India’s quick economic recovery and lessening financial sector weaknesses. We anticipate strong growth in comparison to peers, which will support credit metrics in line with the current grade.

High nominal GDP growth has helped to reduce the debt-to-GDP ratio in the short term, but public finances remain a credit weakness, with the debt ratio broadly stabilising, based on our projection of sustained big deficits. The grade also takes into account India’s external resilience, which is bolstered by strong foreign-exchange reserves, as well as some lagging structural indicators.

Biggest GainerPricesChangeChange%
Asian Paints2,723.9537.15 +1.38%
Biggest LoserPricesChangeChange%
Hindalco385.20-14.55 -3.64%
Best SectorPricesChangeChange%
Nifty FMCG37357.70-83.00 -0.22%
Worst SectorPricesChangeChange%
Nifty IT29171.40-590.10 -1.98%

Market opens at 1:00 p.m.

Indices are down more than 1.5%, with the Sensex down around 950 points and the Nifty down around 16,200.

The Sensex was trading at 54,4372.6, down 952.7 points or 1.72%, while the Nifty was at 16,214.45, down 263.6 points or 1.6%.

Around 1156 shares have increased in value, 2010 shares have decreased in value, and 144 shares have remained steady.

Read Also: Thursday’s Trade Setup: The Top 15 Things to Know Before the Opening Bell

Santosh Meena, Swastika Investmart Ltd.’s Head of Research, on LIC

We believe that India’s neglected life insurance industry is still in its infancy, and that it is best positioned to take advantage of its immense development potential. LIC has a strong brand value, a large network of agents, and an enviable distribution network, to name a few advantages.

Furthermore, the company has plans to address issues such as low VNB margins, market share erosion, and a strong reliance on the agency channel, among others. Furthermore, the company’s initial public offering (IPO) was priced at a Price to Embedded Value of 1.1x, which was already lower than its global and Indian counterparts, and the current drop adds to the value comfort.

Another point we’d like to highlight is that investors should keep in mind that insurance is a long-term business, therefore wealth accumulation and compounding only happen over time. The low set on the first day of trade after the 30-day anchor investor’s lock-in period may operate as strong support for a subsequent advance in quality companies, according to one fascinating finding. On such dips, if the fundamentals are robust, it’s an excellent time to buy.

On the collapse of the LIC shares, Ravi Singh, Vice President and Head of Research, Share India

LIC share prices are expected to fall further, maybe to 700 levels, and investors are encouraged to sell their positions and wait for a change in mood. Investors with a high risk appetite may be able to keep their positions. The business indicators of LIC are predicted to improve steadily in the long run. Long-term gains will be better if you invest at a lower level.

On the decline of the Rupee, Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services

Despite volatility in domestic and global equities and strength in the dollar against its key crosses, the rupee has been quite robust in recent sessions and is stabilising in a small range. On the domestic front, the Reserve Bank of India has been highly active in intervening and reducing rupee volatility.

Read Also: In The face of Rising Oil Price, The Indian Rupee Falls to a New low Against the US Dollar

Crude oil prices have been rising globally, putting upward pressure on inflation and increasing the trade deficit. The dollar is gaining support at lower levels ahead of today’s US inflation data and the FOMC policy announcement, both of which are due for next week. The Fed is expected to keep raising rates and maintaining its hawkish posture. The USDINR (Spot) is expected to trade with a positive bias, gradually approaching 78.50 levels. In the immediate term, 77.20 will continue to operate as a strong support on the downside.

Sugar firms will gain from an increase in the ethanol charge imposed by OMC

Sugar firms will be eligible for a relief plan on ethanol delivered between June and November 2022, according to OMCs. For Ethanol provided via the Sugarcane Juice, B-Heavy Molasses, and C-Heavy Molasses routes, OMCs will pay an additional Rs 1.60/litre, Rs 1.49/litre, and Rs 1.18/litre, respectively. Damaged food-grain ethanol and surplus rice-based ethanol prices have also been raised by Rs 2.3 and Rs 1.4 per litre, respectively.

Experts believe that this will help sugar businesses boost their profitability and reflects the government’s intention to meet its ethanol blending target of 20% by 2025.

At 12 p.m., the market opens.

Indices continue to lose ground, with the Sensex down approximately 850 points and the Nifty down around 16,250.

The Sensex was trading 839.65 points lower, or 1.52%, at 54,480.63, while the Nifty was trading 229 points lower, or 1.39%, at 16,249.1. Around 1163 shares have increased in value, 1950 shares have decreased in value, and 135 shares have remained steady.

India’s GDP is expected to expand 7.8% in FY23, according to Fitch Ratings.

Fitch Ratings expects India’s GDP to rise at 7.8% in FY23, down from its earlier projection of 8.5%, and to grow at about 7% between FY24 and FY27. It anticipates inflation to stay high this fiscal year, at 6.9%, and for the repo rate to rise to 6.15% by FY24.

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