Nifty50: 17,618 ▼-93 (-0.5%)
Sensex: 59,126 ▼-286 (-0.4%)
The markets declined for the third consecutive day. Of the Nifty50 pack, 40 stocks ended in the red indicating broad-based selling pressure.
Among the Nifty sectoral indices, Realty (+1.4%) and PSU Bank (+0.8) were top gainers. Whereas, Media (-0.9%) and Metal (-0.8%) declined the most.
| Top gainers | Today's change |
| Bajaj Finance | ▲ 2.1% |
| Bajaj Finserv | ▲ 2.1% |
| Tata Motors | ▲ 1% |
| Top losers | Today's change |
| Power Grid | ▼ 2.8% |
| Asian Paints | ▼ 2.2% |
| Shree Cement | ▼ 2% |
For more updates on F&O, click here.
Here are the top stories of the day.
Blue Dart to raise shipment price
South Asia's leading logistics company announced price increase in it’s average shipment charges by 9.6% year-on-year basis, effective from January 1, 2022. This price hike is a little lower compared to the 9.8% hike taken for 2021.
The management has said that the price rise is to offset inflation, fuel cost fluctuations, and other expenses related to compliance for the workforce across 35,000+ locations. The shares of the logistics company rose 1.5% today.
IOB out of PCA framework
Shares of Indian Overseas Bank (IOB) jumped 12.2% after the Reserve Bank of India (RBI) lifted the restrictions related to the Prompt Corrective Action (PCA) framework. Under this framework, the RBI imposes curbs on banks having weak financial performance.
The RBI levied PCA on Indian Overseas Bank in 2015. The bank has now also furnished a written commitment with regards to its compliance for minimum regulatory capital norms, net NPA, and leverage ratio on an ongoing basis. Meanwhile, shares of other PSU banks such as Maharashtra bank (+6.6%), Central bank (+3.7%), and Canara bank (+2.7%) also saw high investor interest.
Sterling and Wilson Solar promoters repay loan
Sterling and Wilson Solar has said that its promoters have repaid the full outstanding loan of ₹2,563 crore to the company. The board had given an extension to promoters till 30 September for facilitating the funds for repaying the loan.
Meanwhile, the company has also said that it received an order worth ₹1,500 crore from a leading developer of energy assets. While its shares were down 3.8% today they have risen by 28% this month.
Closing bell
Although the markets fell today, they continue to move within Tuesday’s trading range. At this point, it can be said that markets are on tenterhooks. This is because, break below Nifty50’s Tuesday’s low i.e. 17,576 will indicate that the recent fall is extending further. However, fresh buying from here would suggest that recent fall was just profit booking and markets continue to be in the broader uptrend. Meanwhile, the manufacturing PMI, which will be released tomorrow, will give clues about the activity in the manufacturing sector. The street expectation points toward expansion of manufacturing activity in September.
Good to know
What is a net debt?
Net debt is calculated by subtracting cash and liquid assets from the overall debt. A negative net debt shows that a company has enough cash to cover its debt. Investors and analysts look at this metric to understand the financial stability of a company.
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Investment in securities markets is subject to market risks; please read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results. Details provided in the above newsletter are for educational purposes and should not be construed as investment advice by RKSV group. Investors should consult their investment advisor before making any investment decision.