SENSEX down 300 pts, NIFTY50 hovers around 24,250; Va Tech Wabag crashes over 17% as Saudi order gets cancelled

Market participants were cautious ahead of the Fed's rate decision, due today.

At 10:15 AM, the S&P BSE SENSEX was trading at 80,394.05, down 290 points, or 0.36%, while the broader NIFTY50 index was trading at 24,235.45, down 101 points, or 0.41%.  

Among individual stocks, shares of Va Tech Wabag slid over 17% to ₹1,560 apiece on the BSE in the opening deals as the company informed exchanges on Tuesday that its order from the Saudi Water Authority worth ₹2,700 crore, which it informed about in September, stands cancelled. 

The company's filing read, "With reference to our above intimation dated September 06, 2024, relating to the 300 MLD Mega Sea Water Desalination Plant Order in the Kingdom of Saudi Arabia, we hereby inform you that the customer has notified all tender participants on December 16, 2024, that the said tender stands cancelled pursuant to their internal administrative procedures. We are currently in touch with the customer to understand and comprehend the reasons in detail."

Sanghi Industries shares were down 10% at ₹69.30 apiece on the BSE, as the merger scheme looks unfavourable for the company, note analysts.

On Tuesday, Ambuja Cements announced it will merge the acquired companies Saurashtra-based Sanghi Industries and Andhra Pradesh-based Penna Cement Industries with itself.

Ambuja Cements holds 58.08% of the paid-up equity share capital of Sanghi Industries. It acquired the company in December 2023.

This will be based on swap rationale and "for every 100 equity shares of SIL with a face value of ₹10 each, Ambuja Cements will issue 12 equity shares with a face value of ₹2 each" to eligible shareholders of SIL.

Top gainers & losers

The top five gainers on the NIFTY50 index were Dr Reddy's, Sun Pharma, Cipla, Shriram Finance, Reliance Industries (RIL). 

The top five losers were Tata Motors, Power Grid, L&T, BEL, and Hero MotoCorp. 

Broader Market

The BSE MidCap index was trading at 47,654.64, down 161 points, or 0.34%, while the BSE SmallCap index was trading at 57,032.63, up 104 points, or 0.18%.