Sensex Today Drops 420 Points; Why Indian Market Is Down Today; Axis Bank, M&M, Tata Motors Crack 4%

Indian share markets witnessed negative trading activity throughout the day today and ended lower.

Benchmark indices fell tracking negative cues from the global markets, ahead of US inflation data.

Index heavyweight Reliance Industries, automobile, and IT stocks remained under pressure.

At the closing bell, the BSE Sensex stood lower by 420 points (down 0.7%).

Meanwhile, the NSE Nifty closed down by 129 points (down 0.7%).

HDFC Bank, Bharti Airtel, and Kotak Bank were among the top gainers today.

Axis Bank, Tata Motors, and Titan, on the other hand, were among the top losers today.

The SGX Nifty was trading at 18,087, down by 106 points, at the time of writing.

Broader markets ended on a negative note with the BSE Mid Cap index falling 1.1% while the BSE Small Cap index ended 1% lower.

All sectoral indices ended on a negative note with stocks in the auto sector, metal sector, and consumer durables sector witnessing selling pressure.

Shares of Federal Bank, Bank of Baroda, and Union Bank hit their 52-week high today.

No wonder shares of PSU banks are hitting 52-week highs.

In the note, Brijesh mentioned that the ratio chart below highlights an end to the outperformance of HDFC Bank against Bank Nifty.

(Click on image to enlarge)

Interestingly, the higher high - higher low structure on the long-term chart of the Bank Nifty indicates the bulls are still roaring on D-street.

Outside the home ground, Asian share markets ended on a weak note.

At the close in Tokyo, the Nikkei ended on a negative note, down by 1% while the Hang Seng dipped by 1.7%. The Shanghai Composite ended lower by 0.4%.

US stock futures are trading on a positive note today with Dow futures trading up by 0.3%.

The rupee is trading at 81.78 against the US$.

Gold prices are currently trading up by 0.1% at Rs 51,556 per 10 grams.

Meanwhile, silver prices for the latest contract on MCX are trading lower by 0.5% at Rs 61,275 per kg.

India to Export Green Hydrogen

As per a leading financial daily, India is in talks with the governments of other countries to export green hydrogen.

The Indian government is planning a massive expansion of green hydrogen production to curb its dependence on energy imports and to wean the economy off fossil fuels to meet climate targets.

New Delhi is aiming for an annual production capacity of 25 million tons by 2047. However, the number could change going forward, depending on technology and the country's demand outlook.

Note that the potential to generate low-cost renewable energy in India, the world's third biggest emitter of greenhouse gases, has been a driving force behind the government's carbon-free hydrogen ambitions.

India's goal of getting to net zero by 2070 has found support from business tycoons, including Gautam Adani and Mukesh Ambani, as well as state-run energy giants like NTPC and Indian Oil Corp.

While Adani group has pledged to spend US$70 bn on clean energy assets, Ambani's Reliance Industries plans to add the production of solar panels, electrolyzers for clean hydrogen, and rechargeable batteries.

While policy and power market regulations released by the government are expected to boost green hydrogen development in the country, the truth is that the industry has a number of challenges to overcome.

So, view green hydrogen stocks with the same amount of caution as one would view other stocks.

Kaynes Technologies IPO Kicks Off

Moving on to the latest developments from the IPO space, the Rs 8.6 bn initial public offerings (IPO) of Kaynes Technology kicked off for subscription today.

The company is selling its shares in the range of Rs 559-587 apiece.

The issue consists of the issuance of fresh equity shares worth Rs 5.3 bn whereas existing shareholders and promoters will offload 55,84,664 equity shares via an offer for sale (OFS).

The company has trimmed its block for the fresh issue which was proposed to be Rs 6.5 bn earlier as it raised the funds via pre-IPO placement in consultation with the managers of the issue.

Karnataka-based Kaynes Technology is an end-to-end and IoT solutions-enabled integrated electronics manufacturing company.

For the year ended March 2022, the company has reported a net profit of Rs 416.8 m with a revenue of Rs 7,062.5 m.

It remains to be seen what response the company gets in its public offer. Meanwhile, check out the upcoming IPOs on our website.

Why Aurobindo Share Price is Falling

Moving on to news from the pharma sector, shares of Aurobindo Pharma fell over 6% today following reports of the arrest of its director Sarath Reddy under sections of the Prevention of Money Laundering Act (PMLA) by the Enforcement Directorate (ED).

The ED has arrested Sarath Reddy and another company executive linked to the liquor trade in the money laundering investigation being conducted by it into the now-scrapped Delhi Excise policy case.

Recently, as per the latest Enforcement Report by the USFDA, New Jersey-based Aurobindo Pharma USA Inc recalled 9,504 bottles of Quinapril and Hydrochlorothiazide tablets.

Aurobindo Pharma's board is scheduled to meet on 12 November later this week to announce earnings for the September quarter.

More By This Author:

Sensex Today Falls 500 Points; Why Indian Share Market is Falling Today; Axis Bank Dips 4% After Centre Sells Stake
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Disclosure: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity ...

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