Sensex Today Falls 202 Points; IT Stocks Worst Hit

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On Friday, Indian share markets witnessed volatile trading activity throughout the trading session and ended marginally lower.

Benchmark indices had a volatile day, dragged by IT stocks tracking a slide in global markets on rate concerns in the US and deflation and demand worries in China.

IT stocks fell as they earn a significant share of their revenue from the US.

At the closing bell, the BSE Sensex stood lower by 202 points (down 0.3%).

Meanwhile, the NSE Nifty closed lower by 55 points (down 0.3%).

Reliance, Maruti, and Nestle were among the top gainers today.

TCS, Tech Mahindra and Infosys, on the other hand, were among the top losers today.

The GIFT Nifty was trading at 19,338, up by 55 points, at the time of writing.

The BSE MidCap index ended lower by 0.4% while the BSE SmallCap index declined by 0.2%.

Sectoral indices ended on a mixed note with stocks in the IT sector, telecom sector, and metal sector witnessing most of the selling pressure.

While power stocks and FMCG stocks witnessed buying.

Shares of Apar Industries, Escorts Kubota, and KPR Mill hit their respective 52-week highs today.

Now track the biggest movers of the stock market using stocks to watch today section. This should help you keep updated with the latest developments...

Asian share markets ended lower. Japan's Nikkei fell 0.6% while the Hang Seng plunged over 2%. The Shanghai Composite declined 1%.

In a major development, the Chinese securities regulator today said its bourses will lower transaction fees submitted by brokers for securities trading from 28 August 2023.

US stock futures are trading on a negative note today. Fears of a Fed rate hike have once again brought up recession fears, dragging US stocks for the past few days.

Dow Futures were trading down by 43 points while Nasdaq futures are down 47 points.

The rupee is trading at 83.08 against the US$.

Gold prices for the latest contract on MCX are trading up by 0.3% at Rs 58,456 per 10 grams.

Jio Financial Listing

Jio Financial Services (JFSL), which recently got demerged from parent Reliance Industries, will get listed on stock exchanges on 21 August 2023, i.e. coming Monday.

Shares of the NBFC were credited to demat accounts last week in a 1:1 ratio, which means that for every Reliance share held as of the record date of 20 July 2023, shareholders got one share of JFSL.

According to BSE, the scrip will be in the Trade-for-Trade segment for 10 trading days and will trade from this Monday with the symbol of JIOFIN.

Note that as part of a special price discovery session held on the record date, the stock's pre-listing price came out to be Rs 261.85 per share, which was much higher than estimates of around Rs 190 and Reliance's cost of acquisition of Rs 133.

The NBFC's market capitalization came to Rs 1.66 trillion, the 32nd most valued company in India, bigger than Tata Steel, Coal India, and HDFC Life.

JFSL has been included in the Nifty, BSE Sensex, and other indices, and will remain at a constant price till the time the stock is listed independently. The stock will be removed from all indices T+3 day which is 24 August 2023.

Reliance shares ended the day 0.6% higher today.

Adani Group Clarifies

Adani Group's firm Adani Transmission on Friday denied reports about Abu Dhabi National Energy Co. PJSC (TAQA) deploying US$1.5-2.5 billion in Adani Group firms or in a single entity.

Reports were circulating stating TAQA is looking to double down in India and is evaluating a large exposure in the expansive power businesses of Gautam Adani that span thermal generation to transmission, clean energy, and green hydrogen.

Following the report, shares of Adani group firms Adani Green Energy, Adani Energy Solutions, and Adani Power jumped up to 12% in intraday trade. The stocks came off highs after the clarification.

In India, TAQA owns and operates a 250 MW lignite-based thermal power plant in Neyveli in Tamil Nadu. It generates and sells power to the Tamil Nadu Generation and Distribution Corp.

Gokaldas Exports Shares Spike

Shares of Gokaldas Exports spiked 6% on Friday. The stock has seen a good run ever since its management said they are optimistic about the revival of the business in the second half of the current financial year.

In the conference call, the management said that long-term prospects for the industry remains strong with the continuing shift of global sourcing away from China.

There's also the factor of supplier consolidation towards efficient and well-capitalized players, and supply-side instabilities in several countries.

The management is now banking on favorable currency, production-linked incentives (PLI), and free trade agreements (FTAs) with key markets to drive the company's performance in the medium term.

Regarding its new plant, the management said its new manufacturing unit in Madhya Pradesh started commercial production, and the production will ramp up in the next nine months.

Shares of the company ended the day higher by 9%.

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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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