At provisional closing data, the barometer index, the S&P BSE Sensex, was down 365.83 points or 0.56% to 64,886.51. The Nifty 50 index lost 120.90 points or 0.62% to 19,265.80.

In the broader market, the S&P BSE Mid-Cap index fell 0.85% while the S&P BSE Small-Cap index declined 0.24%.

The market breadth was negative. On the BSE, 1,485 shares rose and 2,154 shares fell. A total of 124 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, advanced 3.26% to 12.08.

Investor sentiment took a hit after the RBI, in its latest minutes, hinted that further rate hikes could be a possibility due to re-emerging of inflationary pressures. Although, RBI expects vegetable prices shocks to calm ahead, however, it sees risks to the food and the overall inflation outlook from El Nino conditions, volatile global food prices and skewed monsoon distribution. And hence, RBI said these factors warrant a close monitoring.

Primary market:

The initial public offer (IPO) of Vishnu Prakash R Punglia received bids for 17.22 crore shares as against 2.19 crore shares on offer, according to stock exchange data at 12:21 IST on Friday (25 August 2023). The issue was subscribed 7.85 times.

The issue opened for bidding on Thursday (24 August 2023) and it will close on Monday (28 August 2023). The price band of the IPO is fixed at Rs 94-99 per share. An investor can bid for a minimum of 150 equity shares and in multiples thereof.

Stocks in Spotlight:

Reliance Industries (RIL) shed 0.47%. RIL and Oberoi Hotels and Resorts will jointly manage three properties across India and the UK. Properties include Anant Vilas in Mumbai, Stoke Park in the UK, and a new project in Gujarat.

Bharat Electronics (BEL) declined 2.14%. The Defence Acquisition Council (DAC) has accorded 'Acceptance of Necessity' for the procurement and installation of an electronic warfare (EW) suite on Mi-17 V5 helicopters. The EW suite will be procured from BEL.

Shoppers Stop tumbled 13.12%. The company's MD and CEO, Venu Nair, has resigned effective 31 August 2023 due to personal reasons. Homestop chief Kavindra Mishra has been promoted as executive director and CEO for a period of three years, effective 1 September 2023.

PI Industries declined 1.18% after the company informed about an incident of bromine leakage at its manufacturing site located at Jambusar, in Gujarat.

DB Realty rose 0.54%. The company sold its entire stake in unit Royal Netra Constructions for Rs 2.55 crore to Man Infraconstruction and Platinumcorp Constructions.

Astra Microwave Products jumped 1.62%. The company got orders worth Rs 158 crore from ISRO, DRDO, and DPSU for the supply of satellite sub-systems, airborne radar, sub-systems of radar, and EW projects.

Tatva Chintan Pharma Chem rose 1.67%. The company said that its board has approved to raise Rs 200 crore through Qualified Institutional Placement (QIP).

Kaynes Technology India surged 7.04% after the company said that it has signed a memorandum of understanding (MoU) with Karnataka Government for Rs 3,750 crore.

Global Markets:

Markets in Europe advanced while most of the Asian stocks declined as investors prepared for signals on U.S. monetary policy from central bankers' comments at the Jackson Hole meeting on Friday, including a speech by U.S. Federal Reserve chair Jerome Powell.

In Asia, the core inflation rate for Japan's capital Tokyo came in at 2.8% for August, slightly below the market expectation of 2.9%. This is the lowest growth rate seen in Tokyo's core inflation since September 2022.

Overall inflation for Tokyo came in at 2.9%, lower than the 3.2% seen in July.

On Thursday in the U.S., all three major indexes fell as the tech fueled rally ended, with the Dow Jones Industrial Average seeing its worst day since March, while the S&P 500 and the Nasdaq Composite saw their biggest one-day loss since Aug. 2.

The Dow closed 1.08% lower and the S&P 500 lost 1.35%. The Nasdaq saw the largest loss, shedding 1.87%.

All of the S&P sectors were in the red on Thursday, with information technology, consumer discretionary and communication services being the biggest laggards of the market. Financials made a short-lived recovery in the afternoon, rising just above flat.

Philadelphia Federal Reserve President Patrick Harker has reportedly said on Thursday that he doesn't see the need for further interest rate hikes and could see cuts happening in 2024 depending on data.

Initial jobless claims last week fell more than expected, the Labor Department reported Thursday. First-time filings for unemployment benefits totaled 230,000 for the period ended Aug. 19, a decrease of 10,000 from the previous week and less than the Dow Jones estimate for 240,000.

Continuing claims, data for which runs a week behind, totaled 1.702 million, a slight decrease but a bit higher than the widely reported market estimate of 1.69 million.

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