Shares of Five Star Business Finance Ltd fall nearly 4% on Thursday, December 8, 2023, after a large block deal is executed on the counter.

As per exchange data, approximately 2.3 crore shares or 8% equity stake in the company changed hands in block deals. The total value of the shares sold is estimated at Rs 1,704 crore, as they were offloaded at an average price of Rs 730 per share.

Sources indicate that private equity funds who held stakes in Five Star Business Finance were the likely sellers behind this major block transaction. The block deal was one of the largest by value recorded in recent months.

The share sale comes at a time when Five Star and other lending firms are facing scrutiny over their business practices after allegations against the Adani Group.

Indian stocks looked set for a muted start on Friday after benchmark indices snapped their seven-day gaining streak the previous day. SGX Nifty futures traded lower by 3.5 points or 0.02% at 21,073 ahead of the market open, signaling flat-to-negative moves initially.

On Thursday, markets closed lower amid high volatility. The BSE Sensex shed 132.04 points, or 0.19%, to end at 69,521.69. Meanwhile, the NSE Nifty 50 index dropped 36.50 points, or 0.17%, settling at 20,901.20. Despite the decline, the overall market trend remained positive.

Global cues were also somewhat supportive after Wall Street indices closed higher overnight. However, investors’ focus will now turn to the RBI’s monetary policy meeting outcome scheduled later today.

RBI Governor Shaktikanta Das is expected to announce the rate decision around 10 AM. With the policy announcement looming, some stocks that could be in focus today include Zomato, Reliance Industries and InterGlobe Aviation.

The session could see a tentative start tracking global peers and ahead of the RBI decision. Key indices may struggle to build on the recent upmove amid a cautious mood.

The BSE Sensex shed 0.2% or 132 points to close at 69,521 levels, while the NSE Nifty declined 36.55 points to finish trading at 20,901.

Metal stocks bore the brunt of profit-taking, with Tata Steel, JSW Steel, Hindalco and Vedanta falling around 2% each. Among other prominent Sensex losers were Bharti Airtel, HUL, ITC and NTPC with 1-2% drops.

However, gains in power, cement and consumer durables stocks lent some support. PowerGrid, Ultratech Cement, Titan Company and ONGC rose between 1-2% each. Out of the 30 Sensex scrips, 12 managed to close higher.

On sectoral indices, BSE Metal plunged 1.8%, but Consumer Durables and Oil & Gas advanced over 1% each. Analysts said the market paused its record-setting spree as investors exercised caution ahead of the RBI’s interest rate decision on Friday.

Global cues were also largely negative, with most Asian and European indices trading lower as recession worries persisted. Meanwhile, Brent crude oil prices rebounded 2.5% to $77 per barrel.

The rupee too witnessed some recovery, closing at 82.19 per US dollar versus Wednesday’s record closing low of 82.47.