The benchmark Sensex and Nifty indices are likely to open marginally higher on September 21 as trends in the GIFT Nifty indicate a positive start for the broader index with a gain of 7.5 points.
The BSE Sensex plummeted 796 points or 1.18 percent to 66,801, while the Nifty50 dropped 232 points or 1.15 percent to 19,901 and formed a bearish candlestick pattern on the daily charts in the previous close.
The Nifty has dipped below its previous swing high on the daily chart, indicating a decline in bullish sentiment.
Following a period of consolidation, the index experienced a correction, which could be considered as an early indication of a bearish reversal, Rupak De, senior technical analyst at LKP Securities said.
In the short term, he feels it is probable that the Nifty will decrease towards the 19,700-19,630 range. Selling on rallies might remain a favorable strategy as long as the index remains below the 20,000 mark, he said.
The pivot point calculator indicates that the Nifty may be taking support at 19,878, followed by 19,837 and 19,772.
On the higher side, 20,009 can be an immediate resistance, followed by 20,050 and 20,116.
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We have collated a list of important headlines across news platforms, which could impact Indian as well as international markets.
The GIFT Nifty indicates a marginally positive start for the broader index with a gain of 7.5 points.
GIFT Nifty futures stood at 19,958 points after making a high of 20,110 points.
Stock futures traded near the flat line Wednesday night as investors parsed through the Federal Reserve’s projections made earlier in the day. Futures tied to the Dow Jones Industrial Average were lower by 14 points, or 0.04 percent.
S&P 500 futures were down 0.1 percent, while Nasdaq 100 futures edged lower by 0.2 percent.
In after-hours action, FedEx gained 5 percent after the delivery company posted adjusted earnings of $4.55 per share in its fiscal first quarter, while analysts called for $3.73 per share, per LSEG.
Homebuilder KB Home fell 2 percent, despite exceeding Wall Street’s expectations on the top and bottom line.
Marketing automation firm Klaviyo, which debuted on the public markets Wednesday, slipped nearly 2 percent after the closing bell.
These moves follow a bleak ending to Wednesday’s trading session.
The three major averages closed at session lows after the Federal Reserve said it would leave interest rates unchanged but expects another rate hike before the end of the year.
Fed Chair Jerome Powell had commented that a soft landing for the economy was still possible, but not his baseline scenario.
I think the surprise actually is the optimism about the economic outlook,” said Jimmy Chang, chief investment officer at Rockefeller Global Family Office, noting the upward revision on GDP growth for 2023.
It almost feels like they’re projecting a goldilocks soft landing outlook,
European markets closed higher on Wednesday as global investors awaited the latest monetary policy decision from the U.S. Federal Reserve.
The pan-European Stoxx 600 index closed up 0.95 percent, with most sectors gaining. Auto stock led gains with a 2 percent uptick, while oil and gas dipped 0.6 percent.
Investors are widely anticipating that the central bank will hold interest rates steady when it announces its latest policy decision on Wednesday.
The Fed will release its quarterly update on what it expects for a number of economic indicators, including interest rates, gross domestic product, inflation and unemployment.
Asia-Pacific markets fell across the region after the U.S. Federal Reserve held its benchmark policy rate but said it will raise interest rates one more time this year, according to the central bank’s projections.
Projections showed the central bank expects to hike rates to a median of 5.6 percent by the end of 2023, up from the current range between 5.25 percent and 5.5 percent.
The rate-setting Federal Open Market Committee projected two rate cuts in 2024, which is two fewer than its forecast in June.
That would put the funds rate around 5.1 perent.
In Australia, the S&P/ASX 200 fell 0.21 percent, on pace to hit its lowest level this month.
Japan’s Nikkei 225 is also slipped 0.44 percent as the Bank of Japan starts its two-day monetary policy meeting, with the Topix down 0.21 percent.
South Korea’s Kospi was 0.5 percent lower, and the Kosdaq also shed 0.37 percent. In contrast, futures for Hong Kong’s Hang Seng index stood at 17,958, pointing to a stronger open compared to the HSI’s close of 17,885.60.
Govt to sell 4.92% in SJVN at Rs 69/share; OFS begins on Thursday
The government will sell a 4.92 percent stake in SJVN at a floor price of Rs 69 per share through a two-day offer for sale, an official said. ‘Offer for sale in SJVN opens tomorrow for non-retail investors.
Retail investors can bid on Friday.
The government will divest 4.92% equity including a Green Shoe option of 2.46 percent,” DIPAM Secretary Tuhin Kanta Pandey posted on X. At the floor price of Rs 69 a share, the sale of 4.92 per cent stake — or over 9.66 crore shares — will fetch over Rs 650 crore.
SJVN shares on Wednesday jumped 9.31 per cent to hit its 52-week high of Rs 83.69.
The stock later closed at Rs 81.75 apiece on the BSE, up by 6.78 percent.
Hyundai Motor India net profit jumps 62.3% to Rs 4,709.25 crore in FY23
Hyundai Motor India Ltd posted a 62.3 per cent jump in consolidated net profit to Rs 4,709.25 crore in the fiscal ended March 31, 2023 with the company breaching the Rs 60,000 crore revenue mark in the fiscal, according to financial data accessed by business intelligence platform Tofler.
The company, which is the second largest passenger vehicles manufacturer in India, had posted a consolidated net profit of Rs 2,901.59 crore in 2021-22.
Revenue from operations of the company increased to Rs 60,307.58 crore in FY23 as against Rs 47,378.43 crore in FY22.
The company’s total production in FY22-23 was at 7.27 lakh units over 6.06 lakh units in the previous year, an increase of 20 per cent.
RR Kabel listing on expected lines, closes nearly 16% higher on debut
RR Kabel shares closed the first day with nearly 16 percent gains despite sharp correction in the equity markets on September 20. The BSE Sensex plunged nearly 800 points.
The stock opened higher by 14 percent at Rs 1,180, which was largely on expected lines. It immediately came off its day’s high a bit and touched an intraday low of Rs 1,136.80 on the NSE in morning trade but recouped those losses as the day progressed and hit the day’s high of Rs 1,212.70 in last hour of trade.
The stock settled at Rs 1,198, up 15.75 percent over the issue price of Rs 1,035, with volume of 1.5 crore equity shares, while the closing on the BSE was Rs 1,196.65, up 15.62 percent, with volume of 8.84 lakh shares.
Lower book value, asset quality pain & high costs: Nomura downgrades HDFC Bank in merger aftermath
Foreign broking firm Nomura has downgraded its rating on HDFC Bank to Neutral after the country’s largest private-sector bank held an analyst call to share particulars of the merged entity.
Due to accounting adjustments, the combined entity’s book value will be lower than HDFC Bank’s standalone book value and that has led to several brokerages cutting their targets on the stock.
“Downward adjustment to the incoming net worth of HDFC Ltd (largely due to IGAAP accounting and provisioning harmonization) amounts to a book value per share cut of Rs 23 per share for the merged entity,” said analysts at Nomura.
Canadian pension fund-held stocks in India fall as diplomatic row heats up
As India-Canada diplomatic tensions escalated after Canadian Prime Minister Justin Trudeau’s allegation on India, shares of companies with investments from Canada pension funds fell in trade on September 20.
Canada Pension Plan Investment Board’s (CPPIB) portfolio stocks including Kotak Mahindra Bank, Zomato, Nykaa and Indus Towers fell as much as 2.4 percent. On the other hand, Delhivery was in green, up 0.5 percent.
However, analysts believe that the news will be digested by the long-term pension fund investors, and not create a major panic.
As tensions between Canada and India continue to rise, the Indian market will be indirectly affected.
Though Canadian pension funds such as CPPIB and CDPQ are the largest institutional investors in Indian projects, India’s economic system stands strong,” said Jayden Ong, Senior Market Analyst, APAC, Vantage.
Oil prices fell on Wednesday ahead of the US Federal Reserve’s interest rate decision, with investors uncertain when peak rates will be hit and how much of an impact it will have on energy demand.
Investors are awaiting the Fed’s interest rate decision at 1800 GMT on Wednesday to assess the outlook for economic growth and fuel demand.
The Fed is widely expected to keep interest rates on hold, but the focus will be on its projected policy path, which is unclear.
The oil rally is taking a little break as every trader awaits a pivotal Fed decision that might tilt the scales of whether the U.S. economy has a soft or hard landing,” said Edward Moya, senior market analyst at data and analytics firm OANDA.
Global benchmark Brent crude futures fell by 58 cents, or 0.6 percent, to $93.76 a barrel, paring losses after trading $1.58 lower at their intra-day low on Wednesday.
US West Texas Intermediate crude futures edged 0.35 percent lower, or 32 cents, to $90.88.
The Dollar index traded 0.47 percent lower in futures at 104.71, whereas the value of one dollar hovered near Rs 82.92
Gold inched slightly higher on Wednesday as investors braced for updated interest rate projections and remarks from Chair Jerome Powell following the Federal Reserve’s monetary policy meeting.
Spot gold added 0.24 percent to $1.935.49 per ounce, while US gold futures inched up 0.17 percent to $1,957.
“Range trading is the way gold prices will prevail in the short term,” said UBS analyst Giovanni Staunovo, who expected the Fed to keep with its data-dependent approach and signal it is too early to cut rates.
Fed officials are widely expected to keep rates on hold for now, but also flag in new economic projections whether they feel rates still need to rise further before the end of the year.
Surging oil prices have added to inflationary pressures and raised expectations that the U.S. central bank will keep rates higher for longer.
FIIs and DIIs
Foreign institutional investors (FII) sold shares worth Rs 3,110.69 crore, while domestic institutional investors (DII) offloaded Rs 573.02 crore worth of stocks on September 20, provisional data from the National Stock Exchange (NSE) showed.