Domestic indices extend opening losses in early deals

Indian equity benchmarks made negative start on Wednesday and turned volatile altering between gains and losses amid weak global cues ahead of the US Federal Reserve's interest rate outcome. Soon, markets slipped in red terrain and are trading lower with cut of around 0.30% each in early deals. Traders were concerned as retail inflation for farm and rural workers increased to 6.94 per cent and 7.26 per cent, respectively, in August mainly due to higher prices of certain food items. In July, retail inflation for farm and rural workers stood at 6.60 per cent and 6.82 per cent respectively. Traders overlooked the chairman of National Bank for Financing Infrastructure and Development K V Kamath’s statement that India is expected to be a $25-trillion economy in 25 years. He said the Indian economy is growing at a compound annual growth rate of 8-10 per cent. Meanwhile, foreign institutional investors (FIIs) have net bought shares worth Rs 1,196.19 crore on September 20, as per provisional data available on the NSE.

On the global front, most of the Asian markets are trading lower following the broadly negative cues from global markets overnight, ahead of the US Fed's interest rate decision as well as the anticipated hawkish accompanying statement by Fed Chair Jerome Powell later in the day. The Fed is widely expected to raise interest rates by another 75 basis points. Back home, the government has extended the last date for the export of broken rice in transit till September 30. It was earlier allowed till September 15. In stock specific development, Central Bank of India soared after the RBI took out the lender from the so-called PCA framework. On the other hand, SpiceJet tumbled on reports that the airline has decided to send around 80 pilots on leave without pay to 'rationalize' costs.

The BSE Sensex is currently trading at 59545.67, down by 174.07 points or 0.29% after trading in a range of 59491.81 and 59799.04. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.12%, while Small cap index was up by 0.10%.

The top gaining sectoral indices on the BSE were FMCG up by 0.86%, Auto up by 0.35%, Consumer Durables up by 0.28%, Healthcare up by 0.24%, Telecom up by 0.24%, while IT down by 0.76%, TECK down by 0.62%, Bankex down by 0.53%, Realty down by 0.42%, PSU down by 0.22% were the top losing indices on BSE.

The top gainers on the Sensex were Hindustan Unilever up by 1.64%, Nestle up by 1.11%, Dr. Reddy's Lab up by 0.91%, Maruti Suzuki up by 0.49% and Mahindra & Mahindra up by 0.47%. On the flip side, Indusind Bank down by 1.50%, Infosys down by 1.08%, TCS down by 0.84%, Wipro down by 0.79% and Kotak Mahindra Bank down by 0.76% were the top losers.

Meanwhile, expressing some cautiousness over India’s economic growth, Chief Economic Advisor (CEA) V Anantha Nageswaran has said Indian economy will grow at over 7 per cent in the current fiscal year (FY23), down from above 8 per cent of growth rate projected in January. 

However, he said that the economic momentum and the animal spirits are ‘unmistakable’. He said the world is still undergoing the aftereffects of Covid pandemic and the ongoing war in Europe triggered by Russia’s invasion of Ukraine, suggesting that these factors are hurting growth.

The economic survey released before the annual budget in January this year had estimated FY23 growth to come at 8-8.5 per cent. The RBI had estimated the GDP to grow at 7.2 per cent, but there are some expectation of a downward revision of the estimate soon.

The CNX Nifty is currently trading at 17,763.30, down by 52.95 points or 0.30% after trading in a range of 17,760.00 and 17,838.70. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were Hindustan Unilever up by 1.71%, Apollo Hospitals Enterprise up by 1.46%, Britannia Industries up by 1.19%, Dr Reddy's Laboratories up by 1.13% and Nestle India up by 1.01%. On the flip side, Indusind Bank down by 1.51%, UPL down by 1.38%, ONGC down by 1.31%, Shree Cement down by 1.16% and Grasim Industries down by 1.16% were the top losers.

Asian markets are trading mostly in red; Nikkei 225 slipped 316.36 points or 1.14% to 27,372.06, Hang Seng plunged 314.34 points or 1.67% to 18,467.08, Taiwan Weighted lost 86.35 points or 0.59% to 14,462.95, KOSPI declined 18.92 points or 0.80% to 2,348.93, Jakarta Composite fell 38.12 points or 0.53% to 7,158.83 and Shanghai Composite was down by 17.39 points or 0.56% to 3,105.02, while Straits Times was up by 0.47 points or 0.01% to 3,267.41.