Wall Street tests June lows on recession worries

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Wall Street‘s main indexes fell on Friday as investors fretted over the prospect of an economic downturn and a hit to corporate earnings from the U.S. Federal Reserve’s aggressive policy tightening moves to quell inflation.

The Dow breached its mid-June lows on an intraday basis to touch 29,643.93 points and hit a near-two year low.

Both the S&P 500 and the Nasdaq are already in bear market and down more than 22% and 30%, respectively, so far this year, amid worries about a host of issues including the Ukraine conflict and tightening financial conditions across the globe.

The U.S. central bank raised rates by a widely expected 75 basis points on Wednesday and signaled a longer trajectory for policy rates, dashing hopes that the Fed expects to get inflation under control in the near term.

Also read: Sensex, Nifty erase all yearly gains; Nifty support at 17166, investors poorer by Rs 5 lakh crore

“The most recent Fed actions leave us with the feeling that the end of the rate rises is not near,” said Rick Meckler, a partner at Cherry Lane Investments in New Vernon, New Jersey.

“There is very little positive news right now and it could lead to a sort of a final selloff … it’s certainly possible that we could be approaching the near-term lows.”

Dire outlooks from a handful of companies – most recently FedEx Corp and Ford Motor Co – have also added to woes in a seasonally weak period for markets.

Goldman Sachs cut its year-end 2022 target for the benchmark S&P 500 index by about 16% to 3,600 points, a 2.5% decline from current levels.

At 10:08 a.m. ET, the Dow Jones Industrial Average was down 408.50 points, or 1.36%, at 29,668.18, the S&P 500 was down 65.07 points, or 1.73%, at 3,692.92, and the Nasdaq Composite was down 220.27 points, or 1.99%, at 10,846.54.

All the three indexes were set for sharp weekly losses.

Also read: Nifty turns negative for 2022, Sensex falls 1.5%, Bank Nifty tumbles 3%; what is dragging markets today?

Technology and growth stocks slid with megacap names including Alphabet Inc, Apple Inc, Amazon.com , Microsoft Corp and Tesla Inc all down more than 1%.

All the 11 major S&P sectors declined in early trading, led by a 5.6% drop in energy shares. Banks fell 1.6%.

Costco Wholesale Corp shed 2.4% after the big-box retailer reported a fall in its fourth-quarter profit margins.

The CBOE volatility index, also known as Wall Street’s fear gauge, rose to 28.72 points.

Meanwhile, Fed Chair Jerome Powell is set to give opening remarks on the transition to a post-pandemic economy at an event at 2 p.m. ET.

Declining issues outnumbered advancers for a 11.33-to-1 ratio on the NYSE and a 6.67-to-1 ratio on the Nasdaq.

The S&P index recorded no new 52-week high and 125 new lows, while the Nasdaq recorded seven new highs and 558 new lows.

Petrol, Diesel Price Today, 23 Sep 2022: Fuel cost static; check rates in Delhi, Mumbai, Noida, other cities

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Petrol and Diesel Rate Today in Delhi, Bangalore, Chennai, Mumbai, Lucknow: The price of petrol and diesel has been kept steady on 23 September 2022 (Friday), keeping costs steady for more than three months now. Petrol rate and diesel rate in Delhi are at Rs 96.72 and Rs 89.62 a litre, respectively. In Mumbai, petrol is retailing at Rs 106.31 per litre and diesel at Rs 94.27 per litre. The last country-wide change in price came on 21 May 2022, when Finance Minister Nirmala Sitharaman announced a cut in excise duty on petrol by Rs 8 per litre and Rs 6 per litre on diesel. Since then, Maharashtra is the only state to have cut rates. The Maharashtra government had announced a cut in value-added tax (VAT) on petrol by Rs 5 a litre and by Rs 3 a litre for diesel in July.

Also read: Reliance New Energy to acquire 20% stake in solar tech company Caelux Corp to produce low cost solar modules

Also read: Rupee likely to depreciate on strong dollar, risk aversion in markets, weak Asian peers; USDINR may hit 81

Petrol, diesel prices in Chennai, Kolkata, Bengaluru, Lucknow, Noida, Gurugram

Mumbai: Petrol price: Rs 106.31 per litre, Diesel price: 94.27 per litre

Delhi: Petrol price: Rs 96.72 per litre, Diesel price: Rs 89.62 per litre

Chennai: Petrol price: Rs 102.63 per litre, Diesel price: Rs 94.24 per litre

Kolkata: Petrol price: Rs 106.03 per litre, Diesel price: Rs 92.76 per litre

Bengaluru: Petrol: Rs 101.94 per litre, Diesel: Rs 87.89 per litre

Lucknow: Petrol: Rs 96.57 per litre, Diesel: Rs 89.76 per litre

Noida: Petrol: Rs 96.79 per litre, Diesel: Rs 89.96 per litre

Gurugram: Petrol: Rs 97.18 per litre, Diesel: Rs 90.05 per litre

Chandigarh: Petrol: Rs 96.20 per litre, Diesel: Rs 84.26 per litre

Public sector OMCs including Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation Ltd (IOCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise the fuel prices daily in line with international benchmark prices and foreign exchange rates. Any changes in petrol and diesel prices are implemented from 6 am every day. Retail petrol and diesel prices differ from state to state because of local taxes like VAT or freight charges.

FPIs infuse Rs 5,600 crore in Indian equities in September so far 

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Foreign investors have pumped in close to Rs 5,600 crore into the domestic equity markets in this month so far on expected growth in consumer spending in festive season and better macro fundamentals compared to other emerging markets.

This comes following a net investment of staggering Rs 51,200 crore in August and nearly Rs 5,000 crore in July, data with depositories showed.

Also Read|Tax appellate tribunal ruling: FPI income not subject to MAT provisions

Between October 2021 and June 2022, they sold a massive Rs 2.46 lakh crore in the India equity markets.

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said the trend of FPI flows into India is likely to continue. However, if US bond yields continue to rise and the dollar index rises above 110, inflows may be impacted.

“I feel FPIs will continue buying Indian equities irrespective of the US Fed outcome,” Jay Prakash Gupta, founder, Dhan, said.

According to data with depositories, FPIs pumped a net amount of Rs 5,593 crore in Indian equities during September 1-9 .

“FPIs are buying in India because India has the best growth and earnings story among large economies in the world. US, Euro zone and China are slowing down. India is the bright spot,” Vijayakumar said.

Shrikant Chouhan, Head – Equity Research (Retail), Kotak Securities, said the Indian markets were buoyed by falling prices and a decline in domestic bond yields.

“With falling crude oil prices, expected growth in consumer spending in coming festive season, better macro fundamentals compared to other emerging markets will definitely provide the tailwind for India,” Gupta said.

In addition, exodus of investments from Russia is finding an alternative in India and funds are looking at diversifying investments away from China are the factors which have prompted resumption of FPI inflows in Indian equities, Hitesh Jain, Lead Analyst – Institutional Equities, Yes Securities, said.

Also Read| Worst over for Dalal Street now as FIIs return, bet on auto sector, private banks | Emkay INTERVIEW

Foreign investors will be eyeing Federal Open Market Committee (FOMC) meeting outcome due on September 21 and Fed is likely to increase interest rates by 75 basis points.

US inflation slowed down from a 40-year high in June to 8.5 per cent in July on lower gasoline prices. In India, the consumer price index-based retail inflation marginally eased to 6.71 per cent in July as against 7.01 per cent recorded in June due to fall of food prices.

Himanshu Srivastava, Associate Director – Manager Research, Morningstar India, said FPIs’ stance and outlook towards India started to change mid-July expecting that global central banks, particularly US Fed, may go slow on rate hikes as the inflation starts to cool off.

Also, Indian equities went through a correction phase making them relatively attractive on valuations.

FPIs used this opportunity to hand-picked high-quality companies and invest in them. They are now buying stocks of financials, healthcare, FMCG and telecom.

According to Yes Securities’ Jain, FPIs are pouring money in domestic facing sectors like banks and consumption stocks which are immune to global shocks, and traction is apparent in terms of India’s credit growth and consumer spending.

In addition, FPIs infused a net amount of Rs 158 crore in the debt market during the month under review.

Apart from India, other emerging markets, including South Korea, Taiwan, Indonesia,Thailand and Philippines, too witnessed inflows during the period under review.

Sensex, Nifty surge 12% YTD in 2020, follow Wall Street gains; will it repeat 2020 rally next year?

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By Prem Prakash

The calendar year 2020 has been one of the most volatile years for stock markets and one which market participants are going to remember for a long-long time. It was a year which was full of surprises and would be remembered for a lot of things including the pace with which the pandemic accelerated, the scale of the lockdowns, the government stimulus initiatives, and the magnitude of stock market rebounds.

With respect to the economic activities and GDP growth, India’s GDP contracted by around 24% in the first quarter which was one of the worst among all the major economies across the globe. However, it was also because, to control the spread of COVID-19, India had imposed one of the strictest lockdowns across the world. Also, GDP numbers for Q2 surprised everyone and albeit negative, it was way better than what most of the people estimated. In Q2, India’s GDP contracted by 7.5% and now the expectation is that India’s GDP growth would turn positive in Q3 itself.

India has officially entered recession (as two successive quarters of GDP contraction is termed as a recession) after the declaration of the GDP numbers for the Q2. And as of now, we are in the early stage of the post-recession recovery. This suggests a prolonged period of low-interest-rate growth that favors equities over the bond market. However, we may not witness a similar kind of rally in the stock market as it was in 2020, but the overall trend may continue to be bullish. In the short term, we may face some uncertainty due to the new strains of Corona Virus in the European countries, geopolitical issues in China, Iran, and Russia. Also, the market will keenly observe how the distribution and logistics for the vaccine happens and what is the effectiveness of the vaccine in controlling further spread of COVID-19. All these might lead to a roller coaster ride for the markets in the first half of 2021. However, with the companies posting better results every quarter, we can expect India to post positive GDP numbers in 2021 and markets to respond cheerfully to such performance.

The major event which everyone is looking forward to in 2021 is the announcement of the general budget on 1st February. The government has got a daunting task for the budget with fiscal deficit shooting up to around 7.5% of the GDP.

Considering the recent sharp rally in equity markets, investors should adopt utmost caution while investing. They should do a thorough analysis of their investment objective, time horizon, risk appetite and then plan their investments.

(Prem Prakash is the CEO at CapitalVia Global Research Ltd. – Investment Advisor. The views expressed are the author’s own. Please consult your investment advisor before investing.)

MCX Crude oil October futures to trade in Rs 6400-7300/bbl range this week; OPEC+ meeting eyed

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By Royce Varghese

WTI Crude oil futures fell for the fourth consecutive month in September, down by more than 11% and closed below $80 per bbl, pressured by mounting fears of a demand-sapping global recession. The black gold also witnessed the first quarterly decline in 2 years and down more than 25% in the previous quarter, giving away all the war premium, on fears of demand destruction from aggressive central bank tightening and a surging dollar index.

Also Read: Petrol, Diesel Price Today, 4 October 2022: Fuel prices unchanged; check rates in Delhi, Mumbai, other cities

US shale production is not rising significantly despite a government push to increase the output. Crude output was mostly hovering near 12.1 mbpd in September, however, it fell to 12.1 mbpd in the previous week. Inflation and supply-chain delays play a major role in hampering production and expansion.

Outlook: OPEC+ set to deliver the biggest output cut since the pandemic

Oil prices might have bottomed for now as supply concerns are going to rise in the coming months. OPEC+ alliance is considering slashing production by more than 1 million barrels a day to revive plunging prices when it meets on 5th October. A reduction of that magnitude would be the biggest since the pandemic and might put a floor on oil prices. The OPEC+ gathering in Vienna will be the cartel’s first in-person meeting since the pandemic. In addition, ministers plan to hold a press conference after their session.

US SPR release is also nearing an end in late October, which accounted for almost 1 mbpd of global supply since May. Together, halting SPR release and output cut from OPEC+ might add to more than 2% of global output, which is going to vanish from November onwards. Chinese demand might also increase as few Chinese state oil refineries consider increasing runs by up to 10% in October, on prospects of more robust demand and a possible surge in fourth-quarter fuel exports.

Also Read: Aggressive monetary tightening by RBI continues: Can NBFCs stay resilient?

Having said that, US Labour market data can be closely watched for more cues on Fed’s rate hike path. In case data surprises on the upside, we might see a dollar rally on prospects of aggressive rate hikes from the Fed, which might limit the upside in oil prices. We expect MCX Crude oil October futures to trade in the range of Rs 6,400 – 7,300 per bbl for the week, with an upward bias.

(Royce Varghese, Fundamental Analyst, Currency & Energy, Anand Rathi Shares and Stock Brokers. Views expressed are the author’s own.)

Markets to take cues from macro data, global trends: Analysts

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Trading in the domestic equity market this week will be largely driven by a host of macroeconomic data announcements and global trends, analysts said.

Industrial production data for July and inflation rate for August are scheduled to be announced on Monday. Besides, wholesale price index (WPI) inflation data will be released on Wednesday.

Also Read| MCX Crude oil September futures: Go long for expected target of Rs 7000/bbl; MCX prices may see correction

Other major factors that would influence trading are foreign fund movement and trend in the rupee against the US dollar.

“Global markets will keenly await the inflation numbers of the US. This data will be closely watched by international markets since it will affect how the Fed will proceed with future rate hikes,” said Apurva Sheth, Head of Market Perspectives, Samco Securities.

The volatility in oil prices and USD-INR trend will be important factors that may affect the market, said Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities.

Last week, the Sensex advanced 989.81 points or 1.68 per cent, while the Nifty gained 293.90 points or 1.67 per cent.

“We maintain our bullish view on markets,” said Ajit Mishra, VP – Research, Religare Broking Ltd.

Also Read| Petrol and Diesel Price Today, 10 Sep 2022: Fuel prices unchanged; Check rates in Delhi, Mumbai, other cities

“As we’re seeing buying interest across the board, the focus should be more on the best-performing sectors viz banking, financials, auto and FMCG, and remain selective in the others,” Mishra added.

Share Market HIGHLIGHTS: Sensex ends 509 pts down, Nifty at 16858 ahead of monthly F&O expiry; Reliance drags

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Share Market News Today | Sensex, Nifty, Share Prices HIGHLIGHTS: Domestic equity market benchmarks BSE Sensex and NSE Nifty 50 ended one per cent lower on Wednesday, one day ahead of weekly and monthly F&O expiry. BSE Sensex plunged 509 points or nearly 1 per cent to 56,598, while NSE Nifty 50 crashed 0.9 per cent or 149 points to settle at 16589. Stocks of Asian Paints, Sun Pharma, Dr Reddy’s, Power Grid Corporation of India, Nestle India, Hindustan Unilever Ltd (HUL), M&M, and HCL Tech among others capped the losses in the index. On the flip side, ITC, Axis Bank, Reliance Industries Ltd (RIL), Tata Steel, IndusInd Bank, HDFC Bank and others were top index drags. Bank Nifty index fell 1.6 per cent to end at 37760.

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Share Market Today | Sensex, Nifty, BSE, NSE, Share Prices, Stock Market News Updates

15:38 (IST) 28 Sep 2022 BSE Sensex, NSE Nifty 50 plunge 1% ahead of monthly F&O expiry

BSE Sensex plunged 509 points or nearly 1 per cent to 56,598, while NSE Nifty 50 crashed 0.9 per cent or 149 points to settle at 16,589

15:05 (IST) 28 Sep 2022 Major headwinds for Indian economy; RBI intervention to curb rupee fall, slowing exports may derail recovery

The global growth slowdown may weigh on the Indian economy going forward, through not just exports, but prices and liquidity as well. This would weigh on domestic credit and capex recovery, and the impact could be more on organised businesses and nominal variables such as taxes, earnings as they are more vulnerable to global slowdown, Edelweiss said in a research note. Globally, food prices remain elevated owing to drought-like conditions. Read full story

14:32 (IST) 28 Sep 2022 Limited intervention by RBI leading to selling spree in Rupee

Most of the Asian currencies, including the local unit, are reeling under pressure amid the monetary tightening campaign in the West and concerns about a global economic slowdown. Limited intervention by the RBI amid declining forex reserves is also leading to the current bout of selling spree witnessed in the Indian rupee. However, softening crude prices and strong underlying fundamentals of the domestic economy shall underpin the rupee-dollar exchange rate around the 82 to the dollar mark. All eyes are now on the RBI monetary policy outcome for further cues. Sugandha Sachdeva, Vice President – Commodity and Currency Research, Religare Broking

14:24 (IST) 28 Sep 2022 Aggressive rate hikes could prove counterproductive in the short run: Emkay Wealth

Emkay Wealth Management held a media webinar ‘Mediascape Q2’ today – a discussion on the importance of asset allocation, rising opportunities in Fixed Income and Debt Funds in a rising interest rate scenario. Emkay Wealth Management is currently offering bespoke services to over 1,600 families to date. The unit posted revenue of Rs 14.78 crore in FY22.

13:33 (IST) 28 Sep 2022 Realty stocks rise

BSE Realty index rose 0.5 percent led by Indiabulls Real Estate, Godrej Properties, Brigade Enterprises

13:31 (IST) 28 Sep 2022 BHEL receives order, stock rises 2%

Bharat Heavy Electrical has received order for setting up the 2×660 MW Talcher thermal power project Stage-III on EPC (engineering, procurement & construction) basis from NTPC.

12:50 (IST) 28 Sep 2022 Govt further extends deadline for broken rice export in-transit before ban

The central government, on Tuesday, further extended the deadline to October 15 for the in-transit stock of broken rice. The Centre had imposed a ban on the export of broken rice, effective from September 9. The notification regarding the ban was issued on September 8, which mentioned that certain broken rice shipments will be immune to the ban during the period September 9 to September 15. The deadline for the same was recently extended to September 30. Now in a notification issued by the Directorate General of Foreign Trade, the deadline has seen an extension of 15 days. The notification comes into force with immediate effect. Read full story

12:45 (IST) 28 Sep 2022 Nifty, Sensex trade flat

Domestic equity markets trimmed early losses and were fluctuating between green and red in noon deals. Declining risk appetite, lower crude prices, and fresh bets in index heavyweights like Dr Reddy’s, Hindustan Unilever, Asian Paints helped erase losses. NSE Nifty 50 traded flat above 17,000 levels, whereas the S&P BSE Sensex gained over 50 points to trade at reclaim 57000. Sectorally, Nifty Auto and Nifty Realty indices gained over 1 per cent Nifty Energy and Nifty Bank indices, however, remained bogged down.

12:43 (IST) 28 Sep 2022 Buy Reliance Industries stock: RIL share may soar above Rs 2600; charts signal technical pullback in near-term

Reliance Industries share price is likely to gain 9 per cent to Rs 2,615 apiece in near-term, as the stock has been witnessing buying demand from the key support area of Rs 2300-2370 for the third time since May 2022, analysts at ICICI direct Research said. It expects the RIL stock to witness a gradual pullback from the current oversold territory, thus offering a fresh entry opportunity with a favourable risk-reward set up. On Wednesday, RIL shares were trading 1.7 per cent down at Rs 2,354.05 apiece on BSE. The stock is down nearly 18 per cent from the all-time highs, hit in April this year. Read full story

11:56 (IST) 28 Sep 2022 Gold Price Today, 28 Sep 2022: Gold, silver rates fall on strong US Dollar, weak cues; MCX support at Rs 48500

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate and silver rate were trading weak on Wednesday, on the back of strong US Dollar. On Multi Commodity Exchange, gold October futures were trading Rs 99 or 0.2 per cent down at Rs 49,220 per 10 gram. Silver December futures were ruling Rs 581 or 1.05 per cent down at Rs 54,798 per kg. Globally, yellow metal prices slipped as the dollar resumed climbing after Federal Reserve officials reiterated the US central bank’s resolution to maintain an aggressive policy stance to tackle soaring inflation. Read full story

11:36 (IST) 28 Sep 2022 Delhi HC grants statutory bail to former NSE CEO Chitra Ramkrishna

Delhi High Court grants statutory bail to former NSE CEO Chitra Ramkrishna and former NSE Operating Officer Anand Subramanian in co-location case.

11:18 (IST) 28 Sep 2022 Sell-off continues; Nifty, Sensex in red

The Sensex is down 137.92 points or 0.24 percent at 56,969.60. Nifty is down 45.70 points or 0.27 percent at 16961.70.

11:18 (IST) 28 Sep 2022 Shriram Transport Finance Corporation to consider fundraising on October 31

Shriram Transport Finance Corporation will consider raising of funds by way of issue of redeemable non-convertible debt securities including bonds in onshore, offshore market on private placement basis, subject to market conditions and in this regard, the meeting(s) of the concerned committees viz. the Banking and Finance Committee, Debt Issuance Committee and Allotment Committee- NCDs will be held to consider and approve the issue and allotment of redeemable non-convertible debt securities/bonds during the month ending October 31, 2022 as per their respective terms of reference, subject to such terms and conditions including the issue price of debt securities/ bonds, as the said committees may deem fit.

11:11 (IST) 28 Sep 2022 Consolidation in Rupee to benefit importers if it tests 80 levels over short-term

“Rupee technically has depreciated 3.80% from 79 levels which was recently tested. I think Rupee will take support of 82 and remain in the range of 82-80 levels. This consolidation will benefit the importers if it tests 80 levels over short term.”

~Megh Mody – Commodities and Currencies Research Analyst, Prabhudas Lilladher Pvt Ltd

10:47 (IST) 28 Sep 2022 RBI MPC likely to hike repo rate by 50 bps again; commentary on liquidity, rupee depreciation keenly eyed

The RBI is expected to deliver a 50 bps rate hike in its September Monetary Policy Committee (MPC) meeting. The half a percentage point hike is expected as the Reserve Bank of India catches up with global central banks in not just fighting inflation, but also to stem rupee depreciation. RBI has already used up $100 billion in reserves to stabilise the local currency. “While this hike may help in allaying macrostability concerns, it would negatively affect the business cycle as nascent economic recovery may not be able to absorb such tightening of financial conditions,” said Edelweiss Securities in its report.

Read full story

10:45 (IST) 28 Sep 2022 Nifty 50 rejig: Adani Enterprises replaces Shree Cement; IRCTC, Adani Total Gas, HAL enter Nifty Next 50

Gautam Adani-led Adani Enterprises will become part of Nifty 50 from Friday, 30 September, in NSE’s upcoming semi-annual index rejig. Adani Enterprises will replace Shree Cement from the 50-stock index. This is the second Adani stock to be included in the Nifty 50 index after Adani Ports and Special Economic Zone. Apart from Nifty 50, changes have been announced in Nifty Next 50, and Nifty IT. Adani group has seven established listed entities, including Adani Green Energy, Adani Power, Adani Total Gas, Adani Transmission, Adani Ports and Special Economic Zone, Adani Wilmar, and Adani Enterprises. Read full story

10:15 (IST) 28 Sep 2022 Rupee fall to new low

Rupee hits fresh record low of 81.93 to a dollar amid slump in global markets. “Rupee has been holding remarkably well with RBI intervention supporting the market. We believe that it might be better for the RBI to allow the rupee to depreciate a bit, finding its natural balance,” said SBI Ecowrap in a note.

10:11 (IST) 28 Sep 2022 Metals stocks drag

Nifty metal index shed 0.5 per cent, dragged by the SAIL India, Vedanta, Jindal Stainless

10:08 (IST) 28 Sep 2022 Suzlon Energy rights issue to open on October 11; share price falls 2%

Suzlon Energy rights issue to open on October 11, 2022 and will close on October 20, 2022. The Record date is 4 October for the purpose of determining the equity shareholders entitled to receive the rights entitlement in the rights issue.

09:54 (IST) 28 Sep 2022 LIC picks additional 2.01% stake in BPCL

Life Insurance Corporation of India has acquired an additional 2.01% stake in Bharat Petroleum Corporation Ltd via open market transactions. With this, its shareholding in the company increased to 9.04%, up from 7.03% earlier.

09:38 (IST) 28 Sep 2022 Brace for more corrections

“IT is likely to remain resilient supported by currency tailwinds. Autos and capital goods can be slowly accumulated on declines. Since valuations in India continue to be high relative to peers, investors may brace for more corrections in this bearish scenario. A sharp turnaround in global market sentiments will happen only when data indicate a decline in US inflation.”

~VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services

09:36 (IST) 28 Sep 2022 Market texture changes to ‘Sell on rally’

“Globally equity markets are in bear territory. India is a distinct outlier with only 8.5% decline from the peak in Nifty. India can remain an outperformer supported by its strong fundamentals but India cannot remain immune to major global trends. The texture of the market has changed from ‘buy on dips’ to ‘sell on rally’ and therefore, investors have to be cautious in the market now. The Bank Nifty has sharply corrected by 8% from its recent record high and is weak now.”

~VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services

09:32 (IST) 28 Sep 2022 Torrent Pharma shares fall 3%, company to acquire Curatio Healthcare

Torrent Pharmaceuticals has acquired Curatio Healthcare, which has a strong presence in the cosmetic dermatology segment with a portfolio of over 50 brands, for Rs 2,000 crore. It has entered into definitive agreements to acquire 100% in Curatio which reported revenue for FY21-22 at Rs 224 crore.

09:20 (IST) 28 Sep 2022 Nifty above 16940 may hit 17200, momentum indicators signal possibility of pullback rally; Buy Cipla, LTI

We are of the view that, the bearish sentiment in the market is still intact and a fresh pullback rally is possible, if Nifty 50 and BSE Sensex succeed to trade above the 200 day SMA (Simple Moving average) or 16940/56950. Above which, indices could retest the level of 17150-17200/57500-57700. On the flip side, below 16940/56950, these could slip till 16850-16800/56600-56500. The intraday texture of the market is non-directional, hence level based trading would be the ideal strategy for the day traders. Read full story

09:19 (IST) 28 Sep 2022 Rupee hits new lifetime low, nears 82 mark on strong dollar, weak markets; USDINR support at 81

The Indian Rupee fell to a fresh lifetime low of 81.90 in opening trade on Wednesday amid strong dollar, FII outflows, and risk-off sentiments in equity markets. The delay in Indian bond inclusion in the JP Morgan bond index also likely weighed on the local unit. In the previous session, rupee weakened past the 81.60 mark. On the flow side, there has been notable outflow since Fed’s hike day. Read full story

09:08 (IST) 28 Sep 2022 Sensex, Nifty fall 1% in pre-open on Wednesday

BSE Sensex tanks 480 points or 0.8 per cent to trade at 56,628, while NSE Nifty 50 plunged 157 points or 0.9 per cent to 16,850

08:58 (IST) 28 Sep 2022 Petrol, Diesel Price Today, 28 Sep 2022: Fuel cost static; check rates in Delhi, Mumbai, Noida, other cities

Petrol and Diesel Rate Today in Delhi, Bangalore, Chennai, Mumbai, Lucknow: The price of petrol and diesel has been kept steady on 28 September 2022 (Wednesday), keeping costs steady for more than three months now. The petrol rate and diesel rates in Delhi are at Rs 96.72 and Rs 89.62 a litre, respectively. In Mumbai, petrol is retailing at Rs 106.31 per litre and diesel at Rs 94.27 per litre. The last country-wide change in price came on 21 May 2022, when Finance Minister Nirmala Sitharaman announced a cut in excise duty on petrol by Rs 8 per litre and Rs 6 per litre on diesel. Read full story

08:58 (IST) 28 Sep 2022 Bank Nifty support at 37800, resistance at 38750

“Benchmark Indices are expected to open on a negative note today as suggested by trends on SGX Nifty. Some stock-specific actions can be witnessed in stocks such as Torrent Pharma, KPI Green Energy, and Motherson Sumi Wiring. On the technical front, Immediate support and resistance in Nifty 50 are 16800 and 17200 respectively. Bank Nifty immediate support and resistance are 37800 and 38750 respectively.”

~Mohit Nigam, Head – PMS, Hem Securities

08:56 (IST) 28 Sep 2022 Markets may witness some consolidation

“Markets may witness some consolidation or pause after the recent decline however mixed trends across sectors would continue to offer trading opportunities across the board. Besides, the beginning of the MPC meet and global cues would keep the volatility high. We feel it’s prudent to continue with the defensive pack for long trades until we see some stability.”

~Ajit Mishra, VP – Research, Religare Broking

08:36 (IST) 28 Sep 2022 Will bears drag Nifty to 16800 amid high volatility, uncertainty? 5 things to know before market opening bell

The sell-off in the domestic share market is likely to continue as SGX Nifty hinted at a gap-down open for NSE Nifty 50 and BSE Sensex with a loss of 101 pts or 0.5%. “We expect market volatility to continue until RBI MPC outcome and monthly derivatives expiry. We expect stock related to domestic consumption to perform well with strong festive season. Also sectors like Paint, FMCG would see momentum on the back of sharp fall in crude oil prices,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.

Read full story

08:06 (IST) 28 Sep 2022 Stocks in focus today

Reliance: Reliance Retail announced the opening of its fashion & lifestyle departmental store, Reliance Centro.

Adani Group stocks: The Adani Group will invest $100 billion over the next decade in new energy and digital spaces, which includes data centres.

HCL Technologies: HCL Technologies launched its new logo and brand identity.

Torrent Pharma: Torrent Pharmaceuticals on Tuesday said it will wholly acquire Curatio Healthcare for Rs 2,000 crore.

Read full story

08:00 (IST) 28 Sep 2022 Downtrend in Nifty may have halted temporarily

“On Tusday, Nifty took support from the upgap of 16947 and closed flat after making a lower low compared to the previous day. The downtrend in the Nifty may have halted temporarily, though it needs to close above 17196 for confirmation. On falls, 16942 will be watched closely,”

~ Deepak Jasani, Head of Retail Research, HDFC Securities

07:59 (IST) 28 Sep 2022 SGX Nifty hints at a negative start for Indian equities

Trends in SGX Nifty indicated at a gap-down opening for Indian equities. The Nifty futures were trading around 16,937 levels, down around 100 pts or 0.5% on the Singaporean exchange.

07:50 (IST) 28 Sep 2022 Asian markets tepid

Shares in the Asia-Pacific traded mixed at the open on Wednesday after the S&P 500 set a new 2022 low overnight on Wall Street. Japan’s Nikkei 225 fell 0.68 per cent, while the Topix index slipped 0.67 per cent. MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.18 per cent. The Kospi in South Korea shed 0.43 per cent.

07:49 (IST) 28 Sep 2022 US stocks tumble

The S&P 500 fell to its lowest level in almost two years on Tuesday on worries about super aggressive Federal Reserve policy tightening, trading under its June trough and leaving investors appraising how much further stocks would have to fall before stabilizing. The S&P 500 touched a session low of 3,623.29, its lowest point on an intraday basis since November 30, 2020. A late rally helped push the index off its worst level of the day, but the index still closed lower for a sixth straight session as it lost 7.75 points, or 0.21%, to 3,647.29 .

Petrol, Diesel Price Today, 12 Sep 2022: Fuel cost steady, check rates in Delhi, Mumbai, Noida, other cities

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Petrol and Diesel Rate Today in Delhi, Bangalore, Chennai, Mumbai, Lucknow: The price of petrol and diesel has been kept steady on 12 September 2022 (Monday), keeping costs steady for more than three months now. Petrol and diesel in Delhi is priced at Rs 96.72 and Rs 89.62 a litre, respectively. In Mumbai, petrol is retailing at Rs 106.31 per litre and diesel at Rs 94.27 per litre. The last country-wide change in price came on 21 May 2022, when Finance Minister Nirmala Sitharaman announced a cut in excise duty on petrol by Rs 8 per litre, and Rs 6 per litre on diesel. Since then, Maharashtra is the only state to have cut rates. The Maharashtra government had announced a cut in value-added tax (VAT) on petrol by Rs 5 a litre and by Rs 3 a litre for diesel in July.

Also read:CPI inflation likely to reverse 3-month downtrend in Aug on high food prices; WPI seen in double-digits

Petrol, diesel prices in Chennai, Kolkata, Bengaluru, Lucknow, Noida, Gurugram

Mumbai: Petrol price: Rs 106.31 per litre, Diesel price: 94.27 per litre

Delhi: Petrol price: Rs 96.72 per litre, Diesel price: Rs 89.62 per litre

Chennai: Petrol price: Rs 102.63 per litre, Diesel price: Rs 94.24 per litre

Kolkata: Petrol price: Rs 106.03 per litre, Diesel price: Rs 92.76 per litre

Bengaluru: Petrol: Rs 101.94 per litre, Diesel: Rs 87.89 per litre

Lucknow: Petrol: Rs 96.57 per litre, Diesel: Rs 89.76 per litre

Noida: Petrol: Rs 96.79 per litre, Diesel: Rs 89.96 per litre

Gurugram: Petrol: Rs 97.18 per litre, Diesel: Rs 90.05 per litre

Chandigarh: Petrol: Rs 96.20 per litre, Diesel: Rs 84.26 per litre

Also read:Nifty looks set to hit 18160-18600 in near term, Bank Nifty shows upmove; watch out for these levels

Public sector OMCs including Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation Ltd (IOCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise the fuel prices daily in line with international benchmark prices and foreign exchange rates. Any changes in petrol and diesel prices are implemented from 6 am every day. Retail petrol and diesel prices differ from state to state because of local taxes like VAT or freight charges.

Sebi’s new block regime to leave brokers with less cash

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The Securities and Exchange Board of India’s move to introduce ASBA for secondary markets may deplete the cash balances of brokers even further.

Today, clients of non-bank based brokers who want to place trades have to transfer the money to their ledger accounts. Any excess cash that remains after the transaction stays with the broker and has to be returned within 90 or 30 days. For bank-based brokers, the requisite amount is drawn from the customer’s account and blocked. At the end of the day, the unutilised amount gets unblocked.

The new ASBA system aims to ensure that the money earmarked for trades bypasses the broker and goes directly to the clearing corporations.

“A substantial portion of customers’ cash lies with the broker, which can be misused. The broker’s net worth may not even cover one tenth of the cash balances. The regulator has already created several checks and balances to ensure the float is not misused and the ASBA mechanism, if implemented, will create another layer of safety for clients,” said a top broker, on condition of anonymity.

Idle balances lying in a trading account earns interest income for a brokerage firm. In India, due to quarterly settlement rules, brokerage firms are required to send back any unused balance back to the client’s bank account within 90 or 30 days. This also hurts brokerage revenues indirectly. Clients having money in their trading accounts have a much higher chance of trading than when in the bank account.

Madhabi Puri Buch, chairperson, Sebi, last week said the market regulator was engaging with various stakeholders to introduce ASBA for investments in the secondary market.

At present, ASBA, or Applications Supported by Blocked Amount, is used for applying to initial public offerings (IPOs) wherein an applicant’s account doesn’t get debited until shares are allotted to them.

“The regulator is trying to facilitate direct movement of securities and money to the issuer or the exchange. If money is passed through many hands there is a structural vulnerability that arises at different stages. The attempt is to eliminate the process of wrongdoing through technology and process reengineering,” Buch had said at the Global Fintech Fest held at Mumbai.

Also read: Gautam Adani slips to third place in world’s rich list, Mukesh Ambani out of top-10 after Monday’s D-St rout

Roadblocks ahead

Switching to a block system for secondary market trades will be complicated and may take another 8-10 months to implement. The regulator may keep it optional for some time or introduce it in phases.

Concerns remain as to how the new system will be implemented for intraday trades, which constitute 80-90% of all cash transactions.

Brokers will need to verify the account of clients and the amount that has been blocked for trades. However, banks may not permit this under existing regulations. Latency issues could crop up.

In tier 2 and tier 3 cities, several customers still use cheques and do not use the online payment system. There could be issues if there are account freezes by the CBI or Enforcement Directorate.

“The intention is good but the practical aspects need to be looked at,” said Kamlesh Shah, president, Association of National Exchanges Members of India, an industry body.

“How do you block the account if a person is continually trading? How do you differentiate between intraday and delivery-based transactions? F&O could have its own set of complications,” he said.

Shah believes that the regulator may experiment with the new system on the cash market first. He is also unsure if the new mechanism will work on the margin system or on the full payment basis.

“If it’s done on a margin basis then the question is whether the client will be able to pay the balance amount on the pay-in day or not. Who will take responsibility if there’s a mismatch? The new system should ensure that liquidity does not get impacted for the larger trades by institutional players,” said Shah.

Global Markets: Stocks recoup losses after Putin’s nuclear threat; Fed keeps dollar buoyant

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Global equities shook off an early knock to risk appetite and rebounded on Wednesday after Russian President Vladimir Putin accused the West of “nuclear blackmail”, sparking a brief flight to safe-haven assets like gold and bonds.

European stocks pared earlier losses and mostly rose, helping boost U.S. stock futures, as gains in energy and natural resource shares helped lift the broader indices.

Investors were already nervy ahead of a widely anticipated rate rise by the Federal Reserve later in the day, in a week that is jam-packed with major central banks’ decisions on how to respond to red-hot inflation.

The fact that the market has pretty much done a 180 turn shows that ultimately what the Fed does and what other central banks are set to do is more important than Putin’s sabre-rattling.

Also Read: US Stocks: Futures edge higher as investors gird for another big rate hike

“At the moment, the number one enemy is inflation obviously,” CMC chief markets strategist Michael Hewson said.

“You’re going to get ebb and flow in terms of rhetoric ramping up and ramping down, so you’re going to have to deal with the underlying issue and then deal with the rest of it as and when it happens. So the primary goal at the moment for central banks is to try to tame the inflation genie and that really needs to be at the forefront of their focus.”

Putin said he had signed a decree on partial mobilisation beginning on Wednesday – the first since World War Two – saying he was defending Russian territories and that the West wanted to destroy Russia.

“If the territorial integrity of our country is threatened, we will use all available means to protect our people – this is not a bluff,” Putin said in a televised address to the nation, adding Russia had “lots of weapons to reply”.

Initially, the dollar rallied, government bond yields dropped sharply while gold and crude oil jumped.

But by the early European afternoon, much of this momentum had faded. The euro was down 0.6% at $0.99090, off an earlier session low of $0.98850, while the pound dipped 0.3% to $1.1342, holding above a new 37-year low of $1.1304.

The dollar index, which measures the performance of the U.S. currency against six major peers, rose 0.6% to 110.76, nearing a new two-decade high of 110.87 struck earlier.

Government bonds unwound most of their previous gains, pushing yields back up towards this week’s multi-year highs that have been driven by the determination of central banks to quell a potentially damaging rise in inflation.

The Fed headlines a week in which more than a dozen central banks announce policy decisions, including the Bank of Japan and Bank of England on Thursday.

German 2-year yields, the most sensitive to rate expectations, jumped 3 basis points to a new 11-year high of 1.752%, off the day’s low of 1.626%.

The 10-year Treasury yield, which touched 3.604% on Tuesday for the first time since April 2011, was last down 4 basis points at 3.534%.

Equities have been under pressure this week over the Fed’s upcoming policy decision at which it is widely expected to lift rates by three quarters of a point.But with fears mounting about the potential for another blow to global energy supply, crude oil and natural gas prices rose, giving a lift to shares of major producers.

Europe’s STOXX 600 index was up 0.4% on the day, led by a 2% gain in the oil and gas subindex, while London’s FTSE 100 rose 0.9%. U.S. stock index futures were up between 0.1 and 0.4%.

The MSCI All-World index of global shares dropped 0.3% to skim two-month lows, while gold, another traditional safe haven, gained 0.5% to trade around $1,667.40 an ounce, set for its largest one-day rally in over a week.

Crude oil jumped by 2% to $92.49 a barrel, while natural gas prices shot higher.