The Sensex and Nifty opened on a subdued note on September 17, as investors held their breath for the Federal Reserve's anticipated monetary loosening cycle. Auto and IT stocks led the downward trend, while FMCG, banks, and healthcare stocks stayed in the green, offering a counterbalance.
At 9.18 AM, the Sensex was down 63 points or 0.1 percent at 82,924 and the Nifty was down 16 points at 25,367. About 1,324 shares advanced, 1,213 shares declined, and 141 shares were unchanged.
In the previous session (September 16), Indian indices hit a fresh high but failed to sustain levels above 25,400 and ended the session nearly flat.
"Going forward, the anticipated Fed rate cut this week is likely to have a substantial impact on global markets," said Sameet Chavan, Head of Technical and Derivative Research at Angel One. He advised investors to maintain a cautiously optimistic outlook and implement effective risk management strategies.
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When it comes to sectoral indices, Nifty IT and Nifty Auto fell 0.3 percent and 0.7 percent, respectively, while Nifty Healthcare, Nifty Pharma, and Nifty FMCG saw gains of 0.2-0.7 percent.
Among individual stocks, Bajaj Finance, TCS, Bajaj Finserv, HDFC Life, and Tata Motors were among the biggest losers, with Tata Motors leading the fall with a 2 percent drop after 1.9 crore shares or 0.4 percent of the total equity of the company changed hands in a block deal. Conversely, Apollo Hospitals, ONGC, Tata Consumer Products, HUL, and Britannia were the top gainers.
Shares of the newly listed Bajaj Housing Finance rose nearly 8 percent in early trade.
The broader market mirrored the benchmark indices and was flat as well.
In the Asia-Pacific region, stocks were mixed this morning. Trading in China, Taiwan, and South Korea remained shut for public holidays. Overnight, Wall Street also saw a mixed trend, with the S&P 500 inching up slightly, while the Nasdaq Composite dropped 0.5 percent weighed down by technology stocks.
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Market expectations for the size of the Federal Reserve's rate cut have been fluctuating in recent days. According to CME's FedWatch Tool, there is now a 67 percent probability of a 50-basis-point cut.
"A 25 basis point cut is already priced into the markets," Gaurang Shah, Senior Vice President at Geojit Financial Services told Moneycontrol. "In terms of our market, the lower side range for Nifty 50 is between 25,200-25,300. If we close above 25,400-450, the bias will shift upward towards 25,600 and 25,650," he said.
Shah said that the momentum seems positive, but, "It depends on what happens late tomorrow (September 18) and how we react on Thursday (September 19) morning. If the Fed goes for a 50 basis point cut, there will likely be euphoria in the US markets, which will spill over into global and our markets. In such a case, hitting 25,600 is very possible."
Later today, US retail sales data will provide insights into consumer health ahead of the Fed meeting, while India’s wholesale price data for August is also in focus.
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