Closing Bell: Nifty below 25,400, Sensex down 131 pts; IT drags, banks gain

Indian equity indices failed to hold on the early gains and ended on a negative note with Nifty below 25,400 on September 18. At close, the Sensex was down 131.43 points or 0.16 percent at 82,948.23, and the Nifty was down 41 points or 0.16 percent at 25,377.50.

We wrap up today's edition of the Moneycontrol live market blog, and will be back tomorrow morning with all the latest updates and alerts. Please visit https://www.moneycontrol.com/markets/global-indices for all the global market action.

The Indian market experienced a minor profit booking with underperformance by midcaps. Mixed signals from global markets emerged ahead of the anticipated FOMC rate cut decision which is seemingly priced in a 25-bps cut. Investors assess the potential for a short-term underperformance of equity given the elevated valuation and correction of metal prices.

Commodities, including oil prices, are steadily declining, suggesting a potential tempering of economic growth. Investor caution is evident as gold prices rise, likely due to anticipated dollar weakness following the rate cut.

Banking stocks-led rally allowed the Index to register a new high of 25,482 but a vertical fall in the Mid and Smallcaps mounted pressure on the Index to eventually trade lower. A late recovery helped the Index trim some of its losses to end the session at 25,377.55 with a loss of 41 points. Barring Banking indices, all the sectors ended in red with IT and Pharma being the major laggards. Mid and Smallcaps were corrected by 0.71% & 0.39% and underperformed the Benchmark Index.

Considering an overnight event (outcome of FOMC on rate cut), big swings can be expected on either side for the Index where 25,580 will be considered as a hurdle while 25,250 will serve as support.

The Nifty index reached a new all-time high ahead of the important announcement from the Federal Reserve about interest rates. However, some traders decided to take profits at these higher levels, which caused the market to close about 130 points below its peak for the day.

Lately, Nifty has been moving within a small range. On the downside, there is support at 25,300. If Nifty falls below this level, it could lead to a further drop towards the 24,900-25,000 range. On the upside, 25,500 is acting as a resistance level, meaning it may be difficult for the market to move above this point in the short term.

Indian equity indices failed to hold on the early gains and ended on a negative note with Nifty at 25,350 on September 18.

At close, the Sensex was down 131.43 points or 0.16 percent at 82,948.23, and the Nifty was down 41 points or 0.16 percent at 25,377.50. About 1453 shares advanced, 2343 shares declined, and 105 shares unchanged.

Biggest Nifty losers were TCS, HCL Technologies, Infosys, Tech Mahindra and Wipro, while gainers included Bajaj Finance, Shriram Finance, Bajaj Finserv, ICICI Bank and Nestle India.

Except bank, all other sectoral indices ended in the red with Information Technology shed more than 3 percent, while auto, pharma, metal, oil & gas down 0.5-1 percent.

The BSE midcap index shed 0.7 percent and smallcap index was down 0.5 percent.

The company board approved to sub-divide/split 1 equity shares of the company of Rs 10 each, fully paid-up into 5 equity shares of face value of Rs 2 each.

The company has been shortlisted by the Armament Research and Development Establishment (ARDE), DRDO, for Transfer of Technology (ToT) related to the production of PRACHAND Munition Hardware.

#1 Emcure is one of the few Indian pharma majors with no direct US generics exposure

#2 There is greater earnings stability with no direct US generics exposure

#3 Company has built a complex portfolio across India, Canada, Europe and EMs

#4 Expect Emcure to report a 14 percent overall sales CAGR over FY2024-27

#5 On a low base, expect improved productivity post the 20 percent+ field force addition since FY22

#6 Higher capacity utilisation of new facilities to drive robust 19 percent/30 percent EBITDA/EPS CAGR over FY24-27

State Bank of India (SBI) raised Rs 7,500 crore today at a coupon rate of 7.33% through its second Basel III compliant Tier 2 bond issuance for the current financial year.

This is a new chapter in the financial markets especially REITs. It's a leap forward in ensuring that our markets remain efficient, and valuations remain consistent.

Initiative is being launched in partnership with Caredge, CAMS and Kgintech under the guidance of Sebi

The REIT sector in India has seen remarkable growth. We have witnessed a vibrant industry unfold before our eyes.

#1 Company reiterated FY25 order flow & revenue growth outlook is achievable given the pipeline & orderbook

#2 Revenue guidance factors execution delays from government activity taking 3-6 months to pick up post elections

#3 Believe Budget gives confidence on medium-term double-digit capex growth being intact

#1 Management is confident on double-digit volume growth

#2 Company retained its FY25 volume guidance with new port operations expected in H2

#3 Capex prudence and return focus remain

#4 Market share gains continue, with dedicated freight corridor commissioning at Mundra also helping

QIB – 0.22 times

NII - 34.89 times

Retail – 15.43 times

Employee Reserved - 3.31 times

Overall –15.04 times

QIB – 0.46 times

NII - 42.60 times

Retail – 27.15 times

Employee Reserved - 25.48 times

Overall –22.85 times

The Sensex was up 78.35 points or 0.09 percent at 83,158.01, and the Nifty was up 14.80 points or 0.06 percent at 25,433.30.

The company has received a Letter of Intent from Maharashtra State Electricity Distribution Co. for the procurement of 1,500 MW of energy storage capacity from a pumped hydro storage project for 40 years.

#1 Company continues to reiterate that Q2 revenue growth trends will likely be similar to Q1

#2 Margin may see continued pressure as growth is moderate & from cost takeout deals

#3 Valuations at 32x FY26 consensus EPS

ZEE categorically refutes all claims and assertions made by Star including its claims for damages.

The Board of Directors will meet on September 24 to consider a proposal for raising funds. Additionally, the company has partnered with Star Health Insurance to offer health insurance products across its network.

Reliance Power announced that the entire obligations of the company as a Guarantor on behalf of Vidarbha Industries Power stand fully settled resulting in release and discharge of corporate guarantee, undertakings and all obligations and claims thereunder in relation to the outstanding debt of

VIPL amounting to Rs 3872.04 crore.

Reliance Power has settled all disputes with CFM Asset Reconstruction Private Limited (CFM). 100% shares of VIPL have been pledged in favour of CFM against the release and discharge of Corporate Guarantee given by Reliance Power.

Investors continued to lap up shares of Bajaj Twins - Bajaj Finance, Bajaj Finserv, sending them up to 2.7 percent on September 18 as subsidiary Bajaj Housing Finance more than doubled investors' wealth upon its stellar debut on bourses. The uptick also came as Morgan Stanley maintained an 'overweight' rating on parent entity Bajaj Finance, seeing 19 percent upside from current levels. READ MORE

The Board will meet on September 20 to consider raising funds via the issuance of non-convertible bonds on a private placement basis.

#1 Company reiterated FY25 order flow & revenue growth outlook is achievable given the pipeline & orderbook

#2 Revenue guidance factors execution delays from government activity taking 3-6 months to pick up post elections

#3 Believe Budget gives confidence on medium-term double-digit capex growth being intact

The Board of Directors will meet on September 24 to consider raising funds through the issuance of equity shares.

Emcure Pharmaceuticals is one of the few Indian pharma majors with no direct US generics

exposure, thereby lending greater earnings stability, noted domestic brokerage Kotak Institutional Equities.

The brokerage initiated coverage on Emcure Pharma with an 'add' rating and a target price of Rs 1,655 per share. This implies an upside of around 11 percent from the previous session's closing price. Read More

#1 With an attractive price point of Rs 2.17 lakh, believe speed T4 hits right spot

#2 Bajaj Auto delivered 60,000 triumph motorcycle in FY24

#3 New launch looks promising but remain cautious on increasing competitive intensity

#4 Cautious over growth moderation in >250cc motorcycle segment

#5 There is continued pressure in key export markets

The UK's Metro Bank has entered into a long-term collaboration with Infosys to enhance some of its IT and support functions, while digitally transforming the bank’s business operations.

LIC has increased its shareholding in Biocon from 4.982% to 5.023% by purchasing an additional 5 lakh shares (representing 0.041% of paid-up equity) on September 13.

#1 Company is growing faster than Infosys in spending rebounds

#2 Expect more cloud migration deals to be bundled between applications & infra services

#3 See TCS as better positioned than Infosys

#4 Expect TCS to grow faster than Infosys in both FY26 & FY27

The Board of Directors will meet on September 24 to consider a proposal for raising funds. Additionally, the company has partnered with Star Health Insurance to offer health insurance products across its network.

Inox Wind has received a Letter of Intent (LoI) from IGREL Renewables Ltd (IGREL) for execution of 550 MW wind capacity on turnkey basis.

As part of the project, Inox Wind will supply, install and commission the Wind Turbine Generators (WTGs), and provide multi-year comprehensive operations & maintenance (O&M) services post commissioning.

The project will be executed over the next 24 months across multiple sites in the states of Gujarat, Rajasthan and Madhya Pradesh.

The 550 MW LoI is over and above the firm order of 200 MW received in the past, and takes IWL’s orderbook to > 3.5 GW.

The company has received a Letter of Intent from Maharashtra State Electricity Distribution Co. for the procurement of 1,500 MW of energy storage capacity from a pumped hydro storage project for 40 years.

The company has agreed on a one-time settlement with Edelweiss Asset Reconstruction Company for the entire obligations related to the non-convertible debentures issued by the company worth Rs 385 crore. The settlement will be completed before September 30, 2024. Edelweiss does not hold any equity shares in the company and is neither a related party nor part of the promoter group.

The company has agreed on a one-time settlement with Edelweiss Asset Reconstruction Company for the entire obligations related to the non-convertible debentures issued by the company worth Rs 385 crore. The settlement will be completed before September 30, 2024. Edelweiss does not hold any equity shares in the company and is neither a related party nor part of the promoter group.

The significance of the Fed rate decision expected tonight is evident from the wait and watch market mood across the globe yesterday. Perhaps more important than the Fed action would be the Fed commentary and the message. An ideal and possible outcome would be a 25 bp rate cut with a dovish message indicating a series of rate cuts. Good retail sales data along with a weakening labor market point to such a possibility.

India’s August trade data indicate stagnant exports and rising imports. The consequent rising trade deficit can weaken the INR, if the trend persists. This means exporters like IT will benefit. Pharma, Chemicals and Textile exporters too will benefit.

The time is favourable for reducing the exposure to mid and small caps and increasing the exposure to largecaps. This strategy will play out well in the medium to long run.

Despite mixed global cues, the Indian indices opened flat on September 18.

The Sensex was down 96.83 points or 0.12 percent at 82,982.83, and the Nifty was down 25.00 points or 0.10 percent at 25,393.50. About 1539 shares advanced, 803 shares declined, and 136 shares unchanged.

Shriram Finance, Britannia Industries, Bajaj Finance, NTPC and Hero MotoCorp were among major gainers on the Nifty, while losers were LTIMindtree, Wipro, Infosys, TCS and Tech Mahindra.