The market following weak global cues is expected to open in the red as trends in SGX Nifty indicate a gap-down opening for the broader index in India with a loss of 121 points.
The BSE Sensex fell 263 points to 59,457, while the Nifty50 declined 98 points to 17,718 and formed decent bearish candle on the daily charts amid volatility.
As per the pivot charts, the key support level for the Nifty is placed at 17,642, followed by 17,565. If the index moves up, the key resistance levels to watch out for are 17,817 and 17,915.
Stay tuned to Moneycontrol to find out what happens in the currency and equity markets today. We have collated a list of important headlines across news platforms which could impact Indian as well as international markets:
Fed delivers another big rate hike; Powell vows to 'keep at it'
The Fed raised rates sharply, by 75 basis points - the third such rise in a row. That takes the bank's benchmark overnight rate target range to 3-3.25 percent.
Federal Reserve Chair Jerome Powell vowed on Wednesday that he and his fellow policymakers would "keep at" their battle to beat down inflation, as the US central bank hiked interest rates by three-quarters of a percentage point for a third straight time and signaled that borrowing costs would keep rising this year.
In a sobering new set of projections, the Fed foresees its policy rate rising at a faster pace and to a higher level than expected, the economy slowing to a crawl, and unemployment rising to a degree historically associated with recessions.
The United States has had a "red hot housing market ... There was a big imbalance," Powell said in a news conference after Fed policymakers unanimously agreed to raise the central bank's benchmark overnight interest rate to a range of 3.00-3.25 percent. "What we need is supply and demand to get better aligned ... We probably in the housing market have to go through a correction to get back to that place."
Wall Street's main indexes see-sawed before slumping in the final 30 minutes of trading to end Wednesday lower, as investors digested another supersized Federal Reserve hike and its commitment to keep up increases into 2023 to fight inflation.
All three benchmarks finished more than 1.7 percent down, with the Dow posting its lowest close since June 17, with the Nasdaq and S&P 500 respectively, at their lowest point since July 1, and June 30.
The Dow Jones Industrial Average fell 522.45 points, or 1.7 percent, to 30,183.78, the S&P 500 lost 66 points, or 1.71 percent, to 3,789.93 and the Nasdaq Composite dropped 204.86 points, or 1.79 percent, to 11,220.19.
Asia markets traded lower on Thursday after the U.S. Federal Reserve raised interest rates and signaled further hikes ahead. U.S. stocks were volatile and closed sharply lower following the announcement. The Nikkei 225 in Japan slipped 1 percent in early trade, and the Topix index fell 0.78 percent.
South Korea’s Kospi dropped 1.12 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.46 percent.
Trends in SGX Nifty indicate a gap-down opening for the broader index in India with a loss of 121 points. The Nifty futures were trading around 17,594 levels on the Singaporean exchange.
The Union Cabinet on September 21 approved the second tranche of the performance-linked incentive (PLI) scheme for the development of solar PV modules, with an outlay of Rs 19,500 crore.
The PLI for the "National Programme on High-Efficiency Solar PV Modules" is aimed at achieving a manufacturing capacity of "Giga Watt (GW)-scale in high-efficiency solar PV modules", Union Minister Anurag Thakur said in a press briefing following the Cabinet meeting.
"A provision of Rs 19, 500 crore has been made," Thakur said, adding that the government wants to create an "ecosystem for manufacturing of high-efficiency solar PV modules".
The Centre, in an official release, noted that the scheme will bring "direct investment of around Rs 94,000 crore", and lead to direct employment of about 1,95,000 persons and indirect employment of around 7,80,000.
Oil prices slip after US interest rate hike on fears for demand
Oil prices edged lower in early Asian trade on Thursday after the U.S. Federal Reserve raised interest rates significantly to curb inflation, with fears for the global economy casting a shadow over future fuel demand.
Brent crude futures fell 16 cents, or 0.2 percent, to $89.67 per barrel by 0013 GMT, while US West Texas Intermediate (WTI) crude dropped 15 cents to $82.79 per barrel.
UK's top manufacturing body slashes forecasts for 2023
Britain's manufacturers association on Thursday slashed its forecast for growth in factory output next year, citing huge uncertainty around demand and energy prices. Make UK downgraded its forecast for manufacturing growth for next year to just 0.6 percent, down from the 1.7 percent forecast in June.
"Eyewatering costs and a very difficult international environment... (threaten) to shatter expectations of a sustained recovery from the pandemic and put many perfectly viable businesses at risk," said Stephen Phipson, chief executive of Make UK.
EPFO records 10.58 lakh fresh additions in July
July saw over 10.58 lakh new subscribers, payroll data from the Employees’ Provident Fund Organisation (EPFO) released on September 20 showed. However, the numbers are lower than what was recorded in the previous month.
The provisional payroll data highlights that the EPFO added 18.23 lakh net members in July 2022. A year-on-year comparison of payroll data reflects an increase of 24.48 percent in net membership additions in July compared to the corresponding month of 2021, the body said in a statement.
“What is heartening to note is that over 57 percent of those finding jobs are youth under 25 years of age. This indicates that first-time job seekers are joining the organised sector in large numbers and there is high demand for entry- and mid-level jobs,” Mahesh Bhatt, chief business officer of staffing firm TeamLease Services, told Moneycontrol.
FII and DII data
Foreign institutional investors (FIIs) have net sold shares worth Rs 461.04 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 538.53 crore on September 21, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
Six stocks – Ambuja Cements, Can Fin Homes, Delta Corp, Escorts, PVR, and RBL Bank – are under the NSE F&O ban list for September 22. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95 percent of the market-wide position limit.With inputs from Reuters and other agencies