Closing Bell: Sensex ends 200 pts in the red, Nifty around 18,000; financials, metals gain, IT top drag

Deepak Jasani, Head of Retail Research, HDFC Securities

Indian markets fell the least in the Asian region. Among sectors, metals and banking indices rose the most, while IT and Oil & Gas indices fell the most. Broader market continued to be subdued as advance decline ratio was negative at 0.72:1.

Nifty recovered very well from the morning lows but succumbed to afternoon selling. It faced resistance from the high of the previous day. Now 18,088-18,092 could be the resistance for the near term while 17,765 could be the support. Broader market is showing the first signs of distribution.

Rupak De, Senior Technical Analyst, LKP Securities

Nifty remained above its previous consolidation as the global sell-off failed to pull the Indian equities down. On the lower end, the falling trend line has acted as crucial support for the Nifty. Besides, the index has been sustaining above the 50 exponential moving average on the daily timeframe, confirming an uptrend. Going forward, the trend will likely remain positive as long as it remains above 17,700. On the higher end, the index may move towards 18,600 once it provides a decisive breakout above 18,100.

Praveen Singh – AVP, Fundamental currencies and Commodities analyst, Sharekhan by BNP Paribas

Gold is under pressure as the US Federal Reserve is expected to remain hawkish for longer unless there is a clear and comforting downtrend in the US inflation. The yellow metal is at the low-end of its recent range. It is vulnerable and can quickly fall to test the support at $1690/$1675. The resistance at $1730 continues to thwart any recovery attempts.

After a gap-down opening, Nifty recovered sharply to close above 18,000. Take a look at the stocks that led the recovery

Markets at close

After recovering smartly from opening lows,Sensexended the day 224points lower at 60,346. Nifty shed 66points, closing at 18,003.About 1632 shares have advanced, 1740 shares declined, and 140 shares were unchanged.

Among sectors, IT stocks were the biggest losers withTCS,Infosys,HCLTech and TechMahindralosing 2-4 percent. Financials recouped morning loses and led the rally withIndusIndBank,SBIandKotakMahindraBank ending as the top Nifty gainers. Metals glittered as Nifty Metal added 1.5 percent and Vedanta ended the day 10 percent higher

Anuj Choudhary, Research Analyst, Sharekhan by BNP Paribas

USDINR (CMP Rs 79.45 spot):Indian rupee depreciated 0.38 percent today on surge strong US Dollar and deteriorating global risk sentiments. US Dollar surged asUS CPI rose unexpectedly to 8.3 percent YoY in August compared to expectations of 8.1 percent while core CPI increased to 6.3 percent YoY in August.

We expect Rupee to trade with a negative bias amid risk aversion in global market worries that the US Federal Reserve may be more hawkish than previously expected.Investors may also take cues from PPI data from US today. However, India’s WPI inflation eased to a 11-month low of 12.41 percent in August which may support Rupee at lower levels.USDINR spot price is expected to trade in a range of Rs 78.80 to Rs 80 in next couple of sessions.

BSE midcap up for 8th straight session while smallcap rose for 11th consecutive session

Vedanta up over 11 percent in trade

In an interview with CNBC TV18, Vedanta Chairman Anil Agarwal gave further details on setting up of semiconductor plant in Gujarat. "Foxconn will bring in the technical expertise while Vedanta will help set up of the plant," he said. Funding for the unit to come from the listed entity.

He also added "If there is an OFS in Hindustan Zinc, Vedanta could look to buy up to 5 percent"

As benchmark indices turn green, take a look at the top contributors

Market turns positive, Sensex recovers nearly 1,200 points from opening lows. Nifty eyes 18,100 mark

RattanIndia launches advanced drone ‘Defender' to track, capture rogue drones

Tapan Patel, Senior Analyst (Commodities), HDFC Securities

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Crude oil prices traded firm with benchmark NYMEX WTI crude oil prices were trading near $87.35 per barrel on Wednesday. Crude oil prices traded under pressure on concerns of another US Federal Reserve interest rate hike next week after consumer prices unexpectedly rose in August, outweighing support from a robust OPEC oil demand growth forecast. US crude inventories rose by 6.035 million barrels for the week ended September 9, API reported.

We expect crude oil prices to trade sideways to up with resistance at $90 per barrel with support at $86 per barrel. MCX Crude oil September contract has important support at Rs 6850 and resistance at Rs 7080 per barrel.

Harsha Engineers India IPO fully subscribed on the first day of issue

The initial public offering (IPO) of Harsha Engineers International was subscribed 1.36 times after it opened for subscription on September 14, with bids coming in for 2.3 crore equity shares against an offer size of 1.68 crore shares.Retail investors subscribed 1.79 times of their quota of shares and the employees bid for 1.20 times of the portion reserved for them.

Raghvendra Nath, Managing Director, Ladderup Wealth Management

India’s Wholesale price index (WPI) has eased to 12.41 percent in August, compared to the spike we had seen in July at 13.93 percent. The food price segment continues to remain high at 12.37 percent in August which can be attributed majorly to rise in vegetable prices. The ease in WPI is majorly due to softening in the prices of manufacturing items. From August 2021, this is the 17th consecutive month of double-digit WPI. However, to frame the monetary policy, RBI mainly looks at retail inflation. We expect that there would be hike in interest rate in order to tame inflation.

Nifty Media trades in the green, up 1.26 percent, led by Inox Leisure and Zee

Sundaram Fasteners Large Trade | 24.82 lakh shares (1.18 percent equity) worth Rs 209.7 crore change hands at Rs 845 per share

Rahul Bajoria, MD & Chief India Economist, Barclays

Core WPI dropped to 7.9 percent YoY in August, from 8.4 percent in July, marking the fourth successive month of fading inflation. While the gap between WPI and CPI is closing, providing some relief to producers, it remains wide enough to keep the MPC on its path of front-loaded rate hikes.

Technical Pick by Prabhudas Lilladher: BUY Tata Motors; Target at Rs 510 and Stop Loss at Rs 435

The stock after the short correction has bottomed out near 440 levels and has witnessed a decent pullback. With the RSI also showing a trend reversal to signal a Buy, the chart looks attractive with ample upside potential move anticipated in the coming days. We suggest to buy and accumulate this stock for an upside target of 510 keeping the stop loss at 435.

Tamilnad Mercantile Bank all set to list tomorrow

According to Aayush Agrawal, Senior Research Analyst, Swastika Investmart, "We expect a flat or a negative listing based on the current GMP or Rs.12 i.e. 2.5 percentover its issue price and less than stellar subscription numbers. We had assigned 'Avoid' rating because of the precarious legal challenges and the lack of complete clarity on the management’s long-term performance despite the improvement in fundamentals in the last three years."

European markets open lower after Wall Street cues 

The pan-European Stoxx 600 was down 0.2 percentin early trade, while DAX, FTSE and CAC shed over half a percent each.

Harsha Engineers International IPO Day 1 Update

As of 1 PM,the issue has been subscribed 0.98 times with retail category overbooked 1.39x, NIIs 1.31x and employees reserved 1.05x, NSE data showed.

Financials take charge as Nifty reclaims 18,000. Take a look at the top contributors

HFCs to concede market share to banks despite growth uptick: CRISIL

Assets under management (AUM) of housing finance companies (HFCs) is expected to increase 10-12 percentthis fiscal versus 8 percentlast fiscal, driven by home loans, which could grow 15 percenton-year. Growth in developer financing and loans against property (LAP) will continue to be muted. However, affordable housing financiers are likely to grow relatively faster at 18-20 percent.

August WPI Inflation at 12.41 percent versus 13.93 percent MoM

-Food inflation at 9.93 percent vs 9.41 percent MoM
-Primary articles inflation at 14.93 percent vs 15.04 percent MoM
-Fuel & power inflation at 33.67 percent vs 43.75 percent MoM
-Manufactured products inflation at 7.51 percent vs 8.16 percent MoM

Nifty recovers smartly, reclaims 18,000 after gap-down start

Markets at 12 PM

Sensex is down 277.37 points or 0.46 percent at 60,293.71. Nifty is down 75.80 points or 0.42 percentat 17,994.20. FMCG, financials, metals gain

Tata Power Solar Systems bags order worth Rs 596 cr from NHDC; Orderbook now stands at Rs 14,908 cr

UK Data Watch | August CPI inflation at 9.9 percent YoY versus estimate of 10 percent. Core CPI inflation at 6.3 percent YoY versus estimate of 6.2 percent

Airtel and IBM to work together to bring secured edge cloud services to Indian enterprises

IBM and Bharti Airtel will work together to deploy Airtel's edge computing platform in India, which will include 120 network data centers across 20 cities. Once deployed, the platform is designed to enable large enterprises across multiple industries including manufacturing and automotive to accelerate innovative solutions, according to a press release.

Nifty Bank 0.33 percent higher, led by SBI

SBI joins Rs 5-trillion market cap club

Aegis Logistics gains 6 percent after second interim dividend announcement

The company said the board of directors has approved second interim dividend of Re 1 per share of face value Re 1 during the financial year 2022-23 and has fixed 23 September 2022 as the record date for the purpose of payment of interim dividend. The company will pay interim dividend on or before 11 October 2022.

Nifty, Sensex sharply off day's low

Benchmark indices Nifty 50 and Sensex saw a sharp recovery from opening lows but still remained in the negative territory. The recovery from the lows of the day was in contrast to other Asian markets, which continued to weaken on fears of more aggressive interest rate hikes by the US Federal Reserve.

Indian stocks opened sharply lower at opening bell after August inflation data in the US came in higher than Wall Street's expectations stoking concerns of tighter monetary policy. At 10:22 am, the Nifty 50 and Sensex were down 0.9 percent each after falling nearly 2 percent earlier in the session. Nifty is above the 17,900 mark.

Fertiliser stocks drop 2-3 percent

Union Minister of Chemicals and Fertilizers MansukhMandaviyasaid the government will not allowcompanies to raise prices of crop nutrients during the winter season. The Minister was speaking on the sidelines of an international dairy summit and added that there is no shortage offertilisersin the country.RashtriyaChemicals andFertilisersfell 2.5 percent, NationalFertiliserslost 2.2 percent,ChambalFertilisersdropped 2.1 percent and CoromandelInternational shed 3.2 percent.