Investors are increasingly anxious about the slowing economy as they await the widely expected interest rate hike by the Federal Reserve in its bid to squash the highest inflation in decades. However, traders also say that the market has already factored in a 75-basis-point increase.
Swaraj Engines shares hit 52-week high as Mahindra & Mahindra to buy additional stake
Shares of Swaraj Engines Ltd (SEL) surged over 13% to hit a 52-week high of ₹1,960 apiece on the BSE in Wednesday’s trading session after Mahindra & Mahindra Ltd (M&M) on Tuesday said it will acquire an additional 17.41% stake in Swaraj Engines Ltd from Kirloskar Industries Ltd (KIL) for ₹296 crore. (Full Story)
Consumer Durable index continues to impress, adds 0.5% in today’s trading
Angel One commodity outlook for today: Rate hike fears loom over gold and other commodities
Prathamesh Mallya, AVP- research, non-agri commodities, and currencies, Angel One Ltd’s outlook on:
Gold: We expect gold to trade lower towards 48740 levels, a break of which could prompt the price to move lower to 48320 levels.
Crude: We expect crude to trade lower towards 6630 levels, a break of which could prompt the price to move lower to 6490 levels.
Base Metal: We expect copper to trade lower towards 638 levels, a break of which could prompt the price to move lower to 628 levels.
China stocks hit four-month low as Fed rate hike looms
China stocks tumbled to a more than four-month low on Wednesday, tracking global peers lower ahead of an expected aggressive interest rate hike from the U.S. Federal Reserve.
Hong Kong’s main stock benchmark plunged to its lowest level since mid-March.
** The CSI 300 Index lost 1% by the end of the morning session, set to hit the lowest level since May 9, while the Shanghai Composite Index retreated 0.6%.
** The Hang Sang Index fell 1.5%, and the Hang Seng China Enterprises Index declined 1.9%. (Reuters)
Bonus issue to be considered by this infra stock next week; shares surge
GPT Infraprojects’ board will meet next week on Tuesday, September 27, 2022 to consider the issue of bonus equity shares of the company. Shares of GPT Infra surged about 2% on the BSE to ₹131 apiece in Wednesday’s early trading session.
Further, the company said that the date of the board meeting of the company for consideration and approval of Financial Results for the 2nd quarter and half year ended September 30, 2022 will be intimated in due course. (Full Story)
Ashika Stock Broking on today’s market: Can expect buying interest at lower levels of 17650-17675 for upside target 17900-18000.
Tirthankar Das, technical & derivative analyst, retail, Ashika Stock Broking Ltd: On the technical front, Nifty formed a small positive candle on the daily chart with a long upper shadow, reflecting the presence of strong overhead resistance around 17,900-18,000 levels, it seems that Index is placed within the broader 17.500-18,000 range ahead of US FED decision on the key policy rates on Wednesday, however gradually it can be expected for the Index to head higher towards January 2022 high of 18300 while the lower end the strong support level of 17350-17400 is likely to hold. The undergoing healthy consolidation will help to cool off the overbought conditions ahead of U.S. Fed event as secondary corrections are a part of the bull market that paves the way for next leg of up move as Nifty registered a bullish golden crossover in August (50-DEMA crossing above 200-DEMA) implying major shift of momentum from a medium-term perspective. Though one need to avoid trading aggressively due to the presence of event risk in the market and the risk of a bare minimum correction of 23.6% of the entire rally from 15,183 to 18,096 comes around 17415 followed by 38.2% correction at 16990 remains. During the day index is likely to open on a negative note tracking weak global cues. However one can expect buying interest at lower levels of 17650-17675 for upside target 17900-18000.
India’s banking system liquidity slips into deficit: RBI
India’s banking system liquidity has slipped into deficit for the first time in nearly 40 months, according to the Reserve Bank of India. The RBI infused 218 billion Indian rupees ($2.73 billion)into banking system on Tuesday, the biggest since May 2019. Overnight rates continue to stay elevated, with one-day call money rate jumping to 5.85%, highest since July 2019.
Overnight rates continue to stay elevated, with one-day call money rate jumping to 5.85%, highest since July 2019. (Full Story)
IndusInd Bank stock slips in early trading; drops around 2%
FMCG index up 0.7% in early trading with most stocks in green
INDIA BONDS-Bond yields may track U.S. peers higher ahead of Fed decision
Indian government bond yields are expected to open marginally higher on Wednesday, as U.S. yields continued their upward momentum, while markets brace for another round of aggressive monetary policy tightening from the U.S. Federal Reserve.
The benchmark Indian 10-year government bond yield is seen in a 7.24%-7.28% band, a trader with a private bank said. The yield ended at 7.2645% on Tuesday and has risen 18 basis points in the last five sessions.
“A move of 75 basis points by the Fed is factored in, but if the commentary is hawkish, we may see the break of 7.30% on the benchmark,” the trader said. (Reuters)
Oil edges higher ahead of central bank moves on interest rates
Oil edged higher ahead of inflation-taming rate hikes from central banks that are likely to suppress demand.
West Texas Intermediate traded above $84 a barrel after closing almost 2% lower near an eight-month low on Tuesday. The Federal Reserve is expected to raise interest rates by 75 basis points on Wednesday, and put numbers on the “pain” it’s been warning of when it publishes new economic projections.
Crude is on track for its first quarterly loss in more than two years as concerns over a global economic slowdown weigh on the outlook for energy demand. The Fed decision will be followed by other central banks from Europe to Asia, which are also expected to increase borrowing costs. (Bloomberg)
Rajesh Palviya’s stock recommendations: Axis Securities expert unveils 3 stocks to buy or sell today — 21st Sept
Rajesh Palviya of Axis Securities recommended three stocks to buy on Wednesday session — Balrampur Chini, Biocon and IndusInd Bank. Here we list out full details:
1] Balrampur Chini: Buy at ₹379, target ₹398, stop loss ₹370;
2] Biocon: Buy at ₹299, target ₹315, stop loss ₹294; and
3] IndusInd Bank: Buy at ₹1259, target ₹1300, stop loss ₹1235.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. (Full Report)
Indices open flat with Sensex and Nifty hovering around the previous day’s close. Infosys and IndusInd bank lose 1% at start.
Japanese stocks hit a two-week low in line with Wall Street and broader Asian peers
Japanese stocks fell on Wednesday, in line with Wall Street and broader Asian peers, as investors adjusted positions ahead of key policy meetings this week from the U.S. Federal Reserve and the Bank of Japan.
The Nikkei share average was down 1.37% at 27,308.66, as of midday break. The index hit a two-week low of 27,297.5 earlier in the day.
The broader Topix fell 1.28% to trade at its lowest level since Sept. 7.
Markets have priced in a rate hike of at least 75 basis points, with an 18% possibility seen of a full percentage point, as the U.S. central bank is expected to reinforce its hawkish approach to tackle inflation. (Reuters)
Cryptocurrency prices today: Bitcoin, ether, Shiba Inu fall while dogecoin gains
Bitcoin price today remained above the $19,000 mark even as the world’s largest and most popular cryptocurrency was trading more than 2% lower at $19,042. The global crypto market cap today remained below the $1 trillion mark, as it was down over a per cent in the last 24 hours at $968 billion, as per CoinGecko. (Read More)