BENCHMARKS SETTLE LOWER AS INVESTORS AWAIT FED RATE DECISION

The domestic equity market ended with minor losses on Wednesday as investors eagerly anticipated the US Federal Reserve`s interest rate decision. The benchmark Nifty 50 index closed below the 25,400 level, snapping a two-day winning streak. IT, pharma and energy stocks weighed down the market, while financial services and private banks shares witnessed buying interest.

While the Fed is widely expected to lower interest rates, the magnitude of the cut�25 basis points or 50 basis points�remains uncertain. Investors are closely watching the Fed`s decision and its outlook for future monetary policy, which could significantly impact Indian equities in the short term.

The S&P BSE Sensex declined 131.43 points or 0.16% to 82,948.23. The Nifty 50 index fell 41 points or 0.16% to 25,377.55.

The Sensex and Nifty clocked an all-time high of 83,326.38 and 25,482.20, respectively, in afternoon trade.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index fell 0.71% and the S&P BSE Small-Cap index declined 0.52%.

The market breadth was weak. On the BSE, 1520 shares rose and 2455 shares fell. A total of 95 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, jumped 6.21% to 13.37.

Union Cabinet approves `One Nation, One Election` proposal:

The government today accepted the recommendations of the High Level Committee constituted to explore the idea of One Nation, One Election, paving the way for simultaneous elections across the country. Briefing media in New Delhi today after the Union Cabinet meeting, Information and Broadcasting Minister Ashwini Vaishnaw said a high-level committee constituted under the chairmanship of former President Ram Nath Kovind held extensive deliberations with stakeholders, including political parties and experts. The plan will be implemented in two phases: in the first phase, Lok Sabha and Assembly elections will be held simultaneously, while in the second phase, local bodies� elections like panchayats and municipalities will be conducted within 100 days of general elections.

Numbers to Track:

MCX Gold futures for 4 October 2024 settlement rose 0.12% to Rs 73,185.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.16% to 100.73.

The United States 10-year bond yield added 0.81% to 3.673.

In the commodities market, Brent crude for November 2024 settlement lost 97 cents or 1.32% to $72.73 a barrel.

Global Markets:

Most European stocks declined on Wednesday as investors assessed key data from the region. UK August Consumer Prices increased 2.2% year-on-year and UK August Core CPI rose 3.6% year-on-year, according to data from the Office for National Statistics.

Most Asian shares ended higher as traders await the Federal Reserve�s rate decision due Wednesday stateside and assessed economic data from Japan. Indonesian central bank�s rate decision is also due later in the day.

While Chinese markets remained relatively stable after resuming trading from an extended break, investors also looked ahead to the Bank of Japan`s policy meeting later in the week. The BoJ is expected to maintain current interest rates but may adopt a more hawkish stance, signaling potential future rate hikes.

Japan�s imports and exports in August rose 2.3% and 5.6%, respectively, from a year ago, according to Japan�s Ministry of Finance.

In the United States, stock markets closed mixed on Tuesday as uncertainty persisted regarding the magnitude of the Federal Reserve`s anticipated rate cut. The Dow Jones Industrial Average fell 0.04% while the S&P 500 rose 0.3%, reversing momentum from earlier in the day, when they were at or near record levels. The Nasdaq Composite, meanwhile, finished higher by 0.2%.

Market participants are widely expecting the Fed to reduce interest rates, with opinions divided between a 25 or 50 basis point cut. However, bets on a larger 50 basis point reduction have been gaining momentum. Additionally, the Fed`s announcement is anticipated to signal the beginning of an easing cycle, which is generally positive for risk-oriented stock markets.

Stocks in Spotlight:

Graphite India rose 9.57% and HEG climbed 8.40% after Resonac Graphite, a major global player, raised electrode prices. Investors are hopeful domestic electrode makers will do the same.

BSE soared 15.31% as speculation over a possible NSE IPO rubbed off on the stock.

ICICI Bank rose 1.55%. It hit an all-time high of Rs 1295 today, crossing a market cap of Rs 9 lakh crore for the first time.

Torrent Power soared 8.6% after the company announced that it has emerged as a successful bidder and has received letter of intent (LOI) for a pump storage project from MSEDCL. The Maharashtra State Electricity Distribution Company (MSEDCL) will procure energy storage capacity of 1,500 MW from pumped hydro storage project for a period of 40 years.

Reliance Infrastructure hit an upper circuit of 20% after the company announced significant progress in settling its outstanding debts from Rs 3,831 crore to Rs 475 crore.

Reliance Power spurted 5% after the company settled its obligation of Rs 3872.04 crore towards corporate guarantee to the lenders of Vidarbha Industries Power.

DCM Shriram Industries climbed 3.87% after BSE approved the company`s proposed merger plan. The company`s board approved the demerger of DCM Shriram Industries into two separate entities: DCM Shriram Fine Chemicals and DCM Shriram International.

Emcure Pharmaceuticals jumped 2.69% to Rs 1526.60 as a domestic broker initiates coverage with an `add` rating and a target price of Rs 1,655. Emcure`s lack of direct US generics exposure is seen as a positive for earnings stability.

Vakrangee zoomed 11.17% after the company informed strategic corporate agency tie-up with Star Health & Allied Insurance Co. (Star Health Insurance), to offer health insurance products across its network. Meanwhile, the company`s board will meet on Tuesday, 24 September 2024, to consider raising funds.

Aurobindo Pharma declined 1.08%. The company`s a stepdown subsidiary, Eugia Pharma Specialities received establishment inspection report (EIR) from the US drug regulator for its manufacturing facility situated in Parawada Mandal, Andhra Pradesh.

Ceigall India advanced 3.72% after the company said that it has emerged as lowest bidder (L1) for two projects in Uttar Pradesh for an aggregate value of Rs 2,498.5 crore.

Inox Wind (IWL) advanced 1.55% after the company announced that it has received a letter of intent (LoI) from IGREL Renewables (IGREL) for execution of 550 MW wind capacity on turnkey basis.

REC rose 0.18%. The company said that it has signed non-binding memorandum of understandings (MoUs) with Renewable Energy (RE) developers aggregating about Rs 1.12 lakh crore, which will be implemented over a period of 5 years.

IPO Update:

The initial public offer (IPO) of Western Carriers (India) received bids for 28,96,23,957 shares as against 2,08,68,467 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (18 September 2024). The issue was subscribed 13.88 times.

The issue opened for bidding on Friday (13 September 2024) and it will close on Thursday (19 September 2024). The price band of the IPO is fixed between Rs 163 to Rs 172 per share. An investor can bid for a minimum of 87 equity shares and in multiples thereof.

Northern Arc Capital`s IPO received bids for 43,27,38,471 shares as against 2,14,78,290 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (18 September 2024). The issue was subscribed 20.15 times.

The issue opened for bidding on Monday (16 September 2024) and it will close on Thursday (19 September 2024). The price band of the IPO is fixed between Rs 249 to 263 per share. An investor can bid for a minimum of 57 equity shares and in multiples thereof.

Arkade Developers` IPO received bids for 69,94,46,440 shares as against 2,37,75,719 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (18 September 2024). The issue was subscribed 29.42 times.

The issue opened for bidding Monday (16 September 2024) and it will close on Thursday (19 September 2024). The price band of the IPO is fixed between Rs 121 to 128 per share. An investor can bid for a minimum of 110 equity shares and in multiples thereof.

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