Indices drop in early trade, breadth weak

The headline equity indices are trading with deep cuts in early trade on a major selling pressure in index pivotals. Domestic sentiment was dented amid negative global cues. The market selloff came amidst hotter than expected inflation report solidifying the chances of aggressive rate hikes from the US Federal Reserve. The Nifty traded below the key 18,000 level. FMCG and media shares advanced while IT, realty and metal stocks were under pressure.

At 09:30 IST, the barometer index, the S&P BSE Sensex, was down 578.34 points or 0.95% to 59,992.74. The Nifty 50 index shed 155.55 points or 0.86% to 17,914.50.

In the broader market, the S&P BSE Mid-Cap index fell 0.40% while the S&P BSE Small-Cap index declined 0.45%.

The market breadth was weak. On the BSE, 1,040 shares rose and 1,808 shares fell. A total of 117 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 1,956.98 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,268.43 crore in the Indian equity market on 13 September, provisional data showed.

Stocks in Spotlight:

Infosys slipped 3.17%. The IT major announced that it has collaborated with Bpost (Belgium Post), a leading postal operator and growing parcel and omni-commerce logistics partner in Europe, to secure the cloud environment and build robust cyber resilience for Bpost`s mail delivery and logistics services.

JSW Steel declined 0.95%. The steel major forged a collaboration with German-based engineering and technology company SMS group to explore multiple cutting-edge solutions and R&D projects to reduce carbon emission in its iron and steelmaking operations in India.

Bharat Forge shed 0.34%. Kalyani Powertrain (KPTL), a wholly owned subsidiary of Bharat Forge joined hands with Harbinger Motors Inc. (Harbinger), a company revolutionizing the medium-duty commercial electric vehicle industry, to form a joint venture focused on developing electric drivetrain solutions for the commercial vehicle market.

KEC International advanced 3.41%. KEC International has secured new orders of Rs. 1,108 crore across its various businesses.

Hatsun Agro Product rose 0.11%. The meeting of the board of directors of the company is scheduled on 19 September 2022 to consider and approve raising of funds by way of issue of equity shares on a rights issue basis.

Global Markets:

Asian stocks are trading with sharp losses on Wednesday as a white-hot US inflation report dashed hopes for a peak in inflation and fuelled bets that interest rates may have to be raised higher and for longer.

US stocks fell sharply on Tuesday after a key August inflation report came in hotter than expected, hurting investor optimism for cooling prices and a less aggressive Federal Reserve. The report is one of the last the Fed will see ahead of their September 20-21 meeting, where the central bank is expected to deliver its third consecutive 0.75 percentage point interest rate hike to tamp down inflation.

The Dow Jones Industrial Average slid 1,276.37 points, or 3.94%, to close at 31,104.97. The S&P 500 dropped 4.32% to 3,932.69, and the Nasdaq Composite sank 5.16% to end the day at 11,633.57.

Meanwhile, the shareholders of social media giant Twitter on 13 September 2022 approved the $44 billion acquisition deal which was inked by the company with billionaire tycoon Elon Musk. The nod from shareholders comes ahead of the trial next month over whether the $44 billion deal should be completed. The courtroom battle is scheduled to begin on 17 October 2022.

On the macro front, US consumer prices unexpectedly rose in August and underlying inflation accelerated amid rising costs for rents and healthcare. The consumer price index edged up 0.1 percent last month after being unchanged in July. In the 12 months through August, the CPI increased 8.3%. That was a deceleration from July`s 8.5% rise and a 9.1% jump in June.

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