INDICES DROP ON SUBDUED GLOBAL CUES; BREADTH WEAK

The key equity barometers opened on weak note on selling pressure in index pivotals. Negative global cues dampened investors sentiment. The Nifty traded below the 16,900 level. Barring the Nifty Healthcare index, all the sectoral indices on the NSE were in the red.

At 09:28 IST, the barometer index, the S&P BSE Sensex, was down 449.22 points or 0.79% to 56,658.30. The Nifty 50 index declined 118.65 points or 0.70% to 16,888.75.

In the broader market, the S&P BSE Mid-Cap index fell 0.51% while the S&P BSE Small-Cap index shed 0.44%.

The market breadth was weak. On the BSE, 951 shares rose and 1,669 shares fell. A total of 123 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 2,823.96 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 3,504.76 crore in the Indian equity market on 27 September, provisional data showed.

Meanwhile, the Reserve Bank of India (RBI)`s six-member Monetary Policy Committee meeting will begin today, 28 September 2022. RBI Governor Shaktikanta Das will announce the MPC decision on 30 September 2022, the last date of the meeting. The RBI is widely expected to maintain the balancing act between growth and inflation.

In the past three policy reviews, the RBI`s rate-setting panel has raised 140 basis points in total since May this year. Currently, the repo rate, the interest rate at which the RBI lends to the commercial bank, stands at 5.40%.

Stocks in Spotlight:

Bharat Heavy Electrical (Bhel) declined 0.36%. The company has received a order for setting up the 2x660 MW Talcher Thermal Power Project Stage-III on EPC (Engineering, Procurement & Construction) basis from NTPC.

Torrent Pharmaceuticals fell 3.32%. The pharmaceutical company has entered into definitive agreements to acquire 100% of Curatio Healthcare (I) Private Limited (Curatio) for Rs 2,000 crore. The consideration includes Rs. 115 crores (on the date of signing) of cash and cash equivalents in the acquired business indicating an Enterprise Value of Rs. 1,885 crores.

Max Ventures & Industries rose 1.66%. Max Estates, the real estate arm of Max Ventures & Industries announced that it has onboarded New York Life Insurance Company (New York Life), US based mutual life insurance company as an equity co-investor in a structure that already houses 2.66 acres of land on which Max Square is being developed.

IFCI shed 0.31%. IFCI`s board has approved preferential issue of equity share capital for the FY 2022-23 aggregating upto Rs 100 crore to the promoters i.e., Government of India. The Centre, which is the promoter, holds 64.86% stake in IFCI.

Motherson Sumi Wiring India rallied 4.93%. A meeting of the board of directors of the company is scheduled on 30 September 2022 to consider and approve proposal for issuance of bonus shares to the equity shareholders of the company

Global Markets:

Asian stocks are trading lower on Wednesday as surging borrowing costs fed fears of a global recession.

Consumer inflation excluding fresh food is likely to rise this year, but the rate of increase will slow thereafter on energy prices, minutes from Bank of Japan`s July meeting said. A few members also said inflation, excluding fresh food and energy, is unlikely to reach 2% within its projection period.

Shaking investor confidence has been the collapse in sterling and UK bond prices, which could force some fund managers to sell other assets to cover resulting losses.

Global ratings agency Moody`s has warned the British government that plans for unfunded tax cuts could lead to larger budget deficits and higher interest rates, threatening the country`s credibility with investors. The agency said large unfunded tax cuts were "credit negative", leading to structurally higher deficits amid rising borrowing costs, a weaker growth outlook and acute public spending pressure.

U.S. stocks gave up early gains to fall deeper into a bear market on Tuesday as investors remained nervous about a potential global recession.

The Fed needs to raise interest rates by at least another percentage point this year, Chicago Fed President Charles Evans said on Tuesday.

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