Sensex slips 291 pts, Nifty below 17,750 mark

The headline equity indices traded with modest losses in the afternoon trade. The Nifty traded below the 17,750 mark. FMCG and media stocks were in demand while metal, bank and pharma shares witnessed a bit of a selling pressure.

At 13:29 IST, the barometer index, the S&P BSE Sensex, was down 291.33 points or 0.49% to 59,428.41. The Nifty 50 index declined 96.25 points or 0.54% to 17,720.

In the broader market, the S&P BSE Mid-Cap index lost 0.52% while the S&P BSE Small-Cap index slipped 0.63%

The market breadth was weak. On the BSE, 1,188 shares rose, and 2,186 shares fell. A total of 153 shares were unchanged.

Investors turned cautious ahead of the Federal Reserve`s monetary policy decision. A three-quarter point increase in rate is expected. But investors are turning their attention to the Fed`s updated economic projections, which will show what the Fed thinks about the endpoint on rates as well as its forecasts for inflation and employment.

Fed officials have talked in recent weeks about their determination to tame inflation, using whatever it took, despite any pain that may cause to the economy. Such a stance could also mean a recession in the near future.

Economy:

Employees` Provident Fund Organisation (EPFO) added 18.23 lakh net members in July 2022, a year-on-year increase of 24.48% compared with the corresponding month last year, the provisional payroll data showed. Of the total 18.23 lakh members added during the month, around 10.58 lakh new members have come under the social security cover of EPFO for the first time. The data of new members joining EPFO has shown a growing trend since April 2022.

Gainers & Losers:

Britania Industries (up 2.96%), Hindustan Unilever (up 1.60%), Apollo Hospitals Enterprise (up 0.88%), Tech Mahindra (up 0.71%) and Reliance Industries (up 0.65%) were top Nifty gainers.

Shree Cements (down 4.20%), Adani Ports and Special Economic Zone (APSEZ) (down 3.81%), IndusInd Bank (down 2.86%), NTPC (down 1.83%) and HDFC Life Insurance Company (down 1.71%) were major Nifty losers.

Stocks in Spotlight:

Wipro declined 0.74%. The company said that it has partnered with Finastra, a global provider of financial software applications and marketplaces, to help the corporate banks in India to accelerate digital transformation by deploying Finastra`s leading solutions. This partnership combines its expertise across consulting, digital, infrastructure and operations with Finastra`s cutting-edge solutions to deliver modern API enabled platforms for banks to innovate, streamline and digitize core trade finance processes, while reducing cost overheads, the company stated.

Hero MotoCorp rose 0.19% after the two-wheeler major said it has collaborated with state-run Hindustan Petroleum Corporation to establish charging infrastructure for electric vehicles (EVs) in the country. As a part of the initiative, the companies will set-up charging infrastructure for two-wheeled electric vehicles (EVs) across the country.

Piramal Enterprises fell 1.23%. The company`s board will meet on Friday, 23 September 2022 to consider issuing non-convertible debentures aggregating up to Rs 750 crore on private placement basis.

Tata Consultancy Services (TCS) shed 0.93%. TCS and Zurich Insurance Germany (Zurich) have expanded their partnership, making TCS the exclusive strategic IT partner for Zurich`s life insurance IT landscape.

KPIT Technologies gained 1.23%. The company announced the acquisition of Munich-based Technica Engineering to accelerate the transformation towards software-defined vehicle (SDV).

Global Markets:

Shares in Europe traded mixed while Asian stocks declined on Wednesday, following Wall Street`s negative lead ahead of the Federal Reserve`s expected rate hike.

The Asian Development Bank (ADB) on Wednesday cut its growth forecasts for developing Asia for 2022 and 2023 amid mounting risks from increased central bank monetary tightening, the fallout from the war in Ukraine and Covid-19 lockdowns in China.

The ADB now expects the area`s combined economy, which includes China and India, to grow 4.3% this year, after previously trimming the forecast to 4.6% in July from 5.2% in April. For 2023, the ADB expects the region`s economy to expand 4.9%, slower than the April and July forecasts of 5.3% and 5.2%, respectively, it said in the September edition of its flagship Asian Development Outlook report.

Wall Street ended Tuesday lower as the eve of a US Federal Reserve meeting expected to bring another large interest rate hike brought further evidence of the impact on corporate America from the inflation that the US central bank wants to tame.

The Federal Open Market Committee (FOMC), the US Federal Reserve`s policy-setting committee, began its two-day meeting yesterday. The outcome of the FOMC meeting is critical as it includes projections, which could set the path of monetary policy for the next few months. Traders are anticipating another sharp rate hike, third consecutive, from the US central bank to tame the rising inflation.

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