Stock Market Highlights 21 Sept 2022: Nifty ends near 17,700, Sensex slips over 250 points ahead of FOMC minutes; FMCG stocks shine

Bank Nifty index is stuck in a broad range of 40,500-42,000 

The Bank Nifty index continued to face resistance at a higher level where 42,000 will act as a hurdle. The index is stuck in a broad range between 40,500-42,000 and a break on either side will decide the trend for the index. On the derivative front, the highest open interest on the call side is built up at 42,000 and immediate support is visible at 41,000 where fresh put writing has been observed."- Kunal Shah, Senior Technical Analyst at LKP Securities. 
 

A 75bps hike by FED was factored in by the markets

Markets across the globe were trading with considerable volatility ahead of the Fed policy announcement. A 75bps hike by FED was factored in by the markets, while reports of mobilising Russian forces in Ukraine has escalated geopolitical tension and fears of rising inflation. Any military escalation will have a significant effect on the world & domestic economy. This will have an influence on the near-term trend of the global market and implications on local market can be high as it is trading at premium prices compared to the world" Vinod Nair, Head of Research at Geojit Financial Services.

Rupee outlook 21 Sept

USDINR (CMP Rs 79.96 spot): Indian rupee depreciated by 0.29% today on weak domestic markets and a strong US Dollar. Dollar surged on renewed safe haven appeal after Russian President Vladimir Putin announced partial military mobilsation. Surge in crude oil prices added to the downside pressure on Rupee. Domestic markets surged by about 0.3% lower. We expect Rupee to trade with a negative bias amid deteriorating global risk sentiments post Russian President’s address to the nation and expectations of a hawkish US Federal Reserve. There are rising odds of a 75 bps rate hike by FOMC along with 12% chances of a 100 bps rate hike. Market participants may also look of for cues on future guidance by the Federal Reserve. Investors may also take cues from existing home sales data which is expected weaker than previous reading. USDINR spot price is expected to trade in a range of Rs 79.20 to Rs 81 in next couple of sessions.

Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas

Crude oil price outlook

WTI Crude oil (November) CMP $85.22

WTI crude oil November trades higher by 2.6% at $86.10 on Wednesday during the mid-European trade hours after Russia decided a partial military mobilization in war torn region of Ukraine, inflicting the fear of tighter oil and gas market in coming winter.  Oil prices are just 13% up ytd from 60% level of March when the war started. The supply distress was visible this week as the prospects of Iranian oil making its way to global market are getting bleaker as the representative from US did not expect a breakthrough on reviving the 2015 Iran nuclear deal at this week's U.N. General Assembly. On the other hand, OPEC+ itself underproduced the quota limit by 3.58mbpd or 3.5% of global output in August, keeping the oil market tight. The API forecast ahead of EIA weekly crude oil inventory release showed build-up across the product line. The oil prices have receded 30% over last two months, largely owing to the slowdown in China, once Chinese economy gains traction, we expect crude oil prices to remain much higher from the current level. The lack of investment from the major producers have resulted in declining spare capacities resulting in much tighter market ever seen in last few decades. For the trend remains positive due to escalation of war, but traders should remain cautious ahead of FOMC conclusion, any rate hike above 75 basis point could trigger a selloff in risk assets. WTI November to face resistance around $88 with higher volatility expected throughout the day. - 

Mohammed Imran, Research Analyst at Sharekhan by BNP Paribas

ITC Hotels adds 5 more properties 

ITC Hotels' growth story continues to rise with the group signing five boutique properties under the new brand, Storii by ITC Hotels. Popular leisure destinations Goa, Dharamshala, Solan, Sirmour and Kufri are the frontliner destinations for Storii with Storii Goa and Storii Dharmashala already opening doors to guests. With the recent openings at Goa and Dharamshala, the ITC HOTELS Group now has its 5th property in Goa and its 12th hotel in Himachal Pradesh. Full Report

Rhi Magnesita India, Welspun Corp hit 52-week highs 

Shares of Rhi Magnesita India and Welspun Corp traded on 52-week high in a weak market on Wednesday. Rhi Magnesita India share price jumped 6.5% to touch 52-week high value of Rs 698.80 on Wednesday, while shares of Welspun Corp traded on year-high of Rs 284.65 per share.  

Global brokerages bullish on SBI; raise target price, earnings estimates | Check new TP

Global brokerage houses are bullish on public sector lender State Bank of India (SBI) stock and have revised their targets for the scrip amid rally in PSU Banks. As on September 21, 2022, Nifty PSU Bank has risen by almost 12% in the past one month despite recent volatility. During the same period benchmarks Nifty50 declined around half per cent.  Full Report

Cabinet Meeting: Two major announcements likely today - Exclusive Details

Cabinet Meeting: The Union Cabinet is likely to make two major announcements in its meeting today. According to an exclusive report of Zee Business, one of the announcements will be related to the semiconductor fabrication policy. The government is planning to make this policy more lucrative and for this, it may remove the cap of Rs 12,000 crore for offering fiscal support of up to 50%. Full Report

Midcap, small cap stocks under pressure 

After gaining by over one per cent in the early trade, Nifty Midcap index declined by 0.5% and smallcap fell by 0.9%.  

Metal, banking stocks drag market 

The Indian market slipped more than half per cent in the afternoon trade as Nity slipped below 17,700 and Sensex tanked over 400 points, led by metal and banking stocks 

ADB cuts India's GDP growth forecast for FY23 to 7% on high inflation, monetary tightening

The Asian Development Bank (ADB) has slashed India's economic growth projection for 2022-23 to 7 per cent from 7.2 per cent earlier, citing higher than expected inflation and monetary tightening. Full Report

Nifty FMCG outperform 

Nifty FMCG outperformed in a muted market as the index gained more than one per cent in early trade on Wednesday. Consumer Durables, Media, Auto gained 0.2% to 0.6% 

Central Bank of India share price surges 15% after RBI removes bank from PCAF watchlist | Details

Shares of Central Bank of India jumped more than 15 per cent in early trade after the Reserve Bank of India (RBI) removed the bank from the Prompt Corrective Action Framework (PCAF) watchlist. The RBI in a press release on Tuesday said that the decision was taken keeping in view improvement in various parameters of the bank and a written commitment that the state-owned lender will comply with the minimum capital norms. Full Report

Nifty outlook Sept 21

The bullish exhaustion that emerged after entering the 17860-960 band hints at a full fledged reversal, but we are inclined to look for a bounce back from the 17700 vicinity. However, a close below the same today could substantially increase the odds of a 17000-16650 plunge,though one may wait for a break of 17430 as confirmation.  -
Anand James - Chief Market Strategist at Geojit Financial Services.

SpiceJet share price falls nearly 4% after airline company sends 80 pilots on leave without pay –Here is what happened

Shares of SpiceJet fell nearly four per cent in BSE intraday trade on Wednesday after the airline company sent 80 pilots on leave without pay. SpiceJet share price fell 3.8% to Rs 41.90 per share in early trade on the BSE on Wednesday after the company decided to place nearly 80 pilots on leave without pay for a period of three months. Full Report