Stock Market Highlights 14 Sept 2022: Nifty ends at 18,000, Sensex above 60,300; Bank stocks gain, IT shares drag

Stock Market Outlook: Brighter prospects for home economy help recover Nifty, Sensex

Although the opening hours of the domestic market mirrored the sharp sell-off in the global market, it steadily recovered as investors gained the confidence to bottom fish, thanks to the brighter prospects for the home economy. The expectation that the Fed would become less hawkish, which had spurred the most recent global rally, was dashed by worse than anticipated US inflation figures. Additionally, India’s easing WPI inflation numbers added more optimism with banking stocks leading the recovery, while the IT sector’s performance was bleak due to recession fears in western markets." 

Vinod Nair, Head of Research at Geojit Financial Services.

Nifty trend likely to remain positive as long as it remains above 17700

Nifty remained above its previous consolidation as the global sell-off failed to pull the Indian equities down. On the lower end, the falling trend line has acted as crucial support for the Nifty. Besides, the index has been sustaining above the 50 exponential moving average on the daily timeframe, confirming an uptrend. Going forward, the trend will likely remain positive as long as it remains above 17700. On the higher end, the index may move towards 18600 once it provides a decisive breakout above 18100.

Bank Nifty remains above previous swing high

Bank Nifty continued to remain strong as it settled 1.3% on the day of global sell off. On the daily chart, the index remained above the previous swing high. The momentum indicator RSI is in bullish crossover. Going forward, the trend is likely to remain positive as long as it remains above 41000. On the higher end, the index may move towards 42000.

Nifty from Rupak De, Senior Technical Analyst at LKP Securities. 

Crude oil outlook on 14 Sept 

WTI Crude oil (October) CMP $87.60

WTI crude futures for October trades unchanged at $87.3 at during the morning trading hours of European markets on Wednesday. following 0.56% fall on previous day. IEA released its monthly oil report showing demand slowdown in Q4 of 2022. IEA cuts demand by 0.11mbpd to 2mbpd for current year. IEA also showed Russian crude oil production fell by 50kbpd m/m to 9.77mbpd in August and was 1.2mbpd below its OPEC+ quota. On Tuesday OPEC released its August month oil report showing crude production rose by 0.62 mbpd during August to 29.651mbpd, and group leader Saudi’s crude oil production rose to 11.051mbpd in August from 10.815mbpd in July. Preliminary July data sees total OECD commercial oil stocks up m/m by 18.1 mb. At 2,699 mb. On macro front US consumer inflation stays hotter in August at 8.3% and core inflation stood at 6.3% despite the decline in energy index, which raised the fear of aggressive rate hikes in coming months. US indices suffered worst single day fall since June 2020 after the CPI data. Crude oil prices holding firm around $87 but we see some correction due to softer economic cues from China, Eurozone, and US, despite the market condition remaining tight from the supply front. Crude oil prices expected to edge lower on build-up of weekly inventories data today as API forecast 8 million barrels of inflows in US commercial reserves last week. We remain bearish on crude oil movement WTI hold support at $85 and $82 while resistance remain at $90.- 

Mohammed Imran, Research Analyst at Sharekhan by BNP Paribas

Nifty, Sensex top gainers and loses 

IndusInd Bank, NTPC, SBI and Powergrid were top gainers on the benchmarks, while Infosys, TCS and Tech Mahindra led the drag on highly volatile market.  

Rupee outlook:Rupee expected to trade with a negative bias 

USDINR (CMP Rs 79.45 spot): Indian rupee depreciated by 0.38% today on surge strong US Dollar and deteriorating global risk sentiments. US Dollar surged as US CPI rose unexpectedly to 8.3% y-o-y in August compared to expectations of 8.1% while core CPI increased to 6.3% y-o-y in August compared to expectations of 6.1%. This raised expectations of yet another aggressive rate hike by FOMC in its September meeting. Apart from increased odds of a 75 bps rate hike, there are talks of even a 100 bps rate hike. We expect Rupee to trade with a negative bias amid risk aversion in global market worries that the US Federal Reserve may be more hawkish than previously expected. Investors may also take cues from PPI data from US today. However, India’s WPI inflation eased to a 11-month low of 12.41% in August which may support Rupee at lower levels. USDINR spot price is expected to trade in a range of Rs 78.80 to Rs 80 in next couple of sessions.

Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas

DHL Supply Chain expansion plan in India: Plans to invest Rs 4,000 crore over next 5 years

Contract logistics provider DHL Supply Chain will invest 500-million Euro (around Rs 4,000 crore) in India over the next five years to expand its warehousing capacity, workforce and sustainability initiatives. Full Report

SBI market cap touches Rs 5-trillion-mark - check brokerage's target

SBI hits Rs 5-trillion market cap: India’s largest lender State Bank of India (SBI) on Wednesday touched the Rs 5-trillion-mark in market capitalisation for the first time, as the shares of the bank hit a record high of Rs 574.65 and 574.7 per share, up around 3 per cent on the BSE and NSE, respectively. Full Report

Stock Market Gainers: IndusInd Bank, Kotak Bank and SBI  

Banking stocks continue to outperform as IndusInd Bank, Kotak Bank and State Bank of India shares leading the gainers' chart on both Nifty and Sensex. The stocks gained between 2.5-5% in intraday trade on Wednesday. 

Stock Market top gainers and losers: Tata Investment Corporation hits 52-week high 

IT, Realty, Consumer Durables and Energy were trading in the red as banks and financial stocks lead recovery. Meanwhile, shares of Tata Investment Corporation jumped nearly 20% to hit 52-week high of Rs 2,618.20 per share on the BSE. The counter was trading with gains of 346.25 (+15.83%) to Rs 2533 per share in intraday trade 

WPI inflation slows to 12.41% in August: Govt data

Wholesale price inflation eased to 12.41 per cent in August, against 13.93 per cent in July, government data showed on Wednesday.

Harsha Engineers IPO subscription latest update: FULLY SUBSCRIBED

The initial public offering (IPO) of Harsha Engineers International Limited was fully subscribed. The company has offered 1,68,63,795 shares for different categories of investors.

ITC share price climbs to 5-year high - Check price target by Zee Business panellist

ITC Share Price NSE Target: ITC share price on Wednesday, September 14, maintained its uptrend to hit a fresh 52-week high and also climbed to 5-year high of Rs 337.65 on the NSE on account of huge volume. ITC share price since February is making fresh highs. Market expert and Zee Business panellist Mudit said that ITC is making yearly highs on daily basis and predicted that uptrend will continue. Full Report

Stock Market Today: Nifty, Sensex trim losses 

The Indian market erased most of the losses it incurred in early trade. Nifty back abover 18,000, Sensex near 60,350 and Bank Nifty above 41,200 

Harsha Engineers IPO subscription status Day 1 

Harsha Engineers IPO was subscribed 60% against its total quota of shares on the first day of opening of the issue. Retail investors quota was nearing full subscription with the category reserved for RIIs filled 91% so far.  

Rupee Vs Dollar: INR falls sharply against $ as US inflation data spook investors

The rupee depreciated by 43 paise to 79.60 against the US dollar in opening trade on Wednesday, as higher-than-expected US CPI print resulted in massive risk-off sentiments. At the interbank foreign exchange market, the rupee opened at 79.58 against the greenback, then fell to 79.60, registering a decline of 43 paise over its last close. In initial deals, the local unit also touched 79.54 against the dollar. Full Report