Rupee hits fresh record low against US dollar
The Federal Reserve enacted another aggressive interest rate hike of 75 basis points to tackle inflation
Prashanth Tapse – Research Analyst, Senior VP (Research), Mehta Equities:
Local shares are likely to follow other Asian indices and drift lower in early trades Thursday, after the US Fed Chairman signaled that rates may go up further in order to battle the decade-high inflation.
Earlier, the US Fed hiked policy rates by 75 bps as anticipated, but the central bank’s statement suggesting that more rate hikes could be on the cards in the coming months soured the market sentiment, resulting in a steep fall in the US markets in overnight trades. Technically, the downside risk for Nifty is now seen at 17429.
Gainers and Losers on the BSE Sensex in the early trade:
Market Opens: Indian indices opened on negative on September 22 with Nifty below 17,600 on the back of weak global markets post US Federal Reserve raised interest rates by 75 basis points for the third consecutive time.
The Sensex was down 370.75 points or 0.62% at 59086.03, and the Nifty was down 133.80 points or 0.76% at 17584.50. About 776 shares have advanced, 1013 shares declined, and 114 shares are unchanged.
Power Grid Corp, SBI Life Insurance, Bajaj Finserv, HDFC and Tech Mahindra were among major gainers on the Nifty, while gainers were Adani Ports, ITC, Bharti Airtel, HUL and Nestle India.
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Stocks to Watch: Check out the companies making headlines before the opening bell.
Mohit Nigam, Head – PMS, Hem Securities:
Benchmark Indices are expected to open on negative note as suggested by trends on SGX Nifty. US stock markets ended on the lower side on Wednesday as investors are reacting to the US Federal Reserve aggressive rate hike of 75 basis points to beat the inflation. Dow Jones was down by 522 points, whereas NASDAQ was down by 1.79% to 11220 levels.
Asian markets are trading on a negative note as investors are reacting to the global sentiment and Fed’s decision to further hike interest rates to beat the inflation. Nikkei is trading 1.0% lower whereas the Topix index is down by 0.78%.
The Union Cabinet on September 21 approved the second tranche of the PLI scheme for the development of solar PV modules, with an outlay of Rs 19,500 crore.
Oil prices continue to fall on Thursday as investors react to the aggressive interest rate hike from the US Federal Reserve that they fear could lead to recession and plunging fuel demand.
On the technical front 17400 and 17900 are immediate support and resistance in Nifty 50. For Bank Nifty 40200 and 41500 are immediate support and resistance respectively.
Indian rupee opened at fresh record low on Thursday. It fell 31 paise at 80.28 per dollar against Wednesday’s close of 79.97.
Market at pre-open: Benchmark indices are trading lower in the pre-opening session amid weak global cues.
At 09:02 IST, the Sensex was down 511.03 points or 0.86% at 58945.75, and the Nifty was down 202.10 points or 1.14% at 17516.20.
Bharti Airtel Large Trade | 9.4 crore shares change hands in a block deal window at Rs 772.50 per share, reported CNBC-TV18.
Government makes semiconductor chip manufacturing scheme more attractive
The cabinet has sweetened the financial incentives scheme for semiconductor and display manufacturing, aiming to boost investments in these segments. It approved fiscal support of 50 percent of project cost for semiconductor fabs across all technology nodes and display manufacturing, and raised the fiscal support for compound semiconductors, packaging, and other semiconductor facilities to 50 percent from 30 percent.
The Rs 76,000 crore scheme for chip and display facilities was first announced in December 2021.
What should domestic investors do as Fed steps up inflation fight?
With the US Fed delivering a very hawkish message, markets have tumbled. The Indian markets have been resilient in the recent past, thanks to better macros. But investors need to be selective