Equity

Domestic equity barometers ended a volatile session with modest losses on Wednesday, snapping a two-day rising streak. Traders booked profits ahead of the crucial US Fed meet outcome tonight. Barring the Nifty FMCG index, all sectoral indices on the NSE closed in the red.

The barometer index, the S&P BSE Sensex, declined 262.96 points or 0.44% to 59,456.78. The Nifty 50 index declined 97.90 points or 0.55% to 17,718.35.

Britannia Industries (up 2.91%), Hindustan Unilever (up 1.51%), ITC (up 1.37%), Apollo Hospitals Enterprise (up 0.87%) and Bajaj Finance (up 0.78%) were top Nifty gainers.

In the broader market, the S&P BSE Mid-Cap index lost 0.63% while the S&P BSE Small-Cap index slipped 0.69%.

Sellers outnumbered buyers. On the BSE, 1,241 shares rose, and 2,225 shares fell. A total of 121 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 2.80% to 19.33.

Economy:

The Asian Development Bank (ADB) has slashed its GDP growth forecast for India by 50 basis points to 7% for the current financial year ending in March 2023, citing higher than expected inflation and monetary tightening.

For the next financial year ending in March 2024, the ADB has cut its GDP growth estimate for India by an even larger 80 basis points to 7.2%.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose to 7.260 as compared with 7.294 at close in the previous trading session.

In the foreign exchange market, the rupee was lower against the dollar. The partially convertible rupee was hovering at 79.9675, compared with its close of 79.7400 during the previous trading session.

MCX Gold futures for 5 October 2022 settlement added 0.66% to Rs 49,498.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.42% to 110.68.

In the commodities market, Brent crude for November 2022 settlement rose $2.04 or 2.25% at $92.66 a barrel.

Global Markets:

The Dow Jones index was up 114 points, indicating a positive opening in the US stocks today.

Most European shares advanced while Asian stocks declined on Wednesday, as investors geared up for another aggressive interest rate move from the U.S. Federal Reserve.

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.

Buzzing Segment:

The Nifty Bank index fell 0.64% to 41,203.45. It recovered after hitting the day's low of 40,889.15 in early afternoon trade. The index rose 1.70% in the past two sessions.

Indusind Bank (down 3.13%), Bandhan Bank (down 1.93%), IDFC First Bank (down 1.27%), Punjab National Bank (down 1.23%) and Kotak Mahindra Bank (down 1.13%) were major losers.

Stocks in Spotlight:

Mahindra & Mahindra (M&M) rose 0.27%. Swaraj Engines (SEL) jumped 7.22%. Kirloskar Industries (KIL) climbed 7.12%.

M&M on Tuesday said it will acquire an additional 17.41% stake in SEL from KIL for Rs 296 crore. The acquisition will result in increasing M&M's stake in SEL to 52.13% from 34.72%. The company proposes to acquire 21,14,349 equity shares constituting 17.41% of the paid up equity share capital of SEL from KIL at Rs 1,400 per share. Consequently, SEL, currently an associate of M&M, will become a subsidiary of M&M.

Hero MotoCorp rose 0.54% 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.

Central Bank of India jumped 6.63% after the Reserve Bank of India (RBI) decided to remove the public sector bank from prompt corrective action (PCA) framework.

Piramal Enterprises fell 1.39%. 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.

KEC International advanced 3.30% after the company announced that it has secured new orders worth Rs 1,123 crore across its various businesses.

Tata Consultancy Services (TCS) shed 1.30%. 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 4.31%. The company announced the acquisition of Munich-based Technica Engineering to accelerate the transformation towards software-defined vehicle (SDV).

Aurionpro Solutions rose 2.13% after the company announced an order win from one of the dominant public sector banks in India. The company bagged the order in its Murex services segment. This win will cover upgrading bank's Murex version from older version to new version, the firm said.

Wipro declined 1.02%. 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.

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