Share Market News Today Updates, 27 September 2022: Trends on SGX Nifty indicated a higher opening for the domestic markets. Indian equity benchmarks on Tuesday started in green, pausing a four-day losing run even as global markets remained jittery on economic growth concerns. Asian stocks were mixed as Japan's Nikkei index rose 0.83 per cent, South Korea's KOSPI fell 0.27 per cent, Shanghai Composite index edged 0.02 per cent higher and Hong Kong's Hang Seng Index dropped 0.94 per cent.
Overnight, spillover to US markets drove Wall Street deeper into a bear market. After two weeks of losses, the Dow Jones Industrial Average confirmed on Monday that it was in a bear market, tracing its start to declines in early January.
The S&P 500 index confirmed in June it was in a bear market, and on Monday it ended the session below its mid-June closing low, extending this year's overall sell-off.
Back home, the benchmark BSE Sensex had crashed 954 points or 1.64 per cent to close at 57,145, while the broader NSE Nifty had moved 311 points or 1.80 per cent lower to settle at 17,016.
Here are the share market Live Updates:
"The dominant dynamic roiling equity and currency markets globally is the combination of relentless rise in dollar and the sustained rise in US bond yields. So long as this trend continues, equity markets will be under pressure. FPIs turning big sellers in India (Rs 5,101 crore in cash market yesterday) is an indication of the risk-off in equity in emerging markets. In the context of rising US bond yields, RBI will be forced to raise rates by around 50 bps on September 30. This will be another negative for equity markets. In brief, except for falling crude there are no positive triggers for the equity market now. This is not the time to aggressively buy the dips. However, there is scope for selective buying in the broader market. There are stocks rising even in this weak market. These are signals of accumulation on strong fundamentals," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
PowerGrid, ONGC, Coal India, NTPC and BPCL were among the top gainers on the NSE platform today with their shares up as much as 2.27 per cent. In contrast, Hero MotoCorp, Bajaj Auto, Kotak Mahindra Bank, Eicher Motors and Divi's Lab were among the top laggards.
Mid- and small-cap shares were strong as Nifty Midcap 100 rose 0.72 per cent and small-cap gained 1.01 per cent.
Sensex rises 358 points or 0.63 per cent to trade at 57,503, Nifty moves 95 points or 0.56 per cent lower to trade at 17,111
"RBI has offloaded tonnes of dollars from its FX kitty and while it does that, it has to buy rupee to sell USD. This passive buying of the rupee, along with being on a hiking spree to tame inflation and follow the Fed, has led to a severe liquidity scarcity in the banking system which went into a deficit of over Rs 27,000 crore from a surplus of Rs 8.03 lakh crore. Here, if RBI keeps selling more on the spot, it will further make the worst adverse and can do severe damage to the economy. Therefore, the RBI can’t go aggressive in selling, and hence the rupee can be seen moving towards 82.00-82.50 levels, further as now importers will buy in a rush and exporters shall get complacent. But no surprise, the rupee was overvalued against its peers and this correction was long overdue. It will be a tough job for RBI to juggle multiple balls at the same time and would be interesting to see what measures are been taken in the upcoming meeting. On the global front, USDCNH is trading near 7.18, slightly lower from its all-time high, DXY around 113.70, EUR close to 0.9620 and GBP around 1.0750. Focus shall be on Fed Powell and ECB’s Lagarde speech and home sales data from the US," said Amit Pabari, MD, CR Forex Advisors.
"The upcoming RBI MPC meet is expected to offer significant cues to the financial ecosystem in India. In keeping with the 75 basis points (bps) rate hike by the US Federal Reserve earlier this month, and the rising inflation, which is expected to be around 7 per cent for September as well, we are preparing for a rate hike by the MPC. The dollar’s continued strength, as well as the geopolitical concerns in Europe, will weigh on the MPC while they make this decision, and it is likely that the market will have to contend with a 50-bps hike. However, we remain bullish on the economy as macro factors are aligned to propel it higher and believe that India should be able to absorb the upcoming hike, barring any major disruptions over the short-term," said Raghvendra Nath, Managing Director – Ladderup Wealth Management.
The Indian rupee is expected to recover from a record low against the US dollar today, tracking a mild rebound in other Asian currencies. The rupee is likely to open around 81.45 per dollar after slipping to a record low of 81.6225 on Monday. The local unit has witnessed a swift decline after it slipped below the key psychological 80 level. It has declined about 2.4 per cent over the last four sessions. The Reserve Bank of India (RBI) had intervened to slow the pace of the rupee's decline, selling dollars quite aggressively at times, according to traders.
Oil and Natural Gas Corp (ONGC): The oil producer got a better price for oil under new rules that allow producers marketing freedom, industry sources said.
Jubilant Foodworks: The company has acquired 29.42 per cent stake in Roadcast Tech Solutions.
Mahindra Logistics: The company would sell its enterprise mobility business to its unit for Rs 36.12 crore and buy Rivigo's B2b Express business for Rs 225 crore.
Punit Commercials: The company would consider issue of bonus shares.
Likhitha Infrastructure: The company approved sub-division of shares in ratio 1:2.
Vodafone Idea, PNB Bank and Zee Entertainment Enterprises are in F&O (Futures and Options) ban period today. The derivative contracts in the mentioned security has crossed 95 per cent of the market-wide position limit.
Foreign institutional investors (FIIs) have sold Rs 5,101.30 crore worth of shares, while domestic institutional investors (DIIs) have purchased Rs 3,532.18 crore worth of shares on September 26, provisional NSE data showed.
Trends on SGX Nifty indicated a higher opening for the domestic markets. The Nifty Futures on Singapore Exchange also known as the SGX Nifty Futures rose 71.5 points or 0.42 per cent to trade at 17,092.5.
The benchmark BSE Sensex had crashed 954 points or 1.64 per cent to close at 57,145, while the broader NSE Nifty had moved 311 points or 1.80 per cent lower to settle at 17,016.
Copyright©2022 Living Media India Limited. For reprint rights: Syndications Today
