Sensex Today: Closing Bell: Sensex ends 337 pts lower as D-St digests Fed rate hike;
The Indian rupee hit a record low of 80.45 against the U.S. dollar.
The Fed increased rates by 75 basis points on Wednesday – the third such rise in a row – and signalled that it would continue to raise borrowing costs to fight inflation.
India’s central bank is due to meet next week to decide on its own path for monetary policy.
Shares of budget carrier SpiceJet Ltd fell 4% after India’s air safety watchdog on Wednesday said it was extending a restriction on flight departures until Oct. 29.
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Fed turned more hawkish than anticipated increasing its rate forecast to 4.4% by the end of 2022. The indication is that 125bps more rate hikes can be expected in the next 2 policy meetings scheduled this year. Following this, the US dollar index rose above 111, depreciating INR to beyond 80. Indian stock market was able to sustain its resilience with limited cuts but if the rupee continues its weakness domestic market would turn less attractive for foreign investors in the short-term, effecting performance.
– Vinod Nair, Head of Research at Geojit Financial Services
Closing Bell: Sensex ends 337 pts lower as D-St digests Fed rate hike; Nifty settles below 17,650; HDFC twins drop 2% each
STOCKS AT 52-WEEK HIGHS
Price as on 22 Sep, 2022 03:04 PM, Click on company names for their live prices.
While rising in Interest rates represent a headwind for Indian equities, our buoyant domestic demand scenario presents a sliver of hope for global investors looking to diversify globally. We remain constructive on Indian equities over the medium-term and continue to orient our portfolios around domestic cyclical which continue to look attractive to us from a medium-term perspective.
– Trideep Bhattacharya, CIO Equities, Edelweiss MF
Gainers & losers from Indian tourism sector
Price as on 22 Sep, 2022 02:12 PM, Click on company names for their live prices.
Shares of SpiceJet NSE -3.94 % continued to slide, dropping another 5 per cent, on Thursday after DGCA extended the flight cap or the suspension on the airline operator till October 29.
Price as on 22 Sep, 2022 01:53 PM, Click on company names for their live prices.
Kirloskar Oil Engines will acquire balance stake in Ahmedabad-based La-Gajjar Machineries, making the latter a 100% subsidiary. It had acquired 76% stake in LGM in 2017 with an agreement that the balance holding will be acquired over a 5-year period.Kirloskar Oil Engines has also appointed Anurag Bhagania as chief financial officer, with effect from Sept. 22.
Price as on 22 Sep, 2022 01:05 PM, Click on company names for their live prices.
FMCG stocks brave market fall; check out the top gainers
Price as on 22 Sep, 2022 12:59 PM, Click on company names for their live prices.
STOCK IN FOCUS: RIL
#ETReports | Reliance Retail is planning to launch a new clothing and accessories brand store chain to compete dire… https://t.co/VWKkAOFDHM
— ET NOW (@ETNOWlive) 1663827947000
- Goldman Sachs, Barclays and a bunch of investment banks raised their estimates for U.S. policy rates on Thursday, following the Federal Reserve’s 75 basis point rate rise and hawkish message the previous day.
- Goldman said in its note “the FOMC (Federal Open Market Committee) is willing to tolerate more labor market deterioration if necessary if inflation remains high.”
- Goldman analysts also said they had expected a nod towards a slower pace of tightening in November, and were revising their forecast for rate hikes to 75 basis points (bps) in November, 50 bps in December, and 25 bps in February, for a peak funds rate of 4.5-4.75%, versus 4-4.25% previously.
With the US Fed increasing rates by 75 bps and hinting at more rate hikes in the future, we believe the Dollar index can see a significant increase, implying most major market currencies, including INR should be under pressure. If we start seeing INR depreciating, then from a USD returns perspective for FPIs, India becomes unattractive. We could also witness a reversal of FPI flows in the near to medium term, which will increase market volatility. Higher interest rates in the US will force major central banks, including India, to increase interest rates to stem the pressure on their domestic currencies and with increased interest rates and cost of capital, market multiples can contract. We believe in the near term, Indian equity markets can witness increased volatility.
– Naveen Kulkarni, Chief Investment Officer, Axis Securities PMS
Stocks in limelight in a weak market
Price as on 22 Sep, 2022 12:18 PM, Click on company names for their live prices.
Shares of Aptus Value Housing jumped 8 per cent to the day’s high price of Rs 321.15 per share after foreign brokerage Citi initiated coverage on the stock. This was the best single day gain for the housing finance firm since August 23, 2022. The stock also crossed 50 DMA and 100 DMA levels. Citi initiated coverage on Aptus Value with a ‘Buy’ rating and a target price of Rs 425, suggesting around 33 per cent upside from current levels.
Price as on 22 Sep, 2022 11:40 AM, Click on company names for their live prices.
After a long time, RBI which had been protecting the 80.00 level allowed the rupee to depreciate beyond 80.00. The opening was around 80.28 levels as hawkish statements by FED in its overnight statement in FOMC took the dollar index above 111 to nearly 111.60. All Asian currencies were down and the US 2-year rates were above 4.00% while the 10-year rates staggered around 3.50%. We have the BOE today, which will also deliver a 75 bps rate hike taking its rates to 2.00%. Asian currencies are all down after the hawkish FED statement and so are Asian equities with the market pricing in a looming recession in the US. On Indian Rupee all will depend on RBI whether it allows further weakness beyond 80 levels as most Asian currencies have weakened considerably and Rupee has to catch up. Most probably RBI will allow the weakness to continue beyond 80 levels. The range for the day will be 80.20 to 80.80 with risks to the upside.
– Anil Kumar Bhansali, Finrex Treasury Advisors
The Indian rupee has plunged to a fresh record low of 80.61 mark amid signs of escalating Russia-Ukraine tensions and a hefty rate hike of 75 bps by the US Fed for the third time in a row, which has led to a vertical rally in the greenback towards two-decade highs of 111.78 level. The US central bank struck a more hawkish tone than expected at its latest meeting indicating that it will aggressively front load rate hikes to rein in runaway inflation, even at the risk of hurting growth. Slowing portfolio flows in the domestic markets have further accentuated the decline witnessed in the rupee-dollar exchange rate, even as weakening crude oil prices are still capping losses in the domestic currency. Further ahead, a move past the 80.10 mark has opened the doorway for depreciation in the Indian rupee towards the 81 mark in the coming days.
– Sugandha Sachdeva, Vice President – Commodity and Currency Research , Religare Broking on rupee
Budget carrier SpiceJet has announced a 20% salary hike for pilots from October, ETNow reported on Thursday. SpiceJet reportedly received the first tranche of Emergency Credit Line Guarantee Scheme (ECLGS) payment of around Rs 125 crore last week. The Gurugram-headquartered airline recently decided to place certain pilots on leave without pay (LWP) for a period of three months, as a temporary measure to rationalise costs.
Price as on 22 Sep, 2022 11:00 AM, Click on company names for their live prices.
STOCK IN FOCUS: Fortis tanks 12% on SC order
Price as on 22 Sep, 2022 10:46 AM, Click on company names for their live prices.
Fortis Case: Supreme Court disposes off Daiichi’s plea, orders forensic audit to audit transactions
BREAKING | Fortis Case: Supreme Court disposes off Daiichi's plea, orders forensic audit to audit transactions. Rea… https://t.co/aVybJ9aSSb
— ET NOW (@ETNOWlive) 1663823702000
JUST IN: Rupee extends slide, touches 80.627 vs the US dollar
The Fed raised the interest rates by another 75bps yesterday, as expected. This is the third 75bps hike this year. With the latest hike, the Fed fund rate (FFR) now stands in the range of 3.0%-3.25% and is highest since January 2008. The FOMC revised the median FFR at the end of 2022 up by 100bps to 4.4% from 3.4% in June, indicating a cumulative rate hike of 125bps over the next 2 FOMC meetings this year. For 2023, the median FFR is revised up 4.6% vs. 3.8% in June, suggesting no rate cuts in 2023. These projections are much more aggressive than what investors had been pricing earlier. The Fed chairman, Powell continued his hawkish stance from the Jackson Hole in August meeting. Powell reiterated that the central bank’s main goal is to bring the inflation under target range and for that the interest rates need to be in ‘restrictive’ territory for longer time period.
– Ritika Chhabra- Economist and Quant Analyst, Prabhudas Lilladher Pvt Ltd
While the Fed’s 75bp rate hike and reiteration of the hawkish message were on expected lines, indication that the terminal rate is likely to be 4.6% was higher than market expectations. US 10-year bond yield spiking above 3.5% and the dollar index above 111 are unnerving for equity markets. Now the market feels that the probability of a US recession has increased to 75%. In the backdrop of sharply slowing Eurozone and China, this is bad news for global growth.The big question from the Indian market perspective is whether India’s outperformance will continue in the present global risk off context. Investors can remain optimistic but be cautious since India’s valuations are on the higher side. Financials, capital goods, select autos, telecom and construction related stocks can be bought on declines.
– Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
BOJ keeps ultra-low rates, remains global outlier despite weak yen
The decision came after the U.S. Federal Reserve delivered its third straight rate increase of 75 basis points on Wednesday and signalled more hikes, underscoring its resolve not to let up in its battle against inflation.
The policy divergence pushed the yen to a fresh 24-year low and past the closely watched 145 to the dollar level, highlighting the dilemma Tokyo faces in trying to support a fragile economy with ultra-low rates without accelerating an unwelcome yen decline that inflates the cost of imports.
The Directorate General of Civil Aviation (DGCA) on Wednesday extended restrictions on SpiceJet to operate with only 50% capacity till October 29, 2022.
Price as on 22 Sep, 2022 09:44 AM, Click on company names for their live prices.
Voda Idea, YES Bank among most active stocks on NSE
Price as on 22 Sep, 2022 09:32 AM, Click on company names for their live prices.
CITI INDIA EQUITY STRATEGY
- Interacted with investors in US on India Strategy
- Most discussed stocks:- ICICI Bank, SBI, M&M, Maruti, NTPC, Power Grid, RIL, Infosys, TCS, Airtel, Nykaa, Paytm and Zomato
- Nifty December 2023 target:- 17,700 Vs previous June 2023 target of 17,000
- On India internet, investors are revisiting some names post correction
- Changes to Citi Preference:
- Remove Tata Steel and Add Cipla 2000
- Pharma sector moves to Overweight from Neutral
- Add Aurobindo Pharma to top mid-cap picks
Sensex Heatmap: 20 of 30 index stocks trade in the red
OPENING BELL: Sensex sheds over 400 points, Nifty nears 17,600; BEML rises 4%, SpiceJet falls 4%
Pre-open session: Sensex slumps over 400 points; Nifty below 17,580
JUST IN | Rupee hits fresh record low
9.4 cr Airtel shares traded pre-market in bunch trades
Price as on 22 Sep, 2022 08:51 AM, Click on company names for their live prices.
Rupee seen at record low after Fed signals more aggressive rate hikes
Asian stocks slips as Fed hikes higher
The dollar surged to a fresh two-decade high against major peers and stocks fell on Thursday after the Federal Reserve raised U.S. interest rates and forecast more hikes ahead than investors had expected.
SGX Nifty signals a negative start
Nifty futures on the Singapore Exchange traded 133 points, or 0.75 per cent, lower at 17,583, signaling that Dalal Street was headed for a negative start on Thursday.
Tech View: Nifty forms small-bodied candle ahead of US Fed outcome
Bears remained in control of the Nifty50 on Wednesday, pushing the index lower by nearly 100 points, but recovery in the second half of the session helped the index to close above 17,700 levels.
Tokyo stocks open down after US sell-off, eyes on BoJ
Tokyo stocks opened lower Thursday, extending losses on Wall Street after the US Federal Reserve announced a third successive jumbo interest rate hike, with focus now shifting to the Japanese central bank’s meeting.
Wall Street slumps as investors absorb hawkish Fed rate message
Wall Street’s main indexes see-sawed before slumping in the final 30 minutes of trading to end Wednesday lower, as investors digested another supersized Federal Reserve hike and its commitment to keep up increases into 2023 to fight inflation.
Oil prices slip after U.S. interest rate hike on fears for demand
Oil prices edged lower in early Asian trade on Thursday after the U.S. Federal Reserve raised interest rates significantly to curb inflation, with fears for the global economy casting a shadow over future fuel demand.
Rupee falls 22 paise to close at 79.96 against dollar on forex outflows
The rupee declined by 22 paise to close at 79.96 against the US dollar on Wednesday, tracking the strength of the American currency in the overseas markets and a muted trend in domestic equities.
Sensex, Nifty on Wednesday
The 30-share Sensex declined 262.96 points to end at 59,456.78. Its broader peer, Nifty50, ended at 17,718.35, up 97.90 points.