The BSE Sensex and the NSE Nifty are set to open lower on Friday, tracking weak cues from Asian peers and negative closing on Wall Street overnight as surge in the U.S. bond yield fueled concerns about a steep rate hike by the Federal Reserve. The market experts are now expecting a 100 basis point interest rate hike by the U.S. central bank next week to curb inflation. The sell-off in global equities was also triggered after the World Bank warned of a global recession as central banks globally are hiking rates to combat rising inflation. The bearish trends on SGX Nifty also indicated a gap-down opening for the domestic bourses, with SGX Nifty futures trading 103 points, 0.6%, lower at 17,775 levels on the Singapore Stock Exchange at 8:05 AM.
On Thursday, the Indian equity benchmarks closed lower in volatile trade for the second straight session, weighed down by IT and pharma stocks which tumbled amid slowdown in the global economy. The benchmark indices Sensex and Nifty opened higher but lost momentum in the final hours of trade to settle in negative terrain. The BSE Sensex ended 413 points lower at 59,934, and the NSE Nifty fell 126 points to settle at 17,877. From the Sensex pack, Tech Mahindra was the top loser, followed by Infosys, Tata Steel, Bajaj Finserv, Axis Bank, and Indusind Bank. On the other hand, Maruti, Power Grid, NTPC, HDFC, Bharti Airtel, Larsen & Toubro, and State Bank of India were among notable gainers.
Stocks to watch
Tata Power: The company’s subsidiary, Tata Power Solar Systems, has bagged a contract worth ₹612 crore to set up a 100 MW ground mounted project for Satluj Jal Vidyut Nigam (SJVN) in Gujarat.
Adani Ports and Special Economic Zone (APSEZ): The Adani Group company has proposed to invest around ₹298 crore for mechanisation of berth No: 2 of Haldia Dock Complex of Syama Prasad Mookerjee Port, Kolkata.
State Bank of India: The PSU lender has clarified that it has not been identified as a nodal bank for handling Russia-related transactions, adding that RBI has asked all the banks to open a Special Rupee Vostro account to promote invoicing in Indian rupee.
MTAR Technologies: The engineering company has won orders worth about ₹540 crore in the clean energy sector including civil nuclear power.
UPL: The agrochemical manufacturer has entered into a joint venture with CleanMax Enviro Energy Solutions, a Mumbai-based renewable energy company, to set up a hybrid solar-wind energy power plant in Gujarat with a capacity of 28.05 MW of solar power and 33 MW of wind power.
Ambuja Cements: The board of the cement major will also meet today to evaluate a fund raising proposal by way of issuing shares – convertible or preferential.
CSB Bank: The private lender has appointed Pralay Mondal as MD & CEO with effect from September 15.
IndusInd Bank: The bank has re-appointed Sumant Kathpalia as its MD & CEO.
NSE F&O ban: Indiabulls Housing Finance and RBL Bank will remain under the NSE F&O ban list on Friday as their derivative contracts have crossed 95% of the market-wide position limit.
Here are the key things investors should know before the market opens today:
Wall Street ends lower
In the overnight trade, the U.S. indices closed lower as new economic data reignited fear about steep interest rate rises by the Federal Reserve in its policy meeting next week. The indices rose in early trade after U.S. President Joe Biden announced a "tentative deal" with unions to avert a rail strike. However, sentiment was later dented after the data released by the U.S. Labor Department showed that jobless claims fell last week to the lowest level since the end of May. Another data showed retail sales improved in August. The market participants are expecting the Federal Reserve to raise official interest rates by 0.75% for the third consecutive time next week. The Dow Jones Industrial Average fell 0.6%, the S&P 500 shed 1.1%, and the Nasdaq Composite tumbled 1.4%.
Asian shares fall
Shares in the Asia-Pacific region were trading mostly lower in early trade on Friday, tracking a negative finish on Wall Street overnight. The market sentiment was also dented by a steep rise in Treasury yields that indicates expectations for jumbo Federal Reserve interest rate hikes later this month.
Japan’s benchmark index Nikkei 225 dropped 1.1%, South Korea’s Kospi fell 0.6%, and the Straits Times in Singapore traded flat with marginal gains.
Similarly, the Hang Seng index in Hong Kong dipped 1%, Australia's ASX 200 plunged 1.3%, Taiwan Weighted index shed 0.9%, and Indonesia’s Jakarta Composite also tumbled 0.9%.
Markets in mainland China were also trading lower, with the Shanghai Composite and the Shenzhen Component falling by 0.6% and 0.9%, respectively.
FIIs, DIIs turn net sellers
Foreign institutional investors (FIIs) as well as domestic institutional investors (DIIs) turned net sellers in the Indian equity market on September 15 amid concerns about monetary policy tightening by central banks globally. As per the exchange data, FIIs net sold shares worth ₹1,270.68 crore, while DIIs net offloaded stocks worth ₹928.86 crore.