Market indices extend losses into fourth session amidst volatile trading

Following JP Morgan's announcement regarding the inclusion of Indian bonds, there was a noticeable surge in buying activity among PSU banks

Market update at 3:30 PM: Today’s trading session unfolded with a subtle but discernible downturn. As the closing bell rang, the Sensex registered a 0.33 percent dip, settling at 66,009.15, while the Nifty 50 followed suit, closing down by 0.34 percent at 19,674.30.

Following JP Morgan's announcement regarding the inclusion of Indian bonds, there was a noticeable surge in buying activity among PSU banks, while sectors like pharma and metals took a hit in terms of performance. In terms of market breadth, declines held sway as 1,747 shares witnessed gains, 1,779 saw declines, and 143 remained unchanged.

For the week, the market experienced its most substantial weekly decline in seven months, breaking a three-week streak of gains. Both the Sensex and Nifty saw their values drop by approximately 3 per cent each during this period. The Nifty Bank index also registered a decline of over 3 per cent, while the Nifty Midcap 100 lost around 2 per cent over the course of the week. 

Among the top Nifty gainers were Power Grid, Asian Paints, Coal India, NTPC, and HDFC Life. Conversely, HDFC Bank, UltraTech, Dr. Reddy's Laboratories (DRL), and Wipro found themselves among the biggest laggards.

Market update at 2:15 PM: The Sensex exhibited a slight dip of 0.15 per cent, and the Nifty 50 followed suit, edging down by 0.16 per cent. Meanwhile, in the midst of this tango, the BSE Smallcap and BSE Midcap indices displayed a graceful balance, trading in a flat trajectory during the afternoon session.

Among the major sectors, Nifty PSU Bank was the best performing sector while Nifty Pharma was the worst performing sector. Consequently, the best performing stock was IndusInd Bank and the worst performing stock was Dr Reddy’s Laboratories.

In terms of individual stocks IndusInd Bank, Maruti Suzuki, SBI and M&M were among the top gainers, while Dr Reddy’s Laboratories, Wipro, Power Grid Corporation and Cipla were among the top losers within the Nifty 50.

The broader market sentiment appeared flattish, with approximately 1009 stocks advancing and 979 stocks declining. 

Market update at 11:11 AM: The Sensex is trading higher with a gain of 0.13 per cent, while the Nifty is trading higher by 0.10 per cent. Additionally, BSE Midcap has registered a marginal 0.07 per cent dip, and BSE Smallcap is trading slightly higher by 0.05 per cent.

PSU bank shares staged a strong recovery, rebounding forcefully following a sharp selloff in the preceding session. This upswing in sentiment came on the heels of JPMorgan's announcement to incorporate Indian bonds into its emerging-market index, which bolstered investor confidence.

In terms of individual stocks within the Nifty 50, notable gainers include SBI, Tech Mahindra, IndusInd Bank and HDFC Life while Sun Pharma, Cipla, Wipro, Power Grid Corporation and Hindalco are among the top losers.

The broader market sentiment indicates a slight positive bias, as approximately 994 stocks are advancing compared to 963 stocks that are declining under NSE.

Market update at 9:30 AM: Both the Sensex and Nifty are trading flat. Additionally, BSE Midcap has registered a dip of 0.15 per cent and BSE Smallcap is trading lower by 0.11 per cent. Moreover, Nifty Bank opened strongly witnessing a gain of over 0.35 per cent.

During the morning session, the Nifty PSU Bank sector emerged as the top-performing segment, whereas the Nifty Pharma sector experienced the most significant decline. Furthermore, within the Nifty Index, SBI claimed the title of the leading gainer, while Sun Pharma found itself at the bottom of the sector performance rankings.

In terms of individual stocks within the Nifty 50, notable gainers include SBI, Bajaj Finserv, Bajaj Finance and IndusInd Bank, while Sun Pharma, Cipla, Wipro, Divis Laboratories and Hindalco are among the top losers.

The broader market sentiment indicates a positive upward bias, as approximately 1094 stocks are advancing compared to 542 stocks that are declining.

Pre-Market Update at 8:15 AM: The trading floors of domestic benchmark indices bore witness to a recurring theme, marked by uncertainty and global economic shifts, on September 21, 2023. For the third consecutive day, these indices wrapped up in the red, leaving investors and market analysts pondering the implications of a pivotal decision made by the US Federal Reserve.

In the early hours of September 22, 2023, most Asian markets experienced a sluggish beginning, echoing the losses seen in US markets the previous day. This downturn was triggered by a notable surge in US Treasury yields. Among the Asian markets, Japan's Nikkei index was hit the hardest, declining by approximately one percent, as it prepared for the Bank of Japan's upcoming interest rate decision. The Kospi index also exhibited weakness during this period.

The previous day, all three major US stock indexes plummeted by over one percent, while the benchmark 10-year US Treasury yields reached a 16-year high. These developments occurred shortly after Federal Reserve Chairman Jerome Powell cautioned that inflation still had a significant distance to cover before aligning with the central bank's 2 per cent target. Specifically, the Dow Jones Industrial Average lost 370.46 points, equivalent to a 1.08 per cent decline, closing at 34,070.42. The S&P 500 experienced a 1.64 per cent drop, shedding 72.2 points to reach 4,330, and the Nasdaq Composite fell by 1.82 per cent, down 245.14 points to 13,223.99.

Oil prices exhibited an increase on that Friday, primarily due to concerns that a Russian ban on fuel exports might constrict global oil supply. These concerns outweighed worries that potential US interest rate hikes could diminish fuel demand. However, despite this increase, oil prices were still on track for a weekly decline, marking the fourth consecutive week of losses.

In a significant development, JPMorgan Chase & Co. announced its intention to incorporate Indian government bonds into its benchmark emerging-market index. This move was highly anticipated and has the potential to attract substantial foreign investments into India's debt market. The inclusion is scheduled to take effect on June 28, 2024, with India holding a maximum weight of 10 per cent in the index. This development will grant global investors increased access to the world's fastest-growing major economy, known for its attractive returns in the region, and could result in inflows of up to $30 billion.

On September 21, 2023, data from the National Stock Exchange (NSE) revealed that Foreign Institutional Investors (FII) divested shares worth Rs 3,007.36 crore, while Domestic Institutional Investors (DII) acquired stocks worth Rs 1,158.14 crore.

Anticipating today's trading session, there's a glimmer of positivity on the horizon. The benchmark Sensex and Nifty indices are poised for a modest uptick, as indicated by the trends in the GIFT Nifty, with an expected gain of 11 points, offering a potential ray of hope in the market.