Market WRAP: Nifty closes at 17,000 ahead of US inflation numbers; financials and realty drag, pharma shines

CPI Inflation is widely expected to be at 8.1 per cent while these numbers shall also dictate US Federal Reserve’s next course of action.   

Market update at 3.30 PM: Indices closed on a weak note ahead of crucial US inflation numbers. Nifty slipped 0.64 per cent while Sensex tanked 390 points. Nifty Midcap and Nifty Smallcap plunged 0.69 per cent & 0.50 per cent, respectively.  

Apart from pharma and media, all the other sectors saw weakness. Financials and realty were the top draggers.   

HCL Technologies, Sun Pharma, and Coal India were the top gainers from Nifty 50 stocks while Wipro, Adani Ports & SBI emerged as the top losers today.   

The US inflation is likely to set the tone for the markets in the upcoming trading sessions.  

CPI Inflation is widely expected to be at 8.1 per cent while these numbers shall also dictate US Federal Reserve’s next course of action.   

Market update at 12.50 PM: Indices plunged as Nifty is trading around the 17,000 level. Sensex has dipped 350 points while Nifty Midcap and Nifty Smallcap remained under pressure.   

Apart from pharma, all the sectors are trading lower.  India VIX has surged nearly 3 per cent on a volatile weekly expiry day, ahead of US inflation data.   

Market update at 11.05 AM: Indices have been trading lower since the beginning of the session. Nifty has slipped towards 17,000 level and is down by 0.54 per cent. Sensex has dipped 320 points while Nifty Midcap and Nifty Smallcap plunged 0.61 per cent & 0.31 per cent, respectively,   

Apart from pharma and metals, all the other sectors experienced weakness. Banks and IT are the top underperformers.   

Wipro has slipped over 6 per cent amid weaker-than-expected corporate results. SBI Life Insurance and L&T are included in the top losers’ list. Meanwhile, HCL Technologies, Hindalco, and Sun Pharma are the top gainers from Nifty 50 stocks.   

The advance-decline ratio stands at 652:1255, which indicates weakness in the market.   

The level of 17,000 happens to be strong support and any fall below this level can trigger a severe downfall for Nifty.   

Market update at 9.30 AM: Indices have been trading lower amid volatility. Nifty has fallen 0.25 per cent while Sensex lost 175 points. Meanwhile, Nifty Midcap and Nifty Smallcap indices are trading marginally lower.   

Auto and metals are witnessing good buying interest while IT is weak today. India VIX has climbed nearly 2 per cent.   

Pre-market update: The US indices closed flat on a volatile trading session after US FOMC minutes suggested that many Fed officials are stressed about not doing enough to bring down the soaring inflation. Meanwhile, the US inflation numbers are set to release later this evening. Asian markets have thus opened weak, and SGX Nifty indicates a loss of 50 points. 

The companies that are set to declare their respective Quarterly Results include Infosys, Mindtree, and Anand Rathi Wealth. Hence, these stocks are likely to be in focus today.
India's CPI for September stood at 7.41 per cent as against 7.01 per cent in August. With this, analysts are expecting a rare hike of 35 bps from RBI in its next MPC meet.
In the last trading session, the FIIs sold to the tune of Rs 542 crore while the DIIs bought equity worth Rs 85 crore.
With the weekly expiry on Thursday and US CPI data set to release later this evening, volatility is expected to persist throughout the day.