Market WRAP: Nifty closes at 18,000; financials and metals shine, IT drags

Bajaj Finserv, IndusInd Bank, and NTPC emerged as the top gainers while Infosys, TCS & Tech Mahindra were the top losers of the day.   

Market update at 3.30 PM: Indices witnessed some profit booking in the last half hour as Nifty plunged 80 points from the day’s high. In the end, Nifty tumbled 0.37 per cent and closed at the 18,000 level. Sensex dropped 225 points while Nifty Midcap and Nifty Smallcap slipped 0.33 per cent & 0.08 per cent, respectively  

Financials, along with metals and media were the star performers during Wednesday’s trading session. Bank Nifty is now just about 400 points away from its all-time high level of 41,800. Meanwhile, Nifty IT remained weak after credit agencies downgraded IT companies’ valuations.   

Bajaj Finserv, IndusInd Bank, and NTPC emerged as the top gainers while Infosys, TCS & Tech Mahindra were the top losers of the day.   

The broader indices saw a good rally from the lower levels and recovered all their pre-opening losses at some point in time. This is an indication of market resilience. Meanwhile, the global cues shall be in focus to anticipate the further trend in the market.

Market update at 12.45 PM: The Indian benchmark indices, after the initial jolt, bounced sharply from the lower levels and are currently trading with a modest loss of 0.19 per cent. Besides, Nifty has reclaimed its important psychological mark of 18,000.   

The majority of the sectors were seen trading with gains, led by Nifty PSU Bank, which has jumped over 2 per cent. All the stocks from Nifty PSU Bank sector were seen trading in green. State Bank of India achieved a new milestone as the stock has not only marked a fresh high on the bourses but also, the market cap of India’s largest public sector bank crossed the magical mark of Rs 5,00,000 crore. 

Market update at 9.30 AM: Indices have opened lower but witnessed some buying emerging from the lower levels. Nifty is currently down by 1 per cent while Sensex has tumbled 600 points. Nifty Midcap and Nifty Smallcap have also tumbled half a per cent each.   

FMCG and media are inching higher while the rest of the sectors are weak. Meanwhile, India VIX has surged nearly 5 per cent.   

Pre-market update: The US indices snapped a four-day winning streak as they succumbed to the much hotter inflation data, which was released on Tuesday. Despite the decline in fuel prices, a sharp rise in food and house rents led inflation to soar. The headline inflation stood at 8.3 per cent for August as against 8.5 per cent in July. This led to the fears of the US Fed opting for an aggressive rate hike of around 75-100 basis points in the upcoming meeting.

The world markets reacted negatively as Nasdaq crashed by nearly 5 per cent. Dow Jones tanked 1,276 points while S&P 500 tumbled 4.32 per cent. The European markets also witnessed a sell off as FTSE, CAC, and DAX closed lower by over a per cent each.
The Asian markets have thus opened sharply lower, and SGX Nifty indicates a loss of 350 points or nearly 2 per cent.
Brent crude continues to trade lower at around USD 93 per barrel amid recession fears.
Besides, the FIIs bought shares worth Rs 1,956 crore in the last trading session while the DIIs sold to the tune of Rs 1,268 crore.

Despite posting a positive closing over 18,000 level on Tuesday, Nifty is heading for a huge gap-down, owing to poor global cues. The intraday volatility is expected. Meanwhile, keep an eye on India VIX!