Mumbai, Sep 26: After a day of relief rally on Tuesday, equity benchmarks have closed on a lower note on Wednesday.
However, the key, psychological mark of 11,000 has been held by the Nifty. In fact, the index had brief fall below 11,000-mark as well. So, an end above 11,050 could be rather seen as a relief by the bulls.
Traders could have been cautious ahead of US Federal Reserve’s decision on interest rates, which will be declared later in the day.
Index heavyweights such as ITC, Infosys, TCS and Reliance Industries were all buzzing in trade. While RIL tried to fight for the bulls and held fort along with HDFC Bank, the others were a drag on the indices.
There was major selling seen among information technology names. The likes of TCS, Infosys and Wipro, among others dragged the index lower and managed to weigh on frontline indices as well. Automobiles, consumer and PSU banks were the other big losers. The Nifty Midcap index closed with marginal gains.
All eyes are also on the outcome from the FOMC meeting, which will be announced later in the day. “The outcome of the US Fed meeting on Wednesday is expected to result in another hike in benchmark interest rates, raising the federal funds rate by 25 basis points from its current range of 1.75-2 percent to 2-2.25 percent,” Edelweiss Investment Research has said in a note.
At the close of market hours, the Sensex closed 109.7 points or 0.30% lower at 36542.2, while the Nifty was down 13.7 points or 0.12% at 11053.8. The market breadth is negative as 1,266 shares advanced, against a decline of 1,330 shares, while 197 shares were unchanged.
Stocks in the News
Indiabulls Housing Finance ended 7 percent higher after ratings agencies upheld their ratings on the firm.
Adani Green Energy added 1 percent after it won a tender for setting up a 300 MW wind generation project.
Titan Company share price rallied 3 percent after Morgan Stanley raised target price on the stock on strong growth expectations in festive season.
Meanwhile, Jubilant Lifesciences rose 3 percent after Macquarie remained bullish on the pharma company, citing broadbased growth across segments.
Bharat Electronics has seen huge buying interest on Wednesday as the stock price shot up 11 percent after the management maintained growth targets for FY19 and saw no major impact of new pricing policy on its margin.
Yes Bank ended 2 percent higher after the Board on Tuesday sought extension of Rana Kapoor’s term.
Auto companies, which earn major revenue from global business hit badly on Wednesday after German automaker BMW lowered its full-year revenue as well as profit guidance.
Markets in Europe hovered around the flat line as investors awaited key decision from US Federal Reserve. Stoxx 600 was flat with the different sectors moving in opposite directions.
Markets in Asia rose amid US’ statements of its tough stance on trade war with China. The Nikkei 225 recovered from its losses in the morning to end higher by 0.39 percent at 24,033.79.
Experts continue to remain cautious on the market. “We maintain our cautious stance on the Indian markets as volatility is likely to remain high in the near term. On the global front, US FOMC meet scheduled tonight, crude oil and currency movement would be actively tracked by the investors. We would advise investors and traders to remain selective in stock picking,” Jayant Manglik, President, Religare Broking said in a statement.