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Market ends with modest losses ahead of Fed decision; Nifty below 17,750
(15:37, 21 Sep 2022)
The key equity barometers ended with moderate losses on Wednesday tracking negative Asian cues. The Nifty closed below the 17,750 level. Barring the Nifty FMCG index, all the other sectoral indices on the NSE ended in red.

As per provisional closing, the barometer index, the S&P BSE Sensex, declined 262.96 points or 0.44% to 59,456.78. The Nifty 50 index declined 97.65 points or 0.55% to 17,718.60.

In the broader market, the S&P BSE Mid-Cap index lost 0.63% while the S&P BSE Small-Cap index slipped 0.69%

Sellers outnumbered buyers. On the BSE, 1,290 shares rose, and 2,168 shares fell. A total of 129 shares were unchanged.

Investors turned cautious ahead of the Federal Reserve's monetary policy decision. A three-quarter point increase in rate is expected. But investors are turning their attention to the Fed's updated economic projections, which will show what the Fed thinks about the endpoint on rates as well as its forecasts for inflation and employment.

Fed officials have talked in recent weeks about their determination to tame inflation, using whatever it took, despite any pain that may cause to the economy. Such a stance could also mean a recession in the near future.

Economy:

The Asian Development Bank (ADB) has trimmed its GDP growth forecast for India by 50 basis points to 7 percent for the current financial year ending in March 2023. The ADB said that elevated commodity prices, including those of oil, and domestic inflation will force Indian monetary policy to continue to tighten. This would hurt growth in the short run, the ADB said. ADB noted that weaker than expected global demand over the next 2 years will also adversely affect exports and growth, despite the structural reforms being undertaken by the government.

Employees' Provident Fund Organisation (EPFO) added 18.23 lakh net members in July 2022, a year-on-year increase of 24.48% compared with the corresponding month last year, the provisional payroll data showed. Of the total 18.23 lakh members added during the month, around 10.58 lakh new members have come under the social security cover of EPFO for the first time. The data of new members joining EPFO has shown a growing trend since April 2022.

Stocks in Spotlight:

Wipro declined 1.05%. The company said that it has partnered with Finastra, a global provider of financial software applications and marketplaces, to help the corporate banks in India to accelerate digital transformation by deploying Finastra's leading solutions. This partnership combines its expertise across consulting, digital, infrastructure and operations with Finastra's cutting-edge solutions to deliver modern API enabled platforms for banks to innovate, streamline and digitize core trade finance processes, while reducing cost overheads, the company stated.

Hero MotoCorp rose 0.16% after the two-wheeler major said it has collaborated with state-run Hindustan Petroleum Corporation to establish charging infrastructure for electric vehicles (EVs) in the country. As a part of the initiative, the companies will set-up charging infrastructure for two-wheeled electric vehicles (EVs) across the country.

Piramal Enterprises fell 1.39%. The company's board will meet on Friday, 23 September 2022 to consider issuing non-convertible debentures aggregating up to Rs 750 crore on private placement basis.

Tata Consultancy Services (TCS) shed 1.28%. TCS and Zurich Insurance Germany (Zurich) have expanded their partnership, making TCS the exclusive strategic IT partner for Zurich's life insurance IT landscape.

KPIT Technologies gained 4.42%. The company announced the acquisition of Munich-based Technica Engineering to accelerate the transformation towards software-defined vehicle (SDV).

Central Bank of India jumped 6.88% after the Reserve Bank of India (RBI) decided to remove the public sector bank from prompt corrective action (PCA) framework. RBI on Tuesday (20 September) said the Board for Financial Supervision reviewed the performance of the Central Bank of India. The regulator noted that as per the assessed figures of the bank for the year ended 31 March, it is not in the breach of the PCA parameters.

KEC International advanced 3.32% after the company announced that it has secured new orders worth Rs 1,123 crore across its various businesses. The company's Transmission & Distribution (T&D) business has secured orders for building substations in India. The orders include a 400 kV Digital GIS Substation order in India, from Power Grid Corporation of India (PGCIL) and 400 kV GIS Substation order in India, from a reputed industrial developer.

Aurionpro Solutions rose 1.56% after the company announced an order win from one of the dominant public sector banks in India. The company bagged the order in its Murex services segment. This win will cover upgrading bank's Murex version from older version to new version, the firm said. This win is further expansion of firm's current engagement, which covers providing 24X7 monitoring services & level 1 support for the Murex Treasury platform at the bank, the company stated.

Global Markets:

Shares in Europe advanced while Asian stocks declined across the board on Wednesday. Wall Street closed negative ahead of the Federal Reserve's expected rate hike.

The Asian Development Bank (ADB) on Wednesday cut its growth forecasts for developing Asia for 2022 and 2023 amid mounting risks from increased central bank monetary tightening, the fallout from the war in Ukraine and Covid-19 lockdowns in China.

The ADB now expects the area's combined economy, which includes China and India, to grow 4.3% this year, after previously trimming the forecast to 4.6% in July from 5.2% in April. For 2023, the ADB expects the region's economy to expand 4.9%, slower than the April and July forecasts of 5.3% and 5.2%, respectively, it said in the September edition of its flagship Asian Development Outlook report.

Wall Street ended Tuesday lower as the eve of a US Federal Reserve meeting expected to bring another large interest rate hike brought further evidence of the impact on corporate America from the inflation that the US central bank wants to tame.

The Federal Open Market Committee (FOMC), the US Federal Reserve's policy-setting committee, began its two-day meeting yesterday. The outcome of the FOMC meeting is critical as it includes projections, which could set the path of monetary policy for the next few months. Traders are anticipating another sharp rate hike, third consecutive, from the US central bank to tame the rising inflation.

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