Taking Stock | Market ends lower ahead of Fed meet outcome; FMCG gains, power stocks drag

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The Indian equity market snapped a two-day winning streak and ended lower in the highly volatile session on September 21 as market participants look ahead to the US Fed policy meeting outcome on interest rates later tonight.

At Close, the Sensex was down 262.96 points or 0.44% at 59,456.78, and the Nifty was down 98 points or 0.55% at 17,718.30.

Shree Cements, Adani Ports, IndusInd Bank, Power Grid Corp and UltraTech Cement were among the major Nifty losers.

The gainers included Britannia Industries, ITC, HUL, Apollo Hospitals and Coal India.

“Markets across the globe were trading with considerable volatility ahead of the Fed policy announcement. A 75bps hike by FED was factored in by the markets, while reports of mobilising Russian forces in Ukraine has escalated geopolitical tension and fears of rising inflation,” said Vinod Nair, Head of Research at Geojit Financial Services.

“Any military escalation will have a significant effect on the world & domestic economy. This will have an influence on the near-term trend of the global market and implications on local market can be high as it is trading at premium prices compared to the world,” he added.

On the sectoral front, Nifty FMCG index rose 1 percent. On the other hand, metal, pharma, Information Technology, energy bank and auto indices fell 0.5-2 percent.

Also Read: What the Federal Reserve will do today? Follow these numbers

Stocks and sectors

On the BSE, FMCG index added 1 percent, while capital goods, oil & gas, realty and power indices shed 1-2 percent each.

Broader indices – BSE midcap and smallcap indices fell 0.6 percent each.

A short build-up was seen in Ambuja Cements, Shree Cements and Adani Enterprises, while a long build-up was witnessed in Britannia Industries, Granules Indian and Marico.

Among individual stocks, a volume spike of more than 100 percent was seen in Indiabulls Housing Finance, Mahanagar Gas and City Union Bank.

More than 150 stocks touched their 52-week highs on the BSE. These included ITC, Welspun Corp, Varun Beverages, Page Industries and CG Power and Industrial Solutions.

Outlook for September 22

Ajit Mishra, VP – Research, Religare Broking:

Markets traded volatile for yet another session and lost over half a percent. After the initial positivity, the Nifty index pared all its gains as the session progressed and finally settled at 17718.35; down by 0.5%.

Markets will first react to the Fed meet outcome in early trades on Thursday. Besides, the scheduled weekly expiry would add to the volatility.

Amid all, indications are in the favour of further consolidation, so we suggest traders to stay light and focus more on the risk management part. On index front, 17,400-17,500 zone would acts a cushion in Nifty while rebound towards 17,900-18,000 zone may attract selling pressure.

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