Share Market News Today | Sensex, Nifty, Share Prices Highlights: The benchmark equity indices closed the trading session off highs on September 19. The BSE Sensex rose 316 points or 0.38% to finish the day’s trading at 83,265. The NSE Nifty 50 closed 68 points or 0.27% higher at 25,445. The Bank Nifty closed the day 0.58% higher, bucking the overall market trend, at 53,057. However, the Nifty Midcap 100 underperformed markets and closed 316 points or 0.53% lower at 59,436.
The NSE Nifty 50 closed 0.27% higher at 25,445.65, while the BSE Sensex closed 0.38% higher at 83,265.
“The dot-plot indicated two more 25 bps cuts this year, taking the range to 4.25-4.5%. Another 100 bps is expected in 2025. We expect that recession can still be avoided and continue to actively track economic data. Globally, emerging markets will now have more space to cut rates for their own economic stimulation. RBI is likely to deliver a cut in 2024,” said Ankita Pathak, Chief Macro & Global Strategist at Angel One Wealth.
“The yellow metal hit a fresh record high above $2600 soon after the rate cut was announced; however, it turned sharply lower as the Fed Chair Powell said that he doesn’t see a recession possibility shortly as inflation is contained and the job market is strong. He added that this 50-bps cut was to ensure that the Fed is not behind the curve and cuts of this magnitude won’t be the norm. The US Dollar staged a sharp recovery on Powell’s comments as bonds tumbled and gold fell 0.40% lower to close at $2559. The price action in the gold counter in the wake of the FOMC outcome can be taken as a ‘buy the rumour, sell the fact’ trading action; thus, overall, this outsized rate cut is positive for the metal. So, buying the dips remains the preferred strategy for a target of $2700 in the coming months,” said Praveen Singh, Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas.
Courtesy: NSE
“US Fed opened the rate cut cycle with a bang with 50 bps cut in line with changed market expectations. From Inflation being transitory to higher rates for longer, the Fed has come a long way to meet market expectations. This rate cut will facilitate flows to the emerging market assets with a weaker dollar and lower rates,” said Nilesh Shah, MD of Kotak Mahindra AMC.
Several major stocks hit 52-week highs on the National Stock Exchange (NSE) today, reflecting positive market sentiment. NTPC led the pack with a gain of 3.49%, followed by Newgen, which rose 3.22%. Bharti Airtel also performed well, increasing by 2.97%.
Other notable gainers included Policy Bazaar at 2.46%, Naukri at 1.71%, LTIMindtree at 0.71%, and Senco, which saw a rise of 0.64%. These upward movements highlight a robust trend among key players in the market.
Shares of Indus Towers faced significant losses on Thursday, plummeting 12% and marking their largest single-day drop since June 4. The stock hit a lower circuit limit of Rs 384.80 on the Bombay Stock Exchange (BSE).
This decline follows a recent Supreme Court ruling regarding the Adjusted Gross Revenue (AGR) case, which upheld the AGR demand against telecom companies. The court’s decision reaffirmed the quantum of the AGR dues, raising concerns among investors.
Currently, Vodafone Idea is facing AGR dues totaling Rs 70,300 crore, further impacting the market sentiment surrounding related stocks. Investors are likely to remain cautious as the implications of the ruling unfold.
Commenting on Fed rate cut Siddharth Chaudhary, Senior Fund Manager – Fixed Income, Bajaj Finserv AMC said that The FOMC has started easing by cutting rates 50 basis points in line with market expectation. So, it is clear now that the worse than expected July employment data was the turning point. The Dot Plot is indicating an additional 50 bps by year end. The focus is clearly back to maximum employment mandate of Federal reserve.
Chaudhary also added that this looks like an apt decision from risk-management perspective, the economic cost of this pre-emptive 50 bps cut is lower than the cost of waiting and then being forced into a bigger cut later if incoming data suggest further deterioration in the labor market. Also note it is usually too late to cut rates by the time the evidence of labor-market deterioration is clear.
“Globally the other central bank which matters now is Bank of Japan. It has got competing considerations such as hot wages and inflation data pointing to the need to adjust policy rates higher versus the risk of market bumps that would call for more patience,” Chaudhary further said.
In today’s trading session, the Nifty Oil & Gas index experienced notable losses, with OIL leading the downturn.
OIL fell sharply by 4.34%, reflecting market concerns over supply disruptions. BPCL also faced challenges, declining 2.26%, as fluctuations in crude oil prices impacted investor sentiment.
Hindustan Petroleum and GAIL followed suit, registering decreases of 2.15% and 2.11%, respectively, amid a broader trend of profit-taking in the sector.
In the Nifty Oil & Gas sector, OIL emerged as the biggest loser, dropping 4.34%. It was followed by BPCL, which fell 2.26%, Hindustan Petroleum with a decline of 2.15%, and GAIL, down 2.11%.
Commenting on the gold impact after rate cut Colin Shah, MD, Kama Jewelry said that the higher-than-expected 50bps rate was cut by the US Fed after four years of strict maintenance of elevated rates to tame inflation. This rate cut comes at an opportune time and is also an influence of the slight dip in unemployment in the US. The gold price immediately recorded a record-high spike, as a reflection of the announcement. This scenario must be taken positively as the rate cut has opened doors for gold to scale new highs shortly, reinstating the might of the yellow metal as an investment haven.
Shah also added that this price cut comes right at the onset of the gold-buying season in India and will reflect positively on the buying trend. Driven by the affinity and sentimental value of the yellow metal among the Indian population will continue to dominate buying this season and the rate cut will have less impact on the same. While we may witness some slowdown in demand for a brief period due to the shradh. Nonetheless, we are certain that the demand will remain upbeat for the remainder of the festive period Overall, we look forward to a strong festive season with a 10-15% rise in demand as compared to last year and the gold price to scale USD 2650 at the global level and Rs 78,000 domestically.
The board of 360 ONE WAM Ltd has approved raising up to ₹2,250 crore through a Qualified Institutional Placement (QIP). Following the announcement, the company’s shares fell 1.52%, trading at ₹1,064.85 on the NSE.
Bank Nifty started today’s session at 52,929, up from yesterday’s close of 52,750, and has since climbed to around 53,170, marking a 0.8% rise. The advance/decline ratio stands at 7/5, reflecting a positive bias. HDFC Bank is the top gainer, up 1.3%, while Bandhan Bank is the top loser, down 1.6%.
NTPC share surged 4.3% to hit a fresh 52-week high of Rs 431.85 after the company’s renewable energy arm filed papers for IPO and eventual listing. NTPC Green Energy filed draft papers for an IPO worth Rs 10,000 crore on Wednesday. The issue will only raise fresh capital and there will be no paring of stake from the existing shareholders.
Tilaknagar Industries announced a Rs 8 crore investment in Round the Cocktails Private Limited (RTC), the makers of the premium “ready-to-pour” mixer brand, Bartisans. The investment, a combination of primary investment and secondary acquisition, gives Tilaknagar a significant minority stake in RTC. Following the announcement, Tilaknagar Industries’ stock rose 1.83% on the NSE, trading at Rs 308.50.
Commenting on the gold outlook Renisha Chainani, Head Research – Augmont – Gold For All said that Gold finally touched the psychological level of the $2600 (~Rs 73750) mark in the active contract as the FED cut interest rates after four years. The Federal Reserve cut its benchmark interest rate by 50 bps to 4.75%-5%, with rates expected to decrease another 50 bps by the end of the year. In the so-called dot plot, Fed members saw rates decreasing to 3.4% in 2025, down from a previous forecast of 4.1%, and 2.9% in 2026, down from a prior forecast of 3.1%.
Chainani also added that the Fed’s monetary policy statement acknowledged that economic activity is strong, notwithstanding rising unemployment rates. They also stated that, while inflation remains slightly excessive, the Committee has grown more confident that inflation is steadily approaching 2% and believes that the risks to meeting its employment and inflation targets are fairly balanced. After touching the $2600 target, gold prices are expected to see some profit booking and retracement up to $2500 (~Rs 71800) and $2475 (~Rs 71000).
Shares of ION Exchange (India) Ltd saw strong buying activity in the early session on Thursday. The stock opened with an upside gap at Rs 670 on the National Stock Exchange (NSE) and quickly surged to an intraday high of Rs 709.15. This represents an intraday gain of over 8% as the stock rallied amid increased investor interest.
Shares of Indian Renewable Energy Development Agency (IREDA) rose over 4% in early trade on Thursday following government approval to raise Rs 4,500 crore via a fresh equity issue. The stock climbed as much as 4.39% to Rs 237.50 on the Bombay Stock Exchange (BSE).
Read More: IREDA shares shoot up 4% as company gets nod to raise Rs 4,500 crore via QIP
NTPC, LTIMindtree, Axis Bank, Bajaj Auto, and Titan were the top gainers in the Nifty 50. Meanwhile, ONGC, HCL Technologies, BPCL, Bajaj Finserv, and Dr. Reddy’s Laboratories were the major laggards in the Nifty 50 on September 19.
The NSE Nifty 50 opened 0.47% higher at 25,500, while the BSE Sensex opened 0.51% higher at 83,369.78.
This is one of the most important counters in trade today. The stock will be in focus as the company has decided to list its renewable or green energy subsidiary. NTPC plans to raise nearly Rs 10,000 crore from the green energy IPO and the draft papers for the same have already been filed.
Foreign institutional investors (FII) bought shares net worth Rs 1,153.69 crore. Meanwhile, the Domestic institutional investors (DII) bought shares net worth Rs 152.31 crore on September 19, 2024, according to the provisional data available on the NSE.
“The first-rate cut by FED of 50 basis points after a long time was expected by the market for the last few months. Three cuts of 50 basis points in the next 12 months will trigger a feeling in the markets that recession fear is back. Fed will have to take the forward path cautiously,” said Sharad Chandra Shukla Director at Mehta Equities.
US markets closed on a lower note on Thursday after the US Fed cut interest rate by half a percentage point, which cheered investors initially. The broader market index, the S&P 500 closed 0.29% lower at 5,618.26. Similarly, the tech-heavy Nasdaq Composite dropped 0.31% to settle at 17,573.30. The Dow Jones Industrial Average index fell 103 points or 0.25%, to end at 41,503.10.
The US Dollar Index (DXY), which measures the dollar’s value against a basket of six foreign currencies, was trading up 0.18% at 101.19 on Thursday morning.
WTI crude prices were trading at $70.51 down by 0.57%, while Brent crude prices were trading at $73.32 down by 0.45%, on Thursday morning.
The US Federal Reserve slashed its key lending rate by half a percentage point, marking its first reduction since 2020. This move significantly reduces borrowing costs just ahead of the November presidential election. According to a statement from the Fed, the US central bank’s benchmark lending rate will range from 4.75% to 5%.