Mid Session

The key domestic indices traded with major losses in mid-afternoon trade. The Nifty traded below the 19,750 level. Bank shares witnessed selling pressure for the third consecutive trading session. Trading was volatile due to expiry of weekly index options on the NSE.

At 14:26 IST, the barometer index, the S&P BSE Sensex, was down 633.37 points or 0.95% to 66,167.47. The Nifty 50 index lost 174.40 points or 0.88% to 19,727.

In the broader market, the S&P BSE Mid-Cap index declined 0.96% while the S&P BSE Small-Cap index lost 0.86%.

The market breadth was weak. On the BSE, 1,280 shares rose and 2,324 shares fell. A total of 156 shares were unchanged.

After a two-day Federal Open Market Committee (FOMC) meeting, the US Federal Reserve announced its interest rate decision and kept the benchmark interest rates unchanged at 5.25% to 5.50%, while indicating that the majority of officials still anticipate one more quarter percentage point increase in interest rates before the end of the year.

The US central bank also updated its forecast for the benchmark interest rate, indicating that rates will now remain higher for longer than previously anticipated.

Economy:

The Organisation for Economic Cooperation and Development (OECD) has revised its GDP growth projection for India in the FY24 to 6.3% from earlier projection of 6%.

According to RBI, Indian households saved 19% less in FY23 compared to FY22 on a net basis, with the net savings falling to just 5.1% of GDP in FY23 from 7.2% of GDP in FY22.

The RBI has directed credit information companies (CICs) to set out a common data quality index (DQI) for commercial and microfinance segments, which will help in assessing the quality of data submissions by credit institutions (CIs) to CICs.

BuzzingIndex:

The Bank Nifty declined 1.59% to 44,662.90. The index tumbled 3.39% in three trading sessions.

Bank of Baroda (down 2.53%), State Bank of India (down 2.37%), ICICI Bank (down 2.17%), IndusInd Bank (down 1.94%) and AU Small Finance Bank (down 1.77%) were the top losers. Among the other losers were Axis Bank (down 1.2%), Punjab National Bank (down 1.11%), Kotak Mahindra Bank (down 1.09%), HDFC Bank (down 0.49%) and Federal Bank (down 0.03%).

Numbers to track:

The yield on India's 10-year benchmark federal paper gained 0.27% to 7.172 from previous close of 7.153.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.1375, compared with its close of 83.1100 during the previous trading session.

MCX Gold futures for 5 October 2023 settlement declined 0.67% to Rs 59,007.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.33% to 105.50.

The United States 10-year bond yield advanced 1.99% to 4.433.

In the commodities market, Brent crude for November 2023 settlement fell $1.16 or 1.24% to $92.37 a barrel.

Stocks in Spotlight:

Tata Power Company declined 1.93%. The company said that its subsidiary, Tata Power Renewable Energy has signed an agreement with Dugar Power to entered into Nepal's rapidly evolving renewable energy sector.

Spandana Sphoorty Financial slipped 2.38%. The microfinance lender announced that its board will meet on Monday, 25 September 2023 to consider raising of funds through issuance of non-convertible debentures (NCDs), on a private placement basis.

Lloyd Metals and Energy rose 0.61%. The company said that it has installed and commenced DRI manufacturing facility in Gadchiroli , Maharashtra with a rated capacity of 70,000TPA (2 X 95TPD) and a 4MW waste heat recovery boilers (WHRB) based power plant.

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