Nifty and Sensex Fall for 4th Consecutive Session; Broader Indices Extend Losses

Market Update at 4:10 PM: On Wednesday, September 24, Indian equity benchmark indices closed in red, extending losses for the fourth straight session. The Nifty 50 ended down by 112.60 points, or 0.45 per cent, at 25,056.90, while the Sensex dropped by 386.46 points, or 0.47 per cent, to 81,715.64. IT stocks were among the key drags as investor sentiment was impacted by the US H-1B visa fee hike.

The Nifty IT index fell by 0.72 per cent, and Nifty Auto declined over 1 per cent on Wednesday, easing from record highs touched on Tuesday. The Nifty 50 has lost more than 1 per cent in the last three sessions, with IT stocks driving this week's sell-off. The US recently proposed a rework of the H-1B visa selection process, introducing a USD 1,00,000 fee for new applications and prioritising higher-skilled and better-paid workers.

Among sectoral indices, only the Nifty FMCG closed in positive territory, rising 0.18 per cent, with 11 out of 15 constituents gaining. In contrast, the Nifty Realty index declined by nearly 2.5 per cent, recording its biggest intraday loss in the past two months. Broader indices like the Nifty Midcap 100 and Smallcap 100 also ended lower, down 0.98 per cent and 0.67 per cent respectively, marking their third consecutive day of losses.

On the stock-specific front, Tata Motors shares fell over 2 per cent after the extension of the JLR factory closure. Minda Corporation shares jumped more than 8 per cent following plans to target 3.5x revenue growth and more than 12.5 per cent EBITDA margin by FY30.

Market breadth on the NSE was in favour of declining stocks, with 993 advancing, 2,053 declining, and 85 unchanged out of 3,134 stocks traded. Additionally, 97 stocks touched their 52-week highs, 53 hit their 52-week lows, 84 stocks were locked in upper circuits, and 63 in lower circuits.

Market Update at 12:30 PM: The benchmark Indian equity indices continued to trade lower on Wednesday. At 12 PM, the BSE Sensex was down 338 points or 0.41 per cent at 81,764.12, while the NSE Nifty50 declined 93.15 points or 0.37 per cent to 25,076.35.

On the BSE, Tata Motors, Tech Mahindra, BEL and HDFC Bank were among the top laggards. In contrast, Hindustan Unilever (HUL), NTPC, Maruti Suzuki and Asian Paints were among the leading gainers.

Broader markets also moved lower. The Nifty MidCap 100 index slipped 0.61 per cent, while the Nifty SmallCap index fell 0.4 per cent.

Among sectoral indices, barring Nifty PSU Bank, which rose 0.29 per cent, all others traded in the negative zone. Nifty IT was the biggest loser, falling 0.91 per cent, followed by Nifty Auto, which declined 0.73 per cent.

Market Update at 10:15 AM: India's equity benchmarks opened lower on Wednesday as investors assessed the impact of U.S. visa restrictions, while persistent foreign outflows and valuation concerns kept market sentiment subdued.

The Nifty 50 lost 0.36 per cent to 25,079.5, and the BSE Sensex shed 0.33 per cent to 81,826.1 as of 9:20 a.m. IST. Fifteen of the 16 major sectors recorded losses at the open. Broader markets also struggled, with the Smallcap and Midcap indices falling around 0.4 per cent each.

The 50-stock Nifty has declined 1 per cent over the last three sessions, with information technology stocks driving this week's sell-off. The pressure came after the US imposed a USD 100,000 fee for new H-1B visa applications.

On Tuesday, the US released a proposal aimed at reworking the H-1B visa selection process to favour higher-skilled and better-paid workers. Indians accounted for 71 per cent of approved H-1B beneficiaries last year.

Pre-Market Update at 7:30 AM: On Wednesday, September 24, equity benchmark indices Sensex and Nifty 50 are expected to see a muted start, tracking losses in global markets. At 7:14 AM, the GIFT Nifty was trading near 25,192, down by 51 points.

US Federal Reserve Chair Jerome Powell stated that the central bank must carefully balance the risks of high inflation and a weakening job market in upcoming interest rate decisions. Powell highlighted, “Near-term risks to inflation are tilted to the upside and risks to employment to the downside – a challenging situation.”

On Tuesday, September 23, Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth Rs 3,551.19 crore. Domestic Institutional Investors (DIIs), on the other hand, continued their buying streak for the 21st straight session, purchasing equities worth Rs 2,670.87 crore.

The Sensex and Nifty 50 extended their losing streak to a third session on Tuesday, weighed down by selling in IT and private banking stocks. Persistent foreign fund outflows, driven by concerns over the sharp hike in US H-1B visa fees, also added pressure. After a volatile day, the BSE Sensex slipped 57.87 points, or 0.07 per cent, to close at 82,102.10, while the NSE Nifty 50 fell 32.85 points, or 0.13 per cent, to settle at 25,169.50.

Wall Street ended lower on Tuesday, snapping a three-day record-breaking run. Comments from Powell pointed to uncertainty on the pace of future rate cuts, though he acknowledged that valuations remain elevated. The Dow Jones Industrial Average declined 88.76 points, or 0.19 per cent, to 46,292.78. The S&P 500 lost 36.83 points, or 0.55 per cent, closing at 6,656.92, while the Nasdaq Composite shed 215.50 points, or 0.95 per cent, to settle at 22,573.47.

Gold prices hovered near record highs after Powell’s cautious remarks. As of 5:17 AM IST, spot gold was down 0.1 per cent at USD 3,762.78 per ounce. On Monday, MCX gold futures surged 1.74 per cent to hit an all-time high of Rs 114,179 per 10 grams.

WTI crude oil futures moved toward USD 64 per barrel and Brent crude futures advanced toward USD 68 per barrel on Wednesday, building on a 1.6 per cent gain from the previous session. The rise followed an industry report showing a decline in US crude inventories, intensifying supply concerns.

The US dollar index stayed near its weakest level in almost a week at 97.23, as traders continued to price in two additional interest rate cuts this year.

For today, Sammaan Capital, RBL Bank and HFCL will remain on the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.