Opening Bell: Nifty 50 and Sensex Trade in Narrow Range; 6 IPOs to Open and List Today

Market Update at 09:30 AM: The Nifty 50 and Sensex traded in a narrow range on Thursday as global equities logged losses after the U.S. Federal Reserve delivered its first rate hike since 2023.

As of 9:21 AM, the Sensex rose 64.86 points, or 0.09 per cent, to 74,401.31, while the Nifty 50 gained 34.60 points, or 0.15 per cent, to 23,252.20.

Bharat Electronics, Bajaj Finance and Eternal were the Top Gainers in the Nifty 50 index.

In the broader market, the Nifty MidCap index rose 0.36 per cent, while the Nifty SmallCap index gained 0.42 per cent. Among sectors, the Nifty Auto and Nifty Metal indices outperformed, while the Nifty IT index declined the most.

The National Stock Exchange (NSE) initial public offer (IPO) opens for subscription on Thursday. Alongside NSE, Sonaselection India, SpectraA Technology Solutions and Kheria Autocomp IPOs are also opening for subscription.

SS Retail, Jindal Supreme and Hero Motors IPOs are entering the second day of subscription.

Vama Wovenfab, Shakti Polytarp and Quanto Agroworld IPOs are entering the final day of subscription.

Six companies are scheduled to make their stock market debut on Thursday. Rentomojo, Karamtara Engineering, LCC Projects, Steamhouse India, Manipal Payment & Identity Solutions and Asset ReConstruction Co. (India) will list on the exchanges.

Pre-Market Update at 7:40 AM: GIFT Nifty signals a cautious opening as the Fed rate hike, weak Wall Street cues and foreign selling weigh on sentiment.

Indian benchmark equity indices are likely to witness a cautious opening on Thursday, with GIFT Nifty signalling a subdued start. GIFT Nifty traded lower by 55 points, at 23,212.5, indicating a negative opening for the domestic market.

The indication comes after Indian markets remained volatile on Wednesday but managed to close marginally higher. The Nifty 50 ended at 23,217.60, gaining 99 points or 0.43 per cent, while the Sensex closed at 74,336.45, up 332.63 points. However, continued foreign fund selling and weak global cues could keep investors cautious.

India VIX, the market's volatility gauge, rose 2 per cent to settle at 13.17, indicating an increase in expected market volatility following uncertainty around global interest rates and the U.S. Federal Reserve's policy outlook.

U.S. equities closed lower on Wednesday after the Federal Reserve raised its main interest rate by 25 basis points to a range of 3.75 per cent to 4 per cent. This was the first rate hike by the U.S. central Bank in more than three years, while policymakers indicated that inflation remained elevated and further tightening could remain possible.

The Dow Jones Industrial Average declined 631.21 points, or 1.21 per cent, to close at 51,461.90. The S&P 500 fell 33.92 points, or 0.45 per cent, to 7,551.81, while the Nasdaq Composite slipped 3.15 points, or 0.01 per cent, to 25,978.42.

U.S. Treasury yields moved higher following the Fed decision, adding pressure to equities, particularly rate-sensitive segments. The U.S. 10-year Treasury yield moved above 5 per cent, keeping bond yields and the Federal Reserve's future policy path among the key variables for global markets.

Asian markets opened mixed on Thursday as investors assessed the impact of the Federal Reserve's policy decision. Japan's Nikkei 225 was trading around 63,923, up 0.69 per cent, while South Korea's Kospi gained 1.37 per cent to 6,717.97. The Shanghai Composite was higher at 3,891.60, while the Hang Seng remained under pressure after declining 0.82 per cent in the previous session.

Equity-index futures for the S&P 500 and Nasdaq 100 were up more than 0.5 per cent. S&P 500 futures gained 0.5 per cent as of 9:55 a.m. Tokyo time, while Hang Seng futures declined 1.2 per cent. Japan's Topix rose 0.7 per cent and Australia's S&P/ASX 200 gained 0.3 per cent. Euro Stoxx 50 futures advanced 0.4 per cent.

European markets ended higher in the previous session. The FTSE 100 gained 0.28 per cent to 10,688.47, Germany's DAX rose 0.53 per cent to 25,537.75 and France's CAC 40 advanced 0.62 per cent to 8,140.59.

Crude oil prices declined in early Thursday trade, extending the previous day's losses. Reports that Saudi Arabia was offering additional crude cargoes through Oman eased some concerns over potential supply disruptions in the Middle East.

Brent crude remained elevated around the USD 105 per barrel zone, while WTI crude settled at around USD 102.43 after declining more than 3 per cent following the Fed decision. Although the decline provides some relief to oil-importing economies such as India, crude prices remain significantly elevated.

For domestic markets, higher crude prices remain relevant for sectors such as aviation, paints and oil marketing companies because of their potential impact on input costs and margins.

Gold prices edged higher on Thursday after touching a near six-week low in the previous session. Investors continued to assess the Federal Reserve's rate hike and its indication that further tightening could remain possible. Higher interest rates and U.S. yields can increase the opportunity cost of holding non-yielding assets such as gold.

The Indian rupee remained weak for the seventh consecutive session, declining 7 paise to close at Rs 95.95 against the U.S. dollar on Wednesday. The currency was pressured by a stronger dollar overseas and continued foreign fund outflows.

The U.S. Dollar Index strengthened following the Federal Reserve decision, while higher crude prices and dollar demand continued to weigh on the rupee. A weaker rupee can increase costs for import-dependent sectors, while providing a currency benefit to some export-oriented businesses.

Foreign Institutional Investors remained net sellers in the Indian cash market on September 16, selling equities worth Rs 2,032.61 crore. Domestic Institutional Investors provided support by recording net purchases of Rs 3,908.23 crore.

The Nifty 50 traded between an Intraday high of 23,284.75 and a low of 23,116.10 before closing at 23,217.60. The Sensex moved between 74,428.77 and 73,981.42 and ended at 74,336.45.

The National Stock Exchange IPO is among the key domestic triggers for Thursday. The IPO is being launched through an offer-for-sale route, with an issue size of approximately Rs 22,561.5 crore and a price band of Rs 1,700 to Rs 1,785 per share.

The issue opens for subscription on Thursday and will remain open until September 21. Market participants will track subscription trends and demand across investor categories, keeping the Indian market infrastructure sector in focus.

The National Stock Exchange of India remains in focus as its IPO opens for subscription with a price band of Rs 1,700 to Rs 1,785 per share. Investors will track subscription trends and demand across different investor categories.

HDFC Bank gained 0.75 per cent on Wednesday and remains in focus following recent developments related to leadership and business performance.

Yes Bank remains in focus following recent corporate developments and continued market attention around the banking sector.

Vedanta remains under watch amid corporate updates and board-related developments.

Bharat Forge remains in focus following recent corporate announcements, including restructuring-related updates.

BHEL remains in focus following recent collaboration and business development updates.

SAIL, Manappuram, Inox Wind, Kaynes and Bandhan Bank are under the F&O ban for Thursday. Securities enter the F&O ban period when their open positions cross 95 per cent of the market-wide position limit.

The Federal Reserve's policy path remains a key global trigger for equity markets, particularly after the latest rate hike and continued concerns over inflation. U.S. Treasury yields, the dollar and crude oil prices will also remain important variables for emerging-market flows.

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

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