At 9:26 am, the BSE Sensex was down by 115 points (0.14%) at 81,797, while the Nifty50 slipped 41 points (0.17%) to trade at 24,999.
The CPI report is expected to show inflation drifting closer to the Fed’s targetted 2%, which could allow the US central bank the opt for an aggressive 50-basis-point rate cut next week, if required.
Markets are pricing in a 66% chance of a 25 bps rate cut on September 18, according to CME FedWatch.
From the Sensex pack, Tata Motors, ICICI Bank, Infosys, HDFC Bank, Titan, and Tech Mahindra opened in the red, while Asian Paints, Sun Pharma, Bharti Airtel, ITC, HUL, and Bajaj Finance opened in the green.
Tata Motors shares fell over 4% in early trade, after the company cut prices on its EVs and popular cars by up to Rs 2.05 lakh, signaling weak growth prospects. This was followed by the global brokerage firm UBS issuing a ‘sell’ rating with a target price of Rs 825.Nifty Auto stocks declined 0.6%, while Nifty Realty slipped 0.5%. Nifty Bank, Media, Metal, and Oil & Gas also opened lower. In contrast, FMCG, Pharma, and Healthcare saw gains. Meanwhile, the broader small- and mid-cap indices, with a domestic focus, rose around 0.2% each.Meanwhile, concerns over softening global demand sent Brent crude futures to their lowest levels since December 2021 on Tuesday and added to investor caution, ahead of the much-awaited US inflation report.
Experts View
“A significant trend in the global commodity markets now is the sharp decline in the crude price and softening of base metal prices. This has implications for stock markets. The sharp dip in Brent crude to below $70 signals weakening demand globally, which in turn, indicates weakening growth prospects for the global economy. Therefore, rate cuts by the leading central banks of the world is now a foregone conclusion,” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
“Banking stocks, which are attractively valued, are good buys now for medium to long-term investors,” Vijayakumar suggested.
Deven Mehata, Derivative Analyst at Choice Broking, said, “Nifty can find support at 25,000 followed by 24,900 and 24,800. On the higher side, 25,150 can be an immediate resistance, followed by 25,250 and 25,300.”
Global Markets
Asian markets wobbled and US stock futures slipped on Wednesday after Democratic Vice President Kamala Harris and Republican Donald Trump clashed in a keenly-awaited US presidential debate.
The presidential hopefuls battled over abortion, the economy, immigration and Trump’s legal woes at their combative first debate.
That left investors skittish in Asian trade as markets also geared up for U.S. inflation data that could influence the Federal Reserve’s policy moves next week.
The MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.25%, S&P 500 futures eased 0.38%, while the dollar was on the back foot.
FII/DII Tracker
The foreign institutional investors (FIIs) extended their buying as they bought equities worth Rs 2,208 crore on September 10, while domestic institutional investors sold equities worth Rs 275 crore on the same day.
More to come…
