Markets trade cautiously ahead of RBI Policy; Nifty below 16,800; Banking stocks drag

30 Sep 2022 , 09:40 AM

A cautious tone was witnessed in the Indian markets during the opening bell of Friday amid mixed global cues. Sensex tumbled as much as below 5.6,147. While Nifty 50 took a route even below 16,747-level. Banking stocks underperformed, on the contrary, metal and pharma stocks outperformed. The early trade of SGX Nifty had already indicated a negative tone in the domestic benchmarks.

The equities will react to the F&O Expiry, monthly and quarterly performance of major companies. Auto and metal companies will be in focus ahead of their September sales and production data. Also, banks will announce their July – September 2021 quarterly credit and deposits performance.

Further, the markets outlook will now brace itself for the second quarter of FY22 as this month series end. Infosys has already scheduled October 13 for its Q2 earnings.

Also, a cautious tone is seeing in the markets as the RBI Governor Shaktikanta Das headed six-member Monetary Policy Committee will be announced today. 

At around 09:37 AM, Sensex was trading at 56,270.06 lower by 139.9 points or 0.25%. The benchmark has touched an intraday high and low of 56,444.75 and 56,147.23 respectively.

Nifty 50 traded at 16,775.15 below 42.95 points or 0.26%. The 50-scrip index has clocked the day’s high and low of 16,836.15 and 16,747.70 respectively.

In terms of sectoral indices, on NSE, the metal, pharma and healthcare index were marginally up, while the banking, auto, FMCG and IT index trading under selling pressure.

Top bulls on Nifty were – Hindalco, Sun Pharma, Grasim, Larsen & Toubro and Apollo Hospitals surged between 0.7-2.5%.

Top bears on Nifty were – Tata Motors and HDFC slipped by 1.6% and 1.3% respectively. HDFC Bank, Infosys, Tech Mahindra dipped 1% each.

On the global front, Asian markets opened in the red led by the Japanese ‘Nikkei’ which was down 300 points. Chinese stocks are also reacting to reopening with valuation comfort yet negative sentiment weighing on prices. 

US markets flatter to deceive with one day rally seeing another sell off led by Apple which fell 6% to see the Dow Jones fall 450 while Nasdaq loses 300.

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