"Although the opening hours of the domestic market mirrored the sharp sell-off in the global market, it steadily recovered as investors gained the confidence to bottom fish, thanks to the brighter prospects for the home economy. The expectation that the Fed would become less hawkish, which had spurred the most recent global rally, was dashed by worse than anticipated US inflation figures. Additionally, India’s easing WPI inflation numbers added more optimism with banking stocks leading the recovery, while the IT sector’s performance was bleak due to recession fears in western markets."

Indian indices trimmed some morning losses but ended lower on Wednesday following a massive sell-off in global peers after the US inflation came in higher than expected for August. Analysts are concerned that the rise in inflation could lead to further rate hikes by the US Fed. The Sensex and Nifty opened nearly 2 percent higher but then recovered a bit to end around 0.4 percent lower. Sensex ended 233 points lower at 60,338 while the Nifty fell 70 points to settle at 18,000. Broader markets were also in the red with the Nifty Midcap index down 0.3 percent and Smallcap index down 0.1 percent. Many sectors recovered, however, Nifty IT remained the top laggard, down over 3 percent. Meanwhile, Nifty Bank and Nifty Metal outperformed, rallying over a percent in the weak market.

PL Technical Research: BUY HDFC BANK; CMP: ₹1528; TARGET: ₹1655; STOP LOSS: ₹1465

The stock has moved past the previous resistance zone of 1515 level to indicate a breakout improving the bias and is anticipated for further upward move in the coming days. The trend has got strong with the recent pullback witnessed and with the RSI also well placed is on the rise and has immense potential to carry on the momentum still further upward. We suggest to buy and accumulate this stock for an upside target of 1655 keeping the stop loss of 1465.

Goldman Sachs downgraded top Indian information technology service providers Tata Consultancy Services and Infosys to "sell," from "buy," citing a potential slowdown in dollar revenue growth in the face of impending macroeconomic stress.

"We believe a slowdown in discretionary IT services spend around the growth and transformation agenda will be quite material and something not yet completely reflected in the street's double-digit revenue growth forecast for the industry for FY24," Goldman analysts said in a note.

The initial public offering (IPO) of Harsha Engineers International was subscribed 1.36 times after it opened for subscription on September 14, with bids coming in for 2.3 crore equity shares against an offer size of 1.68 crore shares. Retail investors subscribed 1.79 times of their quota of shares and the employees bid for 1.20 times of the portion reserved for them. Shares worth ₹2.5 crore have been set aside for the company staff who will also get a discount of ₹31 a share to the final price. Non-institutional investors bought 218 percent of their quota of shares, while qualified institutional buyers bought 21,915 shares against the 47.92 lakh reserved for them.

Britain’s inflation rate eased from its highest rate in four decades after petrol declined, but still leaving the pace of price increases uncomfortably high for the Bank of England. The Consumer Prices Index rose 9.9% from a year ago last month from 10.1% in July, the Office for National Statistics said Wednesday. Economists had expecting a reading of 10%.

Shares of Campus Activewear have been climbing higher in the last two trading sessions. In Tuesday's intraday trade, the stock opened with a gap up of ₹6.75 per share, at ₹549 and rose further, reaching a new all-time high of ₹562.50 on the BSE. After reporting its June quarter earnings on August 17, the stock has gained traction. Since then, it has risen by 30.33 percent to date.

Campus Activewear made its stock market debut on May 09, 2022. The company raised ₹1,400 crore by issuing shares at a price of ₹292 per share. The scrip was listed at a premium of 23 percent at ₹359 on the NSE. Since its listing, the stock has never traded below its issue price.

BUY TATA MOTORS; CMP: ₹453; TARGET: ₹510; STOP LOSS: Rs435

The stock after the short correction has bottomed out near 440 levels and has witnessed a decent pullback to improve the bias with currently moving past the confluences of significant moving average like the 200DMA and 50EMA at 452 zone indicating a “Golden Cross” to strengthen the trend. With the RSI also showing a trend reversal to signal a buy has made the chart look attractive with ample upside potential move anticipated in the coming days. We suggest to buy and accumulate this stock for an upside target of 510 keeping the stop loss at 435.

Shares of State Bank of India on Wednesday became the third lender and seventh Indian company to cross the ₹5-trillion market cap for the first time after its shares rallied over 22 percent so far this year. The stock hit a record high of ₹564.85 on the BSE, up 1.3 percent from its previous close. The stock stayed in the green through five straight sessions and gained 6 percent in this period. SBI now ranks seventh most valued Indian company.

India's annual wholesale price-based inflation (WPI) eased to 12.41% year-on-year in August from 13.93% in the previous month, government data showed on Wednesday.

August's figure was lower than the forecast of 13% in a Reuters poll of analysts, and compared to 11.64% in August 2021.

Bucking the trend of widespread selling, shares of IndusInd Bank jumped 5% in intraday trade on BSE on September 14. The stock opened at ₹1,143.05 against the previous close of ₹1,164.20 and touched the high of ₹1,221.25 in trade so far. At 12:30 pm, the stock was 4.23% up at ₹1,213.40, trading as the top gainer of the Sensex index.  The stock is up 31% this year so far against a 4% gain in the benchmark Sensex.

Brokerage firm Kotak Securities has downgraded the stock of L&T Technology Services (LTTS) to a 'sell' from a 'reduce' with a fair value (target price) of ₹3,050. The brokerage firm has attributed the downgrade to the expensive valuations of the stock which is at 32 times FY2024E earnings per share (EPS).

"We downgrade LTTS to a 'sell' from a 'reduce' following a 20% rally in the stock price recently. The stock does not offer a margin of safety even after baking in elevated growth at peak margins (18%)—multiples at 32 times FY2024E EPS are rich," Kotak Securities said.

With over 98 percent of corporate bonds being private placements, leading to a shallow secondary market, Sebi is planning to come out with a framework for market-making to help markets become more vibrant and funds cheaper, a Sebi member said.

Concerted efforts by regulators and the government have seen corporate bond outstanding touching ₹40.20 lakh crore in FY22 from ₹10.51 lakh crore in FY12, while the secondary market is about 30 percent of this. Annual issuances during this period have increased from ₹3.80 lakh crore to close to ₹6 lakh crore.

Shares of multiplex chains PVR and INOX Leisure defied the broader market trend and gained in the morning trade on Wednesday.

The rise in shares came a day after the Competition Commission of India (CCI) rejected a complaint against the proposed merger of PVR and INOX Leisure, saying apprehension of likelihood of anti-competitive practices by an entity cannot be a subject of probe.

Shares of PVR opened on a bullish note at ₹1,891.10, then gained ground to touch an early high of ₹1,974.75, up 3.36 percent from its previous closing price on BSE. A similar trend was seen on the INOX Leisure counter as well, where the stock opened at ₹511 and jumped 6.84 percent to ₹550.4 on BSE.

Almost all sectors of the market were witnessing selling, but the IT pack was at the front. The Nifty IT index cracked more than 3% in morning trade with all components in the red. Shares of Infosys, Coforge, L&T Technology Services, Larsen & Toubro Infotech, Tech Mahindra and TCS fell up to 4%.

Indian markets trimmed some losses on Wednesday after crashing in morning deals. While the IT index continued to be the biggest dragger, banks, autos recovered. Sensex reclaimed 60,000 mark and is now down around 550 points while the Nifty is down 169 points at 17,900. Broader markets have also trimmed some losses, now the midcap index is down 0.8 percent and the small-cap index is down 0.6 percent.

Nifty outlook:

The turn lower cautioned yesterday after peeping into the 18040-160 band is poised to unfold today. The catchment area is 17860. Successful pull back above this region later in the day could set the 18600 trajectory back in motion. Inability to do so could signal extended downsides toward 17520 in the next few days, but a collapse is still not among the favored moves.

Derivative:

Nifty weekly contract has the highest open interest at 18400 for Calls and 18000 for Puts while monthly contracts have the highest open interest at 18100 for Calls and 18000 for Puts. The highest new OI addition was seen at 18500 for Calls and 18000 for Puts in weekly and at 18000 for Calls and 16000 for Puts in monthly contracts. FIIs increased their future index long position holdings by 18.76%, increased future index shorts by -24.98% and in index options by -1.15% in Call longs, -0.44% in Call short, -15.47% in Put longs and 16.19% in Put shorts.

"Positive indicators from the domestic economy, such as FII inflow, improving macro-parameters, and decreased inflation, were the key factors for the current surge in the Indian market. However, the global markets have recently joined the rally ahead of the release of US inflation data, as the market expects a further ease in inflation, which would help the Fed take a less hawkish stance. Although the domestic CPI at 7% indicates a rising inflation trend due to increased food prices, core inflation of 5.9% offers some solace. The policy decisions made by the RBI and Fed at their upcoming policy meetings will drive the market going ahead."

Only 3 stocks in the Sensex were in the green while the remaining 27 fell in morning deals. Asian Paints, Nestle and NTPC were the only gainers while IT stocks Tech Mahindra,  Infosys, TCS, Wipro and HCL Tech fell the most, down between 2.5-3.5 percent.

Broader markets also witnessed heavy selling with the Nifty Midcap and Nifty Smallcap indices down around 1.5 percent each

All indices were in the red at opening deals with the IT index falling the most, down 3 percent. Meanwhile, the banking, financial, auto, metal and pharma indices also shed between 1-1.5 percent each.

Indian markets opened on a weak note following a sell-off across global peers after US inflation rose for the month of August. at 9:15 am, the Sensex was down 1153 points at 59,417 while the Nifty fell 299 points at 17,771 at the opening. All sectors crashed in opening deals with the IT index declining the most.

US consumer prices unexpectedly rose in August and underlying inflation accelerated amid rising costs for rents and healthcare, giving the Federal Reserve ammunition to deliver a third 75 basis points interest rate hike next Wednesday. The consumer price index edged up 0.1 percent last month after being unchanged in July. Though consumers got some relief from a 10.6 percent decline in gasoline prices, they had to dig deeper to pay for food, rent, healthcare, electricity and natural gas. Food prices rose 0.8 percent, with the cost of food consumed at home increasing 0.7 percent. Food prices surged 11.4 percent over the last year, the largest 12-month increase since May 1979.

The domestic market remained in positive territory for the fourth consecutive session on September 13 as positive global cues and the dollar's fall against its global peers underpinned sentiment. Sensex closed 456 points, or 0.76% higher at 60,571.08. Nifty50 reclaimed the psychologically important 18,000 mark and ended 134 points, or 0.75% higher at 18,070.05.

At 8:20 am, the SGX Nifty was trading 302 points or 1.7 percent lower at 17,790, indicating a gap down opening for the Indian markets.

Asian shares tumbled, the dollar held firm and the US yield curve was deeply inverted on Wednesday, as a white-hot US inflation report dashed hopes for a peak in inflation and fuelled bets that interest rates may have to be raised higher and for longer. MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.3 percent in early Asia trade on Wednesday. Resources-heavy Australia plunged 2.8 percent, while Japan's Nikkei tumbled 2.7 percent.

A broad sell-off sent US stocks reeling on Tuesday after a hotter-than-expected inflation report dashed hopes that the Federal Reserve could relent and scale back its policy tightening in the coming months. All three major US stock indices veered sharply lower, snapping four-day winning streaks and notching their biggest one-day percentage drops since June 2020 in throes of the Covid-19 pandemic. The Dow Jones Industrial Average fell 1,276.37 points, or 3.94 percent, to 31,104.97, the S&P 500 lost 177.72 points, or 4.32 percent, to 3,932.69 and the Nasdaq Composite dropped 632.84 points, or 5.16 percent, to 11,633.57.