Stock Market Today: Sensex, Nifty End At Lowest In Two Weeks After Three-Day Fall; FPIs Remain Net Sellers

Overseas investors remained net sellers of Indian equities on Thursday for the third consecutive session.

Foreign portfolio investors offloaded stocks worth Rs 3,007.36 crore, according to provisional data from the National Stock Exchange.

Domestic institutional investors turned net buyers on Thursday and bought equities worth Rs 1,158.14 crore, the NSE data showed.

Foreign institutions have been net buyers of Rs 1,26,998 crore worth of Indian equities so far in 2023, according to data from the National Securities Depository Ltd., updated till the previous trading day.

The yield on the 10-year bond closed flat at 7.17% on Thursday.

Source: Bloomberg

• The local currency closed flat at 83.09 against the U.S dollar on Thursday.

Source: Bloomberg

India's benchmark stock indices declined through Thursday, extending declines for the third session. Intraday, Sensex fell as much as 1.01% to 66,128.71 and Nifty declined 0.96% to 19,709.95, the lowest levels for the indices since Sept. 7, 2023.

The sectoral indices for auto, banks and non-banking financial companies fell the most.

The S&P BSE Sensex closed down 571 points, or 0.85%, at 66,230.24 while the NSE Nifty 50 was 159 points or 0.80% lower at 19,742.35

Stocks dropped after the Federal Reserve signaled interest rates will be higher for longer and as traders awaited a Bank of England policy decision that hangs in the balance.

Europe’s Stoxx 600 Index fell 0.7%, with almost all industry groups in the red. Futures contracts for U.S. benchmarks declined, extending Wednesday’s losses on Wall Street. A gauge of Asian stocks fell the most in more than a month.

The BOE announcement caps a busy day for European central bankers. The Swiss franc fell after the Swiss National Bank delivered a surprise hold.

Tech stocks in Hong Kong slid over 2%, echoing heavy selling in U.S. tech names Wednesday. China’s beleaguered property developers were a bright spot, rising after new measures to ease home-buying rules.

The Fed held its target range at 5.25% to 5.5%, while updated quarterly projections showed 12 of 19 officials favored another rate hike in 2023. Jerome Powell said officials are “prepared to raise rates further if appropriate, and we intend to hold policy at a restrictive level until we’re confident that inflation is moving down sustainably toward our objective.” A “soft landing” for the U.S. economy is a primary objective for the central bank, he said.

Infosys Ltd., Bharti Airtel Ltd., Larsen & Toubro Ltd., Asian Paints Ltd., and Adani Ports and Special Economic Zone Ltd. were positively adding to the change in the Nifty 50 Index.

Whereas, ICICI Bank Ltd., HDFC Bank Ltd., Reliance Industries Ltd., State Bank of India and Kotak Mahindra Bank Ltd. were negatively contributing to the change.

The broader market indices underperformed larger peers; the S&P BSE MidCap Index was down 0.99%, whereas S&P BSE SmallCap Index was also 0.98% lower.

Nineteen out of 20 sectors compiled by BSE declined. S&P BSE Bankex and S&P BSE Auto fell the most.

The market breadth was skewed in the favour of the sellers. About 1,329 stocks rose, 2,327 declined, while 137 remained unchanged on the BSE.

• RBI approves HDFC AMC to acquire up to 9.5% stake in the bank.

Source: Exchange Filing

Shares of Mahindra & Mahindra Ltd. fell over 3% on Thursday after Resson Aerospace Corporation, Canada, an associate company, filed for a voluntary wind-up.

Resson Aerospace Corporation got a certificate of dissolution from Corporations Canada on Sept. 20, 2023, as per M&M's exchange filing. It has ceased to be in existence and to be an associate company of M&M.

M&M holds 11.18% stake in Resson Aerospace Corporation via Class C preferred shares. Company is entitled to receive approximately 4.7 million Canadian Dollars upon liquidation.

The scrip fell as much as 3.30% intraday to Rs 1,580.15 apiece, the most since Sept. 12, before paring losses to trade 3.04% lower at Rs 1,584.35 apiece, as of 1:49 p.m. This compares to a 0.81% decline in the NSE Nifty 50.

It has risen 27% on a year-to-date basis. Total traded volume so far in the day stood at 1.2 times its 30-day average. The relative strength index was at 53.2.

Out of the 43 analysts tracking the company, 38 maintain a 'buy' rating, four recommend a 'hold,' and one suggests 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 7.8%.

• Gets order for power, propulsion and automation systems of Samskip Group’s hydrogen-powered container vessels.

• Vessels to demonstrate potential of hydrogen fuel cells as a clean and renewable fuel source.

Source: Exchange Filing

• Adani Group stocks add Rs 10,366 crore in investor wealth taking the total market capitalisation to Rs 11.02 lakh crore, as of 12:21 p.m.

Source: Cogencis

India's benchmark stock indices opened lower and declined through midday on Thursday after a two-day fall on Wednesday.

Intraday, Sensex fell as much as 0.98% to 66,148.64, the lowest level since Sept. 7, 2023. Nifty declined 0.88% to 19,725.50, the lowest level since Sept. 7, 2023. Auto and fast moving consumer goods dragged whereas media, metal and realty sectors were marginally higher.

As of 12:13 p.m., the S&P BSE Sensex was down 638 points, or 0.96%, at 66,162.45 while the NSE Nifty 50 was 170 points or 0.85% lower at 19,731.45.

European equity futures fell around 1% while contracts for U.S. benchmarks also slipped, extending Wednesday losses on Wall Street. In Asia, benchmarks across the region fell. A drop for the MSCI China Index placed the benchmark on track for its lowest closing level since November as pessimism persisted about the nation’s economic recovery.

Tech stocks in Hong Kong slid over 2%, echoing heavy selling in U.S. tech names Wednesday. China’s beleaguered property developers were a bright spot, rising after new measures to ease home-buying rules.

The Fed held its target range at 5.25% to 5.5%, while updated quarterly projections showed 12 of 19 officials favored another rate hike in 2023. Jerome Powell said officials are “prepared to raise rates further if appropriate, and we intend to hold policy at a restrictive level until we’re confident that inflation is moving down sustainably toward our objective.” A “soft landing” for the U.S. economy is a primary objective for the central bank, he said.

Adani Ports and Special Economic Zone Ltd., Tech Mahindra Ltd., Adani Enterprises Ltd., BPCL, and Hindalco Industries Ltd. were positively adding to the change in the Nifty 50 Index.

Whereas, ICICI Bank Ltd., ITC Ltd., Tata Consultancy Services Ltd., HDFC Bank Ltd., and Reliance Industries Ltd. were negatively contributing to the change.

The broader market indices were trading lower; the S&P BSE MidCap Index was down 0.24%, whereas S&P BSE SmallCap Index was also 0.12% lower.

Nineteen out of 20 sectors compiled by BSE declined. S&P BSE Financial Services and S&P BSE Auto fell the most.

The market breadth was skewed in the favour of the sellers. About 1,655 stocks rose, 1,800 declined, while 182 remained unchanged on the BSE.

• RBI approves HDFC AMC to acquire up to 9.5% stake in the bank.

Source: Exchange Filing

Shares of Federal Bank Ltd. rose as much as 1.54% intraday to Rs 148.75, before paring gains to trade 1.19% lower at Rs 148.25 apiece, as of 11:39 a.m. This compares to a 0.71% decline in the NSE Nifty 50.

It has risen 6.47% on a year-to-date basis. The relative strength index was at 61.8.

Out of the 39 analysts tracking the company, 36 maintain a 'buy' rating, three recommend a 'hold,' and none suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 10.7%.

• RBI approves HDFC AMC to acquire up to 9.5% stake in the bank.

• RBI nod for HDFC AMC to buy stake valid for one year.

Source: Exchange Filing

Shares of Equitas Small Finance Bank Ltd. rose as much as 4.05% intraday to Rs 87.25, the most since Sept. 8, before paring gains to trade 1.85% lower at Rs 85.4 apiece, as of 11:42 a.m. This compares to a 0.75% decline in the NSE Nifty 50.

It has risen 46.36% on a year-to-date basis. Total traded volume so far in the day stood at 1.2 times its 30-day average. The relative strength index was at 47.5.

Out of the 19 analysts tracking the company, 17 maintain a 'buy' rating, two recommend a 'hold,' and none suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 26.5%.

Shares of the Vedanta Ltd. fell as much as 1.83% intraday to a 52-week low of Rs 227.55, before paring losses to trade 1.16% lower at Rs 229.1 apiece, as of 11:25 a.m. This compares to a 0.66% decline in the NSE Nifty 50.

It has fallen 25.73% on a year-to-date basis. The relative strength index was at 34.3.

Out of the 14 analysts tracking the company, three maintain a 'buy' rating, five recommend a 'hold,' and six suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 17.1%.

• The association is aimed at disbursing business loans and gold loans to MSMEs in non-urban areas.

Source: Exchange filing

• Meson Valves India Ltd. lists at Rs 193.80 apiece on the BSE, 90% premium to IPO price of Rs 102 per share.

Source: BSE

Shares of DCB Bank Ltd. and Karur Vysya Bank Ltd. advanced after HDFC Asset Management Co. received RBI's approval to increase its shareholding in the banks by 9.5%.

HDFC AMC must ensure that the aggregate holding in Karur Vysya Bank Ltd. doesn’t not exceed 9.5% of the paid-up share capital at all times, the lender said in its exchange filing. If the aggregate holding falls below 5%, prior approval of RBI will be required to increase it to 5% or more.

Additionally, HDFC AMC has been advised by the RBI to acquire 9.5% shareholding in the DCB Bank Ltd. within a period of one year from the date of approval. If AMC fails to acquire major shareholding within stipulated period, the approval granted by the RBI shall stand cancelled.

Shares of the DCB Bank Ltd. rose as much as 4.72% intraday to Rs 129.80, the most since Aug. 21, 2023, before paring gains to trade 2.66% higher at Rs 127.25 apiece, as of 10:10 a.m. This compares to a 0.72% decline in the NSE Nifty 50.

It has risen 0.55% on a year-to-date basis. Total traded volume so far in the day stood at 15 times its 30-day average. The relative strength index was at 69.

Out of the 21 analysts tracking the company, 18 maintain a 'buy' rating, two recommend a 'hold,' and one suggests 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 15.6%

Shares of the Karur Vysya Bank Ltd. rose as much as 2.77% intraday to Rs 137.50, the most since Sept. 18, 2023, before paring gains to trade 0.90% higher at Rs 135 apiece, as of 10:10 a.m. This compares to a 0.72% decline in the NSE Nifty 50.

It has risen 19.21% on a year-to-date basis. The relative strength index was at 66.6.

Twelve analysts tracking the company maintain a 'buy' rating, according to Bloomberg data. The average 12-month consensus price target implies an upside of 20.1%.

• EMS Ltd. lists at Rs 282.05 apiece on the NSE, 33.67% premium to IPO price.

• EMS Ltd. lists at Rs 281.55 apiece on the BSE, 33.43% premium to IPO price.

Source: Exchanges

• Sensex fell as much as 0.57% to 66,420.50, the lowest level since Sept. 8, 2023.

• Nifty declined 0.52% to 19,797.50, the lowest level since Sept. 8, 2023.

(as of 9:49 a.m.)

Source: Bloomberg

Shares of SJVN Ltd. plunged over 9% after the Power Ministry decided to sell up to 2.46% equity or 9.66 crore shares, via an offer for sale in the company, it said in its exchange filing.

The floor price of OFS is set at Rs 69 per share. The offer will open on Sept. 21, 2023 for non-retail investors and Sept. 22, 2023 for retail investors. The offer for sale has the oversubscription option to sell an additional 2.46% stake..

The scrip fell as much as 9.97% intraday to Rs 73.60, the most since Sept.12, 2023, before paring losses to trade 8.32% lower at Rs 74.95 apiece, as of 9:34 a.m. This compares to a 0.39% decline in the NSE Nifty 50.

It has risen 118.5% on a year-to-date basis. Total traded volume so far in the day stood at seven times its 30-day average. The relative strength index was at 60.7.

Five analysts tracking the company maintain a 'buy' rating, according to Bloomberg data. The average 12-month consensus price target implies an downside of 17.2%.

• 95.2 lakh shares changed hands in a large trade.

• 2.5% equity changed hands at Rs 143.10 per share.

• Buyers and sellers not known immediately.

Source: Bloomberg

The broader market indices opened lower; the S&P BSE MidCap Index was down 0.20%, whereas S&P BSE SmallCap Index was also 0.01% lower.

Eighteen out of 20 sectors compiled by BSE declined, while the other two sectors advanced. S&P BSE Financial Services and S&P BSE Bankex fell the most.

The market breadth was skewed in the favour of the buyers. About 1,209 stocks rose, 922 declined, while 110 remained unchanged on the BSE.

India's benchmark stock indices opened lower on Thursday after a two-day fall on Wednesday.

At pre-open, the S&P BSE Sensex was down 192 points, or 0.29%, at 66,608.67 while the NSE Nifty 50 was 61 points or 0.31% lower at 19,840.55.

Asian equities trade weak as U.S. Fed signalled interest rates will be higher for longer; MSCI Asia Pacific Index falls 1.2%.

Equity benchmarks in Japan and Australia opened lower while a gauge for U.S.-listed Chinese stocks fell Wednesday for a fourth straight session. Big tech led losses on Wall Street, with the Nasdaq 100 down 1.5% and S&P 500 dropping almost 1%. Contracts for U.S. equities were flat in early Asian trading.

Central banks will be in focus Thursday as well, with officials in the Philippines, Indonesia and the U.K. set to announce policy decisions.

The Fed held its target range at 5.25% to 5.5%, while updated quarterly projections showed 12 of 19 officials favored another rate hike in 2023. Jerome Powell said officials are “prepared to raise rates further if appropriate, and we intend to hold policy at a restrictive level until we’re confident that inflation is moving down sustainably toward our objective.” A “soft landing” for the U.S. economy is a primary objective for the central bank, he said.

• 21.1 lakh shares or 0.05% equity changed hands in a pre-market large trade.

• Buyers and sellers not known immediately.

Source: Bloomberg

• 15 lakh shares or 0.16% equity changed hands in a pre-market large trade.

• Buyers and sellers not known immediately.

Source: Bloomberg

• At pre-open, the S&P BSE Sensex was down 192 points, or 0.29%, at 66,608.67 while the NSE Nifty 50 was 61 points or 0.31% lower at 19,840.55.

Source: Bloomberg

• The yield on the 10-year bond opened 4 bps higher at 7.22% on Wednesday.

• It closed at 7.18% on Thursday

Source: Bloomberg

• The local currency Weakened 3 paise to open at Rs 83.11 against the U.S dollar on Thursday.

• It closed at 83.08 on Thursday.

Source: Bloomberg

• RBI approves HDFC AMC to acquire up to 9.5% stake in the bank.

Source: Exchange Filing

• To mull merger of CDMO operations of the group on Sept. 25,2023.

• Alert: CDMO stands for Contract Development and Manufacturing Organization.

Source: Exchange Filing

• RBI approves HDFC AMC to acquire up to 9.5% stake in the bank.

• RBI nod for HDFC AMC to buy stake valid for one year.

Source: Exchange Filing

• U.S. Dollar Index at 105.5

• U.S. 10-year bond yield at 4.44%

• Brent crude down 0.61% at $92.96 per barrel

• Nymex crude down 1.01% at $90.28 per barrel

• GIFT Nifty down 48 points or 0.24% at 19,857.5 as of 8:05 a.m.

• Bitcoin down 0.15% at $27,053.09

• Price Band Revised From 10% To 5%: Ashapura Minechem

• Ex-date dividend: Gufic Biosciences, La Opala RG, Shakti Pumps (India), Genus Power Infrastructures, LT Foods, Ashiana Housing, Poly Medicure, Tilaknagar Industries, SJVN, Cochin Shipyard, Krishana Phoschem, Power Mech Projects, Olectra Greentech, Carysil, Force Motors, Patanjali Foods, Harsha Engineers International, Chaman Lal Setia Exports, HLE Glascoat, Asian Star Co., Swan Energy

• Ex date AGM: ITI Limited, Kewal Kiran Clothing, Gufic Biosciences, Paramount Communications, Morepen Laboratories, KRBL, La Opala RG, Shakti Pumps (India), Genesys International Corporation, Genus Power Infrastructures, LT Foods, Ashiana Housing, Poly Medicure, Tilaknagar Industries, SJVN, Muthoot Finance, Cochin Shipyard, Rama Steel Tubes, Krishana Phoschem, Power Mech Projects, Star Cement, Olectra Greentech, Spacenet Enterprises India, KPI Green Energy, Carysil, Roto Pumps, Force Motors, Patanjali Foods, Harsha Engineers International, Chaman Lal Setia Exports, Yatharth Hospital & Trauma Care Services

• Record date Dividend: Genus Power Infrastructures, Tilaknagar Industries, Krishana Phoschem, Olectra Greentech, Harsha Engineers International

• Record date AGM: Genus Power Infrastructures, Krishana Phoschem.

• Moved into Short-Term ASM Framework: Brightcom Group

• Move Out Of Short-Term ASM Framework: Bombay Burmah Trading Corporation, Spacenet Enterprises India

Allcargo Logistics, Amrutanjan Health Care, BLS International Services, Capacite Infraprojects, Caplin Point Laboratories, Capital India Finance, Dr. Agarwals Eye Hospital, Ganesha Ecosphere, GOCL Corporation, Housing & Urban Development Corporation, India Cements, Indraprastha Medical Corp, Jai Balaji Industries, Jubilant Industries, Mastek, Moil, National Aluminium Co., Paisalo Digital, Prestige Estates Projects, Prince Pipes and Fittings, Rolex Rings, Sandhar Technologies, SEPC, Shyam Metalics and Energy, Sunflag Iron & Steel Co, TV Today Network, Vadilal Industries

• Tips Industries: To meet analysts and investors on Sept. 25.

• Mahindra Holidays & Resorts India: To meet analysts and investors on Sept. 25 and Sept. 27.

• Punjab National Bank: To meet analysts and investors on Sept. 21.

• Star Health and Allied Insurance: To meet analysts and investors on Sept. 26

• Bandhan Bank: To meet analysts and investors on Sept. 25.

• Union Bank of India: To meet analysts and investors on Sept. 25.

• Solar Industries India: To meet analysts and investors on Sept. 22.

• Aditya Vision: To meet analysts and investors on Sept. 25.

• Spandana Sphoorty Financial: To meet analysts and investors on Sept. 28.

• Indigo Paints: To meet analysts and investors on Sept. 21.

• Clean Science and Technology: To meet analysts and investors on Sept. 26

• Solar Industries India: To meet analysts and investors on Sept. 25.

• Piramal Enterprises: To meet analysts and investors on Sept. 25.

• Usha Martin: Promoter Neutral Publishing House bought 96,211 shares on Sept. 15.

• Pennar Industries: Promoter Pennar Holdings created a pledge of 15 lakh shares on Sept. 18.

• R R Kabel: Norges Bank, on account of the Government Pension Fund Global, bought 20 lakh shares (1.77%) at Rs 1180 apiece.

• Tarsons Products: Plutus Wealth Management bought 17.40 lakh shares (3.27%) at Rs 530 apiece.

• Praveg: Sageone-Flagship Growth 2 Fund bought 2.25 lakh shares (0.99%) at Rs 480.50 apiece and Sageone Investment Managers bought 6.26 lakh shares (2.76%) at Rs 480.51 apiece, while Probi Fincap sold 1.48 lakh shares (0.65%) at Rs 480.74 apiece and Jayesh Ishwarlal Patel sold 6.44 lakh shares (2.84%) at Rs 480.49 apiece.

• Infosys: The IT major has tied up with NVIDIA to develop generative AI applications and solutions. The broadened alliance brings together Nvidia AI Enterprise and Infosys Topaz, an AI suite of services that was introduced earlier this year. The companies will collaborate to train 50,000 Infosys employees on NVIDIA AI.

• SBI, KFin Technologies: The state-run lender has appointed KFin Technologies as the registrar and share transfer agent in place of existing RTA Alankit Assignments. The formalities for the change of RTA relating to documentation, shifting of electronic connectivity, and transition of data are in process.

• REC: Kallam Transco has been incorporated as a wholly-owned subsidiary of REC Power Development and Consultancy. The company also announced the sale of Beawar Transmission to Sterlite Grid 27, comprising 50,000 equity shares. Sterlite was the successful bidder selected through a tariff-based competitive bidding process to establish an inter-state transmission system for REZ in Rajasthan under Phase III, Part F.

• Cipla: An inspection was conducted by the USFDA at the manufacturing facility of unit InvaGen Pharmaceuticals Inc. in New York from Sept. 11 to 13. InvaGen has received five inspectional observations in Form 483. There are no repeat or data integrity (DI) observations.

• InterGlobe Aviation: Rival Akasa Air was forced to thin out its schedule after some pilots left and joined bigger competitors, according to Bloomberg. The market share of Akasa dropped to 4.2% in August from 5.2% the month before.

• Zydus Lifesciences: The drugmaker received final approval from the USFDA for Clindamycin Phosphate Gel USP, 1%. Clindamycin Phosphate Gel USP, 1%, had annual sales of $37 million in the U.S. The group now has 381 approvals.

• SJVN: The Power Ministry will sell up to 2.46% of the stake, or 9.66 crore shares, via OFS. The floor price of OFS is set at Rs. 69 per share. OFS is to open on Sept. 21 for non-retail investors and Sept. 22 for retail investors. OFS has the oversubscription option to sell an additional 2.46% stake.

• Biocon: Unit Biocon Biologics received European Commission-granted marketing authorisation in the EU for YESAFILI, a biosimilar of Aflibercept. Aflibercept had EU brand sales of approximately $1.8 billion for the 12 months ending Dec. 31, 2022, according to IQVIA.

• Apollo Tyres: Bias and OTR tyre production at their manufacturing facility in Limda, Gujarat, has been stopped due to certain concerns amongst shop floor employees relating to the renewal of the long-term settlement agreement. The company is in discussions and negotiations with the labour union representatives to address their concerns.

• Sheela Foam: The QIP committee authorised the opening of the QIP issue on Wednesday and set the floor price at Rs 1,133.99 apiece.

• Exide Industries: The company has invested Rs 124.99 crore by way of subscription in the equity share capital of its wholly owned subsidiary, Exide Energy Solutions, on a rights basis.

• Kalpataru Projects International: The Board approved a proposal for raising funds by way of the issuance of non-convertible debentures on a private placement basis.

• Godawari Power and ISPAT: The credit rating has been upgraded by Crisil for its long-term and short-term bank loan facilities.

• WPIL: The company has received a contract for the supply of an onboard range of centrifugal pumps and spares for different classes of ships from the Ministry of Defence for Rs 14.3 crore, which is to be executed over a period of 24 months.

• Shree Renuka Sugars: To consider raising funds via bonds at the Sept. 23 board meeting.

• Spandana Sphoorty: To consider the issue of NCDs on private placement on Sept. 25.

• Signatureglobal India: The IPO has been subscribed 0.54 times, or 54%, on day one. The bids were led by non-institutional investors, who subscribed 1.42 times, and retail investors, who subscribed 0.89 times, or 89%. The issue got zero bids from institutional investors.

• Sai Silks (Kalamandir): The IPO has been subscribed 0.07 times, or 7%, in its first day. The bids were led by retail investors, who subscribed 0.12 times, or 12%, and non-institutional investors, who subscribed 0.03 times, or 3%. The issue got zero bids from institutional investors.

• EMS: The shares will list on the stock exchanges on Thursday. The initial public offering of water and sewerage infra player was subscribed 75.28 times on the final day. The category for institutional investors was subscribed 153.02 times while the portion for non-institutional investors received 82.32 times subscription. The quota for retail investors got subscribed 29.79 times. The issue price is Rs 221 apiece.

Asian equities trade weak after the U.S. Fed signalled interest rates will remain high for a longer period; the MSCI Asia Pacific Index falls 1.2%.

Equity benchmarks in Japan and Australia opened lower, while a gauge for US-listed Chinese stocks fell Wednesday for a fourth straight session. Big tech led losses on Wall Street, with the Nasdaq 100 down 1.5% and the S&P 500 dropping almost 1%. Contracts for U.S. equities were flat in early Asian trading.

Central banks will be in focus Thursday as well, with officials in the Philippines, Indonesia, and the U.K. set to announce policy decisions.

The Fed held its target range at 5.25% to 5.5%, while updated quarterly projections showed 12 of 19 officials favoured another rate hike in 2023. Jerome Powell said officials are “prepared to raise rates further if appropriate, and we intend to hold policy at a restrictive level until we’re confident that inflation is moving down sustainably towards our objective.” A “soft landing” for the U.S. economy is a primary objective for the central bank, he said.

Brent crude prices were trading above $93 a barrel, and WTI crude was above the $90 mark. The yield on the 10-year U.S. bond was trading at 4.41%, and Bitcoin was above the $27,000 level.

At 8:05 a.m., the GIFT Nifty, an early indicator of the Nifty 50 Index’s performance in India, was down 48 points, or 0.24%, at 19,857.5.

India's benchmark stock indices closed lower for the second session in a row on Wednesday, ahead of U.S. Federal Reserve policy. Intraday, the indices slipped over 1%, the most since Aug. 2.

Most sectoral indices dropped, with non-banking financial services, banks, metals, and realty sectors falling the most.

Overseas investors remained net sellers of Indian equities on Wednesday for the second consecutive session. Foreign portfolio investors offloaded stocks worth Rs 3,110.69 crore, according to provisional data from the NSE. Domestic institutional investors turned net sellers on Wednesday and sold equities worth Rs 573.02 crore.

The local currency strengthened 19 paise to close at Rs 83.08 against the U.S. dollar.