Indian Markets Drop 0.5% as Global Concerns Loom Ahead of US Inflation Data

Indian markets witnessed a 0.5% dip on September 11, driven by global uncertainties ahead of key US inflation data. Fears over the Federal Reserve’s potential delay in monetary easing added to market jitters. Traders also responded to the ongoing US presidential debate and its potential market impact.

Key Market Movements on September 11

• The Sensex dropped by 398 points (0.49%), closing at 81,523.16.
• Nifty fell by 122.65 points (0.49%), ending at 24,918.45.
• 1,619 stocks advanced, while 2,345 declined, and 106 remained unchanged.

Global Market Influence:

• US and Asian stocks faced pressure due to concerns about economic growth.
• The yen gained strength after a Bank of Japan member signaled possible future rate hikes.
• Oil prices dropped below $70.
• US Treasury yields decreased ahead of upcoming US inflation data and the Federal Reserve’s meeting next week.

Sectoral Performance:

• Nifty Oil & Gas: The index was the biggest loser, declining by 2%.
• Nifty PSU Bank: Fell by 1.8%.
• Nifty Metal: Dropped by 1.5%.
• Nifty Auto & Realty: Both sectors shed 1.2%.
• Nifty FMCG: The top performer, rising by 0.3%.

Expert Market Outlook for September 12

Vinod Nair, Head of Research, Geojit Financial Services

“The market saw consolidation similar to other Asian markets, influenced by the drop in commodity prices, particularly crude oil, which fell to $70. The Chinese economy’s slowdown added to caution among investors. Market participants are awaiting both US CPI and domestic inflation data. While US inflation might show an uptick, domestic inflation is expected to remain stable. The Bank of Japan’s comments on potential rate hikes also contributed to the cautious sentiment.”

Prashanth Tapse, Senior VP (Research), Mehta Equities

“Volatility dominated the trading session as late profit-taking pushed indices deeper into the red. Investors are now focused on US inflation data, expected on Friday, which will likely provide a clearer direction on the Federal Reserve’s stance on interest rates in its upcoming policy meeting.”

Shrikant Chouhan, Head Equity Research, Kotak Securities

“The Nifty encountered resistance at 25,100, leading to sharp reversals. A small bearish candle has formed on the daily chart, and intraday charts are showing a lower top formation, indicating potential short-term weakness. A sell-off could intensify if Nifty breaks below the 20-day SMA of 24,900, with further decline possible to 24,775 or lower. For bulls, 25,000 will act as a crucial resistance level.”

Tags: Indian markets, Nifty fall, Sensex decline, US inflation data, global markets, sector performance, market outlook