Indian Stock Market: A Synopsis of 20th September 2023

The Indian Stock Market on 20th September 2023 experienced a tumultuous day, with the Gift Nifty indicating a gap-down start for the Indian benchmark index. The Sensex lost 796.0 points and the Nifty losing 231.9 points. The fall was attributed to a number of factors, including weak global cues, selling pressure in heavyweight stocks, and profit-booking.

Global Market Influences on the Indian Stock Market

The Indian stock market, influenced by global cues and market trends, witnessed a decline in Asian stocks due to investor anticipation of the Federal Reserve's policy decision. The expectation of prolonged high-interest rates to combat inflation weighed on key markets. Japan's Nikkei 225, the Topix, and Australia's S&P/ASX 100 all opened lower, with respective losses of 0.26%, 0.35%, and 0.29%. Simultaneously, U.S. markets closed with losses, including the Dow (-0.31%), S&P (-0.22%), and Nasdaq (-0.23%).

Oil Price Surge and its Impact on the Indian Stock Market

The Indian stock market experienced a significant impact as oil prices surged in early trade on Wednesday, nearing 10-month highs reached the previous day. This upswing was fueled by a larger-than-expected draw in U.S. oil stockpiles and weak U.S. shale output, intensifying concerns about a tight crude supply for the remainder of 2023.

Market Opening and Performance

The Indian stock market opened lower on Wednesday after a day’s long break as Gift Nifty was trading lower amidst negative global cues. Wall Street ended lower on Tuesday and Asian markets were also mostly trading lower in the morning session.

Selling pressure in heavyweight stocks

Heavyweight stocks such as Reliance Industries, HDFC Bank, and ICICI Bank saw significant selling pressure on September 20. These stocks together account for a large weightage in the Sensex and Nifty indices, and their fall dragged down the overall market.

Profit-booking

The Indian stock market has been on a tear in recent months, hitting new record highs repeatedly. However, some investors decided to book profits on September 20, leading to a sell-off in the market

Top 7 Gainers - Indian Stock Market

1. Power Grid

2. Coal India

3. ONGC

4. Asian Paints

5. Sun Pharma

6. NTPC

7. Adani Ports

Top 7 Losers - Indian Stock Market

1. HDFC Bank

2. JSW Steel

3. Reliance

4. BPCL

5. Ultratech Cement

6. Hindalco Industries

7. Bharti Airtel

Please note that these are based on the closing prices of the stocks on the 20th of September 2023 and can vary with market conditions.

Significant Deals and Tie-ups in Indian Companies on 20th September 2023

On 20th September 2023, several significant deals and tie-ups were observed among Indian companies. Garment companies in Tamil Nadu proposed forming a price fixation panel to overcome the fluctuation of yarn prices. The manufacturers suggested forming a tripartite committee comprising garment units, yarn mills, and the state government to review and fix the price for a three-month period. This move is expected to stabilize the cotton yarn prices that have been derailing deals of many garment units.

In the financial sector, credit-based fintech startup KreditBee raised $120 million in fresh capital as part of its latest tranche of funding round. This funding has increased the total round size to $200 million.

Furthermore, there were several bulk and block deals made on the NSE and BSE exchange from Sep 13, 2023, to Sep 20, 2023. These large transactions were made by promoters, mutual funds, financial institutions, insurance companies, banks, venture capitalists, and foreign institutional investors.

Conclusion

The performance of the Indian Stock Market on 20th September 2023 was influenced by various factors including global cues, oil prices, and market trends. Investors are advised to stay updated with market news and updates for informed decision-making.