The domestic equity benchmarks ended near the day's low after a weak session on Friday. The Nifty closed below the 17,350 mark. Shares across sectors declined with banks, financials, auto and realty shares falling the most.

As per provisional closing data, the barometer index, the S&P BSE Sensex, dropped 1020.80 points or 1.73% to 58,098.92. The Nifty 50 index tumbled 302.45 points or 1.72% to 17,327.35.

In the broader market, the S&P BSE Mid-Cap index fell 2.28% while the S&P BSE Small-Cap index declined 1.91%.

The market breadth was weak. On the BSE, 1,002 shares rose, and 2,472 shares fell. A total of 113 shares were unchanged.

Investors' sentiment took a hit following the US Fed's supersized rate hike and ultra-hawkish outlook to tame sticky inflation.

Meanwhile, the Reserve Bank of India (RBI)'s six-member Monetary Policy Committee is scheduled to meet next week during 28-30 September 2022. RBI Governor Shaktikanta Das will announce the MPC decision on 30 September 2022, the last date of the meeting. The RBI is widely expected to maintain the balancing act between growth and inflation.

In the past three policy reviews, the RBI's rate-setting panel has raised 140 basis points in total since May this year. Currently, the repo rate, the interest rate at which the RBI lends to the commercial bank, stands at 5.40%.

Global Markets:

The Dow Jones index was down 230 points, indicating a negative opening in the US stocks today.

Shares in Europe and Asia declined across the board on Friday as investors feared that rising interest rates across the globe may destabilize economic growth. Japan markets were closed for a holiday Friday.

US stocks ended lower on Thursday, falling for a third straight session as investors reacted to the Federal Reserve's latest aggressive move to rein in inflation by selling growth stocks, including technology companies.

The US current account deficit narrowed sharply in the second quarter amid a surge in goods exports, data showed on Thursday. The Commerce Department said that the current account deficit, which measures the flow of goods, services and investments into and out of the country, contracted 11.1% to $251.1 billion last quarter. The current account gap represented 4% of gross domestic product, down from 4.6% in the January-March quarter.

The Bank of England raised its key interest rate to 2.25% from 1.75% on Thursday and said it would continue to respond forcefully, as necessary to inflation, despite the economy entering recession. The BoE's Monetary Policy Committee voted 5-4 to raise rates to 2.25%.

Buzzing Index:

The Nifty Bank index fell 2.47% to 39,628.35. The index has lost 4.44% in three sessions.

Punjab National Bank (down 5.31%), Federal Bank (down 4.96%), Bank of Baroda (down 4.23%), IDFC First Bank (down 3.85%) and AU Small Finance Bank (down 3.62%) were the top losers.

Among the other losers were Bandhan Bank (down 3.29%), State Bank of India (down 3.12%), HDFC Bank (down 2.83%), IndusInd Bank (down 2.77%) and Axis Bank (down 2.67%).

Stocks in Spotlight:

Tata Steel rose 0.63%. The board of directors of Tata Steel has approved amalgamation of seven metal companies of Tata group into Tata Steel. The companies that will be merged with Tata Steel are Tata Steel Long Products (down 12.70%), The Tinplate Company of India (down 5.69%), Tata Metaliks (down 4.37%), TRF (down 5%), The Indian Steel & Wire Products, Tata Steel Mining and S & T Mining Company.

Mahindra & Mahindra Financial Services tumbled 13.47%. The Reserve Bank of India (RBI) on Thursday barred the NBFC from appointing any agents for recovery or repossession.

Reliance Industries (RIL) shed 1.83%. Reliance New Energy (RNEL), a wholly owned subsidiary of RIL has signed definitive agreements to invest in Caelux Corporation (Caelux), a company headquartered in Pasadena, California, in the United States of America, engaged in the development of perovskite-based solar technology. RNEL will invest USD 12 million to acquire 20% stake in Caelux.

Hero MotoCorp shed 0.89%. The company has made an upward revision in the ex-showroom prices of its motorcycles and scooters, with immediate effect i.e. 22 September 2022. The price revision has been necessitated to partially offset the impact of cost inflation. The price revision will be up to Rs. 1,000 and the exact quantum of increase will vary by model and market.

Piramal Enterprises fell 2.69%. The company on Friday (23 September 2022) announced that its board has approved fund raising up to Rs 750 crore via non-convertible debentures on private placement basis.

Cipla rose 0.64%. The company has received the establishment inspection report (EIR) indicating closure of the inspection. The company had earlier informed about the product specific pre-approval inspection (PAI) by the United States Food and Drug Administration (US FDA) at the Indore plant from 27th June 2022 to 1st July 2022.

The Bombay Dyeing and Manufacturing Company tumbled 4.53%. The board of directors of the company considered and approved raising of funds, through issuance and allotment of equity shares for an aggregate amount of up to Rs 940 crore on rights basis to the eligible equity shareholders of the company.

Century Textiles and Industries slipped 2.04%. Birla Estates, a 100% wholly owned subsidiary and Century Textiles and Industries announced its acquisition of a 10-acre land parcel at Raja Rajeshwari Nagar, South Bengaluru. The project has a development potential of 1 Mn sq. ft. with a revenue potential of Rs 900 crore.

Shilpa Medicare declined 1.18%. The company said that its analytical services division situated at Nacharam, Hyderabad, Telangana has received US FDA clearance the establishment inspection report (EIR) for the facility.

Sterling and Wilson Renewable Energy rose 2.76%. The company's wholly owned step down subsidiary, Sterling and Wilson Solar Solutions Inc, along with its consortium partner signed a memorandum of understanding (MoU) with the Government of the Federal Republic of Nigeria to deliver the development, design, construction and commissioning of solar photovoltaic power plants with total installed capacity of 961 MWdc at five different locations in the Federal Republic of Nigeria along with battery energy storage systems with total installed capacity of 455 MWh.

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