NIFTY50 and SENSEX end lower ahead of Fed meeting; IT stock among top losers

Markets started negatively, as traders were cautious. Data released by the Commerce & Industry Ministry showed that India's trade deficit widened to a 10-month high of nearly $30 billion in August as gold-led merchandise imports surged to over $64 billion and merchandise exports declined. Exports contracted for the second month in a row to $34.7 billion due to the softening of oil prices and muted global demand.

Further, in the late morning session, indices recouped from initial weakness. Traders took support with a private report that the Centre’s direct tax collection collections, net of refunds, rose about 16% on year to Rs 9.92 lakh crore till September 15, 2024, in the current financial year. The direct tax receipts till September 15 were 45% of the FY25 target of Rs 22.07 lakh crore, broadly in line with annual trends.

Meanwhile, Crisil Ratings said that the recent developments in Bangladesh did not have a significant impact on India's trade, and it does not foresee any near-term impact on India Inc's credit quality. However, markets lost ground in the late afternoon session and touched the day’s low point amid some profit booking.

The BSE Sensex ended at 82,948.23, down by 131.43 points or 0.16% after trading in a range of 82,700.63 and 83,326.38. There were 11 stocks advancing against 19 stocks declining on the index. The NIFTY50 ended 41 points or 0.16% lower at 25,377 levels on Monday.

The broader indices ended in red; the BSE mid-cap index declined 0.71%, while the small-cap index was down 0.52%. Similarly, on Wednesday, the NIFTY midcap 100 closed 471 points lower, and the NIFTY small-cap 100 closed 0.39% lower.

The only gaining sectoral indices on the BSE were Bankex was up by 0.95%, while IT down by 3.00%.

On the global front, European markets were trading lower amid the Fed's widely expected announcement of its first interest rate cut in over four years. Market expectations currently point to a smaller cut following better-than-expected retail sales data released overnight.

Asian markets ended mixed as Japan's core machinery orders declined unexpectedly in July.