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Indian markets closed lower on Thursday, extending losses for a second day running amid weak global cues and the expiry of weekly F&O contracts. Today, markets are likely to continue their lackluster trade for yet another day with negative start following weakness in global markets and weak domestic sentiment due to a sharp fall in the rupee.  There will be some cautiousness as ASSOCHAM said India Inc is bracing itself for yet another policy rate hike by the RBI Monetary Policy Committee in the range of 35-50 basis points as the move seems unavoidable in the wake of the global monetary tightening to limit the impact of inflation. Besides, foreign institutional investors (FIIs) have net sold shares worth Rs 2,509.55 crore on September 22, as per provisional data available on the NSE. However, some respite may come later in the day as Union Finance Minister Nirmala Sitharaman said the government was making efforts to keep inflation under 4 per cent and steps were being taken to ensure people get essential goods at fair price and on time. Traders may take note of IT Minister Ashwini Vaishnaw’s statement that the government is investing nearly $30 billion to ensure last-mile network accessibility for 4G and 5G in every village across the country and build a robust digital infrastructure in the rural areas. Meanwhile, Capital markets regulator Sebi has allowed emerging investment vehicles, Real Estate Investment Trust (REIT) and Infrastructure Investment Trust (InvIT), to issue commercial papers. IT stocks will be in focus amid worries of a slowdown in the world biggest economy. To add to the woes, Accenture’s has issued its first-quarter guidance of $15.20 billion - $15.75 billion, much below the street expectations. There will be some reaction in microfinance sector stocks as the Microfinance Institutions Network (MFIN) said the microfinance sector expanded by 24% to Rs 2.93 lakh crore, with banks retaining their leadership position holding 38.4% market share.

The US markets ended lower on Thursday as investors reacted to the Federal Reserve's latest aggressive move to rein in inflation by selling growth stocks, including technology companies. Asian markets are trading in red on Friday as investors continue to weigh the Federal Reserve’s aggressive stance.

Back home, Indian equity benchmarks fell for the second straight day on Thursday, tracking a broad sell-off in global markets as investors reacted to the 75bps interest rate hike by the US Federal Reserve. Moreover, the weekly F&O derivatives expiry added to the volatility in the stock markets. Markets made a negative start and stayed in red for whole day, as traders remained cautious with per provisional data available on the NSE showing that foreign institutional investors (FIIs) have net sold shares worth Rs 461.04 crore on September 21, 2022. Some pessimism also came with private report stating that India's headline retail inflation is expected to rise to a five-month high of 7.4% in September, with the risk of going higher if the momentum of food and vegetable prices picks up further in the rest of the month. However, key gauges managed to trim most of their initial losses in late afternoon deals, taking support from global rating agency S&P stating that even though the US and the Euro zone are headed to recession, India is unlikely to face the impact given the not so coupled nature of its economy with the global economy. Traders overlooked the Federation of Indian Export Organisations (FIEO), the apex body of India's export promotion councils, stated that Indian exports to the six Gulf Cooperation Council countries (GCC) grew by 44 per cent to about $43.9 billion in 2021-22 fiscal year compared to previous fiscal's $27.8 billion with the UAE leading the trade with a remarkable 68 per cent growth. Finally, the BSE Sensex fell 337.06 points or 0.57% to 59,119.72 and the CNX Nifty was down by 88.55 points or 0.50% to 17,629.80.

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