The domestic equity market closed higher on Wednesday, September 16, with the Nifty 50 gaining 99 points to close at 23,217.60 and the BSE Sensex rising 332.63 points to 74,336.45. According to latest reports, large-cap stocks led the domestic gains with buying interest concentrated in banking, FMCG and automobile counters. Nifty FMCG rose 1.82%, Nifty PSU Bank gained 1.27% and Nifty Private Bank advanced 0.73%, while metal, auto and media stocks also gained. The market movement was supported by expectations surrounding the US Federal Reserve's interest rate decision and tracking gains across regional markets.
Capital market stocks experienced significant selling pressure following the NPCI's announcement of new UPI charges. Billionbrains Garage Ventures (Groww's parent company) fell 4.6%, while Nippon Life India Asset Management declined 3.6%. Other notable declines included Multi Commodity Exchange of India Ltd. falling 3.6%, UTI Asset Management Company dropping 3.7%, and BSE declining 2.1%. As reported by The Financial Express, the selling came after NPCI introduced a 0.4% merchant discount rate on UPI payments above ₹2,000, while the official circular set an MDR of 0.02%, capped at ₹300 per transaction, for transactions involving mutual funds, securities, stockbrokers and dealers. Central Depository Services (India) Ltd. fell 2%, Motilal Oswal Financial Services declined 2.7%, Aditya Birla Sun Life AMC fell 3.2%, and Computer Age Management Services Ltd. declined 2.3%.
YES Bank Ltd. share price gained 3.34% by midday amid buying interest following NPCI's decision to introduce a 0.4% fee on merchant UPI payments above ₹2,000 from October 15. According to latest reports, the bank is positioned as a standout beneficiary with estimated net incremental ecosystem revenue of ₹16,000-17,000 crore per year. The split of this revenue is roughly 60% for banking system, 25% for UPI-App Provider, and 15% for non-bank payment aggregators. Given YES Bank's outsized UPI beneficiary volume share, the bank is expected to benefit significantly with 5-10% of PPOP and 6-12% of PBT. Paytm share price jumped over 10% to ₹249.51 on the NSE, while MobiKwik shares traded at ₹203.61 after positive opening at ₹213.99. SBI Life, HDFC Life, ITC and Trent were among the top Nifty gainers, while TCS, Wipro, Infosys and Tech Mahindra were major laggards.
ITC Ltd. share price gained 2.15% by midday after reports that the company had raised cigarette prices, with Classic Connect prices increasing by around 10% and Gold Flake Super Star also becoming more expensive. As reported by The Financial Express, cigarettes remain a major earnings contributor for ITC, accounting for around 40% of segment revenue and a larger share of operating profit. The latest increase follows earlier price hikes after the nearly 40% tax increase implemented from February 1. Additionally, ITC Infotech's proposed merger with Happiest Minds Technologies remains part of the company's technology business plans, with ITC Infotech set to acquire a 22.106% stake from Happiest Minds promoter Ashok Soota and Ashok Soota Medical Research.
Godavari Biorefineries share price gained 14% by midday after the company informed exchanges that the Chinese Patent Office had granted a patent for an invention titled 'Use of Compounds for Treating Viral Infections'. According to reports from The Financial Express, the company is a major ethanol-based chemicals producer, and the patent grant was the key company-specific development behind the stock's sharp move during Wednesday's session. The patent represents a significant milestone for the company's research and development capabilities in the biotechnology sector.
