The domestic benchmark indices declined for the third consecutive session on Tuesday with Nifty slipping below 25,800. Media, IT and auto shares climbed.The recent surge in Chinese equities, fueled by hopes of a recovery, has led to significant fund flows into the region.
The S&P BSE Sensex fell 33.49 points or 0.04% to 84,266.29. The Nifty 50 index shed 13.95 points or 0.05% to 25,769.90. The 50-unit index has corrected 1.70% in three straight sessions.
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Titan Company (down 0.83%), Reliance Industries (down 0.81%) and HDFC Bank (down 0.34%) were major drags.
The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.27% and the S&P BSE Small-Cap index added 0.56%.
The market breadth was positive. On the BSE, 2,296 shares rose and 1,668 shares fell. A total of 90 shares were unchanged.
The NSE’s India VIX, a gauge of the market’s expectation of volatility over the near term, dropped 6.25% to 11.99.
The domestic stock market will be shut on Wednesday, 2 October 2024, in observance of Mahatma Gandhi Jayanti.
Economy:
India’s fiscal deficit remained under control during April-August, reaching 27% of the full-year target. This containment was attributed to muted spending in the early months of the fiscal year. The government’s spending has been lower due to general elections. In comparison, the deficit stood at a higher 36% during the same period in FY24.
The seasonally adjusted HSBC India Manufacturing Purchasing Managers Index (PMI) fell from 57.5 in August to 56.5 in September, highlighting a robust improvement in the health of the sector that was nonetheless the weakest since January.
Numbers to watch:
The yield on India’s 10-year benchmark federal paper rose 1.41% to 6.845 from its previous close of 6.865.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.8250, compared with its close of 83.7925 during the previous trading session.
MCX Gold futures for 4 October 2024 settlement added 0.34% to Rs 75,506.
The US Dollar index (DXY), which tracks the greenback’s value against a basket of currencies, was up 0.33% to 101.11.
The United States 10-year bond yield declined 1.65% to 3.745.
In the commodities market, Brent crude for December 2024 settlement declined 31 cents or 0.43% to $71.70 a barrel.
Global Markets:
Dow Jones Futures were down 80 points, indicating a negative opening in the US stock market today.
Most European stocks rose today as Euro zone inflation fell below 2% for the first time since mid-2021, preliminary data showed Tuesday, likely boosting the chances of another interest rate cut from the European Central Bank.
Asian stocks ended mixed after Federal Reserve Chair Jerome Powell indicated the recent outsized cuts enacted by the U.S. central bank should not be interpreted as a sign that future moves will be as aggressive. The U.S. dollar strengthened in response. Meanwhile, heightened tensions in the Middle East added to market uncertainty.
With mainland China’s financial markets closed for the remainder of the week, the recent rally in Asian markets is expected to pause. Hong Kong’s Hang Seng is also closed on Tuesday.
Japan reported its unemployment rate for August eased to 2.5%, down from 2.7% in July
U.S. equities closed higher on Monday, recovering from earlier losses triggered by Powell’s remarks. The Dow Jones Industrial Average rose by 0.04% to a record closing high of 42,330.15. The S&P 500 gained 0.42% to also reach a new record close of 5,762.48. The Nasdaq Composite added 0.38%.
Investors had anticipated more aggressive rate cuts from the Federal Reserve in its final two meetings of the year. However, Powell indicated that the central bank would likely stick to quarter-point rate reductions moving forward, citing recent economic data that showed strong growth and consumer spending.
September Auto Sales Impact:
Tata Motors shed 1%. The car majors domestic and international vehicle sales declined 11.52% to 2,15,034 units in September 2024 as against 2,43,024 units sold in September 2023.
Bajaj Auto fell 1.3%. The company reported 19.60% jump in total auto sales to 4,69,531 units in September 2024 as against 3,92,558 units in September 2023.
Escorts Kubota declined 1.7%. The tractor manufacturer announced that its agri machinery business division sales grew by 2.47% to 12,380 units in September 2024 as against 12,081 units sold in September 2023.
Further, the companys construction equipment business division sold 510 machines in September 2024, registering de-growth of 18.7% from 627 machines sold in September 2023.
Ashok Leyland added 1.23% after the company has reported total vehicle sales of 17,233 units for the month of September 2024, which is lower by 10% as compared with the sales of 19,202 units sold in September 2023.
Steel Strips Wheels added 0.7% after the company said that it has achieved monthly net turnover of Rs 362.12 crore, which is lower by 9.89% as compared with the figure of Rs 401.88 crore recorded in September 2023.
TVS Motor Company shed 0.05%. The company said that it has recorded monthly sales of 482,495 units in September 2024 with a growth of 20% as against 402,553 units in the month of September 2023.
Stocks in Spotlight:
Vipul Organics hit an upper circuit of 19.56% to Rs 311.75 after the companys right issue committee approved raising Rs 25 crore through right issue of equity shares. The company will offer 1 share for every 3 shares held on record date at a premium of Rs 44 for the share of face value Rs 10 (total price Rs 54).
Senco Gold jumped 4.15% after the company said its board will mull fund raising and stock split on 4 October 2024.
Angel One rose 1.50% after introducing transaction charges on delivery-based equity trades with effect from November 1st this year.
Andhra Cements soars 10% to Rs 94.635 after the company files the draft papers with the Securities and Exchange Board of India (SEBI) to raise up to Rs 180 crore through a rights issue.
BASF India spurted 7.15%, rising for the fifth day to hit a record high of Rs 8249.90 today. Last week, the company’s German parent announced a new global strategy, “Winning Ways,” which aims to focus, accelerate, transform, and win.
National Aluminium Company jumped 6.54% to hit a record high of Rs 227.35 today after a broker upgraded its rating to ‘add’ and raised its price target to Rs 235. The broker cited the company’s strong position in the alumina market as a key positive.
Eraaya Lifespaces jumps 5% after the company announced a strategic restructuring following the Ebix, Inc. acquisition. The company declared control, reaffirms continuity and integration of operations. It initiated an investigation into financial irregularities, while suspending Robin Raina pending inquiry.
Godrej Properties advanced 3.11% after the company announced that its board has approved raising up to Rs 6,000 crore through various methods in one or more tranches
GE Power India advanced 2.24% after the company announced that it has received a contract worth Rs 240.4 crore (NPR 340 million) from Blue Energy in Nepal.
Zydus Lifesciences added 1.10% after the company announced that it has received the establishment inspection report (EIR) from the United States Food and Drug Administration (USFDA) for its transdermal patch manufacturing facility Pharmez, Ahmedabad. The USFDA conducted an inspection from 15 to 19 July 2024, and has been classified as Voluntary Action Indicated (VAI).
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