The domestic equity indices ended near the flat line with some negative bias on Tuesday, declining for the third day in a row. The Nifty settled below the 25,800 level. Media, IT and consumer durables shares advanced while oil & gas, realty and private bank shares declined. The market was volatile due to weekly index options on NSE.
As per provisional closing, the S&P BSE Sensex, was down 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 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%.
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The market breadth was positive. On the BSE, 2,304 shares rose and 1,658 shares fell. A total of 92 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 market will be closed on Wednesday, October 2, 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.
As a result of rising purchasing prices, as well as greater labour costs and favourable demand conditions, Indian manufacturers lifted their charges in September.
The combination of job creation and slower increases in new business meant that companies were able to stay on top of their workloads.
Buzzing Index:
The Nifty Media added 1.60% to 2,172.75. The index advanced 2.74% in two consecutive trading sessions.
Saregama India (up 6.22%), Dish TV India (up 4.84%), Sun TV Network (up 1.88%), Nazara Technologies (up 1.86%), Hathway Cable & Datacom (up 1.8%), Zee Entertainment Enterprises (up 1.74%), Tips Music (up 1.35%) and TV18 Broadcast (up 0.72%) edged higher.
September Auto Sales Impact :
Tata Motors shed 0.96%. 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 1.29%. 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 1.69. 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 1.28% 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 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 20% 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).
Karur Vysya Bank fell 0.37%. The bank has reported a total business of Rs 1,76,135 crore for the three months ended on 30 September 2024, up by 14.73% from Rs 1,53,516 crore recorded in the same period last year.
Godrej Properties advanced 3.12% after the company announced that its board has approved raising up to Rs 6,000 crore through various methods in one or more tranches
Tata Power Company shed 0.34%. The company said that it has signed memorandum of understanding (MoU) with the Rajasthan government for an investment plan of approximately Rs 1.2 lakh crore in power distribution, transmission, and renewable.
Sun Pharmaceutical Industries rose 0.01%. The company said that it has entered into a global exclusive commercialization, license, and supply agreement with Philogen for commercializing the latters specialty product Fibromun.
Rites fell 2.97%. The company announced that it has received letter of award (LoA) from Tsiko Africa Logistics (Pty) for the supply and commissioning of an overhaul in-service cape gauge 3100 HP and diesel-electric locomotive. The total consideration of the order is $4.28 million.
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).
Welspun Corp declined 3.03%. The company announced that it has received large order in the USA for supply of coated helical submerged arc welding (HSAW) pipes for a natural gas pipeline project. The value of the said order is approximately Rs 2,400 crore and the said order will executed during fiscal year 25 and fiscal year 26.
Global Markets:
European stocks traded mixed 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 higher 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.
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