Weekly Index Movement:

The domestic equity benchmarks continued their winning streak on Monday, closing with decent gains for the third consecutive day. The barometer index, the S&P BSE Sensex advanced 384.30 points or 0.45% to 84,928.61. The Nifty 50 index rose 148.10 points or 0.57% to 25,939.05.

The domestic equity benchmarks closed nearly flat on Tuesday after a volatile session. The barometer index, the S&P BSE Sensex shed 14.57 points or 0.02% to 84,914.04. The Nifty 50 index rose 1.35 points or 0.01% to 25,940.40.

The domestic equity benchmarks concluded a volatile trading session on a positive note on Wednesday. The S&P BSE Sensex rose 255.83 points or 0.30% to 85,169.87. The Nifty 50 index added 63.75 points or 0.25% to 26,004.15. Both the indices attained record closing high levels.

Domestic equity barometers continued their upward trend on Thursday. The barometer index, the S&P BSE Sensex gained 666.25 points or 0.78% to 85,836.12. The Nifty 50 index advanced 211.90 points or 0.81% to 26,216.05, rising for sixth consecutive session.

The domestic equity benchmarks ended with limited losses on Friday. The barometer index, the S&P BSE Sensex slipped 264.27 points or 0.31% to 85,571.85. The Nifty 50 index lost 37.10 points or 0.14% to 26,178.95.

The Sensex and Nifty clocked an all-time high of 85,978.25 and 26,277.35, respectively, on Friday.

Economy:

Moodys has revised its calendar year 2024 growth forecast for India to 7.1% from its earlier estimates of 6.8% in June, as it expects growth in the Asia-Pacific region to outpace the global economy.

The headline HSBC Flash India Composite Output Index dipped to 59.3 in September from 60.7 in August. The index pointed to another rapid monthly increase in business activity, albeit one that was the least pronounced in 2024 so far. Softer expansions were seen across both the manufacturing and services sectors.

The HSBC Flash India Manufacturing PMI posted 56.7 in September, down from 57.5 in August. The reading signaled a further marked strengthening in business conditions for goods producers, but the rate of improvement was the softest since January.

Global Markets:

Frances PMI data stood at 47.4 in September down from 53.1 in August, Hamburg Commercial Bank (HCOB) data showed and German business activity also contracted in September, with the HCOB flash composite PMI falling from 48.4 in August to 47.2 in September, a seven-month low.

The People’s Bank of China (PBOC) loosened monetary conditions by reducing its 14-day reverse repo rate. While this move provided a positive impetus, gains were tempered by the PBOC’s recent decision to maintain its benchmark loan prime rate.

The People’s Bank of China (PBOC) Governor, Pan Gongsheng, outlined plans to lower interest rates, increase liquidity, and ease mortgage repayments.

The People’s Bank of China (PBOC) reduced the medium-term lending facility (MLF) rate to 2%, down from 2.3%. This marks the second MLF cut in approximately three months, following a decrease from 2.5% to 2.3% in late July.
Chinas central bank cut its 7-day reverse repurchase rate to 1.5% from 1.7%, as well as lowered the reserve requirement ratio for banks by 50 basis points. Chinas industrial profit data for August saw a 17.8% plunge year on year, following a 4.1% year-on-year increase in July.

Japan’s manufacturing activity contracted more than expected in September due to ongoing production disruptions faced by major automakers. However, the services sector saw growth driven by strong consumer demand. The au Jibun Bank manufacturing purchasing managers index fell to 49.6 in early-September, indicating contraction for the third consecutive month.

US consumer confidence suffered its biggest one-month decline in more than three years, hitting 98.7 for September. The data follows a warning from JPMorgan Chase CEO Jamie Dimon about increasing geopolitical instability cast a shadow over the positive market sentiment. Dimon expressed concerns that these geopolitical tensions could impact the global economy.

On the economic data front, new home sales in the United States decreased in August compared to the previous month, primarily due to high mortgage rates and elevated prices deterring potential buyers. However, mortgage applications rose to their highest level since 2022, driven by homeowners seeking to refinance their loans as interest rates decline.

The US economy grew at a 3% annual rate in the second quarter, driven by consumer spending, inventory investment, and business investment. Additionally, weekly jobless claims fell to the lowest level since mid-May, indicating a strong labor market.

Stocks in Spotlight:

Power Grid Corporation of India advanced 3.93%. The company received a Letter of Intent (LoI) to establish an inter-state transmission system at Khavda pooling station in Gujarat, under BOOT basis.

Larsen & Toubro (L&T) fell 2.33%. The companys power transmission & distribution (PT&D) vertical business secured Mega order in the Middle East for expanding and strengthening the electricity grids at high voltage level.

Coal India has risen 5.12%. The firm informed that it has entered into a joint venture agreement (JV) with Rajasthan Rajya Vidyut Utpadan Nigam (RRUVNL) to establish brownfield thermal power project in Rajasthan. The companys purpose of this agreement is to establish 2×800 MW brownfield thermal power project in RRUVNL’s existing Kalisindh thermal power station. Additionally, the company intends to undertake any other thermal power related projects and engage in renewable energy business in Rajasthan.

As per media reports, India’s southern state of Karnataka plans to cut levies and offer financial incentives to companies in the clean mobility sector. The state reportedly aims to drop road tax and registration charges for hybrid cars.

Accordingly, Maruti Suzuki, a major player in the hybrid car market, saw its shares jump by 6.98% this week. The stock of Tata Motors and Mahindra & Mahindra rose by 2.28% and 7.89%, respectively.

Infosys added 0.05%. The company announced that it has collaborated with Swedish electric performance car brand Polestar to create a base for the latter’s development of in-car infotainment, software and electrical engineering and cloud-powered digital services.

ONGC gained 3.83%. The company said that its board has approved an investment of Rs 10,501 crore in equity shares of ONGC Petro additions (OPaL), in one or more tranches.

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