Market Commentary - End-Session
Benchmarks rise for 3rd day, Nifty ends above 25,900; M&M jumps 3.3% As on : 23-Sep-24  17:21

The domestic equity benchmarks continued their winning streak on Monday, closing with decent gains for the third consecutive day. The benchmark Nifty index settled above the 25,900 level, buoyed by a combination of factors including the recent Federal Reserve rate cut, and expectations of a change in stance by the Reserve Bank of India. Several sectors contributed to the market's rise, with PSU banks, realty, and energy shares witnessing strong demand. However, IT, private banks, and healthcare stocks faced some pressure.

While the India PMI data showed some signs of moderation, investors remain optimistic about the potential for stability in market sentiment due to the influx of FII funds.

In 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. Both the indices attained record closing high levels.

M&M (up 3.29%), SBI (up 2.55%) and HDFC Bank (up 1%) boosted the indices.

The Sensex and Nifty clocked an all-time high of 84,980.53 and 25,956.00, respectively in late trade. Further, the Nifty Bank also hit a life high of 54,197.95.

In the broader market, the S&P BSE Mid-Cap index added 0.73% and the S&P BSE Small-Cap index gained 0.73%.

The S&P BSE Small-Cap index and S&P BSE Mid-Cap index hit an all-time high at 57,564.40 and 49,553.69, respectively.

The market breadth was positive. On the BSE, 2,381 shares rose and 1,732 shares fell. A total of 120 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, surged 7.77% to 13.79.

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.

Meanwhile, India's forex reserves rose by $223 million to a new all-time high of $689.458 billion for the week ended on September 13, according to the Reserve Bank data released on Friday. The overall forex kitty had jumped by $5.248 billion to a high of $689.235 billion for the previous reporting week ended on September 6.

Numbers to Track:

The yield on India's 10-year benchmark federal grew 1.77% to 6.881 as compared with previous close 6.761.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.5425, compared with its close of 83.5200 during the previous trading session.

MCX Gold futures for 4 October 2024 settlement rose 0.21% to Rs 74,194.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.27% to 101.

The United States 10-year bond yield added 0.52% to 3.749.

In the commodities market, Brent crude for November 2024 settlement added 20 cent or 0.27% to $74.69 a barrel.

Global Markets:

Most European shares declined on Monday as French and German business activity data declined. France's 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.

Most Asian stocks ended higher as Investors digested monetary policy decisions from Japan and China as well as the U.S. Federal Reserve's sharp rate cut last week. 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.

Regional trading activity was subdued due to a market holiday in Japan. However, Asian markets were building on strong gains from the previous week, following the Federal Reserve's interest rate cut and the initiation of an easing cycle. Investors were eagerly awaiting key economic indicators and statements from U.S. officials for further insights into the Fed's monetary policy path.

On Wall Street, the Dow Jones Industrial Average closed at a new record high on Friday, despite a mixed performance overall. The 30-stock Dow inched up 0.09%, for a new closing high of 42,063.36. The S&P 500 pulled back 0.19%, and the Nasdaq Composite dropped 0.36%. Investors weighed potential risks to economic growth and priced in more aggressive rate cuts than indicated by the Fed's dot plot projections.

Stocks in Spotlight:

Spicejet rallied 6.23% after the company announced that it has raised Rs 3000 crore through its qualified institutional placement (QIP) at a floor price of Rs 64.79 per share. The fresh capital raised will be instrumental in ungrounding SpiceJet's fleet, acquiring new aircraft, investing in technology and expanding into new markets.

Skipper soared 14.80% to Rs 479.45 after a domestic brokerage initiated coverage on the stock with a 'buy' rating and a price target of Rs 600 per share. The broker cited the company's robust growth prospects as a key factor driving the bullish outlook.

SBFC Finance soared 19.97% to Rs 105.69 after credit ratings agency ICRA upgraded its bank facilities with a 'stable' outlook.

In an exchange filing, SBFC Finance announced that ICRA upgraded the company's long-term, fund-based term loan of Rs 2,100 crore to 'AA-' with a stable outlook, up from the previous rating of 'A+' with a stable outlook. Additionally, the ratings agency upgraded and withdrew the company's long term fund based-term loan (unallocated bank) worth Rs 1,400 crore to the same 'AA-' stable rating from 'A+' stable.

An 'AA-' rating from ICRA signifies that the issuer carries very low credit risk and provides a high level of confidence in its ability to meet financial commitments on time.

Bharat Heavy Electricals (BHEL) advanced 3.01% and NTPC rose 1% after the company has received an order worth over Rs 6,100 crore from NTPC to set up supercritical thermal power project in Chhattisgarh.

Mankind Pharma rallied 4.09% after the company's board approved to raise funds aggregating to Rs 10,000 crore through non convertible debentures (NCDs) and commercial papers (CPs) on private placement basis.

NBCC (India) rose 1.52% after the company's wholly owned subsidiary, HSCC (India) has bagged order worth Rs 1,261 crore from Ministry of Health and Family Welfare, Government of India.

Vodafone Idea jumped 3.34% after the company announced the conclusion of a mega $3.6 billion (Rs 30,000 crore) deal with Nokia, Ericsson and Samsung, for supply of network equipment over a period of three years.

JSW Infrastructure gained 2.22% after the company has taken delivery of a new, dredger from Netherlands based IHC Dredging to support its expansion plans.

Glenmark Pharmaceuticals jumped 5.29% after the pharma major announced that its formulation manufacturing facility located in Chhatrapati Sambhaji Nagar, Maharashtra, has successfully cleared the USFDA inspection with zero observations.

Bajaj Healthcare gained 3% after the company informed that it has entered into a development and supply agreement for an active pharmaceutical ingredient (API) with a European entity.

Hind Rectifiers hit an upper circuit of 5% after the company said it secured a supply order worth over Rs 200 crore from Indian Railways.

IPO Update:

The initial public offer (IPO) of Manba Finance received 20,82,50,750 bids for shares as against 87,99,000 shares on offer, according to stock exchange data at 17:00 IST on Monday (23 September 2024). The issue was subscribed 23.67 times.

The issue opened for bidding on Monday (23 September 2024) and it will close on Wednesday (25 September 2024). The price band of the IPO is fixed between Rs 114 to Rs 120 per share. An investor can bid for a minimum of 125 equity shares and in multiples thereof.

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