Market Commentary - Mid-Session
Indices trade with small gains; private bank stocks rise As on : 22-Aug-24  14:33

The key equity benchmarks traded with minor gains in the mid-afternoon trade. The Nifty traded above the 24,800 level. Private bank stocks advanced after declining for the past trading session.

At 14:30 IST, the barometer index, the S&P BSE Sensex, gained 123.59 points or 0.15% to 81,028.89. The Nifty 50 index added 39.60 points or 0.15% to 24,807.80.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index added 0.49% and the S&P BSE Small-Cap index gained 0.45%.

The market breadth was strong. On the BSE, 2,470 shares rose and 1,404 shares fell. A total of 131 shares were unchanged.

Economy:

The latest HSBC 'flash' PMI survey, compiled by S&P Global, also highlighted a sharp upturn in new business intakes, solid job creation and upbeat expectations towards growth prospects. On the price front, there were softer increases in both input costs and selling prices.

The headline HSBC Flash India Composite Output Index ' a seasonally adjusted index that measures the month-on-month change in the combined output of India's manufacturing and service sectors ' stood at 60.5 in August, little changed from 60.7 in July and pointing to a sharp rate of expansion that was above its long-run trend level (54.6).

There was a softer increase in manufacturing industry output and a fractionally stronger rise in activity across the service economy. Yet, the former led the upturn.

The HSBC Flash India Manufacturing PMI ' a single-figure snapshot of factory business conditions calculated from measures of new orders, output, employment, supplier delivery times and stocks of purchases ' slipped from 58.1 in July to a three-month low of 57.9 in August.

The latest reading was nevertheless above the historical average (54.0) and signaled a strong improvement in the health of the sector.

Goods producers reported the first decline in outstanding business volumes in just under a year, while service providers indicated a thirty-second consecutive monthly rise. The pace of accumulation was mild among the latter, and the weakest since February.

The HSBC Flash India Services PMI rose to 60.4 in August from 60.3 in July.

Buzzing Index:

The Nifty Private Bank index rose 0.62% to 25,547.50. The index declined 0.10% in the past consecutive trading sessions.

IDFC First Bank (up 2.34%), RBL Bank (up 1.57%), Bandhan Bank (up 1.19%), ICICI Bank (up 1.19%), HDFC Bank (up 0.44%), IndusInd Bank (up 0.22%), Axis Bank (up 0.04%), Federal Bank (up 0.02%) advanced.

On the other hand, City Union Bank (down 0.09%), Kotak Mahindra Bank (down 0.06%) declined.

Numbers to Track:

The yield on India's 10-year benchmark federal advanced 1.66% to 6.967 as compared with previous close 6.966.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.9525, compared with its close of 83.9075 during the previous trading session.

MCX Gold futures for 4 October 2024 settlement shed 0.13% to Rs 71,735.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.12% to 101.16.

The United States 10-year bond yield jumped 1.77% to 3.822.

In the commodities market, Brent crude for October 2024 settlement lost 10 cent or 0.13% to $75.95 a barrel.

Stocks in Spotlight:

Awfis Space Solutions soared 11.82% after the company announced the launch of two new coworking spaces in Bengaluru, India.

The centers are located in Mantri Commerce and Vista Pixel, and offer a combined total of 66,846 square feet of workspace. Both centers are located in prime locations with excellent connectivity to major business districts. They also offer a range of amenities, including advanced technology and facility management services.

Dabur India gained 1.48% after the company announced that it has signed a memorandum of understanding (MoU) with Government of Tamil Nadu to invest Rs 400 crore in first manufacturing facility in South India, to create 250 jobs.

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