Market Commentary - Mid-Session
Sensex jumps 556 pts; consumer durables rally As on : 26-Aug-24  11:33

The domestic equity benchmarks traded in a narrow range with significant gains in mid-morning trade. The Nifty traded above the 24,950 mark. Consumer durables shares advanced after declining in the past trading session.

At 11:30 IST, the barometer index, the S&P BSE Sensex jumped 555.90 points or 0.70% to 81,642.11. The Nifty 50 index advanced 163.25 points or 0.66% to 24,986.40.

In the broader market, the S&P BSE Mid-Cap index added 0.49% and the S&P BSE Small-Cap index gained 0.32%.

The market breadth was positive. On the BSE, 2,201 shares rose and 1,682 shares fell. A total of 163 shares were unchanged.

Buzzing Index :

The Nifty Consumer Durables index added 0.76% to 41,236.95. The index shed 0.17% in the past trading session.

Kalyan Jewellers India (up 2.79%), V-Guard Industries (up 2.03%), Dixon Technologies (India) (up 1.83%), Crompton Greaves Consumer Electricals (up 1.15%), Century Plyboards (India) (up 0.79%), Titan Company (up 0.65%), Havells India (up 0.62%), Cera Sanitaryware (up 0.45%), Voltas (up 0.24%) and Bata India (up 0.22%) advanced.

On the other hand, Rajesh Exports (down 1.5%), Blue Star (down 1.41%) and Kajaria Ceramics (down 0.64%) edged lower.

Stocks in Spotlight :

Symphony shed 0.71%. The household appliances company announced that its wholly owned subsidiary (WOS) in China, Guangdong Symphony Keruilai Air Cooling Co, has incorporated a China-based unit, Dongguan GSK Appliances.

JSW Energy rose 0.20%. The company said that its wholly owned subsidiary, JSW Neo Energy has received letter of award (LoA) for setting up 250 MW grid-connected wind power project from Adani Electricity Mumbai.

Global Markets :

Asian markets traded mixed on Monday, with some finding support from the anticipation of lower U.S. interest rates. However, Japanese markets retreated amidst pressure from the yen and speculation about potential rate hikes by the Bank of Japan. The upcoming Tokyo inflation data is expected to provide more clarity on the trajectory of Japanese interest rates.

Sentiment was also influenced by the People's Bank of China's withdrawal of approximately 101 billion yuan ($14.2 billion) from the open market. While this move aimed to strengthen the yuan, it also raised concerns about the extent of Beijing's support for the Chinese economy.

Regional markets drew initial strength from the positive performance of Wall Street, where the S&P 500 and Dow Jones Industrial Average approached record highs on Friday. Federal Reserve Chair Jerome Powell's comments reinforced expectations for a rate cut in September, with Powell stating that the time has come for a monetary policy adjustment.

In his speech at the Jackson Hole Economic Symposium on Friday, Powell highlighted the factors contributing to recent inflation, including increased demand for goods, supply chain disruptions, tight labor markets, and rising commodity prices. He also clarified that the recent rise in the unemployment rate is primarily due to increased labor supply and slower hiring, rather than widespread layoffs.

The S&P 500 gained 1.2%, the Dow Jones Industrial Average rose 1.1%, and the NASDAQ Composite surged 1.5%.

However, caution prevailed ahead of a series of crucial events this week. The most anticipated is the earnings report from NVIDIA Corporation, a market darling, which is due after the market closes on Wednesday. Additionally, the PCE price index data, the Fed's preferred inflation gauge, is scheduled for later in the week.

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