Market Commentary - Mid-Session
Indices nudge lower in early trade; breadth strong As on : 03-Sep-24  09:34

The key equity indices traded near the flatline with some negative bias in early trade. The Nifty traded below the 25,300 level. Realty, pharma and consumer durables shares advanced while IT, bank and oil & gas stocks declined.

At 09:30 IST, the barometer index, the S&P BSE Sensex, fell 27.58 points or 0.04% to 82,516.62. The Nifty 50 index shed 12.95 points or 0.05% to 25,273.65.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index added 0.39% and the S&P BSE Small-Cap index gained 0.79%.

The market breadth was strong. On the BSE, 2,063 shares rose and 914 shares fell. A total of 120 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 1,735.46 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 356.37 crore in the Indian equity market on 2 September 2024, provisional data showed.

Stocks in Spotlight:

Shriram Finance rose 0.92%. The company's board approved a fund raising through debt securities via private placement. The issue size of Rs 500 crore, with a greenshoe option of RS 1,500 crore.

Vedanta added 0.92%. The company informed that its board of directors has approved second interim dividend of Rs 20 per equity share for the financial year 2024-25, amounting to Rs 7,821 crore.

Muthoot Finance rose 0.79%. The company's subsidiary, Belstar Microfinance has received approval from SEBI to launch its IPO. Belstar plans to raise Rs 1,000 crore via fresh issue and Rs 300 crore through offer for sale.

Numbers to Track:

The yield on India's 10-year benchmark federal paper jumped 1.67% to 6.991 as compared with previous close 6.995.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.9475, compared with its close of 83.9125 during the previous trading session.

MCX Gold futures for 4 October 2024 settlement shed 0.15% to Rs 71,487.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.09% to 101.75.

The United States 10-year bond yield added 0.13% to 3.914.

In the commodities market, Brent crude for November 2024 settlement gained 39 cents or 0.51% to $77.32 a barrel.

Global Markets:

Asian stocks traded lower on Tuesday, led by Japanese equities, while the yen steadied after weakening against the dollar over the past week.

South Korea's headline inflation eased to 2% in August from 2.6% in July, its lowest level on a year-on-year basis since March 2021.

Traders in Asia will be keeping a close eye on fresh signs of economic troubles in China. Data on Saturday showed Chinese factory activity had contracted for a fourth straight month in August, the latest signal that the world's second-largest economy may struggle to meet this year's growth target.

Wall Street will reopen later Tuesday, following the Labor Day public holiday.

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