Market Commentary - Mid-Session
Benchmarks drop in early trade; breadth negative As on : 04-Sep-24  09:33

The key equity indices traded with major losses in early trade, following global cues. The Nifty traded near the 25,100 level. Barring media index all other sectoral indices on the NSE were traded in red.

At 09:30 IST, the barometer index, the S&P BSE Sensex, tumbled 554.25 points or 0.67% to 82,026.01. The Nifty 50 index declined 178.10 points or 0.70% to 25,101.65.

In the broader market, the S&P BSE Mid-Cap index fell 0.37% and the S&P BSE Small-Cap index gained 0.24%.

The market breadth was negative. On the BSE, 1,361 shares rose and 1,575 shares fell. A total of 129 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 1,029.25 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,896.21 crore in the Indian equity market on 3 September 2024, provisional data showed.

Stocks in Spotlight:

Cipla declined 0.81% after the pharma company informed that M. K. Hamied has resigned from his position of vice chairman and non-executive director with effect from the close of business hours on Oct. 29 due to age and health.

NHPC fell 0.68%. The company said that it has signed a memorandum of Understanding (MoU) with the Department of Water Resources (WRD), Maharashtra Government, for the establishment of energy storage systems (pumped storage systems) along with other renewable energy sources (such as solar/wind/hybrid) with a total capacity of 7,350 MW.

Torrent Power slipped 1.14%, The company informed that it has entered into a fresh MoU with the Department of Water Resources, Government of Maharashtra, for the establishment of pumped storage projects with a total capacity of 5,600 MW instead of 5,700 MW.

Numbers to Track: The yield on India's 10-year benchmark federal paper jumped 1.59% to 6.979 as compared with previous close 6.984.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.9625, compared with its close of 83.9800 during the previous trading session.

MCX Gold futures for 4 October 2024 settlement rose 0.11% to Rs 71,460.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.11% to 101.71.

The United States 10-year bond yield fell 0.37% to 3.807.

In the commodities market, Brent crude for November 2024 settlement lost 38 cents or 0.52% to $73.37 a barrel.

Global Markets:

The Dow Jones index futures were down 32 points, indicating a negative opening in the US stocks today.

Asian shares were trading lower on Wednesday as oil prices plummeted to multi-month lows. A sharp tech selloff on Wall Street, coupled with resurgent concerns about U.S. growth, drove investors away from riskier assets.

Recent data from China revealed that its economy is still struggling to gain traction, leading to renewed calls for more stimulus from Beijing. The sluggish Chinese outlook, the world's largest oil importer, further exacerbated the decline in oil prices due to expectations of weakening demand.

September has historically been a challenging month for stocks, but analysts attributed the current rout to a confluence of factors, including tepid U.S. manufacturing data.

U.S. stocks closed sharply lower overnight after the holiday, with AI leader NVIDIA tumbling nearly 10% as investors tempered their enthusiasm about artificial intelligence. The return from the Labor Day holiday saw a widespread air of portfolio de-risking across capital markets. Growth concerns were the dominant theme, leading to a sell-off in cyclical-sensitive assets and aggressive hedging.

The Dow Jones Industrial Average fell 1.51%, the S&P 500 slid 2.12% and the Nasdaq Composite dropped 3.26%. All three indexes notched their worst days since the global sell-off on Aug. 5.

US manufacturing contracted at a moderate pace in August. The Institute for Supply Management (ISM) said its manufacturing PMI rose to 47.2 last month from 46.8 in July, which was the lowest reading since November. The PMI remained below the 50 threshold for the fifth straight month.

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