Market Commentary - Mid-Session
Market at day's low; European mkt decline As on : 06-Sep-24  13:36

The domestic equity benchmarks traded with deep cuts in afternoon trade. The Nifty traded below the 24,900 level after hitting the day's high of 25,168.75 in early trade. Barring the Nifty Metal index, all the other sectoral indices on the NSE traded in red.

At 13:30 IST, the barometer index, the S&P BSE Sensex, slumped 931.43 points or 1.14% to 81,262.79. The Nifty 50 index dropped 272.55 points or 1.08% to 24,872.55.

In the broader market, the S&P BSE Mid-Cap index fell 1.06% and the S&P BSE Small-Cap index declined 0.68%.

The market breadth was weak. On the BSE, 1,356 shares rose and 2,494 shares fell. A total of 117 shares were unchanged.

Gainers & Losers:

Asian Paints (up 1.04%), Bajaj Finance (up 0.97%), JSW Steel (up 0.73%), LTIMindtree (up 0.58%) and Hindustan Unilever (up 0.55%) were major Nifty gainers.

State Bank of India (down 3.68%), HCL Technologies (down 2.56%), Bharat Petroleum Corporation (down 2.31%), ITC (down 2.23%) and Grasim Industries (down 2.21%) were major Nifty losers.

Stocks in Spotlight:

Dr Reddy's Laboratories shed 0.38%. The pharma major announced that it has received the establishment inspection report (EIR) from the United States Food & Drug Administration (USFDA) for its API manufacturing facility (CTO-6) in Srikakulam, Andhra Pradesh.

Angel One slipped 2.23%. The company announced that its client base jumped 62.9% to 26.65 million in August 2024 as against 16.36 million recorded in August 2023.

Matrimony.com shed 0.02%. The matchmaking services provider announced that its board has approved a share buyback of up to Rs 72 crore at a price of Rs 1,025 per equity share through tender offer route.

VA Tech Wabag rallied 3.62% after the company announced that it has bagged a mega order worth $317 million (approximately Rs 2,700 crore) from the Saudi Water Authority (SWA).

KEC International rose 1.15% after the company secured new orders of Rs 1,423 crore for design, supply and installation of 380 kV transmission lines in Saudi Arabia.

Rites lost 0.03%. The company has been declared as L-1 bidder by UP State Bridge Corporation for consultancy services for construction of civil works in Uttar Pradesh.

Global Markets:

European and Asian stocks declined on Friday as investors shifted their focus to the upcoming U.S. payrolls report. The report is expected to shed light on the potential magnitude of a rate cut by the Federal Reserve later this month.

Japan's household spending data for July rose 0.1% in real terms from the previous year as compared to a 1.4% fall in June. Data from the Japan's statistics bureau said the average household monthly expenditure for July 2024 was 290,931 yen ($2,031.35), up 3.3% in nominal terms from the previous year.

Hong Kong's markets will be shut today due to Super Typhoon Yagi.

Overnight in the U.S., all three major indexes declined amid ongoing concerns about the economic outlook. The S&P 500 fell by 0.3%, extending its losing streak to three days, while the Dow Jones Industrial Average dropped 0.54%. However, the tech-heavy Nasdaq Composite managed a modest gain of 0.25%.

Adding to the economic uncertainty, ADP reported that private sector job growth in August was the weakest in over three and a half years. Companies hired only 99,000 workers, falling short of both the downwardly revised July figure and market expectations. This marked the weakest month for job growth since January 2021, according to data from the payrolls processing firm.

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