Market Commentary - Mid-Session
Barometers pare losses; oil & gas shares slide for 5th day As on : 09-Sep-24  11:39

The key equity indices reversed all losses and traded with small gains in mid-morning trade. The Nifty traded above the 24,850 mark after hitting the day's low of 24,753.15 in early trade. Oil & gas shares extended losses for the fifth consecutive trading session.

At 11:30 IST, the barometer index, the S&P BSE Sensex rose 118.14 points or 0.15% to 81,305.50. The Nifty 50 index added 24.55 points or 0.10% to 24,876.70.

The broader market underperformed the frontline indices. the S&P BSE Mid-Cap index fell 0.58% and the S&P BSE Small-Cap index shed 0.77%.

The market breadth was weak. On the BSE, 1,463 shares rose and 2,389 shares fell. A total of 152 shares were unchanged.

IPO Update :

The initial public offer (IPO) of Kross received 38,85,292 bids for shares as against 1,53,50,877 shares on offer, according to stock exchange data at 11:30 IST on Monday (09 September 2024). The issue was subscribed 0.25 times.

The issue opened for bidding on Monday (9 September 2024) and it will close on Wednesday (11 September 2024). The price band of the IPO is fixed between Rs 228 to Rs 240 per share. An investor can bid for a minimum of 62 equity shares and in multiples thereof.

The initial public offer (IPO) of Tolins Tyres received 44,82,852 bids for shares as against 74,88,372 shares on offer, according to stock exchange data at 11:30 IST on Monday (9 September 2024). The issue was subscribed 0.60 times.

The issue opened for bidding on Monday (9 September 2024) and it will close on Wednesday (11 September 2024). The price band of the IPO is fixed between Rs 215 to 226 per share. An investor can bid for a minimum of 66 equity shares and in multiples thereof.

The initial public offer (IPO) of Bajaj Housing Finance received 25,68,37,022 bids for shares as against 72,75,75,756 shares on offer, according to stock exchange data at 11:30 IST on Monday (9 September 2024). The issue was subscribed 0.35 times.

The issue opened for bidding on Monday (9 September 2024) and it will close on Wednesday (11 September 2024). The price band of the IPO is fixed between Rs 66 to 70 per share. An investor can bid for a minimum of 214 equity shares and in multiples thereof.

The initial public offer (IPO) of Shree Tirupati Balajee Agro Trading Company received 47,97,66,240 bids for shares as against 1,43,08,000 shares on offer, according to stock exchange data at 11:15 IST on Monday (9 September 2024). The issue was subscribed 33.53 times.

The issue opened for bidding on Thursday (5 September 2024) and it will close on Monday (9 September 2024). The price band of the IPO is fixed between Rs 78 to 83 per share. An investor can bid for a minimum of 180 equity shares and in multiples thereof.

Buzzing Index :

The Nifty oil & gas index slipped 1.10% to 12,881.45. The index dropped 4.48% in the five consecutive trading sessions.

Oil & Natural Gas Corporation (down 3.66%), Petronet LNG (down 2.68%), Gujarat State Petronet (down 2.48%), Hindustan Petroleum Corporation (down 2.24%), Castrol India (down 2.12%), Gujarat Gas (down 2.03%), GAIL (India) (down 1.48%), Adani Total Gas (down 1.3%), Indraprastha Gas (down 0.81%) and Bharat Petroleum Corporation (down 0.31%) declined.

On the other hand, Mahanagar Gas (up 2.04%), Aegis Logistics (up 0.41%) and Oil India (up 0.13%) edged higher.

Stocks in Spotlight :

NIBE was locked in 5% upper circuit after the company announced the signing of an MoU with various entities for building and operating a private Earth Observation Constellation.

The entities that are a part of this consortium are Larsen & Toubro, Centum Electronics, Space Fields, SISIR Radar, CYRAN AI Solutions, AgniKul Cosmos, DV2JS Innovation, Thales Alenia Space and Thales India.

Mazagon Dock Shipbuilders shed 0.78%. The ship building company announced that it has received a notification of award of contract worth Rs 1,486.40 crore from Oil & Natural Gas Corporation (ONGC).

Global Markets :

Most Asian stocks declined on Monday as selling pressure intensified, triggered by a weaker-than-expected US jobs report and the looming Fed meeting. Concerns about a slowdown in China and Germany further fueled the decline in stocks, which were already volatile due to anticipated Fed rate cuts.

The US non-farm payrolls increased by only 142,000 in August, falling short of the expected 165,000. This marked the lowest three-month average since mid-2020. Although the unemployment rate decreased to 4.2%, it was the first drop in five months.

In China, the consumer price index rose by 0.6% year-on-year in August, primarily due to declines in transportation, home goods prices, and rents.

Meanwhile, US markets suffered a significant setback on Friday. The S&P 500 experienced its worst week since March 2023, as investors grappled with the implications of the weak jobs report and abandoned leading technology stocks. The broad index declined by 1.73%, while the Nasdaq Composite shed 2.55%. The Dow Jones Industrial Average fell 1.01%. Megacap tech stocks took a particularly hard hit as investors dumped risk assets amidst growing concerns about the US economy's health.

Investors widely anticipate the Fed to lower interest rates by at least a quarter-percentage point at its upcoming policy meeting. However, the softening labor market trends have increased speculation that the central bank might opt for a more aggressive cut. Traders remain divided on whether the Fed will cut by a quarter- or half-percentage point.

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