Market Commentary - Mid-Session
Indices edge higher in early trade; breadth strong As on : 16-Sep-24  09:33

The key equity indices traded with minor gains in early trade. The Nifty traded above the 25,350 mark. Metal, realty and PSU bank shares advanced while FMCG and IT shares declined.

At 09:30 IST, the barometer index, the S&P BSE Sensex, added 112 points or 0.14% to 83,002.94. The Nifty 50 index rose 42.75 points or 0.17% to 25,399.25.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.50% and the S&P BSE Small-Cap index added 0.88%.

The market breadth was strong. On the BSE, 2,170 shares rose and 928 shares fell. A total of 131 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 2,364.82 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 2,532.18 crore in the Indian equity market on 13 September 2024, provisional data showed.

Stocks in Spotlight:

JSW Energy rose 0.75%. The company announced that its step-down subsidiary, JSW Renew Energy Two, has completed commissioning for the 300 MW ISTS-connected wind power project awarded by Solar Energy Corporation of India (SECI) tranche X located at Tuticorin, Tamil Nadu.

Trident rose 0.30%. The company informed that it has incorporated overseas wholly owned subsidiary named, Trident Group Enterprises Pte. in Singapore.

GMR Airports added 1.14% after the company's infrastructure passenger traffic across all GMR Airports increased 9% year on year (YoY) in August 2024, to over 10.6 million passengers.

Numbers to Track:

The yield on India's 10-year benchmark federal paper jumped 1.69% to 6.907 as compared with previous close 6.972.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.8775, compared with its close of 83.9200 during the previous trading session.

MCX Gold futures for 4 October 2024 settlement rose 0.15% to Rs 73,622.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.25% to 100.86.

The United States 10-year bond yield fell 0.22% to 3.639.

In the commodities market, Brent crude for November 2024 settlement rose 16 cent or 0.22% to $71.77 a barrel.

Global Markets:

Asian stocks were traded mixed on Monday, with Hong Kong stocks falling as investors assessed downbeat economic data from China, while several key markets were closed for holidays.

China's economy continued to weaken in August, with factory output, consumption, and investment all declining more than expected. Home prices fell at the fastest pace since 2014, prompting the People's Bank of China to signal more monetary easing and a heightened focus on combating deflation.

Sentiment in Asia was also dampened following a second assassination attempt on US presidential candidate Donald Trump. He was later taken to safety.

US stocks closed higher on Friday ahead of the Federal Reserve's upcoming policy meeting. The S&P 500 gained 0.54%, the tech-heavy Nasdaq Composite added 0.65%, and the Dow Jones Industrial Average jumped 0.72%, marking their fifth consecutive winning day.

Wall Street is now looking ahead to the Fed's meeting on September 17-18, where a 25-basis-point interest rate cut is widely expected. The current target rate stands at 5.25% to 5.5%.

Economic data indicating a moderation in inflation further supports the case for a rate cut. The consumer price index in August rose 2.5% year-over-year, the lowest level since February 2021. Wholesale prices increased by 0.2% in August, in line with expectations.

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