Market Commentary - Mid-Session
Indices came off days high; European mkt opens lower As on : 20-Sep-24  13:42

The domestic equity benchmarks pared some gains and traded in positive territory in afternoon trade. The Nifty traded below the 25,650 mark. Metal, auto and realty shares advanced and IT, consumer durables and media shares declined.

At 13:30 IST, the barometer index, the S&P BSE Sensex, advanced 610.71 points or 0.70% to 83,785.11. The Nifty 50 index advanced 195.80 points or 0.77% to 25,611.60.

The Sensex and Nifty clocked an all-time high of 84,515.10 and 25,806.95, respectively in afternoon trade. Further, the Nifty Bank also hit a life high of 53,711.90.

In the broader market, the S&P BSE Mid-Cap index added 0.56% and the S&P BSE Small-Cap index advanced 0.87%.

The market breadth was strong. On the BSE, 2,408 shares rose and 1,465 shares fell. A total of 119 shares were unchanged.

Gainers & Losers:

Mahindra & Mahindra (up 4.68%), JSW Steel (up 3.65%), Adani Ports and Special Economic Zone (up 3.03%), Bharti Airtel (up 3.01%) and Coal India (up 2.21%) and were major Nifty gainers.

Grasim Industries (down 0.63%), Tata Consultancy Services (down 0.14%), NTPC (down 0.09%) and State Bank of India (down 0.01%) NTPC declined 0.09%. The company informed that its board has accorded investment approvals for Darlipali Project at appraised estimated cost of Rs 11,130.98 crore and for Sipat Project at appraised estimated cost of Rs 9,790.87 crore.

Stocks in Spotlight:

Reliance Infrastructure zoomed 9.73% after the company informed that its board has approved raising of funds up to Rs 3,000 crore through qualified institutional placement (QIP) and upto Rs 3,014.40 crore through preferential allotment, aggregating to Rs 6,014.40 crore.

Power Grid Corporation of India advanced 1.58% after the company said that it has declared a successful bidder for establishing an inter-state transmission system the Khavda project in Gujarat.

IIFL Finance surged 8.54% after the Reserve Bank of India (RBI) has lifted the restrictions imposed on the gold loan business of the company.

IDFC First Bank shed 0.38%. The company has announced that the Reserve Bank of India (RBI) has granted approval for the re-appointment of V. Vaidyanathan as the managing director and chief executive officer (MD & CEO) of the bank.

Balkrishna Industries fell 0.18%. The company said that it has completed the capex for 30,000 MTPA of high value of advanced carbon material and commissioned the plant.

The Phoenix Mills (PML) declined 1.51%. The company has announced that its wholly owned subsidiary, Casper Realty, has been declared the highest bidder for two prime city-centric plots in Mohali, Punjab. It was declared as the highest bidder, with a combined bid value of approximately Rs 891 crore.

Shalby rallied 2.83% after the company announced that it has received a license to operate a Bone Bank at Krishna Shalby Hospital.

Indostar Capital Finance jumped 5.23% after the company announced that its board has approved the sale of IndoStar Home Finance to WITKOPEEND B.V. for Rs 1,750 crore on a fully diluted basis.

Global Markets:

European markets declined on Friday as investors assessed a series of central bank rate decisions made throughout the week and their implications for the global economy.

Asian stocks traded higher on Friday after Wall Street soared overnight following the Federal Reserve's outsized rate cut.

Bank of Japan keeps key interest rate steady as it treads cautiously on normalizing policy. The Bank of Japan kept its benchmark interest rate steady at 'around 0.25%', the highest rate since 2008 at the conclusion of a two-day meeting Friday.

Japan's economy has recovered moderately, the central bank said in its official statement, while acknowledging 'some weakness has been seen in part.'

BOJ said the country's core inflation rate, which strips out fresh food prices will rise through fiscal year 2025.

Japan's Core CPI, excluding volatile fresh food prices, increased by 2.8% year-on-year in August, reaching a 10-month high. This figure was in line with expectations and up from the 2.7% recorded in the previous month. A core reading that excludes both fresh food and energy prices, closely watched by the BOJ as a gauge of underlying inflation, rose to 2% in August from 1.9% in the prior month. Headline CPI inflation reached a 10-month high of 3% in August, up from 2.8% in the previous month.

In China, the central bank maintained its benchmark lending rates, disappointing hopes for immediate policy support to bolster its struggling economy.

China also kept its key lending rates steady, with the one-year loan prime rate at 3.35% and the five-year LPR at 3.85%.

US stocks surged to new all-time highs on Thursday, as markets welcomed the Federal Reserve's aggressive interest rate cut to protect the labor market. The S&P 500 gained 1.7%, reaching 5,713.64, while the tech-heavy Nasdaq Composite Index jumped 2.5% to 18,013.98.

The Fed on Wednesday reduced its key lending rate by 0.50%, opting for a larger cut after considering a quarter-point move.

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