Market Commentary - Mid-Session
Market opens at fresh life high; breadth strong As on : 23-Sep-24  09:37

The key equity indices traded with modest gains in early trade. The Nifty traded near the 25,900 level. All the sectoral indices on NSE were in the green with PSU bank, pharma and auto shares gaining the most.

At 09:30 IST, the barometer index, the S&P BSE Sensex, added 258.28 points or 0.30% to 84,797.65. The Nifty 50 index rose 105.35 points or 0.41% to 25,896.30.

The Sensex and Nifty clocked an all-time high of 84,862.89 and 25,911.60, respectively in early trade.

In the broader market, the S&P BSE Mid-Cap index added 0.24% and the S&P BSE Small-Cap index rose 0.61%.

The market breadth was strong. On the BSE, 2,175 shares rose and 954 shares fell. A total of 142 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 14,064.05 crore, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 4,427.08 crore in the Indian equity market on 20 September 2024, provisional data showed.

Economy:

India's forex reserves rose by $223 million to a new all-time high of $689.458 billion for the week ended on September 13, according to the Reserve Bank data released on Friday.

The overall forex kitty had jumped by $5.248 billion to a high of $689.235 billion for the previous reporting week ended on September 6.

The foreign currency assets decreased by $515 million to $603.629 billion, the data showed.

Gold reserves increased by $899 million to $62.887 billion during the week, the RBI said.

The Special Drawing Rights (SDRs) dropped by $53 million to $18.419 billion, the apex bank said.

India's reserve position with the IMF declined by $108 million to $4.523 billion in the reporting week, the apex bank data showed.

Stocks in Spotlight:

Vodafone Idea surged 8.59% after the company has signed a $3.6 billion deal with Nokia, Ericsson and Samsung for the supply of network equipment over a period of three years. This is the first step in the company's Rs 55,000-crore capex plan.

Adani Total Gas jumped 5.34% after the firm secured funding of $375 million from international lenders to expand its capacity its city gas distribution network.

Mankind Pharma advanced 2.59% after the company's board approved to raise funds aggregating to Rs 10,000 crore through non convertible debentures (NCDs) and commercial papers (CPs) on private placement basis.

Numbers to Track:

The yield on India's 10-year benchmark federal paper advanced 1.69% to 6.876 as compared with previous close 6.761.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.4600, compared with its close of 83.5200 during the previous trading session.

MCX Gold futures for 4 October 2024 settlement rose 0.24% to Rs 74,999.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.06% to 100.78.

The United States 10-year bond yield grew 0.71% to 3.754.

In the commodities market, Brent crude for November 2024 settlement gained 54 cents or 0.72% to $75.03 a barrel.

Global Markets:

Asian markets traded higher on Monday, buoyed by continued optimism surrounding recent interest rate cuts. The People's Bank of China (PBOC) loosened monetary conditions by reducing its 14-day reverse repo rate. While this move provided a positive impetus, gains were tempered by the PBOC's recent decision to maintain its benchmark loan prime rate.

Regional trading activity was subdued due to a market holiday in Japan. However, Asian markets were building on strong gains from the previous week, following the Federal Reserve's interest rate cut and the initiation of an easing cycle. Investors were eagerly awaiting key economic indicators and statements from U.S. officials for further insights into the Fed's monetary policy path.

On Wall Street, the Dow Jones Industrial Average closed at a new record high on Friday, despite a mixed performance overall. The 30-stock Dow inched up 0.09%, for a new closing high of 42,063.36. The S&P 500 pulled back 0.19%, and the Nasdaq Composite dropped 0.36%. Investors weighed potential risks to economic growth and priced in more aggressive rate cuts than indicated by the Fed's dot plot projections.

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