Market Commentary - Mid-Session
Sensex below 84,450 mark; European mkt decline As on : 30-Sep-24  13:36

The domestic equity benchmarks traded with significant losses in afternoon trade as Middle East tensions escalate amid Israel-Lebanon conflict. The Nifty slipped below the 25,850 mark. Barring the Nifty Metal index, all the other sectoral indices on the NSE were traded in red.

Investors are watching a busy week of US economic data, ending with the November jobs report. This report could greatly affect the Fed's decision on interest rate cuts.

At 13:30 IST, the barometer index, the S&P BSE Sensex, tanked 1,167.90 points or 1.36% to 84,403.95. The Nifty 50 index dropped 341.30 points or 1.30% to 25,837.85.

In the broader market, the S&P BSE Mid-Cap index fell 0.44% and the S&P BSE Small-Cap index shed 0.18%.

The market breadth was negative. On the BSE, 1,598 shares rose and 2,363 shares fell. A total of 154 shares were unchanged.

Economy:

India's foreign exchange reserves climbed for the sixth consecutive week to a record high of $692.3 billion as of September 20, according to data released by the Reserve Bank of India on Friday (September 27).

The reserves increased by $2.84 billion during the week, following a total rise of $19.3 billion over the previous five weeks.

Foreign currency assets, the largest component of the reserves, rose to $605.7 billion from $603.6 billion in the previous week.

Gold reserves increased, climbing to $63.6 billion from $62.9 billion. Special Drawing Rights (SDRs) stood at $18.5 billion, up from $18.4 billion.

Meanwhile the reserve tranche position with the International Monetary Fund (IMF) fell slightly to $4.46 billion from $4.52 billion.

Gainers & Losers:

JSW Steel (up 2.64%), NTPC (up 1.61%), Hindalco Industries (up 1.43%), Tata Steel (up 1.15%) and Britannia Industries (up 1.05%) were major Nifty gainers.

Hero MotoCorp (down 4.07%), Trent (down 2.96%), Reliance Industries (down 2.63%), Axis Bank (down 2.49%) and Tech Mahindra (down 2.36%) were major Nifty losers.

Stocks in Spotlight:

Kaynes Technology India slipped 2.19%. The company has entered into share purchase agreement (SPA) to acquire 100% stake in Iskraemeco India for total consideration of Rs 42 crore.

Bajaj Steel Industries zoomed 16.43% after the company announced that its board will meet on Thursday, 03 October 2024, to consider the proposal for issuance of bonus shares to the shareholders of the company.

Bajel Projects rallied 6.25% after the company announced that it had successfully entered the emerging data centre segment by securing its first order from an upcoming data centre service provider.

Welspun Enterprises rose 1.34% after the company said that it has been declared as L1 bidder by the Brihanmumbai Municipal Corporation for design and construction of Tertiary Treated Water Conveyance Tunnel from Dharavi to Ghatkopar.

Welspun Corp advanced 1.22% after the company received a prestigious order from the Middle East for supply of coated longitudinal submerged arc welding (LSAW) pipes and bends for sour service.

Max Estates added 1.07% after the company said that its first residential development in Gurugram has garnered pre-sales booking value of Rs 4,100 crore, surpassing the guidance of Rs 4,000 crore provided by the company for FY25.

Avantel jumped 6.47% after the company informed that it has received a purchase order for an amount of Rs 44.49 crore from Larsen & Toubro (L&T) for the supply of satcom systems.

Global Markets:

European shares declined while most Asian stocks traded lower on Monday as Middle East tensions offset China's stimulus measures. The Nikkei tumbled on concerns about Japan's new prime minister favoring higher interest rates.

The Shanghai Composite surged over 4%, extending last week's 13% rally. China's central bank announced plans to reduce mortgage rates for existing home loans by the end of October, likely by an average of 50 basis points. This move is part of Beijing's largest stimulus package since the pandemic, which includes a range of monetary, fiscal, and liquidity support measures.

Despite the stimulus, China's Caixin Manufacturing PMI declined from 50.4 in August to 49.3 in September, indicating a return to contraction. The manufacturing sector deteriorated in September after improving the previous month.

Meanwhile, ongoing Israeli strikes in Lebanon increased geopolitical uncertainty.

In the United States, the Dow closed at a record high on Friday, shrugging off tech sector volatility. Surging energy stocks and signs of cooling inflation boosted investor sentiment.

The 30-stock Dow Jones Industrial Average gained 0.3%, reaching a new closing record of 42,313. The benchmark S&P 500 fell 0.2%, and the tech-heavy Nasdaq Composite was down 0.4%.

The US Personal Consumption Expenditures index, the Fed's preferred inflation measure, showed that annual inflation decreased to 2.2% in August from 2.5% the month before. Fed Chair Jerome Powell is scheduled to deliver a closely watched speech on Monday.

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