Market Commentary - Mid-Session
Sensex slumps 1,268 pts; private bank shares tumble As on : 30-Sep-24  14:32

The key equity indices traded with deep cuts in mid-afternoon trade as Middle East tensions escalate amid Israel-Lebanon conflict. The Nifty traded below the 25,850 mark. Private bank shares extended losses for the second consecutive trading sessions.

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 14:30 IST, the barometer index, the S&P BSE Sensex, tanked 1,268.09 points or 1.48% to 84,303.76. The Nifty 50 index dropped 370.90 points or 1.42% to 25,808.05.

In the broader market, the S&P BSE Mid-Cap index fell 0.48% and the S&P BSE Small-Cap index shed 0.11%.

The market breadth was negative. On the BSE, 1,700 shares rose and 2,271 shares fell. A total of 158 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 8.61% to 12.99.

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.

Buzzing Index:

The Nifty Private Bank index fell 1.63% to 26,520.15. The index slipped 2.64% in the two trading sessions.

Axis Bank (down 2.74%), ICICI Bank (down 2.4%), Bandhan Bank (down 1.88%), Kotak Mahindra Bank (down 1.32%), HDFC Bank (down 1.22%), RBL Bank (down 1.21%), IndusInd Bank (down 1.07%) edged lower.

On the other hand, Federal Bank (up 1.68%) ,IDFC First Bank (up 0.66%) and City Union Bank (up 0.49%) edged higher.

Numbers to Track:

The yield on India's 10-year benchmark federal paper advanced 1.67% to 6.872 as compared with previous close 6.759.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.7950, compared with its close of 83.6975 during the previous trading session.

MCX Gold futures for 4 October 2024 settlement added 0.62% to Rs 75,325.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.11% to 100.27.

The United States 10-year bond yield gained 0.84% to 3.783.

In the commodities market, Brent crude for November 2024 settlement added 57 cents or 0.79% to $72.55 a barrel.

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