Market Commentary - Mid-Session
Nifty below 25,800; metal shares lackluster As on : 01-Oct-24  11:33

The key equity indices continued to trade with minor losses in mid-morning trade. The Nifty traded below the 25,800 level after hitting day's high of 25,907.60 in early trade. Metal shares declined after advancing for the seventh consecutive trading sessions.

At 11:30 IST, the barometer index, the S&P BSE Sensex, declined 129.62 points or 0.15% to 84,170.16. The Nifty 50 index fell 50.45 or 0.20% to 25,760.40.

In the broader market, the S&P BSE Mid-Cap index shed 0.09% and the S&P BSE Small-Cap index rose 0.44%.

The market breadth was strong. On the BSE, 2,215 shares rose and 1,518 shares fell. A total of 150 shares were unchanged.

The domestic market will be closed on Wednesday, October 2, 2024, in observance of Mahatma Gandhi Jayanti.

Economy:

India's fiscal deficit remained under control during April-August, reaching 27% of the full-year target. This containment was attributed to muted spending in the early months of the fiscal year. The government's spending has been lower due to general elections. In comparison, the deficit stood at a higher 36% during the same period in FY24.

The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) fell from 57.5 in August to 56.5 in September, highlighting a robust improvement in the health of the sector that was nonetheless the weakest since January.

As a result of rising purchasing prices, as well as greater labour costs and favourable demand conditions, Indian manufacturers lifted their charges in September.

The combination of job creation and slower increases in new business meant that companies were able to stay on top of their workloads.

Buzzing Index :

The Nifty Metal index fell 0.81% to 10,116. The index advanced 9.31% in the seven trading sessions.

Welspun Corp (down 2.05%), Steel Authority of India (down 1.87%), NMDC (down 1.69%), Hindustan Zinc (down 1.61%), Hindustan Copper (down 1.53%), Tata Steel (down 1.45%), Jindal Steel & Power (down 1.15%), Jindal Stainless (down 1.06%), JSW Steel (down 0.8%) and Adani Enterprises (down 0.48%) edged lower.

On the other hand, National Aluminium Company (up 2.36%), Ratnamani Metals & Tubes (up 0.06%) edged higher.

Stocks in Spotlight :

NCC added 1.72% after the company announced that it has received orders valuing Rs 2,327 crore in the month of September 2024. Out of these, orders worth Rs 1,417 crore relates to transportation division, Rs 520 crore relates to electrical division and Rs 390 crore relates to building division.

Sun Pharmaceutical Industries fell 0.86%. The company said that it has entered into a global exclusive commercialization, license, and supply agreement with Philogen for commercializing the latter's specialty product Fibromun. Philogen is an Italian-Swiss company active in the biotechnology sector, specialized in the research and development of pharmaceutical products for the treatment of highly lethal diseases.

Bajaj Auto declined 1.89%. The company reported 19.60% jump in total auto sales to 4,69,531 units in September 2024 as against 3,92,558 units in September 2023. While the company's domestic sales increased 23.18% to 3,11,887 units, exports rose by 13.11% to 1,57,644 units in September 2024 over September 2023.

Global Markets:

Asian stocks traded mixed after Federal Reserve Chair Jerome Powell indicated the recent outsized cuts enacted by the U.S. central bank should not be interpreted as a sign that future moves will be as aggressive. The U.S. dollar strengthened in response. Meanwhile, heightened tensions in the Middle East added to market uncertainty.

With mainland China's financial markets closed for the remainder of the week, the recent rally in Asian markets is expected to pause. Hong Kong's Hang Seng is also closed on Tuesday.

Japan reported its unemployment rate for August eased to 2.5%, down from 2.7% in July

U.S. equities closed higher on Monday, recovering from earlier losses triggered by Powell's remarks. The Dow Jones Industrial Average rose by 0.04% to a record closing high of 42,330.15. The S&P 500 gained 0.42% to also reach a new record close of 5,762.48. The Nasdaq Composite added 0.38%.

Investors had anticipated more aggressive rate cuts from the Federal Reserve in its final two meetings of the year. However, Powell indicated that the central bank would likely stick to quarter-point rate reductions moving forward, citing recent economic data that showed strong growth and consumer spending.

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