Market Commentary - Mid-Session
Barometers reverse losses; PSU banks rally As on : 04-Oct-24  11:33

The headline equity benchmarks pared early losses and traded with minor gains in mid-morning trade. The Nifty traded above the 25,300 level after hitting the day's low of 25,094.55 in early trade. PSU bank shares advanced after declining for the previous trading session.

At 11:30 IST, the barometer index, the S&P BSE Sensex, was up 211.74 points or 0.26% to 82,708.84. The Nifty 50 index rose 60.20 points or 0.24% to 25,310.30.

In the broader market, the S&P BSE Mid-Cap index rose 0.11% and the S&P BSE Small-Cap index added 0.11%.

The market breadth was positive. On the BSE, 2,096 shares rose and 1,633 shares fell. A total of 160 shares were unchanged.

Economy :

The HSBC India Services PMI survey, compiled by S&P Global, indicates strong sector performance, but total new business, international sales, and output have all increased at the slowest rates since late 2023.

Despite solid job creation and strengthening business confidence, the Services Business Activity Index fell from 60.9 in August to 57.7 in September, still indicating growth above the neutral mark of 50.0.

The slowdown in output growth, the lowest since November 2023, was influenced by intense competition, cost pressures, and shifts in consumer preferences toward online services. While new business intakes expanded sharply, their growth rate dropped to a ten-month low, and international sales growth weakened significantly, reflecting broader trends in private sector output.

Buzzing Index :

The Nifty PSU Bank index rose 1.66% to 6,789.05. The index fell 1.24% in the past trading session.

Bank of Baroda (up 2.67%), Indian Bank (up 2.57%), Canara Bank (up 1.33%), Central Bank of India (up 1.16%), State Bank of India (up 0.77%), Punjab National Bank (up 0.65%), Union Bank of India (up 0.49%), Indian Overseas Bank (up 0.48%), Punjab & Sind Bank (up 0.37%) edged higher.

On the other hand, Bank of India (down 0.7%), Bank of Maharashtra (down 0.33%) and UCO Bank (down 0.23%) edged lower.

Bank of Baroda advanced 2.67% after the global business of the bank aggregated to Rs 25,06,809 crore as of 30 September 2024, up by 10.23% from Rs 22,74,148 crore as on 30 September 2023.

Stocks in Spotlight :

Suryoday Small Finance Bank (SFB) fell 1.59%. The bank's gross advances increased 35% to Rs to Rs 9,360 crore as on 30 September 2024, as compared to Rs 6,921 crore as on 30 September 2023.

Global Markets:

Asian stocks traded higher on Friday, following losses on Wall Street, with concerns over Middle East tensions keeping investors on edge in the run up to September's U.S. payrolls report.

U.S. President Joe Biden warned that the U.S. was considering strikes on Iranian oil facilities in response to Tehran's missile attack on Israel. Meanwhile, Israel continued its military campaign against the Lebanese armed group Hezbollah, with new air strikes targeting Beirut.

Investors were also closely watching the U.S. nonfarm payrolls report, which could provide further insights into the Federal Reserve's interest rate policy.

U.S. stocks closed lower on Thursday, though they recovered from intraday losses. Traders remained cautious amid the ongoing Middle East conflict and the anticipation of the jobs report. The Dow Jones Industrial Average declined by 0.44%, the S&P 500 fell by 0.17%, and the Nasdaq Composite dropped by 0.04%.

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