Market Commentary - Mid-Session
Market near day's high; PSU bank shares advance As on : 09-Oct-24  11:39

The domestic equity benchmarks traded with substantial gains in mid-morning trade as RBI kept interest rate unchanged. The Nifty traded above the 25,200 level. PSU bank shares extended gains for the second consecutive trading session.

At 11:30 IST, the barometer index, the S&P BSE Sensex jumped 626.28 points or 0.78% to 82,258.82. The Nifty 50 index added 208.55 points or 0.83% to 25,221.70.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index gained 1.53% and the S&P BSE Small-Cap index jumped 1.75%.

The market breadth was strong. On the BSE, 2,998 shares rose and 760 shares fell. A total of 107 shares were unchanged.

RBI Policy Outcome:

Reserve Bank of India (RBI) Governor Shaktikanta Das announced that the Monetary Policy Committee (MPC) has decided to keep interest rates unchanged, aligning with market expectations, while shifting its policy stance from withdrawal of accommodation to neutral. The MPC voted by a 5:1 majority to maintain the policy repo rate at 6.5%. The RBI also retained its GDP growth target for FY25 at 7.2%. However, Consumer Price Index (CPI) inflation for September is expected to rise significantly due to unfavorable base effects and increasing food prices, according to the governor.

IPO Update:

The initial public offer (IPO) of Garuda Construction and Engineering received bids for 5,52,15,958 shares as against 1,99,04,862 shares on offer, according to stock exchange data at 11:15 IST on Wednesday (09 October 2024). The issue was subscribed 2.77 times.

The issue opened for bidding on Tuesday (08 October 2024) and it will close on Thursday (10 October 2024). The price band of the IPO is fixed between Rs 90 to Rs 95 per share. An investor can bid for a minimum of 157 equity shares and in multiples thereof.

Buzzing Index:

The Nifty PSU Bank index gained 1.33% to 6,667.70. The index rallied 2.70% in two consecutive trading sessions.

Central Bank of India (up 2.68%), Punjab National Bank (up 2.51%), State Bank of India (up 2.37%), Union Bank of India (up 2.01%), Punjab & Sind Bank (up 1.81%), UCO Bank (up 1.45%), Bank of India (up 0.98%), Indian Overseas Bank (up 0.9%), Indian Bank (up 0.29%) and Canara Bank (up 0.29%) advanced.

Stocks in Spotlight :

Rites zoomed 10.20% after the company announced that it has signed a Memorandum of Understanding (MoU) with Etihad Rail for developing railways and related infrastructure services works in UAE and wider region.

Alembic Pharmaceuticals advanced 1.91% after the company announced the successful completion of the United States Food and Drug Administration (US FDA) inspection for its oncology formulation facility located at Panelav, Gujarat.

Global Markets:

Asian stocks traded mixed on Wednesday, as investors remained cautious amid ongoing geopolitical tensions and a lack of concrete stimulus details from China.

Chinese shares experienced a sharp decline as investors were disappointed by the absence of specific measures to boost the economy. Despite repeated calls from investors, Beijing has been hesitant to implement targeted fiscal stimulus.

US stocks rebounded on Tuesday, following a decline the previous day, as oil prices eased and investors assessed the situation in the Middle East. The S&P 500 gained 0.97%, the Nasdaq Composite rose 1.45%, and the Dow Jones Industrial Average added 0.3%.

Markets are now closely watching for clues about future US interest rate policy, as doubts persist regarding the Federal Reserve's plans for further rate cuts. The minutes of the Fed's September meeting are scheduled for release later on Wednesday, and several Fed officials are also set to speak.

Consumer price index inflation data, due on Thursday, is expected to play a significant role in shaping the Fed's outlook.

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