Market Commentary - Mid-Session
Indices open on firm note; breadth strong As on : 14-Oct-24  09:35

The key equity indices traded with minor gains in early trade. The Nifty traded above the 25,000 level. Metal, IT and bank shares advanced while media, FMCG and pharma shares declined.

At 09:30 IST, the barometer index, the S&P BSE Sensex, was up 255.51 points or 0.32% to 81,642.10. The Nifty 50 index rose 80.50 points or 0.32% to 25,044.75.

In the broader market, the S&P BSE Mid-Cap index shed 0.07% and the S&P BSE Small-Cap index rose 0.12%.

The market breadth was strong. On the BSE, 1,859 shares rose and 1,234 shares fell. A total of 153 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 4,162.66 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 3,730.87 crore in the Indian equity market on 11 October 2024, provisional data showed.

According to NSDL data, FPIs have sold shares worth over Rs 62,616.18 crore (so far) in the secondary market during October 2024. This follows their purchase of shares worth Rs 46,552.40 crore in September 2024.

Economy:

India's forex reserves dropped by $3.709 billion to $701.176 billion for the week ended October 4, the RBI said on Friday. In the previous reporting week, the reserves had jumped by $12.588 billion to an all-time high of $704.885 billion.

The foreign currency assets, a major component of the reserves, decreased by $3.511 billion to $612.643 billion, the data released on Friday showed.

Gold reserves decreased by $40 million to $65.756 billion during the week, the RBI said.

The Special Drawing Rights (SDRs) were down by $123 million to $18.425 billion.

India's reserve position with the IMF was down by $35 million to $4.352 billion in the reporting week, the apex bank data showed.

Stocks in Spotlight:

Indoco Remedies fell 0.40%. The company announced that the USFDA inspected its facilities in Goa in July. Following the inspection, the USFDA classified the facility as Official Action indicated, indicating that there are significant compliance issues that may lead to regulatory or enforcement actions until they are resolved.

JSW Energy rose 0.70%. The company's unit has signed an energy storage facility agreement with the Maharashtra State Electricity Distribution Company to procure 1,500 MW/12,000 MWh of pumped hydro energy storage.

Numbers to Track:

The yield on India's 10-year benchmark federal paper advanced 1.41% to 6.884 as compared with previous close 6.788.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 84.0675, compared with its close of 84.1050 during the previous trading session.

MCX Gold futures for 4 December 2024 settlement shed 0.13% to Rs 76,206.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.11% to 103.01.

The United States 10-year bond yield gained 0.84% to 4.106.

In the commodities market, Brent crude for December 2024 settlement lost 81 cents or 1.02% to $78.23 a barrel.

Global Markets:

Asian stocks traded higher on Monday, while Chinese market experienced volatility following Beijing's announcement of fiscal stimulus measures. While the stimulus plans were welcomed, concerns over their scope and timing tempered enthusiasm.

China's finance ministry detailed plans for increased government debt issuances and support for provincial governments. However, the lack of specific details, particularly regarding the scale and timing of the measures, caused some disappointment. Analysts expressed concerns about the potential for a significant increase in government debt.

Economic data from China highlighted ongoing weakness. China's consumer price index (CPI) rose 0.4% from a year earlier last month, against a 0.6% rise in August. CPI was unchanged month-on-month, versus a 0.4% gain in August and below an estimated 0.4% increase. Meanwhile, the producer price index (PPI) fell 2.8% year-on-year in September, versus a 1.8% decline the previous month.

Asian markets drew support from the positive performance of US stocks on Friday. The S&P500 rose 0.61% to a record high of 5,815.03 points, while the Dow Jones surged nearly 1% to a record high of 42,863.86 points. The Nasdaq lagged, rising 0.3% to 18,342.94 points. Positive earnings from major banks helped investors look past questions over whether the Federal Reserve will cut interest rates in November.

The Producer Price Index (PPI) for final demand in the US rose 1.8% on a yearly basis in September. This reading followed the 1.9% increase recorded in August. The US consumer price index for all urban consumers rise by 0.2% month on month (MoM) on a seasonally-adjusted basis in September, the same rise as in August and July.

This week, investors will focus on additional third-quarter earnings reports and statements from Federal Reserve officials.

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