Market Commentary - Mid-Session
Indices open flat; Nifty below 24,950 As on : 17-Oct-24  09:35

The frontline indices traded sideways in early trade. The Nifty traded below the 24,950 mark. IT, PSU bank and metal shares advanced while auto, realty and media shares declined.

At 09:30 IST, the barometer index, the S&P BSE Sensex, was up 14.82 points or 0.01% to 81,505.44. The Nifty 50 index lost 32 points or 0.13% to 24,939.30.

In the broader market, the S&P BSE Mid-Cap index fell 0.14% and the S&P BSE Small-Cap index shed 0.09%.

The market breadth was positive. On the BSE, 1,460 shares rose and 1,396 shares fell. A total of 121 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 3,435.94 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 2,256.29 crore in the Indian equity market on 16 October 2024, provisional data showed.

According to NSDL data, FPIs have sold shares worth over Rs 71906.71 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:

The Union Cabinet has approved an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 1 July 2024 representing an increase of 3% over the existing rate of 50% of the basic pay/pension, to compensate against price rise. This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission. The combined impact on the exchequer on account of both DA and DR would be Rs.9,448.35 crore per annum. This will benefit about 49.18 lakh central government employees and 64.89 lakh pensioners.

Stocks in Spotlight:

Bajaj Auto tumbled 7.44%. The company's standalone net profit increased 9.19% to Rs 2,005.04 crore on 21.80% jump in revenue from operations to Rs 13,127.47 crore in Q2 FY25 over Q2 FY24. Meanwhile, the company's board has approved the additional investment in the equity share capital of Bajaj Brazil, a wholly owned subsidiary of the company of up to $10 million equivalent to Rs 84 crore.

L&T Technology Services (LTTS) slipped 2.62%. The company's consolidated net profit grew 1.91% to Rs 319.60 crore in Q2 FY25 as against Rs 313.60 crore in Q1 FY25. Revenue from operations was at Rs 2,572.9 crore in the September 2024 quarter, up 4.50% as against Rs 2,461.9 crore reported in the preceding quarter same year.

Numbers to Track:

The yield on India's 10-year benchmark federal paper advanced 1.73% to 6.890 as compared with previous close 6.885.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 84.0050, compared with its close of 84.0275 during the previous trading session.

MCX Gold futures for 4 December 2024 settlement shed 0.03% to Rs 76,644.

The United States 10-year bond yield rose 0.35% to 4.030.

In the commodities market, Brent crude for December 2024 settlement added 27 cents or 0.36% to $74.49 a barrel.

Global Markets:

Asian stocks traded higher on Thursday, buoyed by anticipation of government stimulus measures for China's property sector and strong earnings prospects for tech companies. Chinese shares were particularly upbeat ahead of a government briefing detailing support plans for the struggling real estate market. This briefing is part of a series of government initiatives aimed at bolstering the economy.

Asian markets received a positive boost from Wall Street's performance, where tech stocks and strong earnings contributed to gains on Wednesday. Investors are now focused on upcoming earnings reports and economic data. At the close in NYSE, the Dow Jones Industrial Average gained 0.79% to hit a new all time high, while the S&P 500 index added 0.47%, and the NASDAQ Composite index gained 0.28%.

On Thursday, investors will be watching U.S. retail sales and industrial production data for insights into the economy's health. As expectations for a slower pace of interest rate cuts by the Federal Reserve grow, these economic indicators will be closely monitored.

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