Market Commentary - Mid-Session
Benchmarks edge lower; breadth negative As on : 18-Dec-24  09:37

The key equity indices traded with minor losses in early trade. The Nifty slipped below the 24,350 mark. Auto, PSU Bank and Realty shares declined while Pharma, IT and FMCG shares advanced.

At 09:29 IST, the barometer index, the S&P BSE Sensex was down 101.17 points or 0.13% to 80,583.28. The Nifty 50 index lost 19.05 points or 0.08% to 24,316.95.

In the broader market, the S&P BSE Mid-Cap index declined 0.26% and the S&P BSE Small-Cap index fell 0.22%.

The market breadth was negative. On the BSE, 1,472 shares rose and 1,553 shares fell. A total of 110 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 6,409.86 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 2,706.48 crore in the Indian equity market on 13 December 2024, provisional data showed.

Stocks in Spotlight:

Ambuja Cements added 0.28%. The company has announced scheme of arrangement of its subsidiaries Sanghi Industries (SIL) and Penna Cement Industries (PCI). For every 100 equity shares of SIL with a face value of Rs 10 each, Ambuja Cements will issue 12 equity shares with a face value of Rs 2 each, to eligible shareholders of SIL.

Piramal Enterprises shed 0.89%. The company's administrative committee will hold a meeting on Friday to consider and approve the public issuance of non convertible debentures.

Alkem Laboratories rose 1.23%. The company along with its arm Enzene Biosciences entered into a share subscription and shareholders' agreement with Sunsure Solarpark Twenty-Two and Sunsure Energy for equity investment in Sunsure solarpark.

Numbers to Track:

The yield on India's 10-year benchmark federal paper shed 0.05% to 6.866 as compared with previous close 6.870.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 84.9200, compared with its close of 84.9125 during the previous trading session.

MCX Gold futures for the 5 February 2024 settlement slipped 0.03% to Rs 76,845.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.02% to 106.93.

The United States 10-year bond yield gained 0.16% to 4.392.

In the commodities market, Brent crude for February 2024 settlement added 02 cents, or 0.03% to $73.21 a barrel.

Global Markets:

Most Asian shares rose on Wednesday, shrugging off modest declines on Wall Street as investors awaited the Federal Reserve's final interest rate decision of the year. While a 25-basis-point rate cut is widely anticipated, the market is keenly focused on the Fed's outlook for next year, given the potential impact of proposed policies that could reignite inflationary pressures.

Japan's trade balance unexpectedly improved in November, supported by stronger-than-expected exports driven by increased demand from the U.S. and China and a weaker yen. The trade deficit narrowed to 117.6 billion yen ($770 million).

US indices retreated on Tuesday as investors exercised caution ahead of the rate decision, with the tech sector experiencing a slight pullback from recent gains. The S&P 500 fell 0.4% to 6050.61 points, the NASDAQ Composite lost 0.3% to 20,108.30 points, and the Dow Jones Industrial Average closed 0.6% lower at 43,449.90 points. NVIDIA Corporation dropped 1.2%, while Alphabet fell 0.5%. Pfizer rose 4.6% after confirming that its 2025 profit expectations remain largely unchanged.

Meanwhile, data showed US retail sales rose by 0.7% in November, exceeding forecasts. This robust figure suggests the economy remains strong and consumer spending remains healthy, despite challenges like inflation and high interest rates. This strength is underpinned by a solid job market and stable household finances.

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