Market Commentary - End-Session
Sensex rises 74 pts, Nifty hits record high; LTIMindtree soars 6.5% As on : 28-Aug-24  17:36

The key equity indices closed with modest gains on Wednesday, buoyed by strong demand for IT, pharma, and healthcare stocks. Meanwhile, media and public sector banks faced selling pressure. The Nifty 50 index extended its winning streak to tenth consecutive sessions to surpass the 25,050 mark.

Several factors are contributing to the market's positive sentiment. Foreign institutional investors (FIIs) have turned net buyers, injecting liquidity into the market. Additionally, expectations of an imminent interest rate cut by the US Federal Reserve next month are providing a favorable backdrop for Indian equities.

In the barometer index, the S&P BSE Sensex rose 73.80 points or 0.09% to 81,785.56. The Nifty 50 index added 34.60 points or 0.14% to 25,052.35, its record closing high level. The 50 unit index has climbed 3.78% in ten sessions.

The Nifty clocked an all-time high of 25,129.60 in mid-afternoon trade. LTIMindtree (up 6.58%), Bharti Airtel (up 2.20%) and Infosys (up 2.06%) boosted the indices.

In the broader market, the S&P BSE Mid-Cap index rose 0.04% and the S&P BSE Small-Cap index shed 0.12%.

The market breadth was negative. On the BSE, 1815 shares rose and 2147 shares fell. A total of 94 shares were unchanged.

The S&P BSE Mid-Cap and S&P BSE Small-Cap index hit an all-time high at 49,099.45 and 56,416.31, respectively.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, advanced 2.32% to 13.95.

Numbers to Track:

The yield on India's 10-year benchmark federal grew 1.72% to 6.979 as compared with previous close 6.975.

In the foreign exchange market, the rupee edged lower the dollar. The partially convertible rupee was hovering at 83.9600, compared with its close of 83.9325 during the previous trading session.

MCX Gold futures for 4 October 2024 settlement rose 0.30% to Rs 71,350.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.36% to 100.92.

The United States 10-year bond yield fell 0.34% to 3.824.

In the commodities market, Brent crude for October 2024 settlement lost 85 cents or 1.07% to $78.70 a barrel.

Global Markets:

Most European market advanced, while Asian stocks ended mixed on Wednesday as investors eagerly awaited earnings from US chipmaker Nvidia.

Australia's Consumer Price Index (CPI) rose 3.5% year-on-year, down from the previous quarter's 3.8% increase.

Wall Street's major indices reached new highs Tuesday, but the Nasdaq Composite lagged, reflecting concerns about Nvidia's earnings. Anticipation of lower interest rates shifted investor focus away from technology stocks and toward more economically sensitive sectors. The Dow Jones Industrial Average rose 0.02%, the S&P 500 gained 0.16%, and the Nasdaq Composite climbed 0.17%.

Nvidia is once again expected to deliver impressive results, driven by soaring demand for its AI-focused computing platforms. However, investors will be closely watching the company's outlook and guidance, as there is some uncertainty about how long the current level of demand for its products will persist.

Stocks in Spotlight:

NBCC (India) surged 10.27% after the company said that its board will meet on 31 August 2024 to consider a proposal for issue of bonus shares to equity shareholders.

LTIMindtree soared 6.58% to Rs 6127.50 after a domestic broker upped its rating to 'Add' against Reduce' earlier and upgraded its target price to Rs 6,200 from Rs 5,500 earlier. Market sentiment was also boosted by the Karnataka HC staying a Rs 378-cr GST tax order.

GMM Pfaudler rose 3.06% after 41.2 lakh shares or 9.2% equity, changed hands in a big block deal. The buyers and sellers were not immediately known.

Shoppers Stop rose 1.38% after inking a deal with Hollywood makeup brand Max Factor to sell its products in India. Max Factor will expand its presence in India to 70 Shoppers Stop outlets by the end of the year.

Zydus Lifesciences climbed 2.17% after a foreign broker upgraded the stock to a 'Buy' rating, citing the strength of the company's US pipeline as a key driver for future growth. The brokerage raised its target price for the stock to Rs 1,450 from the previous Rs 1,210.

Advait Infratech hit an upper limit of 5% after the company announced that it has received an order worth Rs 296 crore from the Solar Energy Corporation of India (SECI).

DCX Systems hit an upper limit of 5% after the company announced that it has received an order worth Rs 187.29 crore from overseas customer.

Awfis Space Solutions jumped 3.66% after the company said that it has partnered with Nyati group for an additional 3 lakh square feet (Sq.ft) of grade-A workspace to enhance its current managed aggregation (MA) model in Pune.

Ahluwalia Contracts (India) advanced 2.11% after the civil construction company announced that it has secured an order worth Rs 350.35 crore from Bharat Aluminium Company (BALCO) to build housing complex at Chhattisgarh.

Indian Oil Corporation rose 0.26%. The firm said that it has entered into a memorandum of understanding (MoU) with Rashtriya Ispat Nigam (RINL) for suppling of hydraulic and lubricating oils & greases for a period of 5 years from 2024 to 2029.

New Listing:

Shares of Orient Technologies closed at Rs 304.45 on the BSE, representing a premium of 47.79% as compared with the issue price of Rs 206.

The scrip was listed at Rs 290, exhibiting a premium of 40.77% to the issue price.

The stock has hit a high of 304.45 and a low of 285.10. On the BSE, over 6.22 lakh shares of the company were traded.

IPO update:

The initial public offer (IPO) of Ecos (India) Mobility & Hospitality received 4,22,82,284 bids for shares as against 1,26,00,000 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (28 August 2024). The issue was subscribed 3.36 times.

The issue opened for bidding on 28 August 2024 and it will close on 30 August 2024. The price band of the IPO was fixed between Rs 318 to 334 per share. An investor can bid for a minimum of 44 equity shares and in multiples thereof.

Premier Energies' IPO received 29,48,45,364 bids for shares as against 4,46,40,825 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (28 August 2024). The issue was subscribed 6.60 times.

The issue opened for bidding on 27 August 2024 and it will close on 29 August 2024. The price band of the IPO was fixed between Rs 427 to 450 per share. An investor can bid for a minimum of 33 equity shares and in multiples thereof.

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