Market Commentary - End-Session
Sensex slips 151 pts, Nifty below 25,150 as traders await US jobs data As on : 05-Sep-24  17:23

Domestic equity benchmarks closed slightly lower on Thursday, with the Nifty50 settling below 25,150 after reaching a high of 25,275.45. Volatility was heightened due to the expiry of weekly index options on the NSE. IT, media, and consumer durables stocks outperformed, while auto and oil & gas sectors faced selling pressure. Investor sentiment remained cautious ahead of a series of key US economic data releases, which could influence the Federal Reserve's decision on interest rate cuts. US jobless claims are due out on Thursday, followed by nonfarm payrolls and the unemployment rate on Friday.

The S&P BSE Sensex declined 151.48 points or 0.18% to 82,201.16. The Nifty 50 index lost 53.60 points or 0.21% to 25,145.10.

Reliance Industries (down 1.41%), Tata Motors (down 1.08%) and Bajaj Finance (down 0.75%) were major drags.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.27% and the S&P BSE Small-Cap index gained 0.56%.

The S&P BSE Mid-Cap and S&P BSE Small-Cap index hit an all-time high at 49,337.63 and 56,771.39, respectively.

The market breadth was positive. On the BSE, 2249 shares rose and 1679 shares fell. A total of 110 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, slipped 1.18% to 14.21.

Numbers to Track:

The yield on India's 10-year benchmark federal paper advanced 1.62% to 6.970 as compared with previous close 6.975.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.9725, compared with its close of 84.0175 during the previous trading session.

MCX Gold futures for 4 October 2024 settlement added 0.62% to Rs 71,908.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.16% to 101.19.

The United States 10-year bond yield decline 0.08% to 3.771.

In the commodities market, Brent crude for November 2024 settlement added 29 cents or 0.40% to $72.99 a barrel.

Global Markets:

Most European shares declined while Asian stocks ended mixed on Thursday, as investors looked ahead to key U.S. economic data.

The US job openings data for July, at 7.67 million, fell below estimates. This marked the lowest level since early 2021, indicating a potential challenge in achieving a soft landing for the world's largest economy.

Market participants will closely monitor the upcoming August economic report on Friday, which could further influence the magnitude of rate cuts.

China's economic difficulties intensified as JPMorgan strategists downgraded the country's stock outlook. Citing a challenging economic landscape and heightened volatility surrounding the US election, they lowered their rating from overweight to neutral. In an attempt to stimulate the property market and broader economy, China is considering interest rate cuts on a significant portion of its mortgage debt.

A notable development saw India surpass China as the largest weighting in the MSCI EM investable market index (IMI).

US stock markets experienced a mixed start to September. The S&P 500 and Nasdaq Composite declined for a second consecutive day Wednesday, while the Dow Jones Industrial Average gained slightly. A temporary return to a normal yield curve provided some support to US stocks, easing recession concerns that had previously plagued investors.

Stocks in Spotlight:

Reliance Industries fell 1.41%. The board of Reliance Industries recommended issuing one bonus equity share for every one share held (1:1). The record date will be intimated separately, it added.

Easy Trip Planners (EaseMyTrip) soared 11% after the company announced venturing into the electric bus manufacturing market through its new subsidiary, Easy Green Mobility. The company is investing Rs 200 crore for extensive R&D, product development, and setting up manufacturing plant over the span of 2-3 years. By 2027-28 target is to operate 2000+ electric buses across country.

Zomato rose 5% after a foreign broker increased its target price from Rs 208 to Rs 340. This reflects growing confidence in Blinkit, which is expanding.

PTC Industries gained 1% after the company announced that its subsidiary, Aerolloy Technologies has received an order from Israel Aerospace Industries (IAI), for supply of titanium cast components for aerospace application. The company said that this is the first time that IAI is sourcing such cast components from India.

Suzlon Energy advanced 2.45% after the company announced that it has executed a conveyance deed with OE Business Park (OEBPPL) for the sale of One Earth Property, its corporate office. The total transaction is for Rs 440 crore.

Godrej Properties fell 1.24%. The company informed that its board has approved the issuance of non-convertible debentures (NCDs) aggregating to Rs 64.60 crore.

Linde India advanced 3.41% after the firm announced that it has entered into the plant sale agreement with Tata Steel for acquiring their industrial gas supply assets

Premier Energies surged 20% after the company received an order from Uttar Pradesh Department of Agriculture for the supply, installation, and commissioning of solar water pumping systems across various districts in the state. The said order is worth Rs 217 crore and it will be completed on or before March 2025.

PNB Housing Finance declined 1.43% after the company informed that its board is scheduled to meet on 9 September to approve the issuance of non-convertible debentures (NCDs) up to Rs 2,500 crore.

IPO Update:

The initial public offer (IPO) of Sree Tirupati Balajee Agro Trading Company received 9,09,66,420 bids for shares as against 1,43,08,000 shares on offer, according to stock exchange data at 17:00 IST on Thursday (5 September 2024). The issue was subscribed 6.36 times.

The issue opened for bidding on Thursday (5 September 2024) and it will close on Monday (9 September 2024). The price band of the IPO is fixed between Rs 78 to 83 per share. An investor can bid for a minimum of 180 equity shares and in multiples thereof.

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