Market Commentary - Mid-Session
Indices edge higher in early trade; breadth strong As on : 05-Sep-24  09:33

The key equity indices traded with minor gains in early trade. The Nifty traded above 25,200 level. Media, metal and banking stocks advanced while realty, pharma and IT stocks declined.

At 09:25 IST, the barometer index, the S&P BSE Sensex, advanced 143.74 points or 0.17% to 82,496.38. The Nifty 50 index added 18.55 points or 0.07% to 25,217.25.

In the broader market, the S&P BSE Mid-Cap index jumped 0.38% and the S&P BSE Small-Cap index gained 0.90%.

The market breadth was strong. On the BSE, 2,328 shares rose and 557 shares fell. A total of 112 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 975.46 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 97.35 crore in the Indian equity market on 4 September 2024, provisional data showed.

Stocks in Spotlight:

PNB Housing Finance advanced 1.15% after the company's board will meet on 9 September 2024, to consider the issuance of non convertible debentures (NCDs) upto Rs 2,500 crore on a private placement basis, in tranches over the six months.

Canara Bank shed 0.09%. The bank will issue five year $300 million medium-term notes through IFSC banking unit. The bonds are to be issued at a coupon rate of 4.896% to be paid on semi annually.

Godrej Properties rose 0.53%. The company's board approved the issuance of 6,460 unsecured, redeemable, rated, listed, non-convertible debentures of face value of Rs 1 lakh, aggregating to Rs 64.60 crore.

Numbers to Track:

The yield on India's 10-year benchmark federal paper jumped 1.53% to 6.975 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 rose 0.01% to Rs 71,487.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.03% to 101.32.

The United States 10-year bond yield fell 0.13% to 3.765.

In the commodities market, Brent crude for November 2024 settlement gained 10 cents or 0.14% to $72.80 a barrel.

Global Markets:

Asian markets traded mixed on Thursday, as investors assessed July pay data out of Japan. Average monthly cash earnings in the country rose 3.6% year-on-year, a softer rise compared to the 4.5% climb seen in June. Investors are looking ahead for other economic data coming from the region include trade data from Australia and Singapore's retail sales numbers.

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.

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