Market Commentary - Mid-Session
Indices trade lower; oil & gas shares tumble As on : 01-Oct-24  14:32

The leading equity indices traded with minor losses in mid-afternoon trade. The Nifty traded below the 25,800 level after hitting day's high of 25,907.60 in early trade. Oil & Gas shares extended losses for the two trading sessions.

At 14:30 IST, the barometer index, the S&P BSE Sensex, was down 121.53 points or 0.15% to 84,172.48. The Nifty 50 index fell 49.85 points or 0.19% to 25,761.

In the broader market, the S&P BSE Mid-Cap index rose 0.25% and the S&P BSE Small-Cap index added 0.45%.

The market breadth was positive. On the BSE, 2,323 shares rose and 1,589 shares fell. A total of 96 shares were unchanged.

The domestic market will be closed on Wednesday, October 2, 2024, in observance of Mahatma Gandhi Jayanti.

Economy:

India's fiscal deficit remained under control during April-August, reaching 27% of the full-year target. This containment was attributed to muted spending in the early months of the fiscal year. The government's spending has been lower due to general elections. In comparison, the deficit stood at a higher 36% during the same period in FY24.

The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) fell from 57.5 in August to 56.5 in September, highlighting a robust improvement in the health of the sector that was nonetheless the weakest since January.

As a result of rising purchasing prices, as well as greater labour costs and favourable demand conditions, Indian manufacturers lifted their charges in September.

The combination of job creation and slower increases in new business meant that companies were able to stay on top of their workloads.

Buzzing Index:

The Nifty Oil & Gas index shed 0.52% to 12,968.15. The index slipped 1.21% in the past two trading sessions.

Oil India (down 1.37%), Oil & Natural Gas Corpn (down 1.16%), Indian Oil Corporation (down 1%), Bharat Petroleum Corporation (down 0.92%) and Mahanagar Gas (down 0.88%), Reliance Industries (down 0.63%), Castrol India (down 0.57%), Indraprastha Gas (down 0.38%) edged down.

On the other hand, Petronet LNG (up 1%), Hindustan Petroleum Corporation (up 0.95%) and GAIL (India) (up 0.77%) edged higher.

Numbers to Track:

The yield on India's 10-year benchmark federal paper advanced 1.60% to 6.858 as compared with previous close 6.865.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.8300, compared with its close of 83.7925 during the previous trading session.

MCX Gold futures for 4 October 2024 settlement added 0.37% to Rs 75,146.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.12% to 100.89.

The United States 10-year bond yield declined 1.38% to 3.757.

In the commodities market, Brent crude for November 2024 settlement lost $1.30 or 1.81% to $70.40 a barrel.

Stocks in spotlight:

TVS Motor Company shed 0.47%. The company said that it has recorded monthly sales of 482,495 units in September 2024 with a growth of 20% as against 402,553 units in the month of September 2023.

Welspun Corp slipped 4.16%. The company announced that it has received large order in the USA for supply of coated helical submerged arc welding (HSAW) pipes for a natural gas pipeline project. The value of the said order is approximately Rs 2,400 crore and the said order will executed during fiscal year 25 and fiscal year 26.

Zydus Lifesciences added 1.19% after the company announced that it has received the establishment inspection report (EIR) from the United States Food and Drug Administration (USFDA) for its transdermal patch manufacturing facility Pharmez, Ahmedabad. The USFDA conducted an inspection from 15 to 19 July 2024, and has been classified as Voluntary Action Indicated (VAI).

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