Indices turn rangebound; oil & gas shares in demand

The key equity indices traded in rangebound in mid-morning trade. The Nifty traded above the 25,300 level. Oil & Gas shares advanced for the third consecutive trading session.

At 11:30 IST, the barometer index, the S&P BSE Sensex gained 291.02 points or 0.35% to 82,650.41. The Nifty 50 index added 74.45 points or 0.30% to 25,309.60.

The Sensex and Nifty clocked an all-time high of 82,725.28 and 25,333.65, respectively in early trade.

In the broader market, the S&P BSE Mid-Cap index rose 0.01% and the S&P BSE Small-Cap index fell 0.24%. The S&P BSE Mid-Cap index hit an all-time high at 49,306.56.

 

The market breadth was positive. On the BSE, 1,886 shares rose and 1,840 shares fell. A total of 214 shares were unchanged.

Economy :

The seasonally adjusted HSBC India Manufacturing Purchasing Managers Index (PMI) stood at 57.5 in August, below July's reading of 58.1 but above its long-run average of 54.0, signalling a substantial improvement in operating conditions.

Indian manufacturers registered softer increases in new business and output during August, albeit with rates of expansion remaining elevated by historical standards. One factor that supported the rise in purchasing activity was a moderation in cost pressures. Concurrently, demand resilience meant that firms were comfortably able to share additional cost burdens with their clients by lifting selling prices.

New business rose sharply midway through the second fiscal quarter, but the pace of expansion eased to a seven-month low. Panel members attributed the increase to advertising, brand recognition and healthy demand trends. Competitive conditions reportedly dampened growth.

Pranjul Bhandari, Chief India Economist at HSBC, said: "The Indian manufacturing sector continued to expand in August, although the pace of expansion moderated slightly. New orders and output also mirrored the headline trend, with some panellists citing fierce competition as a reason for slowdown

On a positive note, the rise in input costs slowed sharply. Manufacturers increased their raw material buying activity in order to build safety stocks. In line with input costs, the pace of output price inflation also decelerated, but the deceleration was to a much smaller extent, thereby increasing margins for manufacturers.

Business outlook for the year ahead moderated slightly in August, driven by competitive pressures and inflation concerns.

IPO Update :

The initial public offer (IPO) of Baazar Style Retail received 3,10,38,742 bids for shares as against 1,50,30,116 shares on offer, according to stock exchange data at 11:20 IST on Monday (2 September 2024). The issue was subscribed 2.07 times.

The issue opened for bidding on 30 August 2024 and it will close on 3 September 2024. The price band of the IPO was fixed between Rs 370 to 389 per share. An investor can bid for a minimum of 38 equity shares and in multiples thereof.

The initial public offer (IPO) of Gala Precision Engineering received 47,77,444 bids for shares as against 22,23,830 shares on offer, according to stock exchange data at 11:20 IST on Monday (2 September 2024). The issue was subscribed 2.15 times.

The issue opened for bidding on Monday (2 September 2024) and it will close on Wednesday (4 September 2024). The price band of the IPO is fixed between Rs 503 to Rs 529 per share. An investor can bid for a minimum of 28 equity shares and in multiples thereof.

Buzzing Index :

The Nifty Oil & Gas index rose 0.88% to 13,575.75. The index added 2.13% in the three consecutive trading sessions.

Gujarat Gas (up 10.22%), Aegis Logistics (up 7.14%), Hindustan Petroleum Corporation (up 4.19%), Gujarat State Petronet (up 3.71%) and Bharat Petroleum Corporation (up 2.56%), Indian Oil Corporation (up 2.14%), Adani Total Gas (up 1.11%), Mahanagar Gas (up 1%), Indraprastha Gas (up 0.7%) and Reliance Industries (up 0.52%) edged higher.

On the other hand, Oil India (down 2.11%), Castrol India (down 0.94%) and GAIL (India) (down 0.36%) edged lower.

Stocks in Spotlight :

Hero MotoCorp advanced 2.09% after the two-wheeler majors total motorcycle and scooter sales rose 4.84% to 512,360 units of in August 2024 as compared with sales of 488,717 units recorded in August 2023.

Indian Hume Pipe Company surged 7.41% after the company received letter of intent from Tapi Irrigation Development Corporation Jalgaon, Maharashtra for an EPC project worth Rs 858.88 crore.

The order includes engineering, procurement and construction (EPC), trial, testing, commissioning of gravity piped distribution network to irrigate 26907 hectare (Ha) command area of Jamphal Dam under Sulwade Jamphal Kanoli lift irrigation project taluka Shindkheda, district Dhule including operation and maintenance of entire system for five years.

Global Markets :

Asian markets traded higher on Monday as investors awaited a data-packed week, culminating in the crucial U.S. jobs report. This report could determine whether the anticipated rate cut this month will be a standard or more aggressive reduction.

A Labor Day holiday in the United States and Canada contributed to thin trading conditions. Meanwhile, gains by far-right parties in German state elections added a layer of political uncertainty.

The Caixin China manufacturing PMI fell to a six month low of 49.1, a faster contraction compared to the 49.4 seen in July. This follows the official gauge, which showed a fourth consecutive month of contraction in August, indicating potential challenges in meeting China's annual growth target. The country's residential property market also continued to decline last month.

U.S. stocks rallied on Friday, buoyed by a report of improved consumer sentiment. This was attributed to easing inflation and expectations of Federal Reserve rate cuts, leading to optimism about personal finances. The Fed's preferred measure of underlying U.S. inflation, the core personal consumption expenditures price index, rose 0.2% month-over-month in July and 2.5% year-over-year.

The Dow Jones Industrial Average closed at a new all-time high, up 0.55%. The S&P 500 gained 1.01%, reaching 5,648.40, and the tech-heavy Nasdaq Composite rose 1.13% to 17,713.62.

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