Domestic equity benchmarks experienced a sharp decline today, mirroring global trends, as tensions in the Middle East escalated. The Nifty50 closed below 25,850, with sectors like auto, banking, and finance bearing the brunt of the sell-off. However, metals and media stocks bucked the trend. Global investors are closely watching US economic data, particularly the jobs report, which could influence the Fed's interest rate decisions. While China's market saw a rebound due to stimulus measures, India's premium valuation and global pressures weighed on its performance. Domestically, investors are looking forward to Q2 earnings reports, hoping for a reversal after a weak Q1.
The S&P BSE Sensex, tanked 1,272.07 points or 1.49% to 84,299.78. The Nifty 50 index dropped 368.10 points or 1.41% to 25,810.85.
Reliance Industries (down 3.23%), ICICI Bank (down 2.58%) and HDFC Bank (down 1.19%) were major drags.
In the broader market, the S&P BSE Mid-Cap index fell 0.28% and the S&P BSE Small-Cap index rose 0.07%.
The market breadth was negative. On the BSE, 1,819 shares rose and 2,223 shares fell. A total of 151 shares were unchanged.
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The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 6.89% to 12.79.
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. In comparison, the deficit stood at a higher 36% during the same period in FY24.
Numbers to Track:
The yield on India's 10-year benchmark government bond rose 1.60% to 6.867% from the previous closing of 6.759%.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.7950, compared with its close of 83.6975 during the previous trading session.
MCX Gold futures for 4 October 2024 settlement added 0.08% to Rs 75,776.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.15% to 100.23.
The United States 10-year bond yield gained 0.89% to 3.785.
In the commodities market, Brent crude for November 2024 settlement shed 1 cent or 0.01% to $71.53 a barrel.
Global Markets:
European stocks declined on Monday as investors weighed a mix of local economic data.
The British economy grew slightly below expectations, expanding by 0.5% in the second quarter compared to the initial estimate of 0.6%.
In Germany, the inflation rate in North Rhine-Westphalia, the most populous state, fell to 1.5% year-on-year in September from 1.7% in August. Additionally, market participants were focused on European Central Bank President Christine Lagarde's speech on monetary policy at the European Parliament.
Across the Atlantic, US Federal Reserve Chair Jerome Powell's speech at the National Association for Business Economics Annual Meeting in Nashville was also closely watched by investors.
Asian stocks ended lower as tensions in the Middle East offset China's stimulus measures. The Nikkei index tumbled amid concerns about Japan's new prime minister favoring higher interest rates.
The Shanghai Composite surged over 4%, extending last week's 13% rally. China's central bank announced plans to reduce mortgage rates for existing home loans by the end of October, likely by an average of 50 basis points. This move is part of Beijing's largest stimulus package since the pandemic, which includes a range of monetary, fiscal, and liquidity support measures.
Despite the stimulus, China's Caixin Manufacturing PMI declined from 50.4 in August to 49.3 in September, indicating a return to contraction. The manufacturing sector deteriorated in September after improving the previous month.
In the United States, the Dow closed at a record high on Friday, shrugging off tech sector volatility. Surging energy stocks and signs of cooling inflation boosted investor sentiment.
The 30-stock Dow Jones Industrial Average gained 0.3%, reaching a new closing record of 42,313. The benchmark S&P 500 fell 0.2%, and the tech-heavy Nasdaq Composite was down 0.4%.
The US Personal Consumption Expenditures index, the Fed's preferred inflation measure, showed that annual inflation decreased to 2.2% in August from 2.5% the month before. Fed Chair Jerome Powell is scheduled to deliver a closely watched speech on Monday.
Stocks in Spotlight:
Shares of rice exporters advanced today after the government exempted non basmati white rice from export duty, while reducing the levy on parboiled rice to 10%. The duty cut comes within a fortnight of the government removing the minimum export price on basmati rice.
Shares of Kohinoor Foods (up 15.8%), Chaman Lal Setia (up 2.6%), KRBL (up 0.67%) and LT Foods (up 1%) edged higher.
Shivalik Bimetal Controls rose 4.51% to Rs 650 after the company announced entry of new institutional investors, remaining promoter stake increase, and leadership transition.
The Ghumman family, the remaining promoters of Shivalik Bimetal Controls, have increased their stake in the company from 25.5% to 33.15%. This increase was facilitated by the retirement and exit of the Sandhu family members, who were previously associated with the company. In addition to the change in promoter ownership, Shivalik Bimetal Controls has successfully onboarded several new institutional investors. On 27 September 2024, a series of bulk transactions were executed in the counter.
Kaynes Technology India slipped 2.3%. The company has entered into share purchase agreement (SPA) to acquire 100% stake in Iskraemeco India for total consideration of Rs 42 crore.
Bajaj Steel Industries zoomed 16.23% after the company announced that its board will meet on Thursday, 03 October 2024, to consider the proposal for issuance of bonus shares to the shareholders of the company.
Shakti Pumps (India) hit an upper circuit of 5% after the company said that its board scheduled to meet on Monday, 7 October 2024 to consider the issue of 5 bonus equity shares for every 1existing equity share (5:1).
Aurobindo Pharma slipped 3.16% after US Food and Drug Administration (USFDA) issued 10 observations to the companys wholly owned subsidiary, Apitoria Pharmas API manufacturing facility situated in Telangana.
Bajel Projects rallied 6.49% after the company announced that it had successfully entered the emerging data centre segment by securing its first order from an upcoming data centre service provider.
Welspun Enterprises rose 1.46% after the company said that it has been declared as L1 bidder by the Brihanmumbai Municipal Corporation for design and construction of Tertiary Treated Water Conveyance Tunnel from Dharavi to Ghatkopar.
NBCC (India) advanced 1.13% after the company announced that it has received work order worth Rs 101 crore from National Highways Authority of India (NHAI).
Welspun Corp advanced 3.51% after the company received a prestigious order from the Middle East for supply of coated longitudinal submerged arc welding (LSAW) pipes and bends for sour service.
Avantel jumped 7.14% after the company informed that it has received a purchase order for an amount of Rs 44.49 crore from Larsen & Toubro (L&T) for the supply of satcom systems.
New Listing:
Shares of Manba Finance closed at Rs 157.45 on the BSE, a premium of 31.21% as compared with the issue price of Rs 120.
The scrip was listed at Rs 150, a premium of 25% to the issue price.
The stock has hit a high of 157.45 and a low of 144. On the BSE, over 14.05 lakh shares of the company were traded in the counter.
IPO Update:
The initial public offer (IPO) of Diffusion Engineers received bids for 75,54,75,336 shares as against 65,98,500 shares on offer, according to stock exchange data at 17:00 IST on Monday (30 September 2024). The issue was subscribed 114.49 times.
The issue opened for bidding on Thursday (26 September 2024) and it will close on Monday (30 September 2024). The price band of the IPO is fixed between Rs 159 to Rs 168 per share. An investor can bid for a minimum of 88 equity shares and in multiples thereof.
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