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Domestic benchmark indices fell for the third straight session on Tuesday, with Nifty slipping below 25,800. Media, IT and auto stocks climbed. The recent rise in Chinese stocks, fueled by recovery hopes, has led to significant fund flows to the region.
The S&P BSE Sensex fell 33.49 points or 0.04 per cent to 84,266.29. The Nifty 50 index fell 13.95 points or 0.05 per cent to 25,769.90. The 50 unit index corrected by 1.70% during three consecutive sessions.
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Titan Company (down 0.83%), Reliance Industries (down 0.81%) and HDFC Bank (down 0.34%) were major drags.
The market as a whole has outperformed the front-line indexes. The S&P BSE Mid-Cap Index rose 0.27% and the S&P BSE Small-Cap Index rose 0.56%.
The scale of the market has been positive. On BSE, 2,296 stocks rose and 1,668 stocks fell. In total, 90 stocks remained unchanged.
The NSE’s India VIX index, a gauge of near-term market volatility expectations, fell 6.25 per cent to 11.99.
The National Stock Exchange will be closed on Wednesday, October 2, 2024, on the occasion of Mahatma Gandhi Jayanti.
Economy:
India’s fiscal deficit remained under control between April and August, reaching 27% of the target for the full year. This lockdown was attributed to weak spending in the first months of the financial year. Government spending was lower due to the general election. In comparison, the deficit stood at 36% during the same period in FY24.
The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) fell to 56.5 in September from 57.5 in August, highlighting a solid improvement in the sector’s health which was nevertheless the weakest since January.
Figures to watch:
The yield on the benchmark 10-year Indian federal bond rose 1.41 per cent to 6.845 from its previous close of 6.865.
In the foreign exchange market, the rupee fell slightly against the dollar. The partially convertible rupee was hovering at 83.8250, compared to its close of 83.7925 in the previous trading session.
MCX Gold futures for October 4, 2024 settlement added 0.34% to Rs 75,506.
The U.S. Dollar Index (DXY), which tracks the value of the greenback against a basket of currencies, rose 0.33% to 101.11.
The US 10-year bond yield fell 1.65% to 3.745.
In the commodities market, Brent crude for December 2024 settlement fell 31 cents or 0.43% to $71.70 per barrel.
Global markets:
Dow Jones futures lost 80 points, indicating a negative opening in the US stock market today.
Most European stocks rose today as euro zone inflation fell below 2% for the first time since mid-2021, preliminary data showed Tuesday, likely increasing the chances of a further cut in interest rates from the European Central Bank.
Asian stocks ended on a mixed note after Federal Reserve Chairman Jerome Powell indicated that recent excessive cuts by the U.S. central bank should not be taken as a sign that future measures will be as aggressive. The US dollar strengthened in response. At the same time, heightened tensions in the Middle East have added to market uncertainty.
With mainland Chinese financial markets closed for the rest of the week, the recent rally in Asian markets is expected to pause. Hong Kong’s Hang Seng is also closed on Tuesday.
Japan announced that its unemployment rate for August fell to 2.5%, down from 2.7% in July.
U.S. stocks closed higher on Monday, recovering from earlier losses triggered by Powell’s remarks. The Dow Jones Industrial Average rose 0.04% to a record closing high of 42,330.15. The S&P 500 gained 0.42% to also hit a new closing record at 5,762.48. The Nasdaq Composite added 0.38%.
Investors had been expecting more aggressive rate cuts from the Federal Reserve at its final two meetings of the year. However, Powell indicated the central bank would likely stick to quarter-point rate cuts in the future, citing recent economic data that showed strong growth and consumer spending.
Impact on automobile sales in September:
Tata Motors lost 1%. Vehicle sales of domestic and international automobile majors declined by 11.52% to 2,15,034 units in September 2024 compared to 2,43,024 units sold in September 2023.
Bajaj Auto fell 1.3%. The company reported a 19.60 per cent rise in total automobile sales to 4,69,531 units in September 2024 from 3,92,558 units in September 2023.
Kubota Escorts decreased by 1.7%. The tractor manufacturer announced that sales of its agricultural machinery business division increased by 2.47% to 12,380 units in September 2024 compared to 12,081 units sold in September 2023.
Furthermore, the company’s construction equipment business division sold 510 machines in September 2024, recording a decrease of 18.7% compared to the 627 machines sold in September 2023.
Ashok Leyland added 1.23% after the company reported total vehicle sales of 17,233 units for the month of September 2024, a decline of 10% from the sales of 19,202 units sold in September 2023.
Steel Strips Wheels added 0.7% after the company reported monthly net sales of Rs 362.12 crore, down 9.89% from the figure of Rs 401.88 crore recorded in September 2023.
TVS Motor Company fell 0.05%. The company said it recorded monthly sales of 482,495 units in September 2024, a growth of 20% compared to 402,553 units in September 2023.
Actions in the spotlight:
Vipul Organics hit a 19.56 per cent higher circuit at Rs 311.75 after the company’s rights issue committee approved raising Rs 25 crore through rights issue of shares. The company will offer 1 share for every 3 shares held on the record date with a premium of Rs 44 for the share of par value Rs 10 (total price Rs 54).
Senco Gold jumped 4.15% after the company announced that its board of directors would consider a fundraising and stock split on October 4, 2024.
Angel One rose 1.50% after the introduction of transaction fees on delivery-based stock trades with effect from November 1 this year.
Andhra Cements climbs 10 per cent to Rs 94,635 after the company filed draft documents with the Securities and Exchange Board of India (SEBI) to raise up to Rs 180 crore through a rights issue.
BASF India surged 7.15%, rising for the fifth day to touch a record high of Rs 8,249.90 today. Last week, the company’s German parent company announced a new global strategy, “Winning Ways,” which aims to focus, accelerate, transform and win.
National Aluminum Company surged 6.54% to hit a record high of Rs 227.35 today after a broker upgraded its rating to ‘add’ and raised its price target to Rs 235. The broker cited the company’s strong position in the alumina market as a key positive.
Eraaya Lifespaces jumps 5% after the company announced a strategic restructuring following the acquisition of Ebix, Inc. The company declared control, reaffirms continuity and integration of operations. She opened an investigation into financial irregularities, while suspending Robin Raina pending an investigation.
Godrej Properties advanced 3.11 per cent after the company announced that its board of directors has approved the raising of Rs 6,000 crore through various methods in one or more tranches.
GE Power India rose 2.24 per cent after the company said it received a contract worth Rs 240.4 crore (NPR 340 million) from Blue Energy in Nepal.
Zydus Lifesciences added 1.10% after the company announced that it had received the Establishment Inspection Report (EIR) from the United States Food and Drug Administration (USFDA) for its Pharmez transdermal patch manufacturing facility, Ahmedabad. USFDA conducted an inspection July 15-19, 2024 and was classified as Voluntary Action Indicated (VAI).
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