BAROMETERS END FLAT AHEAD OF POWELL`S SPEECH, NIFTY HOLDS 24,800 MARK

The domestic equity benchmarks closed almost flat today, awaiting clues on interest rate cuts from US Fed Chair Powell`s speech at Jackson Hole. Investors are cautious about the timing, size and pace of these cuts. The Nifty50 held the 24,800 level. Realty, media and IT stocks fell the most, while Nifty Auto bucked the trend.

The barometer index, the S&P BSE Sensex, rose 33.02 points or 0.04% to 81,086.21. The Nifty 50 index added 11.65 points or 0.05% to 24,823.15.

Bajaj Auto (up 4.96%), Tata Motors (up 1.53%) and ICICI Bank (up 1.05%) boosted the indices.

In the broader market, the S&P BSE Mid-Cap index fell 0.66% and the S&P BSE Small-Cap index added 0.15%.

The market breadth was positive. On the BSE, 2,064 shares rose and 1,877 shares fell. A total of 107 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, rallied 4.25% to 13.55.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose 0.11% to 6.975 as compared with previous close 6.967.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.8975, compared with its close of 83.9350 during the previous trading session.

MCX Gold futures for 5 September 2024 settlement gained 0.39% to Rs 71,071.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.06% to 101.45.

The United States 10-year bond yield fell 0.26% to 3.852.

In the commodities market, Brent crude for October 2024 settlement rose 75 cents or 0.97% to $77.97 a barrel.

Global Markets:

Dow Jones futures were up 153 points, indicating a strong opening in the US stocks today.

Europeans market advanced while most Asian stocks ended higher on Friday as investors anticipated comments from Jerome Powell later today.

The yen strengthened early Friday after Japanese inflation data surpassed expectations. Government figures revealed that core CPI, which excludes volatile fresh food prices, rose 2.7% year-over-year in July, while headline CPI inflation increased by 2.8% during the same period.

U.S. stocks declined on Thursday, with the S&P 500 falling 0.89% and the tech-heavy Nasdaq 100 dropping 1.67%. The Dow Jones also decreased by 0.43%. Nvidia Corp. led losses in the tech sector with a sharp 3.7% drop, while Intel Corp. fell by 6.1%. Conversely, bank stocks rose, and energy shares gained alongside rising oil prices. Notably, Peloton Interactive Inc. soared 35% after reporting earnings that exceeded estimates.

Fed Chair Powell is scheduled to speak at the Jackson Hole Symposium on Friday, where he is expected to provide further insights into the central bank�s plans for potential interest rate cuts.

New jobless claims in the U.S. increased slightly last week but remained relatively low, suggesting a gradual slowdown in the labor market. This trend could pave the way for the Federal Reserve to begin lowering interest rates next month. Initial claims for state unemployment benefits rose by 4,000 to a seasonally adjusted 232,000 for the week ended August 17, according to the Department of Labor.

Stocks in Spotlight:

Sun Pharmaceutical Industries advanced 1.44% fter the company announced that it has launched Tedizolid Phosphate tablets in India under the brand name Starizo.

RailTel Corporation of India jumped 5.56% after the company informed that it has received a work order worth Rs 52.66 crore from Uttar Pradesh Police Recruitment and Promotion Board for providing various services.

Prism Johnson rallied 4% after the company announced that it has entered into a shareholders agreement for acquiring 50% of the issued and paid-up capital of Sunbath Sanitary.

Adani Power (APL) rose 0.30%. The company said that it has received an approval from the National Company Law Tribunal (NCLT) Hyderabad Bench to acquire 100% stake in Lanco Amarkantak Power (LAPL).

JSW Energy fell 1.43%. The company said that its wholly owned subsidiary JSW Neo Energy has received letter of award (LoA) for setting up 300 MW ISTS-connected Wind-Solar Hybrid Power Project from NTPC.

Jain Irrigation Systems zoomed 11.16% after the company signed memorandum of association of Coffee Board of India for the commercial release of high quality, disease-resistant coffee plants to growers.

Jindal Saw rose 0.31% after the company�s board approved splitting each share into two (two-for-one stock split).

Poly Medicure added 3.53% after the company said that it has raised Rs 1,000 crore by way of issue of qualified institutional placement (QIP).

IPO Update:

The initial public offer (IPO) of Orient Technologies received 1,12,99,91,256 bids for shares as against 74,49,846 shares on offer, according to stock exchange data at 17:00 IST on Friday (21 August 2024). The issue was subscribed 151.68 times.

The issue opened for bidding on Wednesday (21 August 2024) and it will close on Friday (23 August 2024). The price band of the IPO is fixed between Rs 195 to Rs 206 per share. An investor can bid for a minimum of 72 equity shares and in multiples thereof.

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