BENCHMARKS DROP IN EARLY TRADE; BREADTH NEGATIVE

The key equity indices traded with decent losses in early trade. The Nifty traded below the 26,100 level. Metal, FMCG and consumer durables shares advanced while auto, realty and oil & gas stocks declined.

At 09:30 IST, the barometer index, the S&P BSE Sensex, declined 458.61 points or 0.54% to 85,118.46. The Nifty 50 index slipped 128.90 points or 0.49% to 26,050.05.

In the broader market, the S&P BSE Mid-Cap index fell 0.40% and the S&P BSE Small-Cap index shed 0.41%.

The market breadth was negative. On the BSE, 1,314 shares rose and 1,780 shares fell. A total of 162 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,209.10 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 6,886.65 crore in the Indian equity market on 27 September 2024, provisional data showed.

Economy:

India�s foreign exchange reserves climbed for the sixth consecutive week to a record high of $692.3 billion as of September 20, according to data released by the Reserve Bank of India on Friday (September 27).

The reserves increased by $2.84 billion during the week, following a total rise of $19.3 billion over the previous five weeks.

Foreign currency assets, the largest component of the reserves, rose to $605.7 billion from $603.6 billion in the previous week.

Gold reserves increased, climbing to $63.6 billion from $62.9 billion. Special Drawing Rights (SDRs) stood at $18.5 billion, up from $18.4 billion.

Meanwhile the reserve tranche position with the International Monetary Fund (IMF) fell slightly to $4.46 billion from $4.52 billion.

Stocks in Spotlight:

Avantel zoomed 9% 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.

Bajel Projects advanced 4.09% 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.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper advanced 1.51% to 6.861 as compared with previous close 6.759.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.7575, compared with its close of 83.6975 during the previous trading session.

MCX Gold futures for 4 October 2024 settlement rose 0.39% to Rs 75,151.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.08% to 100.46.

The United States 10-year bond yield added 0.24% to 3.761.

In the commodities market, Brent crude for November 2024 settlement added 6 cent or 0.08% to $72.04 a barrel.

Global Markets:

Asian stocks traded mixed on Monday as Middle East tensions offset China`s stimulus measures. The Nikkei plunged on 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.

Meanwhile, ongoing Israeli strikes in Lebanon increased geopolitical uncertainty.

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.

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