BENCHMARKS END ALMOST FLAT, NIFTY HOLDS 25K

The domestic equity benchmarks failed to maintain their upward momentum on Tuesday, despite an intraday surge, and ultimately closed near the flatline. The Nifty 50 index settled slightly above the 25,000 mark. Among the sectoral gainers, media, financial services, and pharmaceutical stocks led the way. Conversely, FMCG and consumer durables shares faced downward pressure. Looking ahead, the market`s attention will be focused on key economic data releases, including India`s and the United States` GDP figures. Additionally, the monthly derivatives expiry and global developments will also influence market sentiment.

In the barometer index, the S&P BSE Sensex rose 13.65 points or 0.02% to 81,711.76. The Nifty 50 index added 7.15 points or 0.03% to 25,017.75.

Larsen & Toubro (up 1.71%), Infosys (up 1.29%) and ICICI Bank (up 1.09%) supported the indices.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index gained 0.58% and the S&P BSE Small-Cap index rose 0.50%.

The market breadth was positive. On the BSE, 2150 shares rose and 1812 shares fell. A total of 89 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, slipped 1.17% to 13.63.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper jumped 1.82% to 6.976 as compared with previous close of 6.851.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.9250, compared with its close of 83.8750 during the previous trading session.

MCX Gold futures for 4 October 2024 settlement fell 0.24% to Rs 71,865.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.07% to 100.78.

In the commodities market, Brent crude for October 2024 settlement lost 49 cents or 0.60% to $80.94 a barrel.

Global Markets:

European market advanced while Asian stocks ended mixed on Tuesday. Investors remained cautious ahead of key economic data this week. Markets will closely watch the European Union`s inflation print that is set to drop on Friday, for signals on the policy path for the European Central Bank.

From January to July, China`s industrial profits increased by 3.6% compared to the same period last year, up slightly from the 3.5% growth recorded between January and June.

Additionally, Canada`s imposition of tariffs on Chinese electric vehicles, steel, and aluminum, mirroring similar moves by the United States and European Union, further dampened sentiment.

Investors are closely watching Nvidia`s earnings report for insights into AI-related investments.

In the U.S., the Dow Jones Industrial Average reached a new high on Monday, recovering from a recent sell-off. However, the S&P 500 and Nasdaq Composite declined. A shift from technology stocks to other sectors was evident.

Market participants are now focused on the upcoming release of the U.S. personal consumption expenditure price index (PCE) on Friday and the August payrolls report next week.

Federal Reserve Chair Jerome Powell`s speech on Friday signaled an imminent start to interest rate cuts, with markets fully pricing in a 25-basis-point reduction in September. Expectations for further easing in the coming months have also increased.

Stocks in Spotlight:

Zee Entertainment Enterprises (ZEEL) soared 11.45% after the firm has entered into settlement agreement with Culver Max Entertainment (CMEPL) (Sony India) and Bangla Entertainment (BEPL) to mutually terminate transaction documents. The company will settle all disputes related to the Transaction Documents entered into with CMEPL and BEPL regarding the Scheme. All parties will mutually terminate these agreements and release each other from any and all claims related to the transaction documents.

Datamatics Global Services hit an upper circuit of 20% after the company partnered with Microsoft to develop its own copilot solutions focusing on process automation to accelerate business transformation for organizations.

Hindustan Unilever slipped 2% after the FMCG major received a demand of Rs 962.75 crore from the Income Tax Department, including an interest of Rs 329.33 crore.

JSW Energy advanced 2.5% after the company`s wholly owned subsidiary JSW Neo Energy has received letter of award (LoA) for setting up a wind-solar hybrid power project from Maharashtra State Electricity Distribution Company (MSEDCL).

Bondada Engineering hit an upper circuit of 5% after the company announced that it has received a contract worth Rs 575.74 crore to execute solar projects across various districts in Maharashtra.

Ceigall India gained 2.58% after company�s consolidated net profit from continuing operations stood at Rs 77.85 crore in Q1 FY25, registering a growth of 76.53% as against Rs 44.10 crore posted in Q1 FY24. Revenue from operations stood at Rs 822.39 crore in the quarter ended 30 June 2024, up 26.49% as against Rs 650.17 crore posted in corresponding quarter last year.

Shilpa Medicare rallied 3.25% after the company received the U.S. Food and Drug Administration (USFDA) approval for its second new drug application (NDA), Bortezomib injection. This medication is used to treat certain types of cancer.

UltraTech Cement shed 0.28%. The company announced that it has raised $500 million through a sustainability-linked loan (SLL) with participation from six banks. SLLs are loans where the interest rate is linked to the borrower`s sustainability performance. This transaction represents second sustainability-linked financing raised by UltraTech, following its inaugural sustainability-linked bond issuance in 2021.

Paras Defence and Space Technologies added 1%. The company`s board has approved raising of funds aggregating up to Rs 200 crore through qualified institutions placement (QIP) through public and/or private offerings of equity shares.

IPO update:

The initial public offer (IPO) of Premier Energies received 9,34,86,426 bids for shares as against 4,46,40,825 shares on offer, according to stock exchange data at 17:00 IST on Tuesday (27 August 2024). The issue was subscribed 2.09 times.

The issue opened for bidding on 27 August 2024 and it will close on 29 August 2024. The price band of the IPO was fixed between Rs 427 to 450 per share.

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