BENCHMARKS END SLIGHTLY LOWER; NSE VIX DROPS BELOW 13 MARK

The domestic equity barometers ended with minor losses on Friday. The benchmark Nifty 50 index closed below the 25,400 mark. FMCG and oil & gas sectors faced selling pressure, while realty, media, and PSU bank stocks gained ground. Global equity markets remained largely positive, buoyed by US macroeconomic data suggesting that inflation may be under control. However, weaker-than-expected US labor market data tempered some of this optimism. Domestic sentiment was supported by daily FII inflows and a decline in US 10-year Treasury yields.

The S&P BSE Sensex declined 71.77 points or 0.09% to 82,890.94. The Nifty 50 index shed 32.40 points or 0.13% to 25,356.50.

Adani Ports & Special Economic Zone (down 1.37%), ITC (down 1.01%) and Reliance Industries (down 0.47%) were major drags.

The broader market advanced. The S&P BSE Mid-Cap index rose 0.48% and the S&P BSE Small-Cap index gained 0.95%.

The S&P BSE Mid-Cap index and S&P BSE Small-Cap index hit an all-time high at 49,351.16 & 57,192.12, respectively.

The market breadth was strong. On the BSE, 2,477 shares rose and 1,481 shares fell. A total of 109 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, dropped 4.79% to 12.55.

Economy:

India�s retail inflation rose to 3.65% in August, slightly higher than 3.6% reported in July. The inflation was within the Reserve Bank of India�s (RBI) medium-term target of 2-6%.

Separately, the Index of Industrial Production (IIP) rose slightly to 4.83% in July from 4.72% in June.

Numbers to Track:

The yield on India`s 10-year benchmark federal grew 1.37% to 6.904 as compared with previous close 6.902.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.9100, compared with its close of 83.9650 during the previous trading session.

MCX Gold futures for 4 October 2024 settlement rose 0.49% to Rs 74,282.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.36% to 101.

The United States 10-year bond yield slipped 0.86% to 3.645.

In the commodities market, Brent crude for November 2024 settlement added 0.73 cents or 1.01% to $72.70 a barrel.

Global Markets:

European stocks advanced on Friday, as investors continued to digest the European Central Bank`s decision to cut rates and its impact on future monetary policy.

The European Central Bank (ECB) implemented a second interest rate cut this year. The key deposit rate was lowered by 25 basis points to 3.5%, aligning with expectations. While the ECB reduced its 2024 economic growth projection, it remains confident that inflation will broadly align with its 2% target by the end of 2025.

Most Asian stocks advanced today as the market remains optimistic about the possibility of a US Federal Reserve interest rate cut.

US stock markets closed higher on Thursday after the latest inflation data solidified expectations for a 25-basis point rate decrease by the Federal Reserve. The Dow Jones Industrial Average gained 0.58%, the S&P 500 rose 0.75%, and the Nasdaq Composite ended 1% higher.

Warner Bros Discovery shares surged 10.4%, while Charter`s stock price increased by 3.6%. Moderna experienced a decline of 12.4%, and Kroger shares rallied 7.2%.

The producer price index (PPI) for final demand rose 0.2% in August, slightly exceeding estimates of 0.1% growth. The core PPI, excluding volatile food and energy prices, increased by 0.3%, surpassing the forecasted 0.2%.

The number of Americans filing initial claims for unemployment benefits rose marginally last week. Initial claims increased by 2,000 to a seasonally adjusted 230,000 for the week ending September 7.

Stocks in Spotlight:

Shares of Sanofi Consumer Healthcare India (SCHIL) made their market debut on Friday, listing on both the NSE and BSE. The stock hit a 5% upper circuit limit to settle at Rs 4,702.90 on the BSE.

SCHIL is a new company that was created through the demerger of Sanofi India. The demerger was approved by the National Company Law Tribunal (NCLT) on June 1, 2024. SCHIL is now an independent company that focuses on the consumer healthcare sector.

Tata Power Company rose 0.47% and Tata Motors added 0.61%. Tata Power said that EV Charging Solutions, a wholly owned subsidiary of Tata Power Renewable Energy signed Memonrandum of Understanding (MoU) with Tata Motors to set up 200 fast charging stations for electric commercial vehicles (CV) in all metro cities.

H G Infra Engineering rallied 4.07% after the firm announced that it has received a letter from the Central Railway for an order worth Rs 716.11 crore.

Puravankara jumped 5% after securing redevelopment rights for Miami Apartments in South Mumbai and a prime land parcel in Bengaluru. This marks Puravankara`s entry into high-value markets.

Transformers and Rectifiers (India) advanced 3.78% after the company announced that it has secured orders worth Rs 114 crore from Rajasthan Rajya Vidyut Prasaran Nigam (RRVPNL).

Nazara Technologies advanced 4.33% after the company informed that it has acquired 47.7% stake in Moonshine Technology (MTPL), the parent company of PokerBaazi, India�s top online poker gaming platform, for Rs 832 crores through a secondary transaction.

BLS International Services gained 5.08% after the firm said that it has signed definitive agreement to acquire a 100% stake in Citizenship Invest (CI) for a consideration of $31 million (approximately Rs 260 crore). The transaction would be funded through internal accruals. The transaction is expected to be completed by 31 October 2024, subject to necessary approvals.

Life Insurance Corporation of India (LIC) added 0.25% and Indian Railway Catering and Tourism Corporation (IRCTC) rose 0.56%. The insurance major has increased its stake in IRCTC to 9.298% from 7.278%. The life insurer purchased 1,61,56,976 shares, or 2.020% equity, at an average cost of Rs 657.614 via open market purchase during the period from 16 December 2022 to 11 September 2024.

SBI Cards and Payment Services added 0.44%. The company`s board will meet on 18 September 2024, to consider raising upto Rs 5,000 crore through non-convertible debentures (NCDs) on a private placement basis in one or more tranches over a period of time.

IPO Update:

The initial public offer (IPO) of Western Carriers (India) received 1,64,59,269 bids for shares as against 2,08,68,467 shares on offer, according to stock exchange data at 17:00 IST on Friday (13 September 2024). The issue was subscribed 0.79 times.

The issue opened for bidding on Friday (13 September 2024) and it will close on Wednesday (18 September 2024). The price band of the IPO is fixed between Rs 163 to Rs 172 per share. An investor can bid for a minimum of 87 equity shares and in multiples thereof.

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