BENCHMARKS HIT RECORD HIGHS, EYES ON US FED

The domestic equity indices concluded Monday`s trading session with modest gains, buoyed by anticipation of a potential interest rate cut by the US Federal Reserve. The benchmark Nifty 50 index settled above the 25,350 mark, having touched a low of 25,336.20 during the afternoon session. Several sectors, including media, metals, and realty, witnessed strong buying interest. Conversely, FMCG, IT, and pharma stocks faced selling pressure.

Investor sentiment remains optimistic as the US Federal Reserve`s Federal Open Market Committee (FOMC) meeting is scheduled for September 17-18. A significant rate reduction could trigger a surge in foreign investment, potentially driving a substantial upward movement in Indian markets in the coming period.

The S&P BSE Sensex rose 97.84 points or 0.12% to 82,988.78, its record closing high. The Nifty 50 index added 27.25 points or 0.11% to 25,383.75.

JSW Steel (up 1.73%), Larsen & Toubro (up 1.35%) and ICICI Bank (up 0.94%) boosted the indices.

The Sensex and Nifty hit a record high of 83,184.34 and 25,445.70, respectively, in morning trade.

In the broader market, the S&P BSE Mid-Cap index rose 0.01% and the S&P BSE Small-Cap index rose 0.28%.

The S&P BSE Mid-Cap and S&P BSE Small-Cap index hit a record high of 49,506.01 and 57,502.74 respectively.

The market breadth was positive. On the BSE, 2,169 shares rose and 1,942 shares fell. A total of 90 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, fell 0.71% to 12.46.

Economy:

India`s forex reserves jumped $ 5.248 billion to a new all-time high of $ 689.235 billion for the week ended September 6, the Reserve Bank of India said on Friday. The overall kitty had jumped by $ 2.299 billion to a record $ 683.987 billion for the previous reporting week. For the week ended September 6, foreign currency assets, a major component of the reserves, increased by $ 5.107 billion to $ 604.144 billion, the data showed.

Numbers to Track:

The yield on India`s 10-year benchmark federal advanced 1.25% to 6.877 as compared with previous close 6.792.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.8750, compared with its close of 83.9200 during the previous trading session.

MCX Gold futures for 4 October 2024 settlement shed 0.05% to Rs 73,475.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.46% to 100.65.

The United States 10-year bond yield rose 0.14% to 3.652.

In the commodities market, Brent crude for November 2024 settlement added 34 cents or 0.47% to $71.95 a barrel.

Global Markets:

The Dow Jones index futures were up 98 points, indicating a positive opening in the US stocks today.

Most European shares declined while most Asian stocks ended higher on Monday, as investors braced for a significant week of interest rate decisions from the U.S. Federal Reserve and the Bank of England.

Hong Kong stocks falling as investors assessed downbeat economic data from China, while several key markets were closed for holidays.

China`s economy continued to weaken in August, with factory output, consumption, and investment all declining more than expected. Home prices fell at the fastest pace since 2014, prompting the People`s Bank of China to signal more monetary easing and a heightened focus on combating deflation.

Sentiment in Asia was also dampened following a second assassination attempt on US presidential candidate Donald Trump. He was later taken to safety.

US stocks closed higher on Friday ahead of the Federal Reserve`s upcoming policy meeting. The S&P 500 gained 0.54%, the tech-heavy Nasdaq Composite added 0.65%, and the Dow Jones Industrial Average jumped 0.72%, marking their fifth consecutive winning day.

Wall Street is now looking ahead to the Fed`s meeting on September 17-18, where a 25-basis-point interest rate cut is widely expected. The current target rate stands at 5.25% to 5.5%.

Economic data indicating a moderation in inflation further supports the case for a rate cut. The consumer price index in August rose 2.5% year-over-year, the lowest level since February 2021. Wholesale prices increased by 0.2% in August, in line with expectations.

Stocks in Spotlight:

Infosys rose 0.28%. The IT major announced a collaboration with the Life Insurance Corporation of India (LIC) to spearhead its digital transformation initiative called DIVE (Digital Innovation and Value Enhancement).

Reliance Power jumped 4.3% after the media reported that the company secured a battery storage contract of 500 MW through the e-reverse auction (eRA) conducted by the Solar Energy Corporation of India (SECI).

Adani Power jumped 5.12% and Adani Green Energy surged 7.67%. The said companies will sign a long term power purchase agreement (PPA) and supply power agreement (SPA) with Maharashtra State Electricity Distribution Company (MSEDCL) for supply of 6600 MW hybrid solar and thermal power.

Central Depository Services (India) (CDSL) rallied 4.25% after its board approved the appointment of Nehal Vora as the managing director (MD) & chief executive officer (CEO) for a term of five years effective from 18 September 2024.

Torrent Power rose 0.96%. The company informed that it has committed investments of over Rs 64,000 crore for green or renewable energy projects at `RE-Invest 2024` with potential employment of 26,000.

Lumax Auto Technologies (LATL) surged 10.24% after the company has signed an agreement to acquire 100% stake in Greenfuel Energy Solutions (Greenfuel) from its existing shareholders to foray into the green and alternate fuels segment.

JSW Energy rose 0.46%. The company announced that its step-down subsidiary, JSW Renew Energy Two, has completed commissioning for the 300 MW ISTS-connected wind power project awarded by Solar Energy Corporation of India (SECI) tranche X located at Tuticorin, Tamil Nadu.

HEG rallied 1.97% after the company informed that its board has approved the enhancement of existing investment limit from Rs 200 crore to Rs 250 crore in one or more tranches.

The Phoenix Mills advanced 5.30% after the company said that its board has approved issuance of one bonus equity share for every one existing equity share held (1:1).

Exide Industries rose 0.88% after the company informed that it has invested Rs 99.99 crore in its wholly owned subsidiary, Exide Energy Solutions (EESL) by way of subscription to share capital on right basis.

Oriental Rail Infrastructure fell 0.20%. The company announced that it has secured an order worth Rs 1.42 crore from Integral Coach Factory (ICF), Chennai, Indian railways.

New Listing:

Shares of Bajaj Housing Finance closed at Rs 164.99 on the BSE, a premium of 135.70% compared with the issue price of Rs 70.

The scrip was listed at Rs 150, a premium of 114.29% to the issue price. The stock has hit a high of 164.99 and a low of 147. On the BSE, over 608.91 lakh shares of the company were traded in the counter.

Shares of Tolins Tyres closed at Rs 238.30 on the BSE, a premium of 5.44% compared with the issue price of Rs 226.

The scrip was listed at Rs 227, a marginal premium to the issue price. The stock has hit a high of 227 and a low of 226.50. On the BSE, over 2.20 lakh shares of the company were traded in the counter.

Shares of Kross closed at Rs 259.50 on the BSE, a premium of 8.13% as compared with the issue price of Rs 240.

The scrip was listed at Rs 240, matching the issue price. The stock has hit a high of 271 and a low of 231.80. On the BSE, over 25.86 lakh shares of the company were traded in the counter.

IPO Update:

The initial public offer (IPO) of Western Carriers (India) received 10,08,87,375 bids for shares as against 2,08,68,467 shares on offer, according to stock exchange data at 17:00 IST on Monday (16 September 2024). The issue was subscribed 4.83 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.

Northern Arc Capital`s IPO received 6,14,36,709 bids for shares as against 2,14,78,290 shares on offer, according to stock exchange data at 17:00 IST on Monday (16 September 2024). The issue was subscribed 2.86 times.

The issue opened for bidding on Monday (16 September 2024) and it will close on Thursday (19 September 2024). The price band of the IPO is fixed between Rs 249 to 263 per share. An investor can bid for a minimum of 57 equity shares and in multiples thereof.

Arkade Developers` IPO received 13,76,23,090 bids for shares as against 2,37,75,719 shares on offer, according to stock exchange data at 17:00 IST on Monday (16 September 2024). The issue was subscribed 5.79 times.

The issue opened for bidding Monday (16 September 2024) and it will close on Thursday (19 September 2024). The price band of the IPO is fixed between Rs 121 to 128 per share. An investor can bid for a minimum of 110 equity shares and in multiples thereof.

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