BENCHMARKS TAKE A BREATHER, NIFTY HOLDS 26,170; VIX SLIPS BELOW 12 MARK

The domestic equities closed slightly lower on Friday, snapping a recent rally fueled by the U.S. interest rate cut. Energy, healthcare, and pharma sectors led the gains, while media, real estate, and private banks lagged. Despite the minor setback, the market`s overall upward momentum remains strong, supported by ample domestic liquidity.

In the barometer index, the S&P BSE Sensex slipped 264.27 points or 0.31% to 85,571.85. The Nifty 50 index lost 37.10 points or 0.14% to 26,178.95.

ICICI Bank (down 1.83%), HDFC Bank (down 1.65%) and Larsen & Toubro (down 1.49%) were major drags.

The Sensex and Nifty clocked an all-time high of 85,978.25 and 26,277.35, respectively in mid-morning trade.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.29% and the S&P BSE Small-Cap index added 0.07%.

The market breadth was positive. On the BSE, 1,979 shares rose and 1,957 shares fell. A total of 124 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, shed 0.62% to 11.93.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper advanced 2.22% to 6.867 as compared with previous close 6.828.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.6875, compared with its close of 83.6600 during the previous trading session.

MCX Gold futures for 4 October 2024 settlement fell 0.27% to Rs 75,180.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.08% to 100.44.

The United States 10-year bond yield fell 0.01% to 3.789.

In the commodities market, Brent crude for November 2024 settlement added 18 cents or 0.25% to $71.78 a barrel.

Global Markets:

European shares advanced as France showed the country�s harmonized inflation rate fell sharply in September. Harmonized consumer prices came in at 1.5% in September, down from 2.2% in August, according to the French statistics office Insee. This month�s figure is below the European Central Bank�s 2% inflation target.

Most Asian stocks ended higher on Friday as Tokyo�s inflation rate for September eased to 2.2% from 2.6%, while core inflation rate came in at 2%, declining from 2.4% in August.

China�s central bank cut its 7-day reverse repurchase rate to 1.5% from 1.7%, as well as lowered the reserve requirement ratio for banks by 50 basis points. China�s industrial profit data for August saw a 17.8% plunge year on year, following a 4.1% year-on-year increase in July.

The People`s Bank of China unveiled one of its most aggressive policy packages in years on Tuesday, aimed at boosting the slowing economy and restoring investor confidence.

US stocks surged on Thursday, with the S&P 500 reaching a new all-time high. Investors welcomed positive economic data and Micron`s strong earnings report.

The Dow Jones Industrial Average gained 0.62%, the S&P 500 rose 0.4%, and the tech-heavy Nasdaq Composite increased 0.6%. Micron`s shares soared, driving gains in the broader chip sector.

The US economy grew at a 3% annual rate in the second quarter, driven by consumer spending, inventory investment, and business investment. Additionally, weekly jobless claims fell to the lowest level since mid-May, indicating a strong labor market.

Micron Technology`s shares jumped 17.3% after the company forecast higher-than-expected revenue for the upcoming quarter due to strong demand for memory chips.

Stocks in Spotlight:

PTC Industries gains 5% on receiving a significant production order from BAE Systems for the supply of Titanium castings for the M777 Ultra-Lightweight Howitzer (ULH), including Spade Trails and Blades.

SJVN jumped 6.03% after the company said that it has signed two memorandums of understandings (MoUs) with Government of Maharashtra for development of pumped storage projects (PSP) and floating solar projects in Maharashtra. The total estimated investment on these projects will be to the tune of Rs 48,000 crore.

Thangamayil Jewellery rallied 3.61% after the company announced that its board has approved to raise funds aggregating upto Rs 600 crore through rights issue.

RailTel Corporation of India rose 1.40% after the company announced that it has received the work order from Rural Development Department, Mantralaya, Maharashtra, amounting to Rs 155.71 crore.

PC Jeweller hits upper circuit of 5% after the Bank of India submitted its approval to the One Time Settlement (OTS) proposal submitted by the company to settle the outstanding dues.

Bondada Engineering added 1.63% after the company has received an order from KPI Green Energy for supply of material for solar power generation plant. The project is valued at Rs 467.99 crore and is expected to be completed within 12 months from the date of receipt of the purchase order (PO).

Biocon shed 1%. The company said that it has signed a licensing and supply agreement with Tabuk Pharmaceutical Manufacturing Company to commercialize its GLP-1 products for treating diabetes and chronic weight management, in select countries of the Middle East.

Rail Vikas Nigam (RVNL) rose 0.83%. The company announced that it has signed memorandum of understanding (MoU) with Engineers India (EIL) to explore global business opportunities.

Indian Bank added 0.8%. The bank said that its board, at the meeting held on Thursday (26 September 2024) has approved for raising additional long term infrastructure bonds aggregating up to Rs 5000 crore, in one or more tranches. The fund raising would be over and above Rs 5000 crore already raised by the bank in current FY 2024-25.

Genesys International Corporation shed 0.43%. The company has received two new contracts from NEOM and the Saudi Geological Survey Authority to adopt geospatial technology for infrastructural development in Saudi Arabia.

IPO Update:

The initial public offer (IPO) of Diffusion Engineers received bids for 17,93,02,816 shares as against 65,98,500 shares on offer, according to stock exchange data at 17:00 IST on Friday (27 September 2024). The issue was subscribed 27.17 times.

The issue opened for bidding on Thursday (26 September 2024) and it will close on Monday (30 September 2024). The price band of the IPO is fixed between Rs 159 to Rs 168 per share. An investor can bid for a minimum of 88 equity shares and in multiples thereof.

KRN Heat Exchanger and Refrigeration`s IPO received bids for 2,32,72,85,090 shares as against 1,09,93,000 shares on offer, according to stock exchange data at 17:00 IST on Friday (27 September 2024). The issue was subscribed 211.71 times.

The issue opened for bidding on Wednesday (25 September 2024) and it will close on Friday (27 September 2024). The price band of the IPO is fixed between Rs 209 to Rs 220 per share. An investor can bid for a minimum of 65 equity shares and in multiples thereof.

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