Benchmarks turn rangebound; European shares advance

The benchmark indices traded in a narrow range, near the day`s high, in afternoon trade. The Nifty continued to above the 18,050 level. Investors kept a close eye on the U.S. inflation data due on Tuesday which will offer a crucial guide to the interest rate outlook of the US Federal Reserve.

At 13:25 IST, the barometer index, the S&P BSE Sensex, was up 435.33 points or 0.72% to 60,550.46. The Nifty 50 index gained 128.15 points or 0.71% to 18,064.50.

In the broader market, the S&P BSE Mid-Cap index rose 0.39% while the S&P BSE Small-Cap index gained 0.43%.

The market breadth was positive. On the BSE, 1,929 shares rose and 1,475 shares fell. A total of 137 shares were unchanged.

Economy:

India`s consumer price inflation rose to 7% in August from 6.71% in July, figures from the National Statistical Office revealed Monday. In the same period last year, inflation was 5.30%. Food price inflation advanced to 7.62% in August from 6.69% in the previous month. Month-on-month, consumer prices gained 0.52% and food prices moved up 0.75% in August.

Meanwhile, India`s industrial production logged an annual growth of 2.4% in July, much weaker than June`s 12.7% expansion, data released by the National Statistical Office showed Monday. In the same month of 2021, industrial output had advanced 11. %. Among three main sectors, manufacturing output grew 3.2% and electricity output climbed 2.3%. On the other hand, mining shrank 3.3% from the last year. In the April to July period, industrial production posted an expansion of 10% annually.

Stocks in Spotlight:

Tata Consumer Products gained 1.93%. The company said that it entered into a health supplements segment and launched Tata GoFit. Tata GoFit, a health supplement range for women, is a plant-based easy-to-mix product formulated with the goodness of gut-friendly probiotics.

Pidilite Industries shed 0.11%. 100X.VC, a leading seed stage CAT 1 VC Fund announced its partnership with Pidilite Industries for the latter`s venture arm called Pidilite Ventures. As a part of the partnership, 100X.VC will collaborate with Pidilite Ventures to identify strategic investment opportunities for them.

Gujarat Apollo Industries was locked in 20% upper circuit. The company said that it has entered into a joint venture (JV) agreement with Belgium-based PFH BV (Keestrack). Apollo and Keestrack have decided to work jointly and in cooperation with each other for the purposes of carrying on the business of agricultural and farming machineries and components thereof as set in the agreement by forming a joint venture company in India and to be incorporated, operated and managed on the terms and conditions set out in the JV agreement. The proposed joint venture will result in increased efficiencies and allow the company to offer improved products in the market, by harnessing each other`s synergies.

Ujjivan Small Finance Bank fell 2.17%. The bank said its qualified institutional placement (QIP) issue opened for subscription on 12 September 2022. The floor price has been fixed at Rs 21.93 per share, representing 13.3% discount to yesterday`s closing price of Rs 25.30.

A meeting of the merger and placement committee of the board is scheduled to be held on 15 September 2022 to approve the issue price for the equity shares to be allotted to qualified institutional buyers, pursuant to the issue.

Global Markets:

Markets in Europe and Asia traded higher on Tuesday as investors look ahead to the U.S. inflation report for the month of August.

Headline inflation in the U.S. is expected to decline in August, as per reports. But core inflation, excluding energy and food, is projected to rise.

Global markets are gearing up for the latest reading of U.S. inflation, with the August data set to be released Tuesday. The report is one of the last pieces of data on inflation the U.S. Federal Reserve will see ahead of its September meeting, where the central bank is expected to deliver its third consecutive 0.75 percentage point rate hike in an effort to combat high inflation.

Fed Chair Jerome Powell reiterated last week that he is �strongly committed� to bringing down inflation.

Wall Street equity indexes closed higher on Monday boosted by weaker dollar and growing confidence that higher prices have peaked.

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