INDICES EDGE HIGHER IN EARLY TRADE; BREADTH STRONG

The key equity indices traded with minor gains in early trade. The Nifty traded near the 25,850 mark. IT, PSU bank and auto shares advanced while metal, FMCG and realty shares declined.

At 09:30 IST, the barometer index, the S&P BSE Sensex, was up 205.21 points or 0.24% to 84,504.99. The Nifty 50 index rose 41.50 points or 0.16% to 25,852.35.

In the broader market, the S&P BSE Mid-Cap index rose 0.06% and the S&P BSE Small-Cap index added 0.30%.

The market breadth was strong. On the BSE, 1,286 shares rose and 720 shares fell. A total of 162 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 9,791.93 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 6,645.80 crore in the Indian equity market on 30 September 2024, provisional data showed.

Due to the observance of Mahatma Gandhi Jayanti on Wednesday, 2 October 2024, the domestic market will be closed.

Economy:

India`s fiscal deficit remained under control during April-August, reaching 27% of the full-year target. This containment was attributed to muted spending in the early months of the fiscal year. The government`s spending has been lower due to general elections. In comparison, the deficit stood at a higher 36% during the same period in FY24.

Stocks in Spotlight:

Tata Power Company rose 0.93%. The company will invest Rs 1.2 lakh crore in Rajasthan for power distribution, transmission and green transition.

Kalpataru Projects International added 2.50% after the company received orders worth Rs 1,241 crore in the transmission and distribution business from India and the wider overseas market as well as orders regarding commercial building projects in India.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper advanced 1.76% to 6.869 as compared with previous close 6.865.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.8175, compared with its close of 83.7925 during the previous trading session.

MCX Gold futures for 4 October 2024 settlement shed 0.09% to Rs 75,963.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.05% to 100.83.

The United States 10-year bond yield fell 0.56% to 3.788.

In the commodities market, Brent crude for November 2024 settlement added 8 cent or 0.11% to $71.78 a barrel.

Global Markets:

Asian stocks traded higher as recent two-and-a-half-year peaks on Tuesday. This followed hawkish comments from Federal Reserve Chair Jerome Powell, which dampened expectations for aggressive interest rate cuts. The U.S. dollar strengthened in response. Meanwhile, heightened tensions in the Middle East added to market uncertainty.

With mainland China`s financial markets closed for the remainder of the week, the recent rally in Asian markets is expected to pause. Hong Kong`s Hang Seng is also closed on Tuesday.

Japan reported its unemployment rate for August eased to 2.5%, down from 2.7% in July

U.S. equities closed higher on Monday, recovering from earlier losses triggered by Powell`s remarks. The Dow Jones Industrial Average rose by 0.04% to a record closing high of 42,330.15. The S&P 500 gained 0.42% to also reach a new record close of 5,762.48. The Nasdaq Composite added 0.38%.

Investors had anticipated more aggressive rate cuts from the Federal Reserve in its final two meetings of the year. However, Powell indicated that the central bank would likely stick to quarter-point rate reductions moving forward, citing recent economic data that showed strong growth and consumer spending.

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