INDICES END FLAT AMID VOLATILITY, CHINA STIMULUS BOOSTS METAL STOCKS

The domestic equity benchmarks closed nearly flat on Tuesday after a volatile session. The benchmarks Sensex and Nifty indices reversed trend after briefly crossing 85,000 and 26,000, respectively. The Chinese central bank`s rate cut and additional stimulus measures positively impacted global investor sentiment, leading to gains in metal stocks. IT and energy stocks also rose. However, PSU banks and FMCG shares declined.

In the barometer index, the S&P BSE Sensex shed 14.57 points or 0.02% to 84,914.04. The Nifty 50 index rose 1.35 points or 0.01% to 25,940.40.

The Sensex and Nifty clocked an all-time high of 85,163.23 and 26,011.55, respectively, in late trade.

In the broader market, the S&P BSE Mid-Cap index added 0.21% and the S&P BSE Small-Cap index shed 0.04%.

The S&P BSE Small-Cap index and S&P BSE Mid-Cap index hit an all-time high at 57,728.08 and 49,701.15, respectively.

The market breadth was negative. On the BSE, 1,932 shares rose and 2,045 shares fell. A total of 99 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, slipped 3.08% to 13.36.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper advanced 1.67% to 6.880 as compared with previous close 6.883.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.6650, compared with its close of 83.5475 during the previous trading session.

MCX Gold futures for 4 October 2024 settlement rose 0.41% to Rs 74,630.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.06% to 100.79.

The United States 10-year bond yield grew 1.38% to 3.791.

In the commodities market, Brent crude for November 2024 settlement gained $1.84 or 2.49% to $74.74 a barrel.

Global Markets:

Shares in Europe and Asia advanced on Tuesday, following China`s announcement of new stimulus measures. The People`s Bank of China (PBOC) Governor, Pan Gongsheng, outlined plans to lower interest rates, increase liquidity, and ease mortgage repayments. Additionally, China will introduce structural monetary policy tools to bolster capital market stability.

Meanwhile, Japan`s manufacturing activity contracted more than expected in September due to ongoing production disruptions faced by major automakers. However, the services sector saw growth driven by strong consumer demand. The au Jibun Bank manufacturing purchasing managers index fell to 49.6 in early-September, indicating contraction for the third consecutive month.

In the United States, equities managed a slight gain Monday as traders analyzed comments from Federal Reserve policymakers and perceived room for further easing following the recent half-point interest rate cut. The S&P 500 rose by 0.28%, the Dow Jones Industrial Average (+0.15%) closed at a record high, and the Nasdaq 100 increased by 0.14%.

Investors are now eagerly awaiting the release of the Federal Reserve`s preferred inflation gauge and US personal spending data on Friday.

Stocks in Spotlight:

The Nifty Metal index jumped 2.97% to 9,735.40. National Aluminium Company (up 6.6%), Tata Steel (up 4.32%), Hindalco Industries (up 4.12%), Welspun Corp (up 4.07%), NMDC (up 4.04%) soared.

Power Grid Corporation of India advanced 2.65% after the company received a Letter of Intent (LoI) to establish an inter-state transmission system at Khavda pooling station in Gujarat, under BOOT basis.

Larsen & Toubro (L&T) rose 0.11%. The company�s power transmission & distribution (PT&D) vertical business secured �Mega� order in the Middle East for expanding and strengthening the electricity grids at high voltage level.

Coal India added 0.70%. The firm informed that it has entered into a joint venture agreement (JV) with Rajasthan Rajya Vidyut Utpadan Nigam (RRUVNL) to establish brownfield thermal power project in Rajasthan. The company�s purpose of this agreement is to establish 2x800 MW brownfield thermal power project in RRUVNL`s existing Kalisindh thermal power station. Additionally, the company intends to undertake any other thermal power related projects and engage in renewable energy business in Rajasthan.

Punjab National Bank slipped 3.27%. The company informed that its board has approved the opening of qualified institutional placement (QIP) of equity shares with the floor price of Rs 109.16 per share.

Indian Energy Exchange (IEX) slumped 11.56%, triggered by the media reports suggesting that the government is considering implementing market coupling for power exchanges in the country. Market coupling is a mechanism that aggregates buy and sell bids from all power exchanges in India, leading to a unified market clearing price (MCP). This could potentially streamline the power trading process and ensure a more efficient allocation of electricity resources.

Apollo Sindoori Hotels soared 20% after sharing strong revenue guidance for the current financial year and ambitious long-term growth plans.�For FY25, Apollo Sindoori Hotels is expected to record a standalone revenue of Rs 315 crore, up over 17% on-year from Rs 268 crore recorded in FY24. Additionally, the core EBITDA margin is likely to be 6.7%.�

G R Infraprojects rose 1.90% after the company said that it has emerged as lowest bidder (L-1) for a metro project worth Rs 903.534 crore awarded by Maharashtra Metro Rail Corporation, Nagpur (MMRC).

JTL Industries surged 8.87% to Rs 239.40 after the company�s board will consider a stock split on 3 October 2024.

Exxaro Tiles surged 19.62% after the company announced that its board will meet on Monday, 14 October 2024, to consider a proposal for the sub-division / split of equity shares of the company.

Firstsource Solutions jumped 6% after the company announced the acquisition of 100% stake in UK-based Ascensos for a consideration of GBP 42 million.

New Listing:

Shares of Northern Arc Capital settled at Rs 323.60 on the BSE, a premium of 23.04% compared with the issue price of Rs 263.

The scrip was listed at Rs 351, a premium of 33.46% to the issue price. The stock has hit a high of 351 and a low of 308.15. On the BSE, over 34.06 lakh shares of the company were traded in the counter.

Shares of Arkade Developers settled at Rs 165.85 on the BSE, a premium of 29.57% compared with the issue price of Rs 128.

The scrip was listed at Rs 175.90, a premium of 37.42% to the issue price. The stock has hit a high of 190 and a low of 164.70. On the BSE, over 45.14 lakh shares of the company were traded in the counter.

Shares of Western Carriers (India) settled at Rs 159.45 on the BSE, a discount of 7.30% compared with the issue price of Rs 172.

The scrip was listed at Rs 170, a discount of 1.16% to the issue price. The stock has hit a high of 177 and a low of 158.50. On the BSE, over 17.42 lakh shares of the company were traded in the counter.

IPO Update:

The initial public offer (IPO) of Manba Finance received 64,39,20,375 bids for shares as against 87,99,000 shares on offer, according to stock exchange data at 17:00 IST on Tuesday (24 September 2024). The issue was subscribed 73.18 times.

The issue opened for bidding on Monday (23 September 2024) and it will close on Wednesday (25 September 2024). The price band of the IPO is fixed between Rs 114 to Rs 120 per share. An investor can bid for a minimum of 125 equity shares and in multiples thereof.

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