INDICES END ON A POSITIVE NOTE AMID US RATE CUT HOPES

Domestic equity indices closed with modest gains on Tuesday, driven by anticipation of an upcoming interest rate cut by the Federal Reserve. The Nifty 50 settled above the 25,400 level, despite hitting a low of 25,352.25 earlier in the day.

Sectors such as realty, consumer durables, and auto witnessed a rise, while media, PSU banks, and metal shares faced pressure. The Indian market displayed a positive sentiment, largely influenced by the expectation of a 25-basis point rate cut by the Fed. However, investors are closely watching the Fed`s comments on the economic outlook and the potential for future rate cuts.

Robust institutional inflows continued to support the domestic market, with a noticeable preference for large-cap stocks.

The S&P BSE Sensex, was up 90.88 points or 0.11% to 83,079.66. The Nifty 50 index rose 34.80 points or 0.14% to 25,418.55. Both the indices attained record closing high levels.

Bharti Airtel (up 1.59%), M&M (up 1.14%) and Larsen & Toubro (up 0.83%) boosted the indices.

In the broader market, the S&P BSE Mid-Cap index shed 0.08% and the S&P BSE Small-Cap index fell 0.13%.

The market breadth was weak. On the BSE, 1,709 shares rose and 2,241 shares fell. A total of 108 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, added 1.04% to 12.59.

Economy:

India`s wholesale price index (WPI)-based inflation cooled to a four-month low of 1.31% in August from 2.04% in July, primarily due to a decline in prices of manufactured goods and food items. This marks a significant drop from the 3.36% peak recorded in June.

Numbers to Track:

The yield on India`s 10-year benchmark federal grew 1.91% to 6.891 as compared with previous close 6.890.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.7500, compared with its close of 83.8650 during the previous trading session.

MCX Gold futures for 4 October 2024 settlement fell 0.40% to Rs 73,130.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.12% to 100.64.

The United States 10-year bond yield slipped 0.06% to 3.622.

In the commodities market, Brent crude for November 2024 settlement fell 0.35 cents or 0.48 % to $72.40 a barrel.

Global Markets:

The Dow Jones index futures were up 132 points, indicating a positive opening in the US stocks today.

Shares in Europe and Asia climbed on Tuesday as investors as investors awaited the Federal Reserve to kick off its monetary loosening cycle.

Regional markets were influenced by a mixed performance on Wall Street, where technology stocks pulled down the Nasdaq Composite. Conversely, the Dow Jones Industrial Average reached a new high, driven by optimism about lower interest rates.

Trading volumes were subdued due to market holidays in China and South Korea. Sentiment towards China was dampened by concerns about a potential escalation in trade tensions with the West.

The Fed is set to meet Tuesday and Wednesday and is widely anticipated to lower rates for the first time since it began its hiking cycle in March 2022. Markets are pricing in at least 100 basis points of cuts this year.

In the United States, the S&P 500 gained 0.13%, while the Dow Jones Industrial Average rose 0.55%, notching a record close. The tech-heavy Nasdaq Composite declined by 0.52%.

Apple shares fell by 2.8% following analyst reports suggesting weaker demand for iPhone 16 Pro models compared to the previous year. Chip stocks, such as Nvidia, which led the market rebound last week, also faced selling pressure as investors took profits.

Stocks in Spotlight:

Reliance Infrastructure soars 9.2% after the company said its board will consider raising long term funds on Thursday, 19 September 2024.

DCX Systems jumped 4.85% after its subsidiary, Raneal Advanced Systems, secured an industrial license from the Cochin Special Economic Zone (CSEZ) to manufacture and test microwave submodules, avionics, and defence electronic equipment.

Indraprastha Gas climbed 3.21% to Rs 547.40 after a foreign broker upgraded the stock to a `buy` from `sell`, citing strong fundamentals and promising inorganic growth prospects. The broker also raised the target price to Rs 700 from Rs 400.

Ola Electric Mobility soared 9.7% to Rs 118.10 after a foreign broker initiated coverage with a `buy` call and a price target of Rs 160. The broker sees significant growth potential for Ola Electric in the electric two-wheeler market, driven by long-term structural trends in India.

Carborundum Universal (CUMI) rallied 3.57% after the company entered into share purchase agreement (SPA) to acquire 100% stake in Silicon Carbide Products (SCP), Inc. USA for total consideration of Rs 56 crore.

Droneacharya Aerial Innovations declined 2.38%. The company said that it has secured an export order for the supply of Drone components for heavy payload logistic drones, valued at $240,000.

Firstsource Solutions rose 0.67%. The company announced collaboration with Microsoft to deliver cutting-edge digital transformation services to clients worldwide.

RailTel Corporation of India added 0.86%. The company informed that it has received a work order from Health Insurance TPA of India for service aggregating to Rs 48.70 crore.

Dreamfolks Services added 1.37% after the company has announced the launch of its newest service � highway dining for travellers, which would be available at over 600 outlets along key highways across the country.

JBM Auto fell 1.95%. The company informed that its wholly-owned subsidiary, JBM Ecolife Mobility has successfully secured a $100 million strategic funding from the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB).

New Listing:

Shares of P N Gadgil Jewellers closed at Rs 792.80 on the BSE, a premium of 65.17% as compared with the issue price of Rs 480.

The scrip was listed at Rs 834, a premium of 73.75% to the issue price. The stock has hit a high of 843.80 and a low of 782 On the BSE, over 23.72 lakh shares of the company were traded in the counter.

IPO Update:

The initial public offer (IPO) of Western Carriers (India) received bids for 19,67,33,274 shares as against 2,08,68,467 shares on offer, according to stock exchange data at 17:00 IST on Tuesday (17 September 2024). The issue was subscribed 9.43 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 bids for 21,43,97,349 shares as against 2,14,78,290 shares on offer, according to stock exchange data at 17:00 IST on Tuesday (17 September 2024). The issue was subscribed 9.98 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 bids for 38,51,04,390 shares as against 2,37,75,719 shares on offer, according to stock exchange data at 17:00 IST on Tuesday (17 September 2024). The issue was subscribed 16.20 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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