INDICES NUDGE LOWER IN EARLY TRADE; BREADTH STRONG

The domestic equity benchmarks traded with minor losses in early trade. The Nifty traded below the 25,000 level. Private bank, financial services and bank shares declined while media, healthcare and consumer durables stocks advanced.

At 09:30 IST, the barometer index, the S&P BSE Sensex was down 46.19 points or 0.06% to 81,637.57. The Nifty 50 index lost 20.45 points or 0.08% to 24,990.15.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.10% and the S&P BSE Small-Cap index gained 0.36%.

The market breadth was strong. On the BSE, 1,894 shares rose and 1,093 shares fell. A total of 129 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 483.36 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,870.22 crore in the Indian equity market on 26 August 2024, provisional data showed.

Stocks in Spotlight:

PI Industries shed 0.10%. The company informed that its board has appointed Sanjay Agarwal as group chief financial officer (CFO) with effect from 26 August 2024, following retirement of Manikantan Vishwanathan (CFO) of the company.

GPT Infraprojects rallied 4.46% after the company launched qualified institutional placement (QIP), setting floor price at Rs 183.83 per share.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose 1.82% to 6.976 as compared with previous close 6.968.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.9400, compared with its close of 83.8750 during the previous trading session.

MCX Gold futures for 5 September 2024 settlement fell 0.27% to Rs 71,310.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.04% to 100.89.

The United States 10-year bond yield grew 0.26% to 3.827.

In the commodities market, Brent crude for October 2024 settlement shed 18 cents or 0.22% to $81.25 a barrel.

Global Markets:

Most Asian stocks declined on Tuesday, driven by rising tensions in the Middle East and concerns over global supply chains. The exchange of fire between Israel and Lebanon`s Hezbollah on Sunday heightened geopolitical risks, leading investors to seek safer assets.

Additionally, Canada`s imposition of tariffs on Chinese electric vehicles, steel, and aluminum, mirroring similar moves by the United States and European Union, further dampened sentiment.

Investors are closely watching Nvidia`s earnings report for insights into AI-related investments.

In the U.S., the Dow Jones Industrial Average reached a new high on Monday, recovering from a recent sell-off. However, the S&P 500 and Nasdaq Composite declined. A shift from technology stocks to other sectors was evident.

Market participants are now focused on the upcoming release of the U.S. personal consumption expenditure price index (PCE) on Friday and the August payrolls report next week.

Federal Reserve Chair Jerome Powell`s speech on Friday signaled an imminent start to interest rate cuts, with markets fully pricing in a 25-basis-point reduction in September. Expectations for further easing in the coming months have also increased.

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