Market drifts higher in early trade; breadth strong

The domestic equity indices traded with moderate gains in the early trade. The Nifty traded above 21,650 mark. Barring Nifty Media index, all the sectoral indices on the NSE were traded in green. Traders are watching triggers such as inflation data, bank loan growth, and the Q3 earnings season commencing on 11 January 2024.

At 09:24 IST, the barometer index, the S&P BSE Sensex, was up 469.36 points or 0.66% to 71,824.58. The Nifty 50 index added 142.55 points or 0.66% to 21,654.05.

In the broader market, the S&P BSE Mid-Cap index rose 0.79% and the S&P BSE Small-Cap index gained 0.98%.

The market breadth was strong. On the BSE, 2,490 shares rose and 413 shares fell. A total of 84 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 16.03 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 155.96 crore in the Indian equity market on 8 January, provisional data showed.

Stocks in Spotlight:

Bajaj Auto jumped 2.14% after the board of directors of the company has approved the proposal for buy-back of up to 4,000,000 fully paid-up equity shares at a price of Rs 10,000 per equity share payable in cash for a total consideration not exceeding Rs 4,000 crore.

Tata Motors advanced 1.55% after the JLR reported wholesale volumes of 101,043 units (excluding the Chery Jaguar Land Rover China JV) for the third quarter of FY24 (three-month period to 31 December 2023), up 27% compared to the same quarter a year ago and up 4% compared to the quarter ended 30 September 2023.

Eicher Motors rose 0.63%. The Royal Enfield, a unit of Eicher Motors signed a non-binding Memorandum of Understanding (MoU) with the Government of Tamil Nadu at Global Investors Meet 2024, at Chennai. Under the MoU, Eicher Motors proposed to invest around Rs. 3,000 crore over a period of eight years into the state to set up greenfield and brownfield projects in the region.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper declined 0.016% to 7.187 as compared with previous close 7.203.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.0700, compared with its close of 83.1400 during the previous trading session.

MCX Gold futures for 5 February 2024 settlement gained 0.25% to Rs 62,249.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.08% to 102.14.

The United States 10-year bond yield added 0.01% to 4.011.

In the commodities market, Brent crude for March 2024 settlement added 30 cents or 0.39% to $76.42 a barrel.

Global Markets:

Asian stocks rose across the board Tuesday, rebounding from a sell-off in the previous session. Asian stocks advanced after a tech rally fueled gains on Wall Street at the start of a week that brings key inflation data and bank earnings.

U.S. stocks ended higher on Monday boosted by tech shares. Global investors will be looking ahead to US inflation data and big bank earnings in the week ahead for further clues on the state of the economy and the path of rate cuts from the Federal Reserve.

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