MARKET OPENS ON STRONG NOTE; NIFTY ABOVE 25K

The domestic equity benchmarks traded with modest gains in early trade. The Nifty traded above the 25,000 level. All the sectoral indices on NSE were in the green with metal, pharma and PSU bank shares gaining the most.

At 09:30 IST, the barometer index, the S&P BSE Sensex, rose 362.92 points or 0.45% to 81,886.08. The Nifty 50 index gained 126.85 points or 0.51% to 25,045.30.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.82% and the S&P BSE Small-Cap index gained 0.63%.

The market breadth was strong. On the BSE, 2,252 shares rose and 725 shares fell. A total of 123 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 1,755 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 230.90 crore in the Indian equity market on 11 September 2024, provisional data showed.

Stocks in Spotlight:

NBCC (India) advanced 2.84% to Rs 180.75 after the company informed that it has signed Memorandum of association (MoU) with Mahanagar Telephone Nigam (MTNL) to collaborate to develop a prominent land parcel of MTNL in New Delhi. The project is valued at approximately Rs 1,600 crore.

Hindustan Petroleum corporation (HPCL) added 0.78%. The company�s board has approved two projects. The Rs 2,212 crore Visakh Raipur Pipeline project which will build a pipleline from Viskah to Raipur and a Kantabanji, aiding product movement from the Visakh Refinery and The Visakh Refinery Modernization Project`s cost was revised to Rs 30,609 crore, with completion set for October 2024.

Adani Ports and Special Economic Zone (APSEZ) rose 1.60% to Rs 1,453.15 after the company has signed a concession agreement with Deendayal Port Authority (DPA) to develop berth No.13 at Kandla, Gujarat, A new subsidiary, DPA Container and Clean Cargo Terminal will handle operations. APSEZ received the LoI in July 2024 for 30 year concession to develop and operate the berth under DBFOT model. The 300m berth with a 5.7 MMT annucal capacity is expected to be commissioned by FY27.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose 1.17% to 6.949 as compared with previous close 6.943.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.9725, compared with its close of 83.9900 during the previous trading session.

MCX Gold futures for 4 October 2024 settlement added 0.03% to Rs 71,945.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.07% to 101.76.

The United States 10-year bond yield grew 0.36% to 3.664.

In the commodities market, Brent crude for November 2024 settlement gained 40 cents or 0.57% to $71.01 a barrel.

Global Markets:

Most Asian market stocks advanced on Thursday, driven by a surge in technology stocks. Meanwhile, Japanese markets soared as a softer-than-expected producer price inflation reading undermined the Bank of Japan`s hawkish stance.

The gains in Japanese stocks were fueled by the August producer price index (PPI) data, which came in at a lower-than-anticipated 2.5% year-over-year increase. This marked the slowest PPI growth since May, contrasting with the previous month`s 3.0% rise.

Regional technology stocks followed their U.S. counterparts, buoyed by Nvidia CEO Jensen Huang`s optimistic outlook on strong artificial intelligence demand. Chipmakers were particularly prominent among the gainers.

However, a stronger-than-expected consumer inflation reading tempered expectations for interest rate cuts. Markets are now positioning for a 25-basis-point rate cut by the Federal Reserve next week.

The annual core consumer price inflation rate in the United States, excluding volatile items like food and energy, stood at a three-year low of 3.2% in August 2024, matching July`s figure.

U.S. stocks rebounded on Wednesday after a volatile trading session, as investors assessed the implications of the latest inflation data for Federal Reserve policy. Tech shares led the recovery from earlier lows. The S&P 500 gained 1.07%, the Dow Jones Industrial Average added 0.31%, and the Nasdaq Composite rose 2.17%.

The US Labor Department reported the consumer price index (CPI) rose 0.2% last month, in line with July. Core CPI, excluding volatile food and energy components, rose 0.3% on a monthly basis, exceeding expectations.

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