SENSEX CLIMBS 330 PTS; EUROPEAN MKT OPENS HIGHER

The key equity indices traded with decent gains in afternoon trade. The Nifty traded above the 24,900 level after hitting the day`s low of 24,753.15 in early trade. FMCG, private bank and bank shares advanced while oil & gas, PSU bank and metal shares declined.

At 13:30 IST, the barometer index, the S&P BSE Sensex jumped 330.28 points or 0.41% to 81,514.21. The Nifty 50 index added 74.75 points or 0.30% to 24,924.40.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index fell 0.60% and the S&P BSE Small-Cap index declined 0.94%.

The market breadth was weak. On the BSE, 1,420 shares rose and 2,527 shares fell. A total of 149 shares were unchanged.

Gainers & Losers:

Hindustan Unilever (up 3.28%), Shriram Finance (up 2.18%), ITC (up 1.80%), ICICI Bank (up 1.62%) and Britannia Industries (up 1.60%) were major Nifty gainers.

Oil and Natural Gas Corporation (ONGC) (down 4.18%), Tech Mahindra (down 2.22%), Hindalco Industries (down 1.93%), Tata Motors (down 1.89%) and Coal India (down 1.67%) were major Nifty losers.

Stocks in Spotlight:

Bajaj Finserv rose 0.61%. The company�s subsidiary, Bajaj Allianz General Insurance Company`s gross direct premium underwritten for August 2024 was at Rs 1,736.23 crore, recording a growth of 3.48% year on year. Bajaj Allianz Life Insurance Company`s total premium aggregated to Rs 952.52 crore for the month of August 2024, up 2.82% as against Rs 926.41 crore recorded in the same period a year ago.

Mazagon Dock Shipbuilders slipped 1.16%. The ship building company announced that it has received a notification of award of contract worth Rs 1,486.40 crore from Oil & Natural Gas Corporation (ONGC). The company bagged a contract for pipeline replacement project 8 Group A (PRP 8 Group A) on EPC reimbursable basis (OBE) at the ceiling price of Rs 1486,40,32,996.

Deep Industries zoomed 19.25% after the company has received significant order from Oil and Natural Gas Corporation (ONGC) worth Rs 1,402 crore for production enhancement operations in mature field of the company`s Rajahmundry Asset.

Ion Exchange (India) advanced 1.30% after the firm received contracts from Tecnimont SpA, Italy for the hail & ghasha development project of ADNOC in UAE, totaling to approximately of Rs 168 crore.

Granules India fell 2.65% after the company announced that its facility in Gagillapur, Hyderabad, Telangana was inspected by US Food & Drug Administration (USFDA) from 26 August 2024 to 5 September 2024. The inspection was concluded with six observations.

Spicejet added 2.34% after the company has entered into a term sheet with Carlyle Aviation Management (CAML) to restructure certain aircraft lease obligations of SpiceJet aggregating to $137.68 million as on 30 June 2024.

NIBE was locked in 5% upper circuit after the company announced the signing of an MoU with various entities for building and operating a private Earth Observation Constellation.

Global Markets:

Europeans stocks advanced while Asian stocks declined on Monday as selling pressure intensified, triggered by a weaker-than-expected US jobs report and the looming Fed meeting. Concerns about a slowdown in China and Germany further fueled the decline in stocks, which were already volatile due to anticipated Fed rate cuts.

The US non-farm payrolls increased by only 142,000 in August, falling short of the expected 165,000. This marked the lowest three-month average since mid-2020. Although the unemployment rate decreased to 4.2%, it was the first drop in five months.

In China, the consumer price index rose by 0.6% year-on-year in August, primarily due to declines in transportation, home goods prices, and rents.

Meanwhile, US markets suffered a significant setback on Friday. The S&P 500 experienced its worst week since March 2023, as investors grappled with the implications of the weak jobs report and abandoned leading technology stocks. The broad index declined by 1.73%, while the Nasdaq Composite shed 2.55%. The Dow Jones Industrial Average fell 1.01%. Megacap tech stocks took a particularly hard hit as investors dumped risk assets amidst growing concerns about the US economy`s health.

Investors widely anticipate the Fed to lower interest rates by at least a quarter-percentage point at its upcoming policy meeting. However, the softening labor market trends have increased speculation that the central bank might opt for a more aggressive cut. Traders remain divided on whether the Fed will cut by a quarter- or half-percentage point.

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