In a day of mixed trading, India’s headline equity benchmarks displayed a rangebound movement with minor declines in mid-morning trade on Friday. The Nifty index hovered below the 25,400 level, while the S&P BSE Sensex dipped slightly as investors reassessed market conditions.
As of 11:30 AM IST, the S&P BSE Sensex was down 61.93 points, or 0.07%, trading at 82,900.78. The Nifty 50 index followed suit, shedding 21.80 points, or 0.09%, to reach 25,367.10. Despite the modest pullback in the frontline indices, the broader market outperformed, with the S&P BSE Mid-Cap index rising by 0.56% and the S&P BSE Small-Cap index gaining 1.04%.
The market breadth was notably strong, indicating positive sentiment among investors. On the BSE, 2,557 shares advanced, while 1,195 shares declined, and 152 shares remained unchanged. This upward momentum in the broader market reflected a diverse range of investment strategies among participants.
Economic Indicators
On the economic front, India’s retail inflation ticked up to 3.65% in August, slightly higher than the 3.6% reported in July. However, the inflation rate remains within the Reserve Bank of India’s (RBI) medium-term target range of 2-6%. Additionally, the Index of Industrial Production (IIP) saw a marginal rise to 4.83% in July from 4.72% in June, suggesting a stable industrial environment despite inflationary pressures.
IPO Update
In initial public offering (IPO) news, the IPO of Western Carriers (India) garnered 48,62,343 bids for shares against 2,08,68,467 shares on offer, indicating a subscription rate of 0.23 times as of 11:15 AM IST. The issue, which opened for bidding on Friday, will close on September 18, 2024. The price band for the IPO is set between Rs 163 and Rs 172 per share, with a minimum bid for 87 equity shares.
Realty Sector Performance
Among the various sectors, the Nifty Realty index stood out with a significant gain of 1.73%, reaching 1,053.60. This increase marks a robust 2.62% rise over the past two trading sessions. Key players in the real estate sector contributed to this surge, with Sobha shares climbing 3.88%, Godrej Properties up 3.17%, and DLF rising by 2.97%. Other notable performers included Macrotech Developers (up 1.92%) and Mahindra Lifespace Developers (up 1.21%).
Stocks in Spotlight
Hazoor Multi Projects saw a rally of 3.27% following the announcement that it had received a letter of acceptance (LOA) from the National Highways Authority of India for projects valued at Rs 17.94 crore. Additionally, Life Insurance Corporation of India (LIC) added 0.97% after disclosing that it had increased its stake in the Indian Railway Catering and Tourism Corporation (IRCTC) from 7.278% to 9.298%. This acquisition involved the purchase of 1,61,56,976 shares at an average cost of Rs 657.614 over the past year.
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Meanwhile, Puravankara shares surged 4.96% after the company acquired redevelopment rights for the Miami Apartments in Breach Candy, Mumbai, spanning 2,000 square meters.
Global Market Overview
Globally, Asian stocks traded mixed as investors took profits following recent rallies. The optimism surrounding a potential US Federal Reserve interest rate cut remained, especially after US markets closed higher on Thursday. The Dow Jones Industrial Average rose by 0.58%, while the S&P 500 and Nasdaq Composite gained 0.75% and 1.00%, respectively.
The producer price index (PPI) for final demand in the US increased by 0.2% in August, slightly surpassing estimates. In Europe, the European Central Bank (ECB) announced a second interest rate cut for the year, lowering the key deposit rate by 25 basis points to 3.5%. Although the ECB adjusted its 2024 economic growth projections downward, it expressed confidence that inflation would align with its 2% target by the end of 2025.
As the Indian markets navigate through a complex economic landscape, the focus remains on upcoming economic data and corporate performance to gauge future market directions.
