Frontline indices saw marginal gains on Thursday amid volatility as the Nifty 50 closed above 20,100 after an afternoon dip. Trading was volatile due to index options expiry. Profit-taking restricted gains, but sectors like metal and realty performed well. Broader market showed signs of recovery with rotational buying across sectors. However, cautious investor sentiment persisted due to high valuations and concerns over rising crude oil prices boosting inflation and potential rate hikes.
The barometer index, the S&P BSE Sensex added 52.01 points or 0.08% to 67,519. The Nifty 50 index gained 33.10 points or 0.16% to 20,103.10.
Mahindra & Mahindra (up 1.90%), Nestle India (up 1.33%) and Infosys (up 0.65%) boosted the indices.
The broader market outperformed the headline indices. The S&P BSE Mid-Cap index gained 1.02% while the S&P BSE Small-Cap index advanced 1.15%.
The market breadth was strong. On the BSE, 2,387 shares rose and 1,275 shares fell. A total of 142 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, tumbled 4.31% to 11.32.
Economy:
India's August wholesale price index or WPI inflation stayed under zero on an annual basis for the fifth month in a row. The annual rate of inflation based on all India Wholesale Price Index (WPI) number is -0.52% (Provisional) for the month of August, 2023 (over August, 2022) against -1.36% recorded in July 2023.
The negative rate of inflation in August, 2023 is primarily due to fall in prices of mineral oils, basic metals, chemical & chemical products, textiles and food products as compared to the corresponding month of previous year.
Numbers to Watch:
The yield on India's 10-year benchmark federal paper fell 0.85% to 7.111 from its previous close of 7.172.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.0350, compared with its close of 83.0150 during the previous trading session.
MCX Gold futures for 5 October 2023 settlement declined 0.16% to Rs 58,499.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.06% to 104.70.
The United States 10-year bond yield rose 0.24% to 4.258.
In the commodities market, Brent crude for November 2023 settlement advanced $1.04 or 1.13% to $92.92 a barrel.
Global Markets:
Dow Jones futures signal a positive start for US stocks with a 105-point increase.
European and Asian markets advanced today, anticipating that the recent rise in US inflation won't prompt more interest rate hikes by the Federal Reserve.
US stocks closed mixed on Wednesday due to analysis of the August inflation report. In US, August's Consumer Price Index rose 0.6% as expected, while the core CPI, excluding volatile food and energy costs, reached 4.3%, in line with estimates and down from July's 4.7%.
Markets are now waiting on key economic indicators before the Fed issues its next rate move on September 20. The Bureau of Labor Statistics is slated to release the August Producer Price Index before the opening bell on Thursday.
IPO Update:
The initial public offer (IPO) of R R Kabel received bids for 1.85 crore shares as against 1.33 crore shares on offer, according to stock exchange data at 17:00 IST on Thursday (14 September 2023). The issue was subscribed 1.39 times.
The issue opened for bidding on Wednesday (13 September 2023) and it will close on Friday (15 September 2023). The price band of the IPO is fixed at Rs 983-1,035 per share. An investor can bid for a minimum of 14 equity shares and in multiples thereof.
The initial public offer (IPO) of Samhi Hotels received bids for 43.32 lakh shares as against 6.25 crore shares on offer, according to stock exchange data at 17:00 IST on Thursday (14 September 2023). The issue was subscribed 7%.
The issue opened for bidding on Thursday (14 September 2023) and it will close on Monday (18 September 2023). The price band of the IPO is fixed at Rs 119-126 per share. An investor can bid for a minimum of 119 equity shares and in multiples thereof.
The initial public offer (IPO) of Zaggle Prepaid Ocean Services received bids for 36.84 lakh shares as against 1.93 crore shares on offer, according to stock exchange data at 15:27 IST on Thursday (14 September 2023). The issue was subscribed 19%.
The issue opened for bidding on Thursday (14 September 2023) and it will close on Monday (18 September 2023). The price band of the IPO is fixed at Rs 156-164 per share. An investor can bid for a minimum of 90 equity shares and in multiples thereof.
Stocks in Spotlight:
Adani Enterprises rose 0.13%. Adani Global Pte, an arm of Adani Enterprises has incorporated a joint venture, Kowa Green Fuel Pte. with Kowa Holdings Asia Pte., Singapore for the sales and marketing of green ammonia, green hydrogen and its derivatives in Japan, Taiwan and Hawaii.
Meanwhile, Adani Wind, the wind energy solutions division of ANIL, announced that its 5.2 MW wind turbine generator (WTG), has received type certification from WindGuard GmbH. The certification enables Adani Wind to start series production for global markets.
IRCTC advanced 1.37%. The company announced the signing of Memorandum of Understanding (MOU) with Maharashtra State Road Transport Corporation (MSTRC) to enable MSRTC's online bus booking services via IRCTC's bus booking portal/website.
Bombay Dyeing and Manufacturing Company rallied 9%. The board of directors of the company approved the proposal to sell the land parcel of about 22 acres in Worli, Mumbai to Goisu Realty Private in 2 phases, for a total consideration of about Rs 5,200 crore.
Sun Pharmaceutical Industries shed 0.37%. The company announced that one of its wholly owned subsidiary has entered into a license agreement with Pharmazz Inc., a U.S. based biopharmaceutical company to commercialise Tyvalzi (Sovateltide) drug in India.
Advait Infratech (AIL) surged 12.05% after the company signed Memorandum of Understanding (MoU) with Goufu Hydrogen Energy Equipment (Goufu) ) to cater the present and future requirements for the green hydrogen technologies and projects
Insecticides (India) advanced 1.85% after the company informed that the Patent Office has granted patent to the company for an invention entitled Novel Amide Compound, Method for producing the same, and miticide.
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