BENCHMARKS CONTINUE BULLISH RUN, HIT NEW HIGHS

Domestic equity barometers continued their upward trend on Thursday. The benchmark indices, Nifty 50 and Sensex, hit record highs, buoyed by positive global cues and strong domestic liquidity. The day started on a relatively flat note, but buying across various sectors propelled the indices to new milestones. The Nifty 50 crossed the 26,200 mark, forming a bullish Marubozu candlestick pattern on the daily chart, indicating strong bullish sentiment. Auto and metal shares were among the top performers, while consumer durables and healthcare shares faced some selling pressure. While domestic factors were largely supportive, global markets also played a role in driving the rally.

In the barometer index, the S&P BSE Sensex gained 666.25 points or 0.78% to 85,836.12. The Nifty 50 index advanced 211.90 points or 0.81% to 26,216.05, rising for sixth consecutive session. Both the indices attained record closing high levels.

The Sensex and Nifty clocked an all-time high of 85,930.43 and 26,250.90, respectively, in late trade.

In the broader market, the S&P BSE Mid-Cap index shed 0.01% and the S&P BSE Small-Cap index fell 0.39%.

The market breadth was negative. On the BSE, 1,686 shares rose and 2,293 shares fell. A total of 103 shares were unchanged.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, dropped 7.12% to 11.84.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper advanced 1.42% to 6.834 as compared with previous close 6.848.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.6400, compared with its close of 83.5800 during the previous trading session.

MCX Gold futures for 4 October 2024 settlement rose 0.27% to Rs 75,520.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.03% to 100.88.

The United States 10-year bond yield fell 0.29% to 3.774.

In the commodities market, Brent crude for November 2024 settlement lost 49 cents or 0.65% to $74.68 a barrel.

Global Markets:

European market advanced on Thursday as the Swiss National Bank (SNB) cut interest rates by a quarter point, bringing its key interest rate down to 1.0%.

Most Asian stocks ended higher on Thursday, driven by continued optimism surrounding China`s recent stimulus measures and a robust rally in technology stocks, particularly semiconductor manufacturers. The latter was fueled by strong earnings from U.S. chipmaker Micron.

Chinese markets have been on a roll this week following Beijing`s announcement of a series of stimulus measures, including a reduction in bank reserve requirements and lower mortgage rates. These measures have sparked a wave of bargain buying, as Chinese markets had been lagging behind global peers for some time due to concerns about a slowing economy.

U.S. stocks experienced a pullback on Wednesday, with the three major indices closing mixed as investors weighed the health of the economy and the likelihood of further interest rate cuts. The Dow Jones Industrial Average declined by around 0.7%, while the S&P 500 fell 0.19% and Nasdaq Composite (+0.04%) saw more modest gains.

On the economic data front, new home sales in the United States decreased in August compared to the previous month, primarily due to high mortgage rates and elevated prices deterring potential buyers. However, mortgage applications rose to their highest level since 2022, driven by homeowners seeking to refinance their loans as interest rates decline.

This week`s market focus is on Federal Reserve Chair Jerome Powell`s upcoming speech and the release of the PCE price index, the Fed`s preferred inflation gauge.

Stocks in Spotlight:

The Nifty Auto index surged by 2.26% today, driven by optimism surrounding domestic auto companies. Karnataka`s announcement of tax breaks for hybrid cars and incentives for electric vehicles boosted investor confidence.

Maruti Suzuki, a major player in the hybrid car market, saw its shares jump by 4.48% � its biggest daily gain in almost three months. Other notable performers included Tata Motors and Mahindra & Mahindra, which rose by 2.83% and 2.52% respectively.

Vedanta surged 4.77% after the company`s announcement of holding its board meeting on 8 October 2024, to consider the fourth interim dividend on equity shares for the financial year 2024-25.

Infosys shed 0.18%. The company announced that it has collaborated with Swedish electric performance car brand Polestar to create a base for the latter`s development of in-car infotainment, software and electrical engineering and cloud-powered digital services.

ITC gained 1.01% to Rs 522.70. It hit a record high of Rs 523.75 today. The company`s market capitalization has now crossed Rs 6.53 lakh crore.

Gensol Engineering jumped 1.90% after promoter purchased more shares. Anmol Singh Jaggi (promoter and managing director) added 12,000 equity shares (0.0003% equity) of the company through open market operation. Jaggi earlier held 80,18,711 equity shares (21.17% equity).

Zee Media Corporation soared 20% as its board will discuss fundraising plans on September 27th. The company is considering various methods, including private placements, qualified institutions placements, and preferential issues.

Easy Trip Planners jumped 6.68% after the company announced that it has entered into an exclusive partnership with PhonePe to launch its `Hotels` segment on the fintech platform.

Mukta Arts soared 13.66% after inking a 6-year deal with Zee Entertainment for the satellite and media rights of 37 films. The new deal offers a 25% higher fee compared to the previous agreement.

Zaggle Prepaid Ocean Services advanced 2.55% after the company�s board approved to acquire 26% stake in Mobileware Technologies for total consideration of Rs 15.6 crore. Meanwhile, the board has also approved to acquire 98.32% stake in Span Across IT Solutions. The company will acquire 10,66,314 equity shares with a face value of Rs 10 each at a price of Rs 300.80 per share.

ONGC declined 1.16%. The company said that its board has approved an investment of Rs 10,501 crore in equity shares of ONGC Petro additions (OPaL), in one or more tranches.

Greenlam Industries slipped 2.28%. The firm said that it has incorporated a subsidiary, Greenlam Overseas Bengal in Bangladesh to carry out the business of distributor and wholesaler of high pressure laminates and other paper/wood based products.

IPO Update:

The initial public offer (IPO) of Diffusion Engineers received bids for 4,71,77,240 shares as against 65,98,500 shares on offer, according to stock exchange data at 17:00 IST on Thursday (26 September 2024). The issue was subscribed 7.15 times.

The issue opened for bidding on Thursday (26 September 2024) and it will close on Monday (30 September 2024). The price band of the IPO is fixed between Rs 159 to Rs 168 per share. An investor can bid for a minimum of 88 equity shares and in multiples thereof.

KRN Heat Exchanger and Refrigeration`s IPO received bids for 63,91,84,780 shares as against 1,09,93,000 shares on offer, according to stock exchange data at 17:00 IST on Thursday (26 September 2024). The issue was subscribed 58.14 times.

The issue opened for bidding on Wednesday (25 September 2024) and it will close on Friday (27 September 2024). The price band of the IPO is fixed between Rs 209 to Rs 220 per share. An investor can bid for a minimum of 65 equity shares and in multiples thereof.

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