INDICES HOLD GROUND, AWAITING US INFLATION DATA

The domestic equity benchmarks ended with minor gains on Thursday. The market opened with gains on positive global cues, but struggled to maintain momentum as investors awaited US inflation data. The Nifty settled closed near the 25,000 level. Banks and financial stocks were in demand. On the other hand, pharma, healthcare and IT stocks declined.

In the barometer index, the S&P BSE Sensex added 144.31 points or 0.18% to 81,611.41. The Nifty 50 index rose 16.50 points or 0.07% to 24,998.45.

In the broader market, the S&P BSE Mid-Cap index declined 0.36% and the S&P BSE Small-Cap index rose 0.43%.

The market breadth was strong. On the BSE, 2251 shares rose and 1663 shares fell. A total of 132 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, dropped 4.65% to 13.47.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper advanced 1.71% to 6.882 as compared with previous close 6.881.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.9800, compared with its close of 83.9650 during the previous trading session.

MCX Gold futures for 4 December 2024 settlement rose 0.22% to Rs 75,098.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.02% to 102.91.

The United States 10-year bond yield gained 0.40% to 4.083.

In the commodities market, Brent crude for December 2024 settlement added $1.05 or 1.37% to $77.63 a barrel.

Global Markets:

European stocks declined on Thursday as investors await the latest U.S. inflation data for more signs that price pressures are easing.

Most Asian shares ended higher on Thursday, buoyed by Wall Street`s gains and anticipation for Beijing`s additional fiscal stimulus measures. The region`s markets were positively influenced by the Dow Jones Industrial Average hitting a new record closing high after the Federal Reserve`s September meeting minutes indicated a preference for a 50-basis-point interest rate cut. However, the minutes also clarified that the Fed has not committed to a specific pace of rate reductions.

In the U.S., the S&P 500 rose 0.7% on Wednesday, while the Dow Jones Industrial Average surged 1% to a record closing high of 42,512.0. The NASDAQ Composite gained 0.6%. Investors are now closely watching the third-quarter earnings season, with several major banks scheduled to report on Friday. Additionally, concerns about potential damage from Hurricane Milton are being monitored.

The key focus has shifted to the consumer price index data due on Thursday, which will provide valuable insights into inflation trends and their implications for interest rates. Persistent inflation could limit the Fed`s ability to rapidly cut rates.

Stocks in Spotlight:

Ratan Tata, the Chairman Emeritus of Tata Sons and a recipient of India`s second-highest civilian honor, the Padma Vibhushan, passed away on Wednesday at Mumbai`s Breach Candy Hospital. He was 86 years old. Tata had been in critical condition and under intensive care. On Monday, he had disclosed that he was undergoing routine medical examinations due to his age and associated health conditions.

Following the news of Tata`s demise, investors have responded positively to the Tata Group`s shares. The stocks saw a steady rise today, reflecting the market`s confidence in the group`s future and its continued adherence to the principles and values set forth by Ratan Tata.

Tata Investment Corporation (+5.7%), TRF (+6.31%), Tata Teleservices (Maharashtra) (+5.75%), Tata Chemicals (+4.07%), NELCO (+0.85%), Tata Power Co. (+1%), Tata Elxsi (+1.8%), Tata Technologies (+1.5%), Tejas Networks (+0.8%), Indian Hotels Co. (+1.8%), Taj GVK Hotels & Resorts (+2.24%), Automotive Stampings & Assemblies (+0.79%) and Tata Steel (+0.41%) advanced.

JSW Steel rose 1.19% after the company informed that its consolidated crude steel production for the Q2 FY25 was at 6.77 million tonnes, which is higher by 7% as against 6.34 million tonnes reported in Q2 FY24.

G M Breweries dropped 5.33% after the company`s net profit decline 3.12% to Rs 21.67 crore in Q2 FY25 as against Rs 22.37 crore posted in Q2 FY24. Revenue from operations (excluding excise duty) shed by 1.69% year on year to Rs 149 crore in the quarter ended 30 September 2024.

PNC Infratech rallied 3.3% after the company announced that it has been declared as the lowest (L1) bidder for an EPC project of Rs 2,090.59 crore from City & industrial Development Corporation of Maharashtra (CIDCO)

Rain Industries jumped 6.16% after the company�s wholly owned subsidiary, Rain Carbon Inc announced joint development agreement (JDA) with Northern Graphite to develop and commercialize advanced battery anode material (BAM).

Star Health & Allied Insurance Company fell 1.90%, following a targeted cyberattack that resulted in a data breach affecting over 31 million customers. According to the media reports, the hacker responsible for the breach listed the stolen data for sale on the dark web, making shocking allegations against Star Health`s Chief Information Security Officer (CISO). The hacker claimed the CISO was involved in selling the data and later attempted to extort more money for backdoor access.

Rashtriya Chemical & Fertilizers (RCF) rallied 6.78% after the company awarded a contract worth Rs 1,000.27 crore to L&T for setting up 1200 MTPD complex fertilizer plant on lump-sum turnkey (LSTK) basis at RCF, ThaI.

Arvind SmartSpaces advanced 2.24% after the company announced that it has registered bookings of over Rs 500 crore at Arvind Aqua City, its largest township development to date, launched towards the end of September.

Bank of Maharashtra slipped 1.13%. The public sector bank said that its gross advances jumped 18.73% to Rs 2,17,426 crore as of 30 September 2024 as against Rs 1,83,122 crore as of 30 September 2023. Sequentially, the gross advances gained 14.15% in the September quarter from Rs 2,09,031 crore as of 30 June 2024.

Lotus Chocolate Company hit a lower circuit of 5% after the company�s standalone net profit declined 23.64% to Rs 5.23 crore in Q2 FY25 as against Rs 6.86 crore posted in Q1 FY25. Revenue from operations declined 9.21% quarter on quarter (QoQ) to Rs 128.29 crore in the September 2024 quarter.

Puravankara declined 1.78%. The company reported 18% growth in sales to Rs 1,331 crore in Q2 FY25 from Rs 1,128 crore in Q1 FY25.

IPO Update:

The initial public offer (IPO) of Garuda Construction and Engineering received bids for 15,03,43,985 shares as against 1,99,04,862 shares on offer, according to stock exchange data at 17:00 IST on Thursday (10 October 2024). The issue was subscribed 7.55 times.

The issue opened for bidding on Tuesday (08 October 2024) and it will close on Thursday (10 October 2024). The price band of the IPO is fixed between Rs 90 to Rs 95 per share. An investor can bid for a minimum of 157 equity shares and in multiples thereof.

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