BAROMETERS NUDGE LOWER; BREADTH STRONG

The headline equity benchmarks traded with limited losses in early trade. The Nifty traded below the 25,350 mark. FMCG, IT and financial services shares declined while media, metal and realty shares advanced.

At 09:30 IST, the barometer index, the S&P BSE Sensex, fell 229.39 points or 0.26% to 82,738.92. The Nifty 50 index lost 66.60 points or 0.26% to 25,322.30.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.42% and the S&P BSE Small-Cap index gained 0.68%.

The market breadth was strong. On the BSE, 2,140 shares rose and 781 shares fell. A total of 112 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 7,695 crore, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 1,800.54 crore in the Indian equity market on 12 September 2024, provisional data showed.

Economy:

India�s retail inflation rose to 3.65% in August, slightly higher than 3.6% reported in July. The inflation was within the Reserve Bank of India�s (RBI) medium-term target of 2-6%.

Separately, the Index of Industrial Production (IIP) rose slightly to 4.83% in July from 4.72% in June.

Stocks in Spotlight:

Bharat Petroleum Corporation (BPCL) added 0.34%. The company�s board has approves joint venture agreement with Sembcorp Green Hydrogen India for Renewable Energy and Green Hydrogen. Meanwhile, the board has also approved joint agreement with GPS Renewable for setting up Compressed Bio Gas (CBG) plants. Further, the board also approved augmentation of Cochin Coimbatore Karur Pipeline (CCKPL) and Irugur Devangonthi Pipeline (IDPL) along with setting up of Palakkad TOP Kerala.

SBI Cards and Payment Services rose 0.47%. The company informed that its board is scheduled to be meet on Wednesday, 18 September 2024, to consider the proposal, for raising of funds aggregating to Rs. 5,000 crore via non-convertible debentures (NCDs).

Numbers to Track:

The yield on India`s 10-year benchmark federal paper shed 0.13% to 6.914 as compared with previous close 6.923.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.9325, compared with its close of 83.9650 during the previous trading session.

MCX Gold futures for 4 October 2024 settlement rose 0.48% to Rs 73,176.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.31% to 101.05.

The United States 10-year bond yield fell 0.88% to 3.644.

In the commodities market, Brent crude for November 2024 settlement gained 35 cents or 0.49% to $72.32 a barrel.

Global Markets:

Asian stocks traded mixed on Friday as investors took profits following the previous session`s rally. The market remains optimistic about the possibility of a US Federal Reserve interest rate cut.

US stock markets closed higher on Thursday after the latest inflation data solidified expectations for a 25-basis point rate decrease by the Federal Reserve. The Dow Jones Industrial Average gained 0.58%, the S&P 500 rose 0.75%, and the Nasdaq Composite ended 1.00% higher.

Warner Bros Discovery shares surged 10.4%, while Charter`s stock price increased by 3.6%. Moderna experienced a decline of 12.4%, and Kroger shares rallied 7.2%.

The producer price index (PPI) for final demand rose 0.2% in August, slightly exceeding estimates of 0.1% growth. The core PPI, excluding volatile food and energy prices, increased by 0.3%, surpassing the forecasted 0.2%.

The number of Americans filing initial claims for unemployment benefits rose marginally last week. Initial claims increased by 2,000 to a seasonally adjusted 230,000 for the week ending September 7.

The European Central Bank (ECB) implemented a second interest rate cut this year. The key deposit rate was lowered by 25 basis points to 3.5%, aligning with expectations. While the ECB reduced its 2024 economic growth projection, it remains confident that inflation will broadly align with its 2% target by the end of 2025.

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