Benchmarks hit record highs, Nifty ends above 25,200, VIX drops 2.70%

Domestic equity barometers ended with moderate gains on Friday. The Nifty settled above the 25,200 level. Realty, pharma and healthcare shares advanced while media and FMCG stocks declined.

The barometer index, the S&P BSE Sensex gained 231.16 points or 0.28% to 82,365.77. The Nifty 50 index added 83.95 points or 0.33% to 25,235.90.

Both the indices attained record closing highs. Sensex advanced 2.41% in nine consecutive sessions while the 50-unit index has risen 4.54% in twelve sessions.

The Sensex and Nifty clocked an all-time high of 82,637.03 and 25,268.35, respectively in early trade.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index rose 0.53% and the S&P BSE Small-Cap index gained 0.75%. The S&P BSE Mid-Cap index hit an all-time high at 49,186.33.

The market breadth was strong. On the BSE, 2,221 shares rose and 1,709 shares fell. A total of 115 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, slipped 2.70% to 13.42.

Numbers to Track:

The yield on India`s 10-year benchmark federal grew 1.70% to 6.981 as compared with previous close 6.978.

In the foreign exchange market, the rupee edged higher the dollar. The partially convertible rupee was hovering at 83.8600, compared with its close of 83.8900 during the previous trading session.

MCX Gold futures for 4 October 2024 settlement shed 0.19% to Rs 72,050.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.05% to 101.39.

The United States 10-year bond yield fell 0.24% to 3.853.

In the commodities market, Brent crude for October 2024 settlement lost 11 cents or 0.14% to $78.52 a barrel.

Global Markets:

European shares advanced on Friday after the Euro zone inflation fell to a three-year low of 2.2% in August, according to flash figures released by statistics agency Eurostat on Friday.

Asian stocks ended higher as investors look ahead to key inflation data from across the region and the US.

The upcoming release of the U.S. core personal consumption expenditures (PCE) price index, the Fed`s preferred inflation gauge, and a reading on euro zone inflation are eagerly awaited. These data points will likely provide further insights into the rate outlook for major economies.

U.S. stocks closed higher on Thursday, despite a late-afternoon sell-off. The Dow Jones Industrial Average reached another record high as investors anticipated the release of the PCE inflation data. The Dow Jones Industrial Average rose 0.59%, the S&P 500 remained relatively unchanged at 5,591.96, and the Nasdaq Composite declined by 0.23%.

The U.S. economy saw stronger growth in Q2 than initially reported, driven by robust consumer spending and corporate profit rebounds. GDP increased by 3.0% in the last quarter, an upward revision from 2.8%. Consumer spending rose 2.9% annual rate last quarter, and corporate profits surged by $57.6 billion, supporting economic expansion.

Additionally, the number of Americans filing for unemployment benefits declined by 2,000 to 231,000 for the week of Aug. 24, the Labor Department reported Thursday (August 29).

Stocks in Spotlight:

Adani Ports and Special Economic Zone (APSEZ) added 0.46%. APSEZ has entered into a definitive agreement to acquire 80% stake in Astro, in an all-cash deal for $185 million, implying an enterprise value of $235 million and EV/ FY25E EBITDA at 4.4x. The transaction is expected to be value accretive from the first year itself.

The deal is strategically significant as Astro Offshore has an impressive roster of Tier-1 customers in the engineering, procurement, and construction (EPC), oil and gas, and renewables industry. Astro�s strong roster of Tier-1 customers includes NMDC, McDermott, COOEC, Larsen & Toubro and Saipem.

Mahindra & Mahindra (M&M) gained 1.75% after the Mahindra Group signed a non-binding memorandum of understanding (MoU) with Sentrycs to develop and provide anti-drone solutions in India for civilian and military applications.

Zydus Lifesciences shed 0.35%. The drug major announced that it has received a warning letter from United States Food & Drug Administration (USFDA) for its injectables manufacturing facility located at Jarod near Vadodara. The warning letter summarizes violations of current good manufacturing practice (cGMP) regulations but does not include any data integrity related violations. Meanwhile, the company said that it has received a final approval from the USFDA to market Scopolamine Transdermal System.

Torrent Pharmaceuticals rose 1.57% after the United States Food and Drug Administration (USFDA) issued establishment inspection report (EIR) with voluntary action indicated (VAI) classification to the Gujarat manufacturing facility.

Garden Reach Shipbuilders & Engineers (GRSE) rallied 3.36% after the firm signed a memorandum of understanding (MOU) with the National Highway Infrastructure Development Corporation (NHIDCL) to supply modular steel & Bailey bridges.

Patel Engineering jumped 6.71% after the company announced that it has signed a memorandum of understanding (MOU) with Rail Vikas Nigam (RVNL) for collaborating on domestic and global projects.

Prestige Estates Projects advanced 5.32% after its board has approved the opening of qualified institutional placement (QIP) of equity shares with the floor price of Rs, 1,755.09 per equity share.

Rail Vikas Nigam (RVNL) surged 5.02% after the company said that it has received letter of acceptance (LoA) from south eastern railway for a project worth Rs 202.87 crore.

IPO update:

The initial public offer (IPO) of Baazar Style Retail received 1,08,18,182 bids for shares as against 1,50,30,116 shares on offer, according to stock exchange data at 17:00 IST on Friday (30 August 2024). The issue was subscribed 0.72 times.

The issue opened for bidding on 30 August 2024 and it will close on 3 September 2024. The price band of the IPO was fixed between Rs 370 to 389 per share. An investor can bid for a minimum of 38 equity shares and in multiples thereof.

The IPO of Ecos (India) Mobility & Hospitality received 80,86,90,256 bids for shares as against 1,26,00,000 shares on offer, according to stock exchange data at 17:12 IST on Friday (30 August 2024). The issue was subscribed 64.18 times.

The issue opened for bidding on 28 August 2024 and it will close on 30 August 2024. The price band of the IPO was fixed between Rs 318 to 334 per share. An investor can bid for a minimum of 44 equity shares and in multiples thereof.

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