Market drifts higher in early trade; breadth strong

The domestic equity barometers were trading firm in the early trade on buying demand in index pivotals. Local stocks staged a comeback after notching losses in prior four trading sessions. The Nifty traded above the 17,100 level. All the sectoral indices on the NSE were in the green with PSU bank, oil & gas and FMCG stocks gaining the most.

At 09:29 IST, the barometer index, the S&P BSE Sensex, was up 447.34 points or 0.78% to 57,592.56. The Nifty 50 index gained 130.15 points or 0.76% to 17,146.45.

In the broader market, the S&P BSE Mid-Cap index rose 0.55% while the S&P BSE Small-Cap index gained 0.95%.

The market breadth was strong. On the BSE, 2,140 shares rose and 580 shares fell. A total of 80 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 5,101.30 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 3,532.18 crore in the Indian equity market on 26 September, provisional data showed.

The Reserve Bank of India (RBI)'s six-member Monetary Policy Committee is scheduled to meet this week during 28-30 September 2022. RBI Governor Shaktikanta Das will announce the MPC decision on 30 September 2022, the last date of the meeting. The RBI is widely expected to maintain the balancing act between growth and inflation.

In the past three policy reviews, the RBI's rate-setting panel has raised 140 basis points in total since May this year. Currently, the repo rate, the interest rate at which the RBI lends to the commercial bank, stands at 5.40%.

Stocks in Spotlight:

Mahindra Logistics rallied 4%. The company entered into a Business Transfer Agreement with Rivigo Services Private Limited and its promoter for acquisition/purchase of its B2B express business, as a going concern, on slump sale basis, for a lump sum consideration of Rs. 225 crore.

Amara Raja Batteries rose 0.86% after the company announced a proposed transaction integrating its supply chain, leading to margin improvements by bringing the Plastics Component for Battery Business of Mangal Industries (MIL) into its own fold through a scheme of arrangement involving demerger of Plastics Component for Battery Business from MIL into ARBL (Scheme).

Filatex India gained 2.76%. Filatex India informed that the project for debottlenecking melt capacity of 50 MT per day and manufacturing lines of 120 MT per day POY at Dahej Plant have successfully been commissioned from 26th September 2022.

Orient Bell advanced 4.31% after the company announced a completion of expansion at its Hoskote plant (Bengaluru district, Karnataka) involving capex of about Rs. 34 crore well ahead of schedule.

Jyoti Structures rallied 4.69%. The company announced that it has secured a contract from Sterlite Power Transmission for turnkey supply and construction of 400 KV & 220 kV Double Circuit transmission line in Goa & Karnataka. The contract is valued at Rs. 237 crore including GST and is to be commissioned in phased manner by December 2023 and July 2024.

Global Markets:

Asian stocks are trading mixed on Tuesday after sharp falls on Monday. China's industrial profits for January to August fell 2.1% from the same period a year ago, official data showed.

Wall Street slid deeper into a bear market on Monday, with the S&P 500 and Dow closing lower as investors fretted that the Federal Reserve's aggressive campaign against inflation could throw the US economy into a sharp downturn.

The Bank of England on Monday said it is monitoring financial market developments very closely after a dramatic turmoil saw the British pound. The BOE governor said the central bank's monetary policy committee would make a full assessment at its next scheduled meeting in November, and act accordingly. The MPC will not hesitate to change interest rates as necessary to return inflation to the 2% target sustainably in the medium term, in line with its responsibility, he added.

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