Indices drift higher in early trade; breadth strong

The key equity indices traded with major gains in early trade. The Nifty traded near the 24,600 level. Barring the Auto shares all sectoral indices traded in green on the NSE.

At 09:30 IST, the barometer index, the S&P BSE Sensex, jumped 120.52 points or 0.15% to 80,567.13. The Nifty 50 index added 59.35 points or 0.24% to 24,600.50.

In the broader market, the S&P BSE Mid-Cap index added 0.54% and the S&P BSE Small-Cap index gained 1.21%.

The market breadth was strong. On the BSE, 2,403 shares rose and 710 shares fell. A total of 133 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 766.52 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,606.18 crore in the Indian equity market on 16 August 2024, provisional data showed.

Economy:

Indias forex reserves declined $4.8 billion to $670.119 billion for the week ended August 9, according to the latest RBI data.

In the previous reporting week, the countrys foreign exchange reserves had increased $7.533 billion to an all-time high of $674.919 billion.

For the week ended August 9, foreign currency assets, a major component of the reserves, decreased by $4.079 billion to $587.96 billion.

Gold reserves declined by $860 million to $59.239 billion during the week. The special drawing rights (SDRs) were up by $121 million to $18.282 billion.

Indias reserve position with the IMF increased by $18 million to $4.638 billion in the reporting week, the central bank data showed.

Stocks in Spotlight:

Adani Enterprises rose 0.27%. The companys board has approved issuance of non-convertible debentures (NCDs) of face value of Rs 1,000 each upto Rs 400 crore with an option to retain over-subscription upto Rs 400 crore, aggregating upto Rs 800 crore.

DCX Systems rallied 4.33% after the company received Rs 107 crore orders from domestic and overseas customers for supply of electronic kits and cable & wires harness assemblies.

Samvardhana Motherson International rose 0.12%. The company incorporated a new unit in Abu Dhabi for auto component manufacturing.

Numbers to Track:

The yield on India's 10-year benchmark federal paper jumped 1.66% to 6.981 as compared with previous close 6.867.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.8750, compared with its close of 83.9500 during the previous trading session.

MCX Gold futures for 4 October 2024 settlement advanced 0.26% to Rs 71,563.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies shed 0.12% to 102.34.

The United States 10-year bond yield shed 0.10% to 3.888.

In the commodities market, Brent crude for October 2024 settlement lost 13 cents or 0.16% to $79.55 a barrel.

Global Markets:

Asian stocks traded mixed on Monday as investors weighed optimism about a US economic soft landing against concerns over the global growth outlook.

Expectations of cooling inflation and a potential easing cycle by the Federal Reserve buoyed sentiment. However, investors remained cautious ahead of key US economic data this week and Federal Reserve Chair Jerome Powell's speech on Friday.

In Asia, market participants will closely monitor central bank meetings in Indonesia and South Korea for potential rate adjustments. Thailand's policy decision is particularly awaited given uncertainties surrounding the new government's economic plans.

US stocks rebounded from earlier losses to close higher on Friday, as a report showing improved consumer sentiment boosted investor confidence. The Dow Jones Industrial Average rose 0.24%, the S&P 500 climbed 0.20% and the Nasdaq Composite gained 0.21%.

The University of Michigans gauge of consumer sentiment rose to 67.8 in a preliminary August reading, up from 66.4 in the prior month. It is the first gain after four months of declines.

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