Indices nudge lower in early trade; breadth strong

The key equity indices traded near the flatline with minor losses in early trade. The Nifty traded below the 24,850 mark. Auto, oil & gas and pharma shares advanced while IT, realty and FMCG shares declined.

At 09:30 IST, the barometer index, the S&P BSE Sensex, rose 9.14 points or 0.01% to 81,041.85. The Nifty 50 index shed 3.15 points or 0.01% to 24,832.50.

In the broader market, the S&P BSE Mid-Cap index added 0.22% and the S&P BSE Small-Cap index gained 0.25%.

The market breadth was strong. On the BSE, 1,914 shares rose and 1,113 shares fell. A total of 105 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,371.79 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,971.80 crore in the Indian equity market on 22 August 2024, provisional data showed.

Stocks in Spotlight:

Adani Power added 1.60% after the company said that National Company Law Tribunal (NCLT) approved company's resolution plan to buy Lanco Amarkantak Power for Rs 4,101 crore.

Jain Irrigation Systems jumped 4.67% after the company has signed MoU with Indian Coffee board for commercial release of disease resistance coffee plants to growers.

Bharat Forge rose 0.73%. The company said that it will invest an additional Rs 105 crore in its subsidiary, Kalyani Power Train via share subscription.

Numbers to Track:

The yield on India's 10-year benchmark federal paper jumped 1.72% to 6.970 as compared with previous close 6.967.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.9175, compared with its close of 83.9350 during the previous trading session.

MCX Gold futures for 4 October 2024 settlement rose 0.28% to Rs 71,392.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.16% to 101.35.

The United States 10-year bond yield fell 0.44% to 3.845.

In the commodities market, Brent crude for October 2024 settlement rose 6 cent or 0.08% to $76.11 a barrel.

Global Markets:

Most Asian stocks were trading lower as investors anticipated comments from Jerome Powell later on Friday.

The yen strengthened early Friday after Japanese inflation data surpassed expectations. Government figures revealed that core CPI, which excludes volatile fresh food prices, rose 2.7% year-over-year in July, while headline CPI inflation increased by 2.8% during the same period.

U.S. stocks declined on Thursday, with the S&P 500 falling 0.89% and the tech-heavy Nasdaq 100 dropping 1.67%. The Dow Jones also decreased by 0.43%. Nvidia Corp. led losses in the tech sector with a sharp 3.7% drop, while Intel Corp. fell by 6.1%. Conversely, bank stocks rose, and energy shares gained alongside rising oil prices. Notably, Peloton Interactive Inc. soared 35% after reporting earnings that exceeded estimates.

Fed Chair Powell is scheduled to speak at the Jackson Hole Symposium on Friday, where he is expected to provide further insights into the central banks plans for potential interest rate cuts.

New jobless claims in the U.S. increased slightly last week but remained relatively low, suggesting a gradual slowdown in the labor market. This trend could pave the way for the Federal Reserve to begin lowering interest rates next month. Initial claims for state unemployment benefits rose by 4,000 to a seasonally adjusted 232,000 for the week ended August 17, according to the Department of Labor.

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