Market drift lower; breadth strong

The domestic equity benchmarks traded with minor cuts in early trade. The Nifty traded below the 25,950 mark. PSU bank, IT and realty shares declined while metal, pharma and oil & gas stocks advanced.

At 09:30 IST, the barometer index, the S&P BSE Sensex shed 62.54 points or 0.07% to 84,868.37. The Nifty 50 index lost 11.35 points or 0.04% to 25,927.70.

In the broader market, the S&P BSE Mid-Cap index added 0.23% and the S&P BSE Small-Cap index rose 0.32%.

The S&P BSE Small-Cap index and S&P BSE Mid-Cap index hit an all-time high at 57,728.08 and 49,701.15, respectively.

The market breadth was strong. On the BSE, 1,831 shares rose and 1,135 shares fell. A total of 133 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 404.42 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,022.64 crore in the Indian equity market on 23 September 2024, provisional data showed.

Stocks in Spotlight:

Power Grid Corporation of India rose 1.23% after the company emerged as a successful bidder for the Khavda project to establish an interstate transmission system.

Coal India added 0.65%. The firm entered into a 74-26 JV pact with Rajasthan Rajya Vidyut Utpadan Nigam for a 2x800 MW brownfield thermal project.

Reliance Power rallied 4.98% after the companys board approved raising of Rs 1,525 crore via preferential issue of shares and warrants.

Numbers to Track:

The yield on India's 10-year benchmark federal paper advanced 1.70% to 6.882 as compared with previous close 6.883.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.5500, compared with its close of 83.5475 during the previous trading session.

MCX Gold futures for 4 October 2024 settlement rose 0.23% to Rs 75,120.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.07% to 100.92.

The United States 10-year bond yield grew 0.51% to 3.759.

In the commodities market, Brent crude for November 2024 settlement gained 73 cents or 0.99% to $74.63 a barrel.

Global Markets:

Asian markets advanced after Beijing announced a slew of policy easing measures in a rare briefing from central bank governor, Pan Gongsheng. The PBOC will cut the reserve requirement ratio for banks by 50 basis points, although it did not provide a specific timeline. It also announced it would cut the seven-day reverse repurchase rate from 1.7% to 1.5%.

The Wall Street ended higher on Tuesday, buoyed by hints from Federal Reserve policymakers suggesting further interest rate cuts.

Investors are now eagerly awaiting the release of the Federal Reserve's preferred inflation gauge and US personal spending data on Friday.

In Asia, speculation has intensified that Beijing is preparing to ramp up efforts to revive its economy. On Monday, Chinese authorities announced that central bank chief Pan Gongsheng would hold a press conference on Tuesday to discuss financial support for economic development. Shortly after, the People's Bank of China lowered the 14-day reverse repurchase rate, aligning with reductions implemented in July.

Meanwhile, Japan's manufacturing activity contracted more than expected in September due to ongoing production disruptions faced by major automakers. However, the services sector saw growth driven by strong consumer demand. The au Jibun Bank manufacturing purchasing managers index fell to 49.6 in early-September, indicating contraction for the third consecutive month.

In the United States, equities managed a slight gain Monday as traders analyzed comments from Federal Reserve policymakers and perceived room for further easing following the recent half-point interest rate cut. The S&P 500 rose by 0.28%, the Dow Jones Industrial Average (+0.15%) closed at a record high, and the Nasdaq 100 increased by 0.14%.

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