Domestic equity market experienced a sharp decline on Friday, mirroring a broader sell-off in global markets. Investors were cautious ahead of the release of crucial US jobs data later in the day, which could significantly impact the Federal Reserve’s monetary policy decisions.
The Nifty 50 index closed below the 24,900 level, reversing from an earlier intraday high of 25,168.75. The sell-off was widespread, with banking and energy sectors bearing the brunt of the decline.
The barometer index, the S&P BSE Sensex, tanked 1,017.23 points or 1.24% to 81,183.93. The Nifty 50 index dropped 292.95 points or 1.17% to 24,852.15.
State Bank of India (down 4.40%), ICICI Bank (down 2.09%) and Reliance Industries (down 1.92%) were major drags.
In the broader market, the S&P BSE Mid-Cap index fell 1.41% and the S&P BSE Small-Cap index declined 0.96%.
The market breadth was weak. On the BSE, 1,403 shares rose and 2,544 shares fell. A total of 87 shares were unchanged.
The NSE’s India VIX, a gauge of the market’s expectation of volatility over the near term, surged 6.49% to 15.13.
Numbers to Track:
The yield on India’s 10-year benchmark federal advanced 1.69% to 6.971 as compared with previous close 6.969.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.9600, compared with its close of 83.9700 during the previous trading session.
MCX Gold futures for 4 October 2024 settlement added 0.11% to Rs 71,997.
The US Dollar index (DXY), which tracks the greenback’s value against a basket of currencies, was down 0.12% to 100.99.
The United States 10-year bond yield fell 0.92% to 3.698.
In the commodities market, Brent crude for November 2024 settlement added 16 cents or 0.22% to $72.85 a barrel.
Global Markets:
The Dow Jones index futures were down 145 points, indicating a weak opening in the US stocks today.
Shares in Europe and Asia declined on Friday as investors shifted their focus to the upcoming U.S. payrolls report. The report is expected to shed light on the potential magnitude of a rate cut by the Federal Reserve later this month.
Japans household spending data for July rose 0.1% in real terms from the previous year as compared to a 1.4% fall in June. Data from the Japans statistics bureau said the average household monthly expenditure for July 2024 was 290,931 yen ($2,031.35), up 3.3% in nominal terms from the previous year.
Overnight in the U.S., all three major indexes declined amid ongoing concerns about the economic outlook. The S&P 500 fell by 0.3%, extending its losing streak to three days, while the Dow Jones Industrial Average dropped 0.54%. However, the tech-heavy Nasdaq Composite managed a modest gain of 0.25%.
Adding to the economic uncertainty, ADP reported that private sector job growth in August was the weakest in over three and a half years. Companies hired only 99,000 workers, falling short of both the downwardly revised July figure and market expectations. This marked the weakest month for job growth since January 2021, according to data from the payrolls processing firm.
Stocks in Spotlight:
Godfrey Phillips India surged 12.69% after its board scheduled to meet on Friday, 20 September 2024 to consider the issue of 2 bonus equity shares for every 1 existing equity share (2:1) by capitalization of reserves.
Vodafone Idea slumped 11.46% to Rs 13.36 after the foreign broker forecasted a potential downside of over 80% for the telecom stock. The foreign broker has maintained a Sell rating on Vodafone Idea, revising its target price marginally upward to Rs 2.50 per share from Rs 2.20 previously.
Angel One slipped 3.65%. The company announced that its client base jumped 62.9% to 26.65 million in August 2024 as against 16.36 million recorded in August 2023.
Dr Reddy’s Laboratories shed 0.42%. The pharma major announced that it has received the establishment inspection report (EIR) from the United States Food & Drug Administration (USFDA) for its API manufacturing facility (CTO-6) in Srikakulam, Andhra Pradesh.
VA Tech Wabag added 1.74% after the company announced that it has bagged a mega order worth $317 million (approximately Rs 2,700 crore) from the Saudi Water Authority (SWA).
L&T Finance slipped 3.08%. The company said that it has allotted 17,500 listed, secured, rated, redeemable, non-convertible debentures having face value of Rs 1 lakh each, aggregating to Rs 175 crore, through private placement basis.
Matrimony.com shed 0.4% to Rs 800.90. The matchmaking services provider announced that its board has approved a share buyback of up to Rs 72 crore at a price of Rs 1,025 per equity share through tender offer route.
Strides Pharma Science advanced 1.11% after its step-down wholly owned subsidiary, Strides Pharma Global Pte, Singapore, received US Food & Drug Administration (USFDA) approval for Theophylline Extended-Release tablets.
New Listing:
Shares of Baazar Style Retail closed at Rs 399.65 on the BSE, a premium of 2.74% as compared with the issue price of Rs 389.
The scrip was listed at Rs 389, matching the issue price. The stock has hit a high of 430.95 and a low of 378.15. On the BSE, over 22.30 lakh shares of the company were traded in the counter.
IPO Update:
The initial public offer (IPO) of Shree Tirupati Balajee Agro Trading Company received 25,98,48,180 bids for shares as against 1,43,08,000 shares on offer, according to stock exchange data at 17:00 IST on Friday (6 September 2024). The issue was subscribed 18.16 times.
The issue opened for bidding on Thursday (5 September 2024) and it will close on Monday (9 September 2024). The price band of the IPO is fixed between Rs 78 to 83 per share. An investor can bid for a minimum of 180 equity shares and in multiples thereof.
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