Indices drift lower in early trade; breadth negative

The key equity benchmarks traded with minor losses in early trade. The Nifty traded below the 24,300 level. Realty and consumer durables stocks advanced while media, PSU Bank and metal shares declined.

At 09:25 IST, the barometer index, the S&P BSE Sensex, was down 251.20 points or 0.32% to 79,454.71. The Nifty 50 index declined 73.20 points or 0.30% to 24,294.30.

In the broader market, the S&P BSE Mid-Cap index fell 0.14% and the S&P BSE Small-Cap index rose 0.20%.

The market breadth was negative. On the BSE, 1,393 shares rose and 1,680 shares fell. A total of 139 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 406.72 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 3,979.59 crore in the Indian equity market on 9 August 2024, provisional data showed.

Hindenburg's Fresh Allegations Against SEBI Chairperson

US short-seller Hindenburg Research has escalated its accusations against the Adani Group by targeting SEBI Chairperson Madhabi Buch and her husband, Dhaval Buch. The short-seller alleges that the Buchs were involved in offshore funds linked to the Adani Group, suggesting a potential conflict of interest. These funds, according to Hindenburg, were instrumental in the alleged money siphoning scandal.

The report has sparked a political uproar, with opposition parties demanding a Joint Parliamentary Committee (JPC) probe into the matter. They argue that the new allegations cast a shadow over Buch's meetings with Gautam Adani in 2022.

However, the Buchs have vehemently denied all charges, labeling them as a character assassination attempt. They claim their investments were made as private citizens and were unrelated to Madhabi Buch's role at SEBI.

The controversy has intensified the scrutiny on SEBI's handling of the Adani-Hindenburg matter, with both sides trading accusations and counter-accusations.

Stocks in Spotlight:

Bajaj Consumer Care tumbled 4.04% after the company‘s consolidated net profit declined 19.7% to Rs 37.12 crore in Q1 FY25 as compared with Rs 46.2 crore in Q1 FY24. Revenue fell 9% YoY to Rs 246 crore in Q1 FY25.

Jubilant Foodworks advanced 3.23% after the company’s consolidated net profit surged to Rs 60.80 crore in Q1 FY25 as compared with Rs 28.91 crore in Q1 FY24. Revenue from operations jumped 44.85% YoY to Rs 1,933.06 crore during the quarter.

Siemens shed 0.04%. The company’s standalone net profit jumped 25.23% to Rs 530.60 crore in June 2024 quarter as against Rs 423.70 crore reported in the same period last year. Total revenue from operations increased 6.97% year on year (YoY) to Rs 4,714.20 crore during the quarter ended 30 June 2024.

Numbers to Track:

The yield on India's 10-year benchmark federal paper was up 1.61% to 6.991 as compared with previous close 6.862.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.9575, compared with its close of 83.9525 during the previous trading session.

MCX Gold futures for 5 September 2024 settlement rose 0.27% to Rs 69,580.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.06% to 103.20.

The United States 10-year bond yield fell 0.10% to 3.940.

In the commodities market, Brent crude for October 2024 settlement added 9 cents or 0.07% to $79.73 a barrel.

Global Markets:

Asian stocks extended gains on Monday, building on last week's rally as investor optimism grows over the potential for a softer U.S. economic landing. With a series of crucial inflation reports due this week, market focus is shifting towards monetary policy implications.

Chinese equities lagged behind regional peers, continuing to grapple with concerns about a domestic economic slowdown. A slew of quarterly earnings reports will also be closely watched in the coming days. Persistent worries about China's faltering economic recovery, particularly in light of recent weak data, continued to weigh on sentiment.

Japan's market was closed for a holiday, resulting in lower trading volumes in Asia. However, Nikkei futures indicated a positive opening.

U.S. stocks rebounded on Friday, erasing most of the week’s losses after a sharp sell-off on Monday. The S&P 500 climbed 0.47%, the Nasdaq Composite gained 0.51%, and the Dow Jones Industrial Average added 0.13%.

Investor focus this week is on the U.S. Consumer Price Index (CPI) data, due out on Wednesday. The report will provide crucial clues about the Federal Reserve’s potential timeline for interest rate cuts. Market sentiment is divided between a 25 and 50 basis point reduction in September.