Investors will monitor a busy week of US economic data, culminating in the November jobs report. This report could significantly influence the Fed's decision on interest rate cuts.
As per provisional closing, the S&P BSE Sensex, tanked 1,272.07 points or 1.49% to 84,299.78. The Nifty 50 index dropped 368.10 points or 1.41% to 25,810.85.
In the broader market, the S&P BSE Mid-Cap index fell 0.28% and the S&P BSE Small-Cap index rose 0.07%.
The market breadth was negative. On the BSE, 1,821 shares rose and 2,216 shares fell. A total of 153 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 6.89% to 12.79.
Economy:
India's foreign exchange reserves climbed for the sixth consecutive week to a record high of $692.3 billion as of September 20, according to data released by the Reserve Bank of India on Friday (September 27).
The reserves increased by $2.84 billion during the week, following a total rise of $19.3 billion over the previous five weeks.
Foreign currency assets, the largest component of the reserves, rose to $605.7 billion from $603.6 billion in the previous week.
Gold reserves increased, climbing to $63.6 billion from $62.9 billion. Special Drawing Rights (SDRs) stood at $18.5 billion, up from $18.4 billion.
Meanwhile the reserve tranche position with the International Monetary Fund (IMF) fell slightly to $4.46 billion from $4.52 billion.
New Listing :
Shares of Manba Finance closed at Rs 157.45 on the BSE, representing a premium of 31.21% as compared with the issue price of Rs 120.
The scrip was listed at Rs 150, exhibiting a premium of 25% to the issue price.
The stock has hit a high of 157.45 and a low of 144. On the BSE, over 14.05 lakh shares of the company were traded in the counter.
IPO Update :
The initial public offer (IPO) of Diffusion Engineers received bids for 62,20,36,976 shares as against 65,98,500 shares on offer, according to stock exchange data at 15:15 IST on Monday (30 September 2024). The issue was subscribed 94.27 times.
The issue opened for bidding on Thursday (26 September 2024) and it will close on Monday (30 September 2024). The price band of the IPO is fixed between Rs 159 to Rs 168 per share. An investor can bid for a minimum of 88 equity shares and in multiples thereof.
Buzzing Index:
The Nifty Auto fell 2.11% to 27,027.20. The index rallied 2.68% in past two consecutive trading sessions.
Hero MotoCorp (down 4.11%), TVS Motor Company (down 3.58%), Mahindra & Mahindra (down 3%), Bajaj Auto (down 2.52%), Maruti Suzuki India (down 2.05%), Tata Motors (down 1.92%), Samvardhana Motherson International (down 1.85%), MRF (down 1.77%), Ashok Leyland (down 1.67%) and Eicher Motors (down 0.75%) edged lower.
On the other hand, Exide Industries (up 1.08%),Balkrishna Industries (up 0.36%) and Apollo Tyres (up 0.09%) edged higher.
Stocks in Spotlight:
Kaynes Technology India slipped 2.40%. The company has entered into share purchase agreement (SPA) to acquire 100% stake in Iskraemeco India for total consideration of Rs 42 crore.
Bajaj Steel Industries zoomed 16.17% after the company announced that its board will meet on Thursday, 03 October 2024, to consider the proposal for issuance of bonus shares to the shareholders of the company.
Shakti Pumps (India) hit an upper circuit of 5% after the company said that its board scheduled to meet on Monday, 7 October 2024 to consider the issue of 5 bonus equity shares for every 1existing equity share (5:1).
Aurobindo Pharma slipped 3.16% after US Food and Drug Administration (USFDA) issued 10 observations to the company's wholly owned subsidiary, Apitoria Pharma's API manufacturing facility situated in Telangana.
Bajel Projects rallied 6.37% after the company announced that it had successfully entered the emerging data centre segment by securing its first order from an upcoming data centre service provider.
Welspun Enterprises rose 1.46% after the company said that it has been declared as L1 bidder by the Brihanmumbai Municipal Corporation for design and construction of Tertiary Treated Water Conveyance Tunnel from Dharavi to Ghatkopar.
NBCC (India) advanced 1.01% after the company announced that it has received work order worth Rs 101 crore from National Highways Authority of India (NHAI).
Welspun Corp advanced 3.51% after the company received a prestigious order from the Middle East for supply of coated longitudinal submerged arc welding (LSAW) pipes and bends for sour service.
Max Estates rose 0.89%. The company said that its first residential development in Gurugram has garnered pre-sales booking value of Rs 4,100 crore, surpassing the guidance of Rs 4,000 crore provided by the company for FY25.
Avantel jumped 7.23% after the company informed that it has received a purchase order for an amount of Rs 44.49 crore from Larsen & Toubro (L&T) for the supply of satcom systems.
Global Markets:
European stocks declined on Monday despite the inflation rate in North-Rhine Westphalia, Germany's most populous state, fell to 1.5% year-on-year in September, down from 1.7% in August. Further, market participants will monitor Lagarde's speech about monetary policy at European Parliament today.
Further, the US Federal Reserve Chair Jerome Powell will speak at the National Association for Business Economics Annual Meeting, in Nashville which will be in investors' focus.
Asian stocks ended lower on Monday as Middle East tensions offset China's stimulus measures. The Nikkei tumbled on concerns about Japan's new prime minister favoring higher interest rates.
The Shanghai Composite surged over 4%, extending last week's 13% rally. China's central bank announced plans to reduce mortgage rates for existing home loans by the end of October, likely by an average of 50 basis points. This move is part of Beijing's largest stimulus package since the pandemic, which includes a range of monetary, fiscal, and liquidity support measures.
Despite the stimulus, China's Caixin Manufacturing PMI declined from 50.4 in August to 49.3 in September, indicating a return to contraction. The manufacturing sector deteriorated in September after improving the previous month.
In the United States, the Dow closed at a record high on Friday, shrugging off tech sector volatility. Surging energy stocks and signs of cooling inflation boosted investor sentiment.
The 30-stock Dow Jones Industrial Average gained 0.3%, reaching a new closing record of 42,313. The benchmark S&P 500 fell 0.2%, and the tech-heavy Nasdaq Composite was down 0.4%.
The US Personal Consumption Expenditures index, the Fed's preferred inflation measure, showed that annual inflation decreased to 2.2% in August from 2.5% the month before. Fed Chair Jerome Powell is scheduled to deliver a closely watched speech on Monday.
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