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EQUITY
Post Session: Quick Review
Oct-08-2024

It turned out to be an optimistic day for the domestic equities as markets held their gains till the end of the session and settled with gains of over half a percent. After falling for sixth consecutive day in previous session, traders preferred buy stocks at lowest levels on Tuesday. Investors were braced for RBI rate decision due on tomorrow. The broader market outperformed the frontline indices. 

Markets made cautious start following the broadly negative cues from Wall Street overnight as well as weakness in Asian counterparts dragged by the tumbling Hong Kong market. But soon, indices gained traction and extended their gains, as some support came with Commerce and Industry Minister Piyush Goyal’s statement that India is poised to attract $100 billion in investments from the United Arab Emirates in the coming years. Separately, he also said it is time for the Indian rupee to appreciate on the back of inflows in debt and equity markets. Besides, Oil Minister Hardeep Singh Puri said that with global oil prices flaring due to widening conflict in the Middle East, India is watching the situation carefully and is confident of navigating any challenges it may pose. In afternoon session, markets remained in green, as sentiments were positive amid reports that India has relaxed certain provisions in its bilateral investment treaty (BIT) with the UAE, which include a reduction in the period for investors to exhaust local remedies for any dispute to three years from the usual five years and bringing in the typically short-term portfolio investments under its ambit. In late afternoon session, markets touched their days high levels amid value buying.

On the global front, European markets were trading lower amid lingering Middle East concerns and reduced expectations of Federal Reserve interest-rate cuts. Asian markets ended mostly in red after a Federal Reserve official urged a cautious path on interest-rate cuts. Investors looked ahead of key U.S. inflation readings and the release of the Fed's latest meeting minutes this week for additional clues on the Fed's rate trajectory. Back home, domestic rating agency ICRA in its latest report has said that securitisation volumes are estimated to have surged to Rs 60,000 crore in the July-September quarter (Q2FY25) and are likely to cross Rs 2.1 lakh crore in the current financial year (FY25).

The BSE Sensex ended at 81,634.81, up by 584.81 points or 0.72% after trading in a range of 80,813.07 and 81,763.28. There were 19 stocks advancing against 11 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 1.86%, while Small cap index was up by 2.44%. (Provisional)

The top gaining sectoral indices on the BSE were Capital Goods up by 2.82%, Industrials up by 2.81%, Power up by 2.44%, Telecom up by 2.35% and Utilities was up by 2.23%, while Metal was down by 1.12% were the only losing indices on BSE. (Provisional)

The top gainers on the Sensex were Adani Ports up by 4.76%, Mahindra & Mahindra up by 3.42%, Reliance Industries up by 2.01%, HDFC Bank up by 1.95% and Larsen & Toubro up by 1.83%. On the flip side, Tata Steel down by 2.89%, Titan Company down by 2.37%, Bajaj Finserv down by 2.02%, JSW Steel down by 1.75% and Tata Motors down by 0.89% were the top losers. (Provisional)

Meanwhile, Union Minister Piyush Goyal has said that India and the UAE will set up a food corridor with an expected investment of $2 billion which will cater to the UAE market and beyond and help Indian farmers earn higher income and create more jobs. Goyal said that a small working group comprising central government, state governments involved and the UAE has also been set up to take forward the establishment of food corridor between the two countries on a mission mode basis.

The minister said that around $2 billion is the initial commitment that UAE has made to invest in the food processing industry and the food park logistics that can be required to move the material to the UAE. Stating that this investment is expected to happen in the next two-and-a-half-year period, he said ‘But the overall investment is also a factor of the opportunities that Indian businesses are able to offer.’ 

He further said it has been under discussion for a very long time that the UAE would like to invest in setting up food processing facilities in India to enable the availability of high-quality products suitable to the UAE, using Indian farmers' products and to be sold in the UAE. This matter has been under discussion for quite some time with the UAE Government coming, and with different states in India. He said ‘Now, we are looking at progressing them faster to make sure that investments in food processing can come up in India with UAE investors and the UAE Market along with other Gulf markets’.

The CNX Nifty ended at 25,013.15, up by 217.40 points or 0.88% after trading in a range of 24,756.80 and 25,044.00. There were 36 stocks advancing against 14 stocks declining on the index. (Provisional)

The top gainers on Nifty were Trent up by 7.95%, Bharat Electronics up by 4.83%, Adani Enterprises up by 4.73%, Adani Ports up by 4.67% and Mahindra & Mahindra up by 3.45%. On the flip side, SBI Life down by 3.35%, Tata Steel down by 2.94%, Titan Company down by 2.67%, Bajaj Finserv down by 2.19% and JSW Steel down by 2.02% were the top losers. (Provisional)

European markets were trading lower; UK’s FTSE 100 decreased 94.49 points or 1.15% to 8,209.13, France’s CAC fell 61.11 points or 0.81% to 7,514.91 and Germany’s DAX was down by 72.22 points or 0.38% to 19,031.88.

Asian markets settled mostly down on Tuesday tracking Wall Street’s overnight fall as Treasury yields climbed above 4% for the first time since August and after a Federal Reserve official urged a cautious path on interest-rate cuts, while investors were awaiting key US inflation readings and the release of the Fed's latest meeting minutes this week for further cues on the Fed's rate trajectory. Middle East conflict concerns has also weighed on market sentiments. Hong Kong shares led regional losses as a highly anticipated announcement on plans to boost China's ailing economy disappointed investors. Japanese markets fell as stronger yen dampened exporters' shares. Data showed that Japanese inflation-adjusted wages fell in August, while household spending also declined, fuelled chances of the central bank raising interest rates any time soon. However, Chinese shares gained as trade resumed after a weeklong holiday. 

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,489.78

153.28

4.39

Hang Seng

20,926.79

-2,172.99

-10.38

Jakarta Composite

7,557.14

53.00

0.70

KLSE Composite

1,635.62

0.33

0.02

Nikkei 225

38,937.54

-395.20

-1.01

Straits Times

3,575.69

-23.50

-0.66

KOSPI Composite

2,594.36

-16.02

-0.62

Taiwan Weighted

22,611.39

-91.17

-0.40
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