Stock Market Report: Key Highlights from Yesterday’s Trading Session

Stock Market Review: Opening and Movement

The stock market opened yesterday at almost the same level as the previous day’s closing. However, a notable shift occurred post-12:47 PM when the Nifty 50 index experienced a sudden dip. This decline persisted until about 1:40 PM, creating a short-term bearish sentiment in the market. Despite this drop, financial services stocks showed resilience and managed to end the day on a positive note.

Sector Performance: Financial Services Rise, IT Stocks Drop

Financial services emerged as the leading sector, showcasing strength amidst market volatility. In contrast, the Information Technology (IT) sector faced significant pressure, with stocks falling by over 3%. This decline in IT stocks influenced the overall market sentiment, leading to a mixed performance across various sectors.

Global Market Overview

Globally, most markets, including those in the United States, Europe, and Asia, remained relatively flat. Investors worldwide were focused on the anticipated announcement from the US Federal Reserve, with expectations of a possible rate cut. The Fed’s meeting results were expected to be released around midnight (Indian Standard Time), adding to the cautious mood in global markets.

Top Gainers on NIFTY 50

• Shriram Finance: Closed at Rs 3,574.70, up by 4.38%
• Bajaj Finance: Closed at Rs 7,631.10, up by 3.61%
• Bajaj Finserv: Closed at Rs 1,888.20, up by 2.14%
• Nestle: Closed at Rs 2,597.15, up by 1.97%
• ICICI Bank: Closed at Rs 1,288.35, up by 1.60%

Shriram Finance led the rally among the top gainers, with a significant 4.38% increase. Other financial services stocks, such as Bajaj Finance and Bajaj Finserv, also contributed to the positive momentum in the sector.

Top Losers on NIFTY 50

• TCS: Closed at Rs 4,346.15, down by 3.54%
• HCL Tech: Closed at Rs 1,756.50, down by 3.16%
• Infosys: Closed at Rs 1,892.15, down by 3.09%
• Tech Mahindra: Closed at Rs 1,605.40, down by 2.79%
• Wipro: Closed at Rs 538.15, down by 2.49%

The IT sector took a hit, with major players like TCS, HCL Tech, and Infosys leading the decline. This downward trend contributed to the overall subdued performance of the market.

Key News and Developments

1. India’s Space Ambitions: The government approved the development of India’s first space station, ‘Bharatiya Antariksh Station (BAS-1),’ targeting a model launch by 2028. Additionally, approvals were granted for the Venus Orbiter Mission and Chandrayaan-4 Mission, marking significant steps in India’s space exploration endeavors.
2. Windfall Tax Reduction: The government reduced the windfall tax on crude oil to Rs 0, down from the previous rate of Rs 1,875 per tonne. This change became effective from September 18, aiming to provide relief to the crude oil sector.
3. IPO Subscriptions: The market saw robust activity in the IPO space, with:

• Western Carriers IPO: Subscribed 13.89 times, with retail subscriptions at 18.61 times.
• Northern Arc IPO: Subscribed 20.18 times, with retail subscriptions at 18.97 times.
• Arkade Developers IPO: Subscribed 29.44 times, with retail subscriptions at an impressive 33.28 times.

Stocks in Focus

• Aurobindo Pharma: Announced the full acquisition of GLS Pharma by purchasing the remaining 49% stake for Rs 22.5 crore.
• Tata Power: Its subsidiary, Tata Power Renewable, secured a 400 MW wind-solar hybrid project in Maharashtra, signaling growth in the renewable energy sector.
• State Bank of India (SBI): Raised Rs 7,500 crore through a bond issue with an interest rate of 7.33% and a tenure of 15 years, indicating strong investor confidence.
• TCS: Signed a deal with McDonald’s Philippines for a technology upgrade across 760+ restaurants, highlighting its global expansion.
• NTPC: To form a joint venture named ‘ASHVINI’ with NPCIL to build and operate nuclear power plants in India.
• REC: Signed non-binding MoUs worth Rs 1.12 lakh crore at the ‘4th Re-Invest 2024’ event.
• Inox Wind: Secured 550 MW wind power projects from IGREL Renewables across Gujarat, Rajasthan, and Madhya Pradesh.

Commodity and Currency Update

• Gold (10g): Priced at Rs 73,140, down by 0.26%
• Silver (1kg): Priced at Rs 88,510, down by 0.45%
• USD-INR: The forex market observed a holiday.

Global Indices

• Dow Jones: Closed at 41,606.18, down by 0.04%
• Nasdaq: Closed at 17,628.06, up by 0.20%

Long-Term Returns Overview

• Sensex: Average annual return of 14.47% over the past 20 years.
• Nifty: Average annual return of 14.36% over the past 20 years.
• Dow Jones: Average annual return of 7.24% over the past 20 years.
• Nasdaq: Average annual return of 11.75% over the past 20 years.

Yesterday’s market session was marked by a sudden drop in the Nifty 50 index post-noon, largely influenced by the IT sector’s downturn. Despite this, financial services stocks provided a positive counterbalance. With global markets remaining flat, the focus now shifts to the US Federal Reserve’s impending rate decision. Additionally, several key developments in the Indian market, including IPO subscriptions and government policy changes, hint at interesting times ahead for investors.

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