Post Session: Quick Review

Key benchmark indices soared towards newer heights in Monday’s trade and ended at fresh all time high levels buoyed by continued optimism surrounding recent Fed interest rate cuts. During the day, Sensex touched a lifetime high levels of 84,980, while the Nifty hit 25,956 mark. Gaining momentum till the end of session helped markets to finish at record high levels. The broader indices, the BSE Mid cap index and Small cap index ended with gains of over half a percent.

Markets made positive start and maintained their gains tracking gains in Asian counterparts. Besides, foreign fund inflows boosted traders’ sentiments. Foreign investors have injected close to Rs 33,700 crore in domestic equities in this month so far primarily due to interest rate cut in the US and resilience of the Indian market. Traders took encouragement with a latest report by the Reserve Bank of India (RBI) showing that India's net foreign direct investment (FDI) during the April-July period of the current financial year (FY25) rose to $5.5 billion compared to $3.8 billion in the year-ago period. Besides, the Reserve Bank data showed that India’s forex reserves rose by $223 million to a new all-time high of $689.458 billion for the week ended on September 13. In afternoon session, markets continued to trade in green, sentiments were positive after labour ministry statement stated that retail inflation for farm workers and rural labourers eased to 5.96 per cent and 6.08 per cent, respectively, in August against the comparative figures of 6.17 per cent and 6.20 per cent recorded in July this year. In late afternoon session, markets marched towards new levels as investors continued to hunt for fundamentally strong stocks. Investors overlooked report that India's business activity slowed down in the month of September, as both output and new orders rose at the slowest rates in 2024 so far. The headline HSBC Flash India Composite Output Index -- a seasonally adjusted index that measures the month-on-month change in the combined output of India's manufacturing and service sectors -- dipped to 59.3 in September from 60.7 in August. Softer expansions were seen across both the manufacturing and services sectors.

On the global front, European markets were trading mostly in green despite weak business activity data signaling Europe's largest economy had tipped into recession. Asian markets were trading mostly in green as Fed Governor Christopher Waller said that inflation is falling more quickly than expected, giving the U.S. central bank space to ease more in the coming months. Back home, Reserve Bank of India's (RBI's) article in the September Bulletin has said that food price volatility remains a contingent risk even as the overall retail inflation has remained below the target of 4 per cent for the second consecutive month in August.

The BSE Sensex ended at 84,928.61, up by 384.30 points or 0.45% after trading in a range of 84,607.38 and 84,980.53. 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 0.73%, while Small cap index was up by 0.73%. (Provisional)

The gaining sectoral indices on the BSE were Oil & Gas up by 2.23%, Realty up by 2.07%, Telecom up by 1.93%, Energy up by 1.80% and PSU was up by 1.77%, while IT was down by 0.40% were the only losing indices on BSE. (Provisional)

The top gainers on the Sensex were Mahindra & Mahindra up by 3.29%, SBI up by 2.55%, Bharti Airtel up by 2.26%, Kotak Mahindra Bank up by 1.71% and Hindustan Unilever up by 1.62%. On the flip side, ICICI Bank down by 1.25%, Indusind Bank down by 1.05%, Asian Paints down by 0.97%, Tech Mahindra down by 0.94% and HCL Tech down by 0.49% were the top losers. (Provisional)

Meanwhile, India's business activity slowed down in the month of September, as both output and new orders rose at the slowest rates in 2024 so far. However, employment continued to rise solidly amid improved business confidence. Besides, the rates of both input cost and output price inflation were relatively muted, with service providers raising their charges at the slowest pace in just over two-and-a-half years.

The headline HSBC Flash India Composite Output Index -- a seasonally adjusted index that measures the month-on-month change in the combined output of India's manufacturing and service sectors -- dipped to 59.3 in September from 60.7 in August. Softer expansions were seen across both the manufacturing and services sectors.

The HSBC Flash India Manufacturing PMI -- a single-figure snapshot of factory business conditions calculated from measures of new orders, output, employment, supplier delivery times and stocks of purchases -- posted 56.7 in September, down from 57.5 in August. The reading signaled a further marked strengthening in business conditions for goods producers, but the rate of improvement was the softest since January.

Despite the softer expansions in both output and new orders in September, companies in India remained strongly optimistic that business activity will increase over the coming year. Moreover, confidence strengthened from August and was above the average since the series began in 2012. Firms generally expect to be able to secure new business over the next 12 months, thereby supporting output growth. Sentiment improved in both monitored sectors.

The CNX Nifty ended at 25,939.05, up by 148.10 points or 0.57% after trading in a range of 25,847.35 and 25,956.00. There were 34 stocks advancing against 16 stocks declining on the index. (Provisional)

The top gainers on Nifty were Mahindra & Mahindra up by 3.35%, Bajaj Auto up by 3.33%, ONGC up by 3.21%, Hero MotoCorp up by 2.95% and SBI Life up by 2.67%. On the flip side, Eicher Motors down by 1.68%, Divi's Lab down by 1.43%, ICICI Bank down by 1.24%, Indusind Bank down by 1.02% and Tech Mahindra down by 0.92% were the top losers. (Provisional)

European markets were trading mostly in green; UK’s FTSE 100 increased 1.98 points or 0.02% to 8,231.97 and Germany’s DAX was up by 84.42 points or 0.45% to 18,804.43. On the flip side, France’s CAC was down by 21.13 points or 0.28% to 7,479.13.

Asian markets settled mostly higher on Monday as investors awaiting US PCE inflation data and speeches from Federal Reserve officials for fresh insight on the pace and scope of easing. Meanwhile, US Fed Governor Christopher Waller said inflation is falling more quickly than expected, that giving the US central bank space to ease more in the coming months. Chinese shares gained after Chinese central bank lowered a short-term policy rate and pumped more liquidity into the financial system in a bid to boost the Chinese economy. However, Hong Kong shares declined marginally after reports that the US Department of Commerce is preparing to propose a ban on the use of Chinese software and hardware in connected and autonomous vehicles on American roads. Japanese market was closed for observation of the Autumnal Equinox holiday.