Barometers End with Small Cuts; Broader Mkt Rallies; VIX Slides 4.79%

Market Performance Overview

The domestic equity indices ended with minor cuts on Friday. The Nifty settled below the 25,400 level. Realty, media, and PSU bank shares advanced while FMCG, oil & gas, and healthcare stocks declined.

As per provisional closing data, the barometer index, the S&P BSE Sensex declined 71.77 points or 0.09% to 82,890.94. The Nifty 50 index shed 32.40 points or 0.13% to 25,356.50. Notably, the broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.48% and the S&P BSE Small-Cap index gained 0.95%. Both indices reached all-time highs at 49,351.16 & 57,192.12, respectively.

VIX and Economic Updates

The market breadth was strong with 2,480 shares rising and 1,479 shares falling. The NSE's India VIX, a gauge of market volatility expectations, slipped 4.79% to 12.55.

India's retail inflation rose to 3.65% in August, slightly higher than the previous month's 3.6%, aligning with the Reserve Bank of India's (RBI) medium-term target of 2-6%. The Index of Industrial Production (IIP) also rose slightly to 4.83% in July from 4.72% in June.

IPO Insights

The initial public offer (IPO) of Western Carriers (India) received significant interest with 1,40,90,781 bids for shares against 2,08,68,467 shares on offer, leading to a subscription rate of 0.68 times. The IPO opened for bidding on September 13 and will close on September 18, with a price band fixed between Rs 163 to Rs 172 per share.

Stocks in Spotlight

• Tata Power Company rose 0.74%, announcing a partnership for EV charging stations.
• Life Insurance Corporation of India (LIC) increased its stake in IRCTC to 9.298%.
• SBI Cards scheduled a board meeting to discuss raising Rs. 5,000 crore.
• Nazara Technologies advanced 3.35% after acquiring a stake in Moonshine Technology.
• BLS International Services gained 2.92% following an acquisition deal.

Global Market Trends

European stocks advanced, digesting the European Central Bank's rate cut as expectations align for future monetary policy adjustments. Asian markets ended mixed, while US stock markets showed gains following the latest inflation data.