National Stock Exchange of India Turns Rangebound as Realty Shares Rally Amid Inflation Concerns

Market Summary and Dynamics

The headline equity benchmarks traded in a narrow range with minor cuts in mid-morning trade. The Nifty hovered below the 25,400 level. Realty shares extended gains for the second consecutive trading session. At 11:30 IST, the barometer index, the S&P BSE Sensex was down 61.93 points or 0.07% to 82,900.78. The Nifty 50 index shed 21.80 points or 0.09% to 25,367.10. The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.56% and the S&P BSE Small-Cap index gained 1.04%. The market breadth was strong. On the BSE, 2,557 shares rose and 1,195 shares fell. A total of 152 shares were unchanged.

Economic Indicators

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

IPO Update

The initial public offer (IPO) of Western Carriers (India) received 48,62,343 bids for shares as against 2,08,68,467 shares on offer, according to stock exchange data at 11:15 IST on Friday (13 September 2024). The issue was subscribed 0.23 times. The issue opened for bidding on Friday (13 September 2024) and it will close on Wednesday (18 September 2024). The price band of the IPO is fixed between Rs 163 to Rs 172 per share. An investor can bid for a minimum of 87 equity shares and in multiples thereof.

Buzzing Index

The Nifty Realty index gained 1.73% to 1,053.60. The index rallied 2.62% in two consecutive trading sessions. Sobha (up 3.88%), Godrej Properties (up 3.17%), DLF (up 2.97%), Macrotech Developers (up 1.92%), Sunteck Realty (up 1.62%), Mahindra Lifespace Developers (up 1.21%), Brigade Enterprises (up 1.20%), Oberoi Realty (up 1.11%) and Prestige Estates Projects (up 0.85%) advanced.

Stocks in Spotlight

Hazoor Multi Projects rallied 3.27% after the company announced that it has received a letter of acceptance (LOA) from the National Highways Authority of India for projects worth Rs 17.94 crore. Life Insurance Corporation of India (LIC) added 0.97%. The company disclosed that the insurance major has increased its stake in Indian Railway Catering and Tourism Corporation (IRCTC) to 9.298% from 7.278%. Puravankara jumped 4.96% after the company acquired the redevelopment rights of Miami Apartments in Breach Candy, Mumbai.

Global Markets Overview

Asian stocks traded mixed on Friday as investors took profits following the previous session's rally. The market remains optimistic about the possibility of a US Federal Reserve interest rate cut. US stock markets closed higher on Thursday after the latest inflation data solidified expectations for a 25-basis point rate decrease by the Federal Reserve. The Dow Jones Industrial Average gained 0.58%, the S&P 500 rose 0.75%, and the Nasdaq Composite ended 1.00% higher. Warner Bros Discovery shares surged 10.4%, while Charter's stock price increased by 3.6%. Moderna experienced a decline of 12.4%, and Kroger shares rallied 7.2%. The producer price index (PPI) for final demand rose 0.2% in August, slightly exceeding estimates of 0.1% growth. The core PPI, excluding volatile food and energy prices, increased by 0.3%, surpassing the forecasted 0.2%. The number of Americans filing initial claims for unemployment benefits rose marginally last week. Initial claims increased by 2,000 to a seasonally adjusted 230,000 for the week ending September 7. The European Central Bank (ECB) implemented a second interest rate cut this year. The key deposit rate was lowered by 25 basis points to 3.5%, aligning with expectations. While the ECB reduced its 2024 economic growth projection, it remains confident that inflation will broadly align with its 2% target by the end of 2025.