The Indian stock market continued its bullish run, with key indices reaching unprecedented levels in mid-afternoon trading. The Nifty 50 index surpassed the 25,900 mark, while the S&P BSE Sensex advanced to new heights. By 14:30 IST, the Sensex had climbed 320 points or 0.39% to 84,868.41, while the Nifty 50 rose 132.40 points or 0.51% to 25,923.35. Both indices touched their all-time highs during the session, with the Sensex reaching 84,903.27 and the Nifty peaking at 25,934.85.
The positive sentiment extended to the broader market, with the S&P BSE Mid-Cap index adding 0.59% and the S&P BSE Small-Cap index gaining 0.75%. Notably, the Small-Cap index also achieved a new record high at 57,551.33. Indian Stock Market breadth remained favorable, with 2,380 shares advancing and 1,681 declining on the BSE.
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Indian Stock Market Economic Indicators: Mixed Signals
The latest economic data presented a nuanced picture of India’s economic health. The HSBC Flash India Composite Output Index showed a slight dip to 59.3 in September from 60.7 in August. While this indicates continued rapid monthly growth in business activity, it marks the slowest expansion rate in 2024 thus far. Both manufacturing and services sectors experienced softer growth.
The HSBC Flash India Manufacturing PMI registered at 56.7 in September, down from 57.5 in August. Despite the decline, the reading still points to a significant improvement in business conditions for goods producers, albeit at the slowest pace since January.
On a positive note, India’s forex reserves continued to strengthen, rising by $223 million to reach a new all-time high of $689.458 billion for the week ended September 13. This follows a substantial jump of $5.248 billion in the previous week. The increase was primarily driven by a rise in gold reserves, which grew by $899 million to $62.887 billion.
Stocks in Focus: Auto Shares Rally
The automotive sector emerged as a standout performer, with the Nifty Auto index adding 1.28% to reach 26,732.45. This marked the third consecutive day of gains for the index, accumulating a 3.59% increase over this period.
Leading the pack were Mahindra & Mahindra and Bajaj Auto, with gains of 3.02% and 2.72% respectively. Other notable performers included Bosch, Samvardhana Motherson International, and Hero MotoCorp. However, the rally wasn’t uniform across the sector, with Eicher Motors, Bharat Forge, and Ashok Leyland facing minor setbacks.
Market Metrics and Global Indicators
The yield on India’s 10-year benchmark federal paper saw a significant uptick, advancing 1.70% to 6.876 compared to the previous close of 6.761. In the currency market, the rupee showed slight weakness against the dollar, hovering at 83.5425.
Gold futures for October 2024 delivery on MCX edged up marginally by 0.03% to Rs 74,065. The US Dollar index strengthened by 0.44% to 101.16, while the US 10-year bond yield increased by 0.27% to 3.738.
In the global commodities market, Brent crude for November 2024 delivery experienced a minor dip, losing 13 cents or 0.17% to trade at $74.36 a barrel.
Corporate Highlights
Several companies made noteworthy announcements that influenced their stock performance:
- Vodafone Idea saw a significant jump of 4.68% following the announcement of a massive $3.6 billion (Rs 30,000 crore) deal with Nokia, Ericsson, and Samsung for network equipment supply over three years.
- Hind Rectifiers hit the upper circuit limit of 5% after securing a supply order worth over Rs 200 crore from Indian Railways.
- Bajaj Healthcare rallied 3.47% on the news of entering into a development and supply agreement for an active pharmaceutical ingredient (API) with a European entity.
As the Indian stock market continues to scale new heights, investors and analysts alike are keeping a close eye on both domestic economic indicators and global trends. The automotive sector’s strong performance and significant corporate deals highlight the dynamic nature of the Indian economy, even as some economic indicators suggest a slight moderation in growth rates.
