Indian benchmark indices opened on a mixed note on Monday, September 2, 2024, with the Sensex starting at 82,725.28 and the Nifty at 25,333.60. The market sentiment was influenced by a combination of global cues, domestic economic data, and sector-specific developments.
Hero Motocorp led the gainers on the NSE, up 2.71 per cent, followed by Bajaj Auto (1.93 per cent), HDFC Life (1.86 per cent), Tata Consumer Products (1.67 per cent), and ITC (1.17 per cent). On the flip side, Tata Motors (-1.34 per cent), Hindalco (-0.93 per cent), M&M (-0.88 per cent), Dr Reddy’s (-0.76 per cent), and ONGC (-0.47 per cent) were among the top losers.
Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, commented, “The stage is set for solid gains in the benchmark Nifty, bolstered by Wall Street’s surge following the Fed’s preferred inflation gauge, which signals potential rate cuts in September.”
The GIFT Nifty indicated a gain of 20 points for the broader index. Deven Mehata, Derivative Analyst at Choice Broking, stated, “Nifty can find support at 25,200 followed by 25,100 and 25,000. On the higher side, 25,300 can be an immediate resistance, followed by 25,350 and 25,400.”
Foreign Institutional Investors (FIIs) continued their buying streak, purchasing equities worth ₹5,316 crore on August 30, while Domestic Institutional Investors sold equities worth ₹3,198 crore on the same day.
Shrikant Chouhan, Head Equity Research at Kotak Securities, noted, “Last week the benchmark indices registered new highs of 25,268/82,637, Nifty closed 1.66 per cent higher after a promising uptrend rally while Sensex was up 1,280 points.”
The auto sector garnered attention as TVS Motor, Maruti, Hero Motocorp, and Tata Motors reported impressive August monthly sales volumes. Two-wheeler stocks are likely to remain in focus following strong monthly sales reports.
In the commodities market, gold prices dipped 0.5 per cent to $2,505/ounce on Friday. Rahul Kalantri, VP Commodities at Mehta Equities Ltd, stated, “Gold finds support at $2,478-$2,461, with resistance at $2,512-$2,527.”
Crude oil prices experienced volatility, with Brent crude falling to a one-month low below $77/bbl. Kalantri added, “Crude oil has support at $72.60-72.00, with resistance at $73.70-74.35.”
Investors are closely watching the upcoming Bajaj Housing Finance IPO, set to open on September 9th, aiming to raise ₹6,560 crore. The Gujarat State Petronet Ltd’s announcement of a restructuring plan is expected to keep Gujarat State Petroleum Corp., Gujarat Gas, and Gujarat State Petronet in focus.
As the market navigates through a busy week of economic data releases and corporate developments, analysts maintain a cautiously optimistic outlook, emphasizing the need for a stock-specific approach in the current market conditions.