The Sensex and Nifty posted marginal gains by midday of September 11, driven by gains in FMCG, consumer durables, and telecom stocks. The indices had opened flat as investors awaited the US CPI data set for release later today.
FMCG products are expected to benefit from a recent decision by Finance Minister Nirmala Sitharaman. During the 54th GST Council Meeting on September 9, Sitharaman announced a reduction in the GST rate on namkeeen and savoury products to 12 percent from 18 percent.
By 11.22 AM, the Sensex was up 77 points or 0.1 percent at 81,998, while the Nifty 50 had risen 19 points to 25,060. Market breadth was positive, with 1,847 stocks advancing, 1,421 declining, and 103 remaining unchanged.
In the broader market, both the BSE Midcap and Smallcap indices saw a 0.2 percent increase.
Investors are closely watching upcoming US Producer Price Index (PPI) data and initial jobless claims reports, scheduled for September 12, as well as the Federal Open Market Committee (FOMC) meeting on September 17-18.
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Sectoral Trend
Nifty FMCG rose over 1 percent to emerge as the top gainer amongst sectoral indices, led by HUL, Varun Beverages, and ITC which were up 1-4 percent.
Meanwhile, M&M, Samvardhana Motherson International, and Tata Motors fell 0.3-6 percent, dragging down the Nifty Auto index by 0.7 percent and making it the worst performer of the day. Tata Motors' shares declined after UBS Securities reiterated its 'Sell' rating, citing margin risks at Jaguar Land Rover and in its domestic passenger vehicle segment. UBS maintained its price target of Rs 825, implying a 20 percent downside.
Fundamental View
"A significant trend in the global commodity markets now is the sharp decline in the crude price and softening of base metal prices," noted said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. This, according to him has implications for stock markets.
"The sharp dip in Brent crude to below $70 signals weakening demand globally, which in turn, indicates weakening growth prospects for the global economy. Therefore, rate cuts by the leading central banks of the world is now a foregone conclusion. The Fed will kick off its rate-cutting cycle this month," Vijayakumar said. He also expects two rate cuts by the MPC in FY25.
Technical View
"Nifty appears to have entered a consolidation phase with immediate support around 24,900-24,800 and resistance at 25,200-25,300," said Sameet Chavan, Head Research, Technical and Derivative - Angel One. He advised traders to adopt a 'buy-on-dip' and 'sell-on-rise' strategy while also focusing on stock-specific moves for better opportunities.
Also Read | Upstream oil majors drop as much as 5% after Brent crude slips below $70
Key Nifty gainers
Bajaj Auto, Asian Paints, Bajaj Finance, HUL, Sun Pharma
Key Nifty losers
Tata Motors, ONGC, BPCL, Hindalco, ICICI Bank
Key Sensex gainers
Asian Paints, Bajaj Finance, HUL, Sun Pharma, Bharti Airtel
Key Sensex losers
Tata Motors, Wipro, ICICI Bank, NTPC, M&M
Stock moves
Piramal Pharma: Shares zoomed over 5 percent and hit a record high of Rs 243.99, with heavy trading volumes and strong growth prospects driving sentiment for the stock.
Century Textiles and Industries: Shares surged over 7 percent to hit a fresh record high of Rs 2,689 after the Aditya Birla Group-owned company acquired the ownership rights of an approximately 10-acre leasehold land parcel in Worli, Mumbai from Wadia Group chairman Nusli Wadia for Rs 1,100 crore.
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