Market Wrap Podcast, Sep 2: Here’s all that happened in the markets today

The bulls took charge of Dalal Street after a one-day hiatus, led by buying in IT, FMCG and private lenders along with index heavyweight Reliance Industries. This pushed Nifty to a new high of 17,245.50 and it finally settled the day at 17,234, up 158 points. The BSE barometer Sensex jumped 514 points to close at 57,853, with 22 of the 30 stocks in the green.

TCS, Ultratech, HUL and DRL were the top Sensex gainers and they rose between 2-3 per cent. On the other hand, M&M, Bajaj Auto, Bajaj Finserv and Bajaj Finance were the worst performers.

The broader were also buzzing as the formalisation of the economy is enabling organised branded players to gain share. Both BSE Midcap and BSE Smallcap indices rose for the eighth straight day. The former added 0.93 per cent and the latter 0.80 per cent.

In the sectoral space, IT, FMCG and Realty indices lead as they rose over 1 per cent each. Nifty Auto and PSU Bank indices were the only losers. The auto index came under pressure as many firms flagged impact on production amid semi-conductor shortages.

In stock-specific action, shares of auto major Mahindra and Mahindra declined 2 per cent on BSE as the firm expects a 20-25 per cent drop in September vehicle production at its automotive division due to semiconductor shortages. Mahindra will observe ‘no production days’ of about seven days in its automotive division plants this month.

Kitex Garments shares, meanwhile, were locked in 10 per cent upper circuit through the day after the company announced that Telangana government has approved its expansion plan. The Government order will be issued within a few days, it added.

Shares of HDFC Life Insurance Company recorded an all-time high of Rs 775.65 in trade ahead of a board meeting on Friday scheduled to consider fundraising plan. The stock settled at Rs 759, up 5 per cent.

Vodafone Idea stock hogged the limelight after it surged 17 per cent amid media reports that Chairman of Aditya Birla Group (ABG) Kumar Mangalam Birla reportedly met with Telecom Minister Ashwini Vaishnaw. According to CNBC-TV18, Birla spoke with Vaishnaw on the health of the telecom sector and discussed the urgent need for government intervention.

The primary market action was also high as the IPOs of Vijaya Diagnostic and Ami Organics entered the second day of the bidding process. While Ami Organics continued to garner strong investor response, with bids of over 3 times, Vijaya Diagnostic struggled to cross the halfway mark. It was subscribed over 40 per cent on Day 2. Both these issues close for subscription on Friday.

Now, going into trade tomorrow, the focus will be on macro data. Back home, investors will eye the August Services PMI and on the global front the US jobs data to gauge the US Fed’s stimulus outlook. That apart, stock-specific triggers and global cues will continue to hold sway over the market trajectory.

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