Sensex and Nifty Trade Flat Amid Global Cues, Metal and Energy Stocks Lead Gains

The Indian stock market, Sensex and Nifty, saw a more subdued session on September 25, 2024, after hitting record highs in the last four trading sessions. Both indices traded flat, with the Nifty 50 hovering below the 25,950 mark and the Sensex moving close to its all-time highs before showing signs of slowing down. Global mixed cues and investor caution ahead of key macroeconomic announcements contributed to the flat trading activity.

Key Market Indicators

Sensex: 84,900 (flat, near day’s low)

Nifty 50: 25,939.5 (-0.05%)

Despite the flat trading session, certain sectors and individual stocks saw significant movement. The metal and energy sectors led the day with gains, supported by global commodity prices and China’s economic stimulus. However, other sectors such as realty and IT witnessed a minor decline as investors chose to book profits after the market’s recent rally.

Global Cues and Market Sentiment

Global markets provided mixed cues, as economic data from key economies and central bank comments led to volatility across regions. In the Asian markets, stocks gained for the fifth consecutive day, supported by stimulus measures introduced by China’s government to revive its economy.

Investors in India remained cautious as they anticipated upcoming domestic inflation figures and global oil price movements. Moreover, the rising tension between global powers on trade policies added to the uncertainty.

Sectoral Performance

Metal and Energy Sectors Shine

One of the standout performers during the session was the metal and energy sectors, both of which posted solid gains. Metal stocks, in particular, surged following the announcement of China’s latest stimulus package aimed at boosting demand for commodities like steel and aluminium. China’s stimulus measures fueled optimism about the global demand for metals, which saw Indian metal stocks rise.

Notably, Power Grid Corporation of India Ltd saw its shares surge by 4.5% to Rs. 366.20 following a positive outlook from Goldman Sachs, which set a target price of Rs. 370. The brokerage firm cited Power Grid’s strong growth prospects, recent project wins, and its critical role in India’s power infrastructure expansion.

Real Estate, IT, and PSU Banks Struggle

On the other hand, the real estate, IT, and PSU banks sectors lagged behind. Nifty Realty Index dropped by 0.35% as investors booked profits after the recent rally. Stocks like DLF, Godrej Properties, and Prestige Estates showed minor losses as global headwinds around interest rates and market liquidity impacted sentiment in the real estate sector.

The IT sector also underperformed, dragged down by mixed global signals and profit-booking. Major players like Infosys and TCS saw minor declines as investors awaited further clarity on the global demand for tech services. PSU Banks similarly showed weakness after witnessing gains in the last few sessions, with profit-booking leading the sector lower.

Major Stock Movements

Easy Trip Planners Plunges After Block Deal

Easy Trip Planners shares took a sharp dip, falling by 7.46% to hit a low of Rs. 37.96. The stock’s decline was driven by a block deal, with speculation that one of the promoters, Nishant Pitti, was a likely seller. Pitti, who held a 28.13% stake as of June 2024, may have offloaded part of his holdings. The company’s stock has now lost 13.60% in the past week, with investors reacting cautiously to the deal.

Hariom Pipes Gains After Fundraising Approval

Shares of Hariom Pipes jumped by 4.03% to reach an intraday high of Rs. 802.70 after the company’s board approved a fundraising plan of Rs. 700 crore. The fundraising will allow the company to pursue growth and expansion opportunities, which has been positively received by investors. The company, a leading manufacturer of steel pipes, is seen as a key player in India’s growing infrastructure sector.

Delta Corp Rallies on Demerger News

Delta Corp shares rose by 8% after the company’s board approved the demerger of its hospitality and real estate business. The demerger is expected to create more value for shareholders by allowing the company to focus on its core gaming business, while the new entity, Delta Penland Private Ltd (DPPL), will handle hospitality and real estate. Investors welcomed the move, seeing potential for higher returns post-demerger.

PC Jeweller Hits 52-Week High on Stock Split Consideration

PC Jeweller shares rallied by 4.17% to touch a fresh 52-week high of Rs. 157.30 after the company’s board announced that it would consider a stock split during its meeting on September 30, 2024. Stock splits are often seen as a move to increase liquidity and make shares more affordable to retail investors, which fueled optimism in the stock.

Quicktouch Technologies Surges After Promoters Raise Stake

Quicktouch Technologies shares surged by over 9% after promoters and the public raised their stake in the company by allotting nearly 32 lakh shares. The board also approved the green signal for certain strategic initiatives, which boosted investor sentiment. The company is becoming increasingly popular in the tech industry, with expectations for rapid growth in the near future.

Kotak Mahindra Bank Breaks Out

Shares of Kotak Mahindra Bank broke out from the Inverse Head & Shoulders pattern, suggesting a potential upward trend. The stock has gained momentum after testing its 200-DMA (daily moving average) on the charts, and short-to-medium term traders are now targeting fresh highs for the stock. Experts believe that the bank’s strong fundamentals and recent corporate actions make it an attractive buy.

Siemens Shows Moderate Gains

Siemens Ltd saw a minor gain of 0.58% as Nifty fell during the session. The stock has been on a steady upward trend, with a 52-week high of Rs. 7974.25. Siemens’ stock continues to attract attention due to its leadership in the industrial automation and energy management space, both of which are expected to grow substantially in the coming years.

A Mixed but Resilient Market

Overall, the Indian stock market remained resilient amid global mixed cues and profit-booking. While sectors such as metals and energy showed strong gains, other sectors like realty and IT underperformed. The performance of individual stocks like Power Grid, Delta Corp, and PC Jeweller highlights the diverse opportunities available for investors.

Looking ahead, markets will likely be influenced by upcoming economic data, global developments, and domestic corporate earnings. Investors are advised to maintain a balanced portfolio and keep an eye on high-quality stocks while managing risks in this increasingly volatile environment.