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The Indian stock market witnessed a positive trend on September 11, with the Sensex and Nifty both recording marginal gains by midday. This positive movement was primarily driven by the performance of the Fast Moving Consumer Goods (FMCG), consumer durables, and telecom sectors. While investors awaited the release of the US Consumer Price Index (CPI) data later that day, the indices opened relatively flat. The recent decision by Finance Minister Nirmala Sitharaman to reduce the Goods and Services Tax (GST) rate on namkeen and savoury products from 18 percent to 12 percent during the 54th GST Council Meeting on September 9 is expected to benefit FMCG companies. This reduction in GST rates is likely to stimulate consumer demand for these products.
By 11:22 AM, the Sensex had climbed 77 points or 0.1 percent to reach 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. The broader market also saw a positive trend, with both the BSE Midcap and Smallcap indices recording a 0.2 percent increase. Investors are closely monitoring upcoming economic data releases, including the 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.
Sectoral performance showcased a mixed picture. The Nifty FMCG index emerged as the top gainer, surging over 1 percent, led by strong performances from HUL, Varun Beverages, and ITC, which saw gains ranging from 1 to 4 percent. In contrast, the Nifty Auto index struggled, falling by 0.7 percent, making it the worst performer of the day. This decline was attributed to weakness in M&M, Samvardhana Motherson International, and Tata Motors, which experienced declines between 0.3 and 6 percent. Tata Motors' shares specifically declined after UBS Securities reiterated its 'Sell' rating, citing concerns about margin risks at Jaguar Land Rover and its domestic passenger vehicle segment. UBS maintained its price target of Rs 825, implying a 20 percent downside.
The trend in global commodity markets has also drawn attention. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted the sharp decline in crude oil prices and softening of base metal prices as significant developments. He believes this trend has implications for stock markets. The significant dip in Brent crude prices to below $70 indicates weakening global demand, suggesting weaker growth prospects for the global economy. This scenario makes rate cuts by major central banks a likely outcome, with the Federal Reserve expected to initiate its rate-cutting cycle this month. Vijayakumar further anticipates two rate cuts by the Monetary Policy Committee (MPC) in FY25.
From a technical perspective, Sameet Chavan, Head Research, Technical and Derivative - Angel One, observed that the Nifty appears to be in a consolidation phase. He identified immediate support levels around 24,900-24,800 and resistance at 25,200-25,300. Chavan advised traders to adopt a 'buy-on-dip' and 'sell-on-rise' strategy while also emphasizing the importance of focusing on stock-specific moves for better opportunities. Individual stock movements also garnered attention. Piramal Pharma shares surged over 5 percent and hit a record high of Rs 243.99, fueled by strong growth prospects and heavy trading volumes. Century Textiles and Industries shares jumped over 7 percent to a fresh record high of Rs 2,689 following the Aditya Birla Group-owned company's acquisition of ownership rights to a 10-acre leasehold land parcel in Worli, Mumbai, from Wadia Group chairman Nusli Wadia for Rs 1,100 crore. Overall, the Indian stock market exhibited a mixed performance on September 11, with positive sentiment driven by FMCG sector gains, while the Auto sector faced challenges. Investors remain focused on global economic developments, particularly regarding interest rates and commodity prices, as these factors continue to influence market movements.
Source: Mid-Day Mood | Sensex, Nifty in green, FMCG sector shines while Nifty Auto struggles