The key equity indices continued to trade with moderate losses in mid-afternoon trade. The Nifty traded below the 24,400 level. Private Bank shares declined after advancing in the past two trading session.
At 14:30 IST, the barometer index, the S&P BSE Sensex slipped 430.04 points or 0.54% to 79,938.99. The Nifty 50 index fell 109.45 points or 0.45% to 24,357.45.
The broader market outperformed the benchmark indices. The S&P BSE Mid-Cap index rose 0.23% and the S&P BSE Small-Cap index jumped 1.52%.
The market breadth was strong. On the BSE, 2,844 shares rose and 995 shares fell. A total of 98 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, advanced 7.42% to 15.59.
Economy:
The Indian diaspora's confidence in the Indian economy has soared, as evidenced by the significant increase in Non-Resident Indian (NRI) deposits. According to the Reserve Bank of India's (RBI) latest monthly bulletin, inflows into NRI deposit schemes surged to $7.82 billion in the period of April-August 2024, more than double the $3.74 billion recorded in the same period last year.
Both dollar-denominated (FCNR(B)) and rupee-denominated (NRE(RA)) deposits witnessed substantial growth.
Among the various NRI deposit schemes, Foreign Currency Non-Resident (FCNR) deposits witnessed the highest inflow, attracting $3.47 billion during the period, compared to $1.55 billion in the corresponding period a year ago. These deposits, denominated in foreign currencies, offer security against currency fluctuations and provide attractive returns.
Non-Resident External (NRE) deposits, which are rupee-denominated accounts, also saw a significant increase, with inflows of $2.51 billion during this period, compared to an inflow of $868 million in the corresponding period a year ago.
Non-Resident Ordinary (NRO) deposits, which are also rupee-denominated, also saw inflows worth $1.84 billion from April-August, 2024, compared to $1.32 billion during the same period a year ago.
This surge can be attributed to factors such as attractive returns in Indian markets, strong economic fundamentals, and a more stable domestic monetary policy environment compared to many global economies.
With total outstanding NRI deposits reaching $158.94 billion as of August 2024, the Indian diaspora's continued trust in the country's economic prospects is evident.
Buzzing Index:
The Nifty Private Bank index fell 0.89% to 25,393. The index added 0.62% in the past two trading sessions.
Axis Bank (down 1.53%), HDFC Bank (down 1.38%), ICICI Bank (down 1.33%), Kotak Mahindra Bank (down 1%) and Bandhan Bank (down 0.71%), City Union Bank (down 0.64%) declined.
On the other hand, IndusInd Bank (up 2.76%), IDFC First Bank (up 2.49%) and Federal Bank (up 1.84%) added.
Numbers to Track:
The yield on India's 10-year benchmark federal paper advanced 1.55% to 6.953 as compared with previous close 6.961.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 84.0825, compared with its close of 84.0550 during the previous trading session.
MCX Gold futures for 5 December 2024 settlement rose 0.44% to Rs 79,580.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.20% to 104.11.
The United States 10-year bond yield declined 0.89% to 4.237.
In the commodities market, Brent crude for November 2024 settlement added 85 cents or 1.20% to $71.97 a barrel.
Stocks in spotlight:
Insolation Energy surged 7.80% after the company announced that it has been awarded a contract worth Rs 500.50 crore by the Rajasthan Renewable Energy Corporation (RREC).
Larsen & Toubro rose 0.71%. The company’s Power Transmission & Distribution (PT&D) vertical won new 'major’ orders in the Middle-East and Africa for expanding and strengthening the electricity grids at high-voltage levels.