Indian shares showed considerable volatility on Wednesday as investors awaited crucial US inflation data, scheduled for release today. This data is anticipated to influence the Federal Reserve’s decision on interest rate cuts, which will be announced on September 18.
During the session, the Nifty 50 index fell by 0.50 percent, slipping below the 25,000 mark to close at 24,915 points. Out of the 50 constituent stocks, 13 ended in positive territory. Notable gainers included Bajaj Auto, LTI Mindtree, Asian Paints, Bajaj Finance, and Britannia Industries, which saw rises between 1 percent and 4 percent.
Similarly, the S&P BSE Sensex also declined by 0.53 percent, settling at 81.485 points. The broader Nifty Midcap 100 index remained flat at 59,021 points.
Among the top gainers, Suzlon Energy led with a 5 percent increase, followed by CG Power and Industrial, which rose by 4.6 percent. JSW Infrastructure and Page Industries also saw gains of 4.5 percent and 3.6 percent, respectively.
Conversely, the Nifty Smallcap 100 index fell by 0.8 percent to 19,163 points. Major losers included HFCL, IRB Infrastructure, Welspun Living, Swan Energy, and Aarti Industries, which experienced declines ranging from 4.2 percent to 5 percent.
Tata Motors record biggest intraday drop in 5 weeks
Tata Motors stock tumbled 6 percent in today’s session to ₹970 levels after the global brokerage firm UBS retained its ‘Sell’ rating on the stock, citing the drop in JLR sales. UBS pointed out that demand for JLR models is waning, with current order levels now falling below those seen before the pandemic.
This trend suggests a potential cooling in JLR’s recent success, and UBS anticipates that discounts for the Range Rover may increase as a result. According to the company’s Q1FY25 earnings report, the JLR order book fell to 1,04,000 units, down from 1,33,000 vehicles in Q4FY24.
Today’s fall in the stock price was the biggest in 5 weeks, which caused the stock to lose 12.15 percent in September so far after a 4 percent drop in August. From its high of ₹1,176 per share, it has decreased by 18 percent.
Bajaj Group stocks shine
Shares of Bajaj Group companies, including Bajaj Auto, Bajaj Finance, and Bajaj Finserv, emerged as top performers in the Nifty 50 index today., with gains of up to 5 percent. This surge in group stock comes in the wake of strong investor interest in the Bajaj Housing Finance IPO, which has seen robust subscription levels across various investor segments.
As of the third day of the IPO, it has been oversubscribed by more than 47 times, with the Grey Market Premium (GMP) indicating a 96 percent premium. Among the group stocks, Bajaj Auto reached an all-time high in today’s trading, with its shares hitting ₹11,501 apiece—a gain of 4.3 percent from the previous close.
So far this year, the stock has surged by 70 percent. Domestic brokerage firm Sharekhan has maintained a ‘buy’ rating on Bajaj Auto, setting a target price of ₹12,584. The brokerage highlighted the company’s strong volume growth, despite a partial recovery in exports. Additionally, Bajaj Auto’s CNG motorcycles are receiving positive market feedback, and the company is also making strides in the electric vehicle (EV) sector, gaining market share.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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