The Indian stock market witnessed another day of consolidation on Tuesday, as the benchmark Nifty 50 traded near an all-time high, closing at 25,408 points with a modest 0.2% gain. The broader BSE Sensex followed suit, trading at 83,074.75, also marking a slight 0.1% increase. The market breadth, however, was in the red, with 791 stocks advancing and 1,426 stocks declining out of the 2,252 stocks traded today.

Nifty 50 initially opened in the red despite a 33-point gain during the pre-opening session, following Monday’s surge where Indian indices hit record highs, with Nifty touching 25,445.7. The inflows and outflows by institutional investors were mixed, with Foreign Institutional Investors (FIIs) selling shares worth Rs 1,634.9 crore, while Domestic Institutional Investors (DIIs) bought shares worth Rs 754.1 crore.

Broader market indices saw mixed movements, as Nifty Smallcap 100 and Nifty Midcap 100 opened in the red, while S&P BSE Midsmallcap and S&P BSE Large MidCap managed to open higher. On the global front, major US indices closed mixed on Monday, while Asian indices traded lower on Tuesday. European markets also had a mixed closing.

Key Market Movers:

BLS International Services saw a sharp decline as 55 lakh shares (1.3% stake) worth Rs 224 crore reportedly changed hands in a block deal, with the average price pegged at Rs 408 per share.

Nuvoco Vistas rose sharply, with 45 lakh shares (1.2% stake) worth Rs 158 crore exchanging hands in a block deal at an average price of Rs 352 per share.

Veefin Solutions continued its upward momentum, announcing its third acquisition in the digital lending space. The acquisition of EpikIndifi, worth Rs 125 crore, strengthens its portfolio in digital supply chain finance and related services, bringing the total value of its recent acquisitions to Rs 400 crore.

DCX Systems hit its 5% upper circuit, following news that its subsidiary, Raneal Advanced Systems, secured an industrial license to manufacture defence electronic systems. The company will be producing critical components for missile subsystems and avionics.

In a significant development for the energy sector, Torrent Power surged after signing an MoU with the Government of Gujarat to develop a 5 GW solar and wind hybrid project in the Dwarka district. This move aligns with India's push for renewable energy growth.

IPO News:

P N Gadgil Jewellers had a stellar debut on the stock exchanges, opening at a 72.9% premium to its issue price of Rs 480. The Rs 1,100 crore IPO was heavily subscribed, with 59.4 times more bids than shares available.

Spicejet also saw a sharp rise, reaching a 52-week high of Rs 79.9 per share after its board approved a qualified institutional placement (QIP) worth Rs 3,000 crore at a floor price of Rs 64.8 per share.

Sector Highlights:

Firstsource Solutions announced a collaboration with Microsoft to drive advanced digital transformation services globally. This partnership will utilize Azure OpenAI Service to enhance AI-powered solutions across industries.

Ola Electric also surged on Tuesday as Goldman Sachs initiated coverage with a 'Buy' recommendation and set a target price of Rs 160 per share. This forecast represents a 44% potential upside for the company, which is expected to see 40% revenue growth between FY25 and FY30.

Fed Rate Cut Speculations:

Global markets remained jittery as traders awaited the outcome of the Federal Reserve’s upcoming policy meeting. Market sentiment was divided, with 59% of traders expecting a 50 basis point rate cut, while 41% believed the Fed would opt for a more modest 25 basis point cut. This decision could heavily impact international markets, including India.

For traders in India, the Fed’s decision could influence future market movements, as recent higher-than-expected inflation data from the US has raised questions about the central bank’s next steps. Adding to the mix, August retail sales data set to be released on Tuesday could further sway the final decision.

Money Flow Index (MFI):

Several stocks entered the overbought zone according to the MFI, including Glenmark Life Sciences, Jubilant Pharmova, Gujarat Fluorochemicals, and Radico Khaitan, indicating high investor interest.

Upcoming Festive Season:

The Open Network for Digital Commerce (ONDC) issued a memo ahead of the festive season, capping incentives at Rs 40 lakh, a significant 84% reduction from the previous limit of Rs 2.5 crore. This move could influence network players’ strategies as they gear up for the October festive season.

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