Benchmarks trade near day's low; European shares decline

The benchmark indices traded near the day's low in afternoon trade as elevated crude oil prices continue to weigh on the macroeconomic outlook. Further, rise in global yields dampened investor sentiment. The Nifty traded below the 23,650 level. Oil & gas, banks and financials declined while FMCG, pharma and healthcare shares managed to trade with some gains.

At 13:30 IST, the barometer index, the S&P BSE Sensex declined 503.86 points or 0.66% to 75,628.95. The Nifty 50 index declined 129.55 points or 0.54% to 23,649.60.

The broader market outperformed the frontline indices. The BSE 150 MidCap Index rose 0.23% and the BSE 250 SmallCap Index added 0.11%.

The market breadth was negative. On the BSE, 1,994 shares rose and 2,217 shares fell. A total of 271 shares were unchanged.

Gainers & Losers:

Bharat Electronics (up 1.81%), Hindustan Unilever (up 1.38%), Apollo Hospitals (up 0.89%), Nestle India (up 0.84%) and ITC (up 0.72%) were the top gainers.

ICICI Bank (down 2.12%), Axis Bank (down 1.96%), Ultratech Cement (down 1.31%), Reliance Industries (down 1.30%) and SBI Life (down 1.02%) were the top losers.

Stocks in Spotlight:

Garuda Construction and Engineering was locked in 5% upper circuit. The company's subsidiary Dream City Builders has secured a contract for building 93-storey landmark tower in Jeddah, Kingdom of Saudi Arabia. The project has an estimated revenue potential of Rs 1,800 crore.

GE Vernova T&D soared 9.10%. The firm received a contract from Power Grid Corporation of India to establish an High Voltage Direct Current (HVDC) LCC terminal station for evacuating renewable energy.

Organic Recycling Systems jumped 4.08%. The company announced that it has secured two landmark EPCOM contracts from Bharat Petroleum Corporation (BPCL), aggregating Rs 167.30 crore.

Biocon rose 0.39%. The company has announced the signing of partnership agreement with Bahiafarma and Bionovis for Pertuzumab in Brazil. The consortium of these three company has received 100% allocation under Brazil's 10-year PDP program for Pertuzumab. Biocon will receive milestone payments and a share of revenues generated from the Brazil PDP opportunity over a 10-year period.

Global Markets:

The US stock market was set for a cautious reopening on Tuesday after the Labor Day holiday, with Dow futures down about 428 points amid heightened Middle East tensions.

European equities edged lower while their Asian counterpart mostly declined on Tuesday, as surging crude prices and near-certainty of an imminent European Central Bank interest rate hike ignited fresh fears of a prolonged stagflation shock.

Brent crude climbed above $97 a barrel as tensions around the Strait of Hormuz intensified following US-Iran military confrontations. Iran has threatened tighter controls around the strategic waterway, raising concerns over possible disruptions to global oil supplies.

The rise in crude has also strengthened inflation concerns and complicated the Federal Reserve's policy outlook. Markets are pricing in more than a 60% probability of a 25-basis-point Fed rate hike at the September meeting. US inflation data due later this week could influence those expectations.

Investors are also watching renewed US-Canada trade tensions. Canada is set to impose retaliatory tariffs on around $20 billion of US goods, while President Donald Trump has threatened to block Bombardier from selling aircraft in the US unless the company manufactures them domestically.

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