Market Insights: Nifty Dips Amid Fiscal Concerns and Job Growth

Market Summary

The benchmark Nifty index fell by 1.41% to close at 25810.8 on 30-Sep. The Nifty Midcap150 index fell by 0.22% to close at 22311.9. The Nifty Smallcap250 index rose by 0.06% to close at 18410.7. The 10yr yield remained unchanged at 6.78%.
The rupee lost 0.12% to close at 83.79 against the US Dollar.

Key News

* The Centre’s fiscal deficit for April-August of the current financial year reached 27% of the budget estimates, amounting to $4.35 trillion, as per CGA data, reports
BS
* Employment generation in India’s manufacturing sector saw a notable uptick in
FY23, with 1.3 million new jobs created, compared to 1.1 million in FY22, as per NSO, reports BS
* India’s current account balance moved into a deficit of $9.7 billion in the April-June quarter (Q1) of FY25, accounting for 1.1% of GDP, reports BS
* India’s external debt rose to $ 682.3 billion as of June 2024, up 2 percent over March 2024 and 8.5 percent over June 2023, reports ET
* The industrial survey shows sustained recovery, with industrial output growing by more than a fifth in 2022-23, compared to 35% in 2021-22, reports FE
* The industrial survey shows a lower worker growth rate of 4.4% per factory compared to 7.9% in the previous year, reports FE
* The Centre has approved Rs 675 crore for flood-affected Gujarat, Manipur, and Tripura from the SDRF and NDRF, reports ET
* India experienced its highest monsoon rainfall since 2020, with above-average precipitation for three consecutive months, aiding recovery from last year’s drought, reports ET