The benchmark indices ended with minor losses after a volatile session on Tuesday. The Nifty managed to close above the 11,200 mark. Metal and auto shares advanced while banks and FMCG stocks tumbled.

The barometer index, the S&P BSE Sensex, fell 8.41 points or 0.02% at 37,973.22. The Nifty 50 index lost 5.15 points or 0.05% at 11,222.40. Both these indices jumped 3.91% in the past two sessions.

TCS (up 2.55%), HDFC (up 1.83%) and Reliance Industries (up 1.31%) supported the indices.

In the broader market, the BSE Mid-Cap index fell 0.16% and the BSE Small-Cap index slipped 0.01%.

Sellers outpaced buyers. On the BSE, 1181 shares rose and 1434 shares fell. A total of 175 shares were unchanged.

President Donald Trump and Joe Biden, the Democratic nominee, will face off in their first Presidential debate Tuesday night. Three debates between the presidential candidates are scheduled to take place on 29 September, 15 October, and 22 October 2020. The US Presidential election is scheduled on Tuesday, 3 November 2020.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 33,353,615 with 1,001,646 deaths. India reported 9,47,576 active cases of COVID-19 infection and 96,318 deaths while 51,01,397 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.

Unlock 5.0:

The media reported that restaurants, bars and eatery outlets in Maharashtra will be allowed to re-start operations from the first week of October. Hotels, bars and restaurants have been surviving on home deliveries due to the COVID-19 lockdown.

Economy:

Ratings agency ICRA after market hours on Monday revised its forecast for the contraction in the gross domestic product (GDP) for FY 2020-21 to -11% from -9.5% as fresh COVID-19 infections remaining elevated at the end of the second quarter. The rating agency however retained its earlier forecast of a 12.4% contraction in GDP in the second quarter.

Numbers to Watch:

The yield on 10-year benchmark federal paper fell to 6.037% as compared with 6.056% at close in the previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 73.86, compared with its close of 73.79 during the previous trading session.

In the commodities market, Brent crude for November 2020 settlement fell 13 cents at $42.30 a barrel. The contract rose 51 cents, or 1.22% to settle at $42.43 a barrel in the previous trading session.

Foreign Markets:

European indices declined while most Asian indices advanced on Tuesday. Investors were cautious ahead of the first U.S. presidential debate set to take place later on Tuesday. US consumer confidence and home price data are also due on Tuesday.

In US, Wall Street rallied to close sharply higher on Monday as investors sought bargains among sectors hardest-hit by the coronavirus recession, now limping toward its ninth month.

U.S. House of Representatives Speaker Nancy Pelosi reportedly said that stimulus talks with Treasury Secretary Steven Mnuchin are due to continue, suggesting a possible progress to end the stalemate.

Buzzing Indian Segments:

The Nifty Metal index rose 1.96% to 2,280.90 on softer dollar. The index has surged 8% in three sessions.

Hindalco Industries (up 5.31%), JSPL (up 4.49%), Tata Steel (up 2.51%), JSW Steel (up 2.2%), NMDC (up 1.28%), Hindustan Zinc (up 1.12%) and NALCO (up 1.07%) climbed.

Dollar and commodity prices share an inverse relationship; when dollar strengthens, commodity prices fall and vice versa. The US Dollar Index (DXY), which tracks the greenback versus a basket of foreign currencies, was currently trading at 94.04.

The Nifty FMCG index slipped 1.51% to 29,434.80. The index added 3% in the past two days.

Tata Consumer Products (down 2.78%), Colgate Palmolive (India) (down 1.6%), Hindustan Unilever (down 1.45%), Bajaj Consumer Care (down 1.45%) and Marico (down 1.37%) declined.

The Nifty Bank index fell 1.17% to 21,411.30. The index rose 5.91% in the past two sessions.

Axis Bank (down 2.82%), Bandhan Bank (down 2.53%), ICICI Bank (down 1.64%), State Bank of India (down 1.23%) and Kotak Mahindra Bank (down 1.05%) declined. HDFC Bank, however, rose 0.8%.

Defence stocks rose after the Defence Acquisition Council (DAC) has approved proposals for capital acquisition of various equipment required by the Indian Armed Forces at an approximate cost of Rs 2,290 crore. These include procurement from domestic industry as well as foreign vendors. Under the buy Indian category, the DAC approved procurement of Static HF Tans-receiver sets and Smart Anti Airfield Weapon.

Premier Explosives (up 4.97%), Reliance Naval and Engineering (up 3.95%), Bharat Dynamics (up 1.75%), BEML (up 1.06%) and Hindustan Aeronautics (up 0.62%) advanced.

Stocks in Spotlight:

SBI Cards and Payment Services rose 1.05%. The company has entered a strategic partnership with American Express in top end premium products – SBI Card ELITE and SBI Card PRIME will be available on American Express' global network. With this, SBI Card ELITE and SBI Card PRIME cardholders can enjoy American Express' valuable network benefits through local and global network offers, access to Elite tier membership, complimentary domestic lounge program, access to VIP upgrades and privileges at hotels, restaurants and retail outlets around the world and unique experiences like pre-ticketing access to sporting and entertainment events such as Wimbledon and US Open.

Shree Cement rose 1.49%. The board of Shree Cement has allowed setting up a clinker unit having a capacity of upto 12,000 tons per day (TPD) at Raipur in Chhattisgarh. The project will require a total investment of Rs 1,000 crore, which will be financed through internal accruals and debt. The capacity is expected to be added by the quarter ending September 2022. The existing cement capacity of the company is 40.40 million ton per annum (MTPA). During the year 2019-20 the utilization rate was 64%. The announcement was made during market hours today, 29 September 2020.

Shalby surged 6.87% after the company's board approved to reduce promoters' shareholding in the company to 75% from 79.45%. The board also approved to raise upto Rs 117.01 crore via through issue of equity shares, other convertible securities/warrants/Global Depository Receipts/American Depository Receipts/any other financial instruments/securities convertible into and/or linked to equity shares or a combination thereof.

Zydus Wellness fell 0.26%. The company said it raised about Rs 649.97 crore through qualified institutional placement of 38.46 lakh equity shares at Rs 1,690 each. The issue price is at 4.83% discount to the QIP floor price of Rs 1,775.85 per equity share. The QIP issue opened on 23 September 2020 and closed on 28 September 2020.

GE T&D India rose 1% after the company said it has received shareholders' approval to double the borrowing limit to Rs 1,000 crore.

GMM Pfaudler hit an upper circuit limit of 5% at Rs 3821.80 amid bargain buying after a recent steep slide.

The stock tumbled 38.5% in the past nine sessions after the company's promoters on 21 September 2020 offered to sell over 25.71 lakh equity shares, constituting approximately 17.59% paid-up share capital of the company, through offer for sale (OFS) route. The floor price for the OFS was set at Rs 3500 each, a 33.22% discount to GMM's closing price of Rs 5241.10 on 21 September.