Stock market today: Nifty 50, Sensex fall over half a per cent ahead of US inflation data; Tata Motors cracks 6%

Indian shares showed considerable volatility during Wednesday's trading session as investors braced for the August US consumer inflation report that could help determine the scale of an expected interest rate cut from the Federal Reserve next week.

During the session, the Nifty 50 index fell by 0.50 per cent, 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 a rise between 1 per cent and 4 per cent.

Similarly, the S&P BSE Sensex also declined by 0.53 per cent, settling at 81.485 points. The broader Nifty Midcap 100 index remained flat at 59,021 points.

Among the top midcap gainers, Suzlon Energy led with a 5 per cent increase, followed by CG Power and Industrial, which rose by 4.6 per cent. JSW Infrastructure and Page Industries also saw gains of 4.5 per cent and 3.6 per cent, respectively.

Conversely, the Nifty Smallcap 100 index fell by 0.8 per cent to 19,163 points. Major losers included HFCL, IRB Infrastructure, Welspun Living, Swan Energy, and Aarti Industries, which experienced declines ranging from 4.2 per cent to 5 per cent.

Tata Motors record biggest intraday drop in 5 weeks

Tata Motors stock tumbled 6 per cent 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 five weeks, which caused the stock to lose 12.15 per cent in September so far after a 4 per cent drop in August. From its high of ₹1,176 per share, it has decreased by 18 per cent.

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 per cent. 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 per cent 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 per cent from the previous close.

So far this year, the stock has surged by 70 per cent. In its recent note, domestic brokerage firm Sharekhan has maintained its 'buy' rating on Bajaj Auto, setting a target price of ₹12,584. It highlighted the company's strong volume growth, despite a partial recovery in exports. Additionally, it said that the company'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.