Market Commentary - End-Session
Bulls charge: Sensex closes above 80,000 mark as FII funds fuel market rally As on : 04-Jul-24  18:04

Domestic markets continued their winning streak for a second day, mirroring positive vibes across Asia. The session started with a bang, echoing the bullish sentiment from the region. While some profit taking emerged at higher levels, leading the benchmarks to settle near flat line with minimal gains. This volatility can be partly attributed to the expiry of weekly index options on the NSE. However, the key takeaway remains impressive - both Sensex and Nifty scaled new highs, comfortably closing above 80,000 and 24,300 respectively. Pharma, healthcare, and IT sectors led the charge. Looking ahead, strong buying from FIIs and a favorable US bond yield environment suggest the bullish trend could persist, despite potential short-term corrections.

The S&P BSE Sensex added 62.87 points or 0.08% to 80,049.67. The Nifty 50 index rose 15.65 points or 0.06% to 24,302.15. Both the indices attained record closing levels.

The Sensex and Nifty clocked an all-time high of 80,392.64 and 24,401, respectively in morning trade. Further, the Nifty Bank also hit a record high at 53,357.70 in early trade.

ICICI Bank (up 2.65%), Tata Motors (up 2.40%) and Infosys (up 1.32%) boosted the indices.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index added 0.60% and the S&P BSE Small-Cap index rose 0.62%.

The S&P BSE Mid-Cap and S&P BSE Small-Cap index hit an all-time high at 47,151.92 and 53,851.62, respectively.

The market breadth was positive. On the BSE, 2117 shares rose and 1821 shares fell. A total of 83 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, slipped 2.65% to 12.86.

Foreign portfolio investors (FPIs) bought shares worth Rs 5,483.63 crore in the Indian equity market on 3 July 2024, provisional data showed. FPIs have bought shares worth over Rs 3057.48 crore in July 2024 (so far). They bought shares worth 2037.47 crore in June 2024.

Numbers to Track:

The yield on India's 10-year benchmark federal fell 0.06% to 6.997 as compared with previous close 7.001.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.4925, compared with its close of 83.4925 during the previous trading session.

MCX Gold futures for 5 August 2024 settlement shed 0.02% to Rs 72,390.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.19% to 105.20.

The United States 10-year bond yield grew 0.58% to 4.369.

In the commodities market, Brent crude for September 2024 settlement lost 47 cents or 0.54% to $86.87 a barrel.

Global Markets:

Markets in Europe advanced on Thursday, with the U.K.'s general election in focus in the region.

Most Asian stocks ended higher on Thursday as Wall Street indexes, including the S&P 500 and NASDAQ Composite, hit record highs in holiday-shortened trading. Weak labor data, along with purchasing managers index readings, fueled investor bets on a 25 basis point rate cut by the Federal Reserve in September.

Meanwhile, minutes from the Fed meeting revealed concerns about a slowing economy and subsiding inflation, but officials desire additional data to justify rate cuts, leaving investors in wait-and-see mode.

Stocks in Spotlight:

Cochin Shipyard hit an upper limit of 10% after the company informed that the Ministry of Ports, Shipping and Waterways, Government of India has extended the tenure of Jose V J as its Director (Finance) of the company.

Inox Wind zoomed 10.29% after the company announced the completion of infusion of around Rs 900 crore into the company by its promoter Inox Wind Energy (IWEL).

ITD Cementation India slumped 15.07% after the company announced a potential divestment by its major shareholder. Italian Thai Development Public Company is exploring a possible sale of its stake in the company. It holds a 46.64% stake in ITD Cementation (as of March 2024).

The process is in its preliminary stages and no final decision has been made.

Tata Motors advanced 2.40% after the company said that total Jaguar Land Rover (JLR) registrations in UK rose 5.28% to 6,421 units in June 2024 as compared with 6,099 units in June 2023.

Sun Pharmaceutical Industries rose 1.66% after the European Medicines Agency (EMA) validated the submission of the marketing authorization application (MAA) for Nidlegy, which was finalized on 3 June 2024.

Bajaj Finance declined 1.97%. The company announced that its new loans booked increased by 10% to 10.97 million in Q1 FY25 compared to 9.94 million recorded in Q1 FY24.

Bandhan Bank slipped 1.42%. The company?s total deposits rose by 22.79% to Rs 1,33,203 crore in the quarter ended 30 June 2024 from Rs 1,08,480 crore recorded in the quarter ended 30 June 2023.

Equitas Small Finance Bank (Equitas SFB) shed 0.49%. The company said that its gross advances jumped 17.8% to Rs 34,872 crore as on 30 June 2024 as against Rs 29,601 crore as on 30 June 2023.

L&T Finance added 0.27%. The company said that its retail disbursements for Q1 FY25 was at Rs 14,830 crore, registering a growth of around 33% as against Rs 11,192 crore recorded in Q1 FY24.

Vedanta gained 1.11% after the company informed that its total aluminum production rose 3% to 5,96,000 tonnes in Q1 FY25, on account of better operational performance.

Suryoday Small Finance Bank (SFB) rose 1.39% after the bank?s gross advances increased 42% to Rs to Rs 9,037 crore as on 30 June 2024, as compared to Rs 6,372 crore as on 30 June 2023.

IPO Updates:

The initial public offer (IPO) of Emcure Pharmaceuticals received 6,81,87,028 bids for shares as against 1,37,03,538 shares on offer, according to stock exchange data at 17:00 IST on Thursday (04 july 2024). The issue was subscribed 4.98 times.

The issue opened for bidding on Wednesday (03 July 2024) and it will close on Friday (05 July 2024). The price band of the IPO is fixed between Rs 960 to Rs 1,008 per share. An investor can bid for a minimum of 14 equity shares and in multiples thereof.

Bansal Wire Industries' IPO received 12,28,12,970 bids for shares as against 2,14,60,906 shares on offer, according to stock exchange data at 17:00 IST on Thursday (04 July 2024). The issue was subscribed 5.72 times.

The issue opened for bidding on Wednesday (03 July 2024) and it will close on Friday (05 July 2024). The price band of the IPO is fixed between Rs 243 to Rs 256 per share. An investor can bid for a minimum of 58 equity shares and in multiples thereof.

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