Market Commentary - End-Session
Barometers slide for 4th day, Nifty ends below 24,450, banks drag As on : 24-Jul-24  17:59

The domestic stock market remained jittery for a fourth day, surrendering early gains as banking and finance stocks faltered. Nifty50 couldn't hold above 24,450 despite pockets of strength in oil & gas and consumer durables. Last-minute buying helped pare some losses, but overall sentiment stayed fragile due to negative global cues.

The S&P BSE Sensex fell 280.16 points or 0.35% to 80,148.88. The Nifty 50 index shed 65.55 points or 0.27% 24,413.50.

Bajaj Finserv (down 2.43%), Axis Bank (down 1.83%), Bajaj Finance (down 1.81%) and HDFC Bank (down 0.82%) dragged.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index added 0.68% and the S&P BSE Small-Cap index gained 1.91%.

The market breadth was strong. On the BSE, 2755 shares rose and 1143 shares fell. A total of 110 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, tumbled 7.72% to 11.76.

Economy:

The HSBC Flash India Composite Output Index, a seasonally adjusted measure of combined manufacturing and service sector output, climbed to 61.4 in July from 60.9 in June. This marks the strongest rate of expansion in three months, with both goods producers and service providers contributing to the upturn.

The HSBC Flash India Manufacturing PMI rose to 58.5 in July (up from 58.3 in June), indicating a significant improvement in the sector's health. Favorable market conditions and new business gains were cited as key drivers of this growth.

The HSBC Flash India Services PMI Business Activity Index also rose, reaching 61.1 in July compared to 60.5 in June.

The survey results highlight increasing input costs for materials and labor, contributing to inflationary pressures. Notably, selling prices climbed to their highest level since February 2013.

Numbers to Track:

The yield on India's 10-year benchmark federal paper jumped 1.66% to 7.086 as compared with previous close 6.970.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.7125, compared with its close of 83.6950 during the previous trading session.

MCX Gold futures for 5 August 2024 settlement gained 0.43% to Rs 68,802.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.05% to 104.40.

The United States 10-year bond yield rose 0.14% to 4.245.

In the commodities market, Brent crude for September 2024 settlement gained 54 cents or 0.67% to $81.55 a barrel.

Global Markets:

The Dow Jones index futures were down 166 points, indicating a negative opening in the US stocks today.

European and Asian shares tumbled on Wednesday after major US technology companies, including Tesla and Alphabet, released underwhelming earnings reports.

Adding to the negative sentiment, Japanese manufacturing activity unexpectedly contracted in July, according to the au Jibun Bank flash manufacturing PMI. This data, coupled with ongoing frustration over the Bank of Japan's low-interest-rate policy, is putting pressure on the central bank to address inflation concerns.

In the US, stocks closed slightly lower on Tuesday as investors digested mixed corporate earnings reports and kept a close watch on the evolving presidential election. The broad-based S&P 500 declined 0.16%, while the tech-rich Nasdaq Composite Index dipped 0.06%. The Dow Jones Industrial Average declined 0.14%

The Federal Reserve's preferred inflation gauge, the PCE data, and US GDP data are both expected to be released later this week, potentially impacting interest rate expectations.

Stocks in Spotlight:

Larsen & Toubro (L&T) slips 0.54%. The company reported strong consolidated financial results for the quarter ending June 30, 2024. Revenue grew 15% year-over-year to Rs 55,120 crore, driven by a strong performance in their Projects & Manufacturing business and a large backlog of orders. Nearly half (48%) of their revenue came from international markets. Net profits also rose 12% to Rs 2,786 crore compared to last year.

L&T's consolidated order book reached a healthy Rs 490,881 crore as of 30 June 2024, reflecting a continued growth trend. This represents a 3% increase compared to March 2024 and a significant 19% growth year-over-year. International orders continue to play a substantial role, accounting for 38% of the total order book.

Axis Bank fell 1.83%. The bank's net profit stood at Rs 6,035 crore in Q1FY25 as against Rs 5,797 crore in Q1FY24, and grew 4% YoY. Net Interest Income (NII) grew 12% YoY and 3% QoQ to Rs 13,448 crore. Net interest margin (NIM) for Q1FY25 stood at 4.05%. As on 30th June 2024, the bank's provision coverage, as a proportion of Gross NPAs stood at 78%, as compared to 80% as at 30th June 2023 and 79% as at 31 March 2024.

Borosil Renewables jumped 8.19% after the Indian government proposed a 10% import duty on solar glass. This move aims to create a level playing field for domestic manufacturers like Borosil Renewables, India's leading producer of solar glass.

Tips Industries rallied 6.38% after the company's standalone net profit jumped 61% to Rs 43.6 crore in Q1 FY25 compared with Rs 27.1 crore in Q1 FY24. Revenue from operations increased 40% YoY to Rs 73.9 crore in Q1 FY25.

Epigral zoomed 11.72% after the company's consolidated net profit stood at Rs 86 crore in Q1 FY25, steeply higher than Rs 32 crore in corresponding quarer last year. Revenue from operations jumped 43% to Rs 651.20 crore in Q1 FY25 from Rs 454.89 crore in Q1 FY24.

Bajaj Finserv declined 2.43%, The company's consolidated net profit jumped 10.04% to Rs 2,137.70 crore on a 35.22% increase in total income to Rs 31,480.14 crore in Q1 FY25 over Q1 FY24. Profit before tax in Q1 FY25 stood at Rs 5,968.41 crore, up by 16.44% from Rs 5,125.37 crore in Q1 FY24.

Alembic Pharmaceuticals jumped 8.17% after the drug maker received final approval from US Food & Drug Administration (USFDA) for its abbreviated new drug application (ANDA), Fluphenazine Hydrochloride tablets.

ICICI Prudential Life Insurance Company soared 8.83% after the company's net profit rose 8.94% to Rs 225.40 crore in Q1 FY25 from Rs 206.91 crore posted in Q1 FY24. Total income grew by 8.14% year on year to Rs 25,458.43 crore in the quarter ended 30 June 2024.

Schaeffler India rallied 5.94% after the company reported 6.82% increase in standalone net profit to Rs 253.54 crore in Q2 CY24 as against Rs 237.2 crore posted in Q2 CY23. Revenue from operations jumped 13.27% year on year (YoY) to Rs 2,071.9 crore in Q2 CY24.

Bajel Projects surged 6.88% after the company announced that it has secured an Rs 586.28 crore contract from Power Grid Corporation of India for the supply of goods and services.

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