Market Commentary - End-Session
Indices end almost flat, broader market rallies As on : 29-Jul-24  17:42

Domestic equity benchmarks ended flat today after a rollercoaster ride. The Sensex and the Nifty touched record high but profit-booking in tech and telecom dragged them lower. Banking, media, and real estate stocks rallied. Global cues were positive with hopes of a Fed rate cut, but local investors cashed in gains. All eyes are now on central bank meetings this week.

The S&P BSE Sensex gained 23.12 points or 0.03% to 81,355.84. The Nifty 50 index rose 1.25 points or 0.01% to 24,836.10.

The Sensex and Nifty clocked an all-time high of 81,908.43 and 24,999.75, respectively in early-afternoon trade.

L&T (up 2.77%), Reliance Industries (up 0.76%) and M&M (up 1.67%) boosted the indices.

The broader market rallied. The S&P BSE Mid-Cap index added 0.80% and the S&P BSE Small-Cap index gained 1.17%.

The S&P BSE Small-Cap index hit an all-time high of 55,066.48 today.

The market breadth was positive. On the BSE, 2334 shares rose and 1726 shares fell. A total of 138 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rallied 5.96% to 12.95.

Economy:

India's forex reserves hit a new record high of $670.86 billion as of July 19, the RBI announced on Friday. The $4 billion increase was driven by a $2.57 billion rise in foreign currency assets, a $1.32 billion boost in gold reserves, and a $95 million increase in SDRs.

Numbers to Track:

The yield on India's 10-year benchmark federal rallied 1.43% to 7.039 as compared with previous close 6.940

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.7400, compared with its close of 83.7350 during the previous trading session.

MCX Gold futures for 5 August 2024 settlement rose 0.49% to Rs 68,515.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.13% to 104.45.

The United States 10-year bond yield fell 0.93% to 4.162.

In the commodities market, Brent crude for September 2024 settlement lost 2 cent or 0.02% to $81.11 a barrel.

Global Markets:

Dow Jones Futures were up 148 points, indicating a positive opening in the US stocks today.

Most European and Asian stocks advanced on Monday, buoyed by hopes of potential interest rate cuts from the Federal Reserve. The battered technology sector led the gains as investors eagerly awaited the upcoming Fed meeting for clues on monetary policy.

However, Chinese markets underperformed regional peers. Sentiment towards China remained subdued ahead of crucial economic data releases this week. Additionally, lingering uncertainty about the next U.S. administration's stance on Beijing weighed on investor confidence.

The positive momentum in Asia was fueled by a strong finish on Wall Street on Friday. Easing inflation concerns boosted expectations for eventual interest rate reductions. The Dow Jones Industrial Average surged 1.64%, the S&P 500 climbed 1.11%, and the Nasdaq Composite gained 1.03%. This upward movement was attributed to a combination of oversold conditions, a better-than-expected GDP report, and growing optimism about the Fed's potential rate cuts.

Investors also digested the latest inflation data. The June Personal Consumption Expenditures (PCE) price index, the Fed's preferred inflation gauge, rose 0.1% month-over-month and 2.5% year-over-year.

While the Fed is expected to maintain interest rates unchanged at its meeting on Wednesday, investors will closely monitor any hints about the timing of potential rate cuts, especially given recent encouraging comments from Fed officials.

Stocks in Spotlight:

Bandhan Bank surged 13.64% after the bank's net profit surged 47.48% to Rs 1,063.46 crore in Q1 FY25 as compared to Rs 721.05 crore recorded in Q1 FY24. Total income grew by 23.53% to Rs 6,063.35 crore in the first quarter of FY25 from Rs 4,908.02 crore posted in Q1 FY24.

ICICI Bank rose 0.53%. The bank's standalone net profit jumped 14.62% to Rs 11,059.11 crore on 18.66% rise in total income to Rs 45,997.70 crore in Q1 FY25 over Q1 FY24.

IndusInd Bank added 0.73%. The private lender's standalone net profit rose marginally to Rs 2,152.16 crore in Q1 FY25 as against Rs 2,123.62 crore reported in Q1 FY24. Total income grew by 15.83% year on year to Rs 14,988.02 crore in the quarter ended 30 June 2024.

City Union Bank gained 5.82% after the private sector bank's net profit rose 16.38% to Rs 264.49 crore on 8.45% increase in total income to Rs 1,580.77 crore in Q1 FY25 over Q1 FY24.

InterGlobe Aviation's (IndiGo) slipped 1.36% after the company's consolidated net profit declined 11.71% to Rs 2,728.8 crore in Q1 FY25 from Rs 3,090.6 crore posted in Q1 FY24. However, revenue from operations jumped 17.31% year on year (YoY) to Rs 19,570.7 crore in the quarter ended 30 June 2024.

Adani Total Gas gained 0.51%. The company's standalone net profit increased 19.91% to Rs 177.09 crore in Q1 FY25 as comapred with Rs 147.69 crore in Q1 FY24. Revenue from operations rose 9.01% YoY to Rs 1237.10 crore in Q1 FY25.

Adani Wilmar zoomed 5.86% after the company reported a consolidated net profit of Rs 313.20 crore in Q1 FY25 as against a net loss of Rs 78.92 crore posted in Q1 FY24. The company achieved revenue of Rs 14,169 crore in Q1 FY25, driven by 12% YoY volume growth.

Kaynes Technology India jumped 7.83% after the company's consolidated net profit surged to Rs 50.77 crore in Q1 FY25 as compared with Rs 24.64 crore posted in Q1 FY24. Revenue from operations jumped 69.59% YoY to Rs 503.97 crore in Q1 FY25.

Zen Technologies hit an upper circuit of 5% after the company's standalone net profit jumped 57.39% to Rs 74.18 crore in Q1 FY25 as compared to Rs 47.13 crore posted in Q1 FY24. Revenue from operations surged 91.74% year on year (YoY) to Rs 253.96 crore in the quarter ended June 2024.

Nuvama Wealth Management rallied 5.8% after the company reported 79.52% increase in net profit to Rs 220.77 crore in Q1 FY25 as compared with Rs 122.98 crore in Q1 FY24. Revenue from operations jumped 46.58% YoY to Rs 949.43 core in Q1 FY25.

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