Market Commentary - End-Session
Indices slide for 3rd day, Nifty below 24K As on : 06-Aug-24  18:01

Domestic equity indices reversed early gains to end lower on Tuesday, marking the third consecutive day of losses. The Nifty slipped below the crucial 24,000 level as investors booked profits amid global uncertainties. Banking and financial stocks led the decline. While a rebound in Asian markets provided initial optimism, concerns over recession, a strengthening Yen, and geopolitical tensions dragged sentiment down.

The barometer index, the S&P BSE Sensex, was down 166.33 points or 0.21% to 78,593.07. The Nifty 50 index lost 63.05 points or 0.26% to 23,992.55.

HDFC Life Insurance Company (down 4.34%), M&M (down 1.77%) and HDFC Bank (down 0.88%) were major drags.

In the broader market, the S&P BSE Mid-Cap index fell 0.71% and the S&P BSE Small-Cap index lost 0.57%.

The market breadth was weak. On the BSE, 1,482 shares rose and 2,454 shares fell. A total of 92 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, dropped 7.97% to 18.74.

Numbers to Track:

The yield on India's 10-year benchmark federal paper jumped 1.82% to 6.985 as compared with previous close 6.971.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.9125, compared with its close of 84.0975 during the previous trading session.

MCX Gold futures for 4 October 2024 settlement rose 0.10% to Rs 69,380.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.45% to 103.15.

The United States 10-year bond yield fell 1.62% to 3.840.

In the commodities market, Brent crude for October 2024 settlement gained 34 cents or 0.45% to $76.64 a barrel.

Global Markets:

The Dow Jones index futures were up 240 points, indicating a strong opening in the US stocks today.

Most European stocks declined while most Asian stocks ended higher on Tuesday.

Japanese markets led the rally, bouncing over 10% after plunging into bear market territory. Bargain hunting also fueled gains, as investors snapped up discounted stocks with solid fundamentals.

US stocks tumbled on Monday, triggered by recession fears. The Dow dropped 1,033.99 points, or 2.6%, to end at 38,703.27. The Nasdaq Composite lost 3.43% and closed at 16,200.08, while the S&P 500 slid 3% to end at 5,186.33.

Friday's disappointing US jobs report intensified concerns about a potential recession. Investors are growing increasingly frustrated with the Federal Reserve's reluctance to cut interest rates despite slowing economic growth. The central bank opted to maintain rates at a 22-year high during its last meeting.

Adding to market volatility, the unwinding of the yen carry trade is gaining momentum. After the Bank of Japan raised interest rates last week, narrowing the interest rate differential with the US, the yen strengthened against the dollar. This has forced investors to unwind positions that involved borrowing in yen to invest in higher-yielding assets.

Stocks in Spotlight:

Oil and Natural Gas Corporation (ONGC) shed 1.27%. The company reported 15.09% decline in standalone net profit to Rs 8,938.10 crore in Q1 FY25 as compared with Rs 10,526.78 crore in Q1 FY24. Revenue from operations increased 4.29% YoY to Rs 35,266.38 crore in Q1 FY25.

Vedanta ended flat at Rs 413.60. The diversified metal company reported 54.02% increase in net profit to Rs 5,095 crore in Q1 FY25 as against Rs 3,308 crore in Q1 FY24. Revenue from operations grew by 5.68% YoY to Rs 35,239 crore in Q1 FY25.

Shree Cement fell 2.28%. The cement maker's standalone net profit tumbled 45.33% to Rs 317.71 crore on 2.74% decline in revenue from operations to Rs 4,834.69 crore in Q1 FY25 over Q1 FY24. Profit before tax was at Rs 350.84 crore in Q1 FY25, down 50.62% from Rs 710.49 crore reported in Q1 FY24.

TVS Motor Company rose 0.07%. The company reported 23.45% increase in standalone net profit to Rs 577.32 crore in Q1 FY25 as compared to Rs 467.67 crore posted in Q1 FY24. Revenue from operations rose 16.04% YoY to Rs 8,375.59 crore in the June 2024 quarter.

BEML tumbled 6.65%. The company's consolidated net loss narrowed to Rs 70.47 crore in Q1 FY25 as compared with Rs 75.01 crore reported in Q1 FY24. Revenue from operations grew by 9.91% to Rs 634.08 crore in Q1 FY25 as against Rs 576.91 crore posted in corresponding quarter last year.

Tata Chemicals fell 1.8%. The company's consolidated net profit from continuing operations declined 69.72% to Rs 175 crore in Q1 FY25 as compared to Rs 578 crore posted in Q1 FY24. The company's revenue from operations fell 10.17% year-on-year (YoY) to Rs 3,789 crore for the quarter ended 30 June 2024.

Brigade Enterprises gained 3.02% after the company's consolidated net profit surged 117.29% of Rs 83.72 crore in Q1 FY25 as compared with Rs 38.53 crore reported in Q1 FY24. Revenue from operation jumped 64.8% year on year (YoY) to Rs 1,077.72 crore in the quarter ended 30 June 2024.

BLS International Services surged 10.17% after the company's consolidated net profit jumped 70.16% to Rs 120.78 crore in Q1 FY25 as compared with Rs 70.98 crore in Q1 FY24. Revenue from operations jumped 28.47% YoY to Rs 492.66 crore during the quarter.

Symphony surged 19% to Rs 1463.20 after the company's consolidated surged to Rs 88 crore during the quarter as compared with Rs 24 crore posted in corresponding quarter last year. Revenue from operations jumped 75.83% YoY to Rs 531 crore in Q1 FY25. Meanwhile, the board declared first interim dividend of Rs 1 per share having face value of Rs 2 each for FY25.

Further, the company's board approved a share buyback upto Rs 71.40 crore via tender offer route. The company will buyback upto 2,85,600 fully paid-up equity shares of face value Rs 2 each, representing 9.33% and 9.99% of the total paid-up equity share capital and free reserves. The buyback price is fixed at Rs 2,500, representing a 103.4% premium to Monday's closing price of Rs 1229.10 on the BSE.

Schneider Electric Infrastructure jumped 5.34% after the company's net profit jumped 38.83% to Rs 48.48 crore in Q1 FY25 from Rs 34.92 crore in Q1 FY24. Rev0065nue from operations grew by 19.72% year on year (YoY) to Rs 592.91 crore in the quarter ended 30 June 2024.

IPO Update:

The initial public offer (IPO) of Ola Electric Mobility received 1,98,17,16,555 bids for shares as against 46,51,59,451 shares on offer, according to stock exchange data at 17:00 IST on Monday (05 August 2024). The issue was subscribed 4.26 times.

The issue opened for bidding on Friday (02 August 2024) and it will close on Tuesday (06 August 2024). The price band of the IPO is fixed between Rs 72 to Rs 76 per share. An investor can bid for a minimum of 195 equity shares and in multiples thereof.

Brainbees Solutions (FirstCry)'s IPO received 53,36,320 bids for shares as against 4,96,39,004 shares on offer, according to stock exchange data at 17:00 IST on Tuesday (06 August 2024). The issue was subscribed 11%

The issue opened for bidding on Tuesday (06 August 2024) and it will close on Thursday (08 August 2024). The price band of the IPO is fixed between Rs 440 to Rs 465 per share. An investor can bid for a minimum of 32 equity shares and in multiples thereof.

Unicommerce eSolutions' IPO received 3,42,37,386 bids for shares as against 1,40,84,681 shares on offer, according to stock exchange data at 17:00 IST on Tuesday (06 August 2024). The issue was subscribed 2.43 times.

The issue opened for bidding on Tuesday (06 August 2024) and it will close on Thursday (08 August 2024). The price band of the IPO is fixed between Rs 102 to Rs 108 per share. An investor can bid for a minimum of 138 equity shares and in multiples thereof.

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