Market Commentary - End-Session
Nifty, Sensex close unchanged amid Hindenburg drama, VIX at 15.87 As on : 12-Aug-24  17:53

The domestic stocks ended flat today despite a volatile session triggered by fresh allegations against SEBI chief by Hindenburg. The market swung wildly, mirroring investor uncertainty over the credibility of the claims and counter-claims. While the Nifty managed to recoup early losses, a late sell-off erased gains. PSU banks and FMCG shares declined. On the other hand, realty and consumer durables shares bucked the trend.

The S&P BSE Sensex fell 56.99 points or 0.07% to 79,648.92. The Nifty 50 index declined 20.50 points or 0.08% to 24,347.

In the broader market, the S&P BSE Mid-Cap index rose 0.04% and the S&P BSE Small-Cap index added 0.51%.

The market breadth was negative. On the BSE, 1899 shares rose and 2187 shares fell. A total of 99 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 3.47% to 15.87.

Hindenburg's Fresh Allegations against SEBI Chairperson:

US short-seller Hindenburg Research escalated its accusations against the Adani Group by targeting SEBI Chairperson Madhabi Buch and her husband, Dhaval Buch. The short-seller alleges that the Buchs were involved in offshore funds linked to the Adani Group, suggesting a potential conflict of interest. These funds, according to Hindenburg, were instrumental in the alleged money siphoning scandal.

The report has sparked a political uproar, with opposition parties demanding a Joint Parliamentary Committee (JPC) probe into the matter. They argue that the new allegations cast a shadow over Buch's meetings with Gautam Adani in 2022.

However, the Buchs have vehemently denied all charges, labeling them as a character assassination attempt. They claim their investments were made as private citizens and were unrelated to Madhabi Buch's role at SEBI.

The controversy has intensified the scrutiny on SEBI's handling of the Adani-Hindenburg matter, with both sides trading accusations and counter-accusations.

Numbers to Track:

The yield on India's 10-year benchmark federal grew 1.69% to 6.996 as compared with previous close 6.880.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.9675, compared with its close of 83.9525 during the previous trading session.

MCX Gold futures for 5 October 2024 settlement rose 0.39% to Rs 70,167.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.03% to 103.17.

The United States 10-year bond yield added 0.31% to 3.956.

In the commodities market, Brent crude for September 2024 settlement gained 64 cents or 0.80% to $80.30 a barrel.

Global Markets:

Dow Jones Futures were up 63 points, indicating a bounce in the US stocks today.

European and Asian stocks advanced on Monday, building on last week's rally as investor optimism grows over the potential for a softer U.S. economic landing. With a series of crucial inflation reports due this week, market focus is shifting towards monetary policy implications.

Chinese equities lagged behind regional peers, continuing to grapple with concerns about a domestic economic slowdown. A slew of quarterly earnings reports will also be closely watched in the coming days. Persistent worries about China's faltering economic recovery, particularly in light of recent weak data, continued to weigh on sentiment.

Japan's market was closed for a holiday, resulting in lower trading volumes in Asia.

U.S. stocks rebounded on Friday, erasing most of the week's losses after a sharp sell-off on Monday. The S&P 500 climbed 0.47%, the Nasdaq Composite gained 0.51%, and the Dow Jones Industrial Average added 0.13%.

Investor focus this week is on the U.S. Consumer Price Index (CPI) data, due out on Wednesday. The report will provide crucial clues about the Federal Reserve's potential timeline for interest rate cuts. Market sentiment is divided between a 25 and 50 basis point reduction in September.

Stocks in Spotlight:

ONGC rose 2.62% after the GoI said gas pricing from new wells would be at a 20% premium compared to old ones.

Aavas Financiers advanced 4.39% after CVC Capital Partners said it would buy a majority stake in the firm.

Allied Blenders rose 6.32% after a report said it was in talks with Russian Standard & ThaiBev to market their products in India.

Voltas soared 10.62% after the company reported consolidated net profit of Rs 334.23 crore in Q1 FY25, significantly higher from Rs 129.29 crore in Q1 FY24. Total income for the quarter ended 30 June 2024 increased 45.82% year on year (YoY) to Rs 5,001.27 crore.

Inox Wind zoomed 20% after the company reported a consolidated net profit (from continuing operations) of Rs 47.17 crore in Q1 FY25 as against a net loss of Rs 64.88 crore posted in Q1 FY24. Revenue from operations surged 83.18% year on year to Rs 638.81 crore in the quarter ended 30 June 2024.

Bharat Dynamics slipped 6.28% after the missiles maker's net profit dropped 82.74% to Rs 7.22 crore in Q1 FY25 as against Rs 41.82 crore recorded in Q1 FY24. Revenue from operations stood at Rs 191.17 crore in the June 2024 quarter, down 35.79% from Rs 297.72 crore reported in same quarter previous fiscal.

Jubilant Foodworks surged 8.78% after the company's consolidated net profit surged to Rs 60.80 crore in Q1 FY25 as compared with Rs 28.91 crore in Q1 FY24. Revenue from operations jumped 44.85% YoY to Rs 1,933.06 crore during the quarter.

Honasa Consumer (Mamaearth) fell 4.63%. The company reported a consolidated net profit of Rs 40.25 crore in Q1 FY25, up 62.86% as against Rs 24.72 crore recorded in Q1 FY24. Revenue from operations jumped 19.28% to Rs 554.06 crore in Q1 FY25 as against Rs 464.49 crore recorded in the corresponding quarter last year.

Siemens rose 0.61% after the company's standalone net profit jumped 25.23% to Rs 530.60 crore in June 2024 quarter as against Rs 423.70 crore reported in the same period last year. Total revenue from operations increased 6.97% year on year (YoY) to Rs 4,714.20 crore during the quarter ended 30 June 2024.

Bajaj Consumer Care added 0.07%. The company's consolidated net profit declined 19.69% to Rs 37.12 crore in Q1 FY25 as compared with Rs 46.22 crore in Q1 FY24. Revenue from operations slipped 8.97% YoY to Rs 245.93 crore during the quarter.

IPO Update:

The initial public offer (IPO) of Saraswati Saree Depot received 4,37,44,950 bids for shares as against 100,00,800 shares on offer, according to stock exchange data at 17:00 IST on Monday (12 August 2024). The issue was subscribed 4.37 times.

The issue opened for bidding on 12 August 2024 and it will close on 14 August 2024. The price band of the IPO was fixed at Rs 152 to 160 per share.

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