Market Commentary - End-Session
Benchmarks slide for 5th session, Axis Bank slumps over 5% As on : 25-Jul-24  17:47

The domestic equity benchmarks slipped for a fifth straight day, mirroring a global tech sell-off. The Nifty ended flattish after an early slump, with oil & gas and auto sectors shining while metals and banks lagged. Concerns over heightened valuations in certain segments are weighing on sentiment.

The barometer index, the S&P BSE Sensex, was down 109.98 points or 0.14% to 80,039.80. The Nifty 50 index shed 7.40 points or 0.03% to 24,406.10. The 50-unit index has fallen 1.59% in five straight sessions.

Axis Bank (down 5.19%), ICICI Bank (down 2.02%) and Titan Company (down 1.95%) were major drags.

In the broader market, the S&P BSE Mid-Cap index fell 0.22% and the S&P BSE Small-Cap index shed 0.14%.

The market breadth was positive. On the BSE, 2049 shares rose and 1877 shares fell. A total of 97 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, soared 7.26% to 12.62.

Numbers to Track:

The yield on India's 10-year benchmark federal paper jumped 1.61% to 7.076 as compared with previous close 7.086.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.7275, compared with its close of 83.7175 during the previous trading session.

MCX Gold futures for 5 August 2024 settlement declined 1.60% to Rs 67,851.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.27% to 104.11.

The United States 10-year bond yield fell 1.48% to 4.224.

In the commodities market, Brent crude for September 2024 settlement lost $1.47 or 1.80% to $80.24 a barrel.

Global Markets:

European and Asian stocks tumbled on Thursday as investors took a breather from the AI-fueled rally that has propelled stocks higher this year. Japan and South Korea both saw declines of over 2%, with chipmaker SK Hynix Inc. leading the downturn despite strong earnings.

The US market suffered a significant setback, with the S&P 500 plunging 2.3% ' its worst day since December 2022. This marked the end of the longest period without a 2% drop since the 2008 financial crisis. The tech-heavy Nasdaq 100 plummeted 3.64%, dragged down by its largest components. Alphabet Inc. fell 5% after revealing higher-than-expected spending on its AI initiatives. Tesla Inc.'s stock plunged 12% following a disappointing profit report and delay of its robotaxi service. Nvidia Corp. also dropped 6.8%. The slump in the Magnificent Seven tech giants triggered a broad market sell-off. The Dow Jones Industrial Average also declined 1.25%.

Stocks in Spotlight:

Oil & Gas stocks were in demand. The Nifty Oil & Gas index climbed 2.22% to 12,992.35. HPCL (up 5.72%), Oil India (up 5.24%), Indian Oil Corp. (up 5.01%), Petronet LNG (up 4.93%) and ONGC (up 4.83%) rallied.

Larsen & Toubro (L&T) advanced 2.94% after the EPC major's consolidated net profit rose 11.74% to Rs 2,785.72 crore on 15.12% increase in revenue from operations to Rs 55,119.82 crore in Q1 FY25 over Q1 FY24.

Axis Bank tumbled 5.19%. The bank reported 4.1% rise in standalone net profit to Rs 6,034.64 crore on 16.97% increase in total income to Rs 35,844.22 crore in Q1 FY25 over Q1 FY24. Gross slippage ratio (annualized) were at 1.97%, while net slippage ratio (annualized) were at 1.37%.

Nestle India declined 2.49%. The FMCG major's net profit rose 6.91% to Rs 746.6 crore on 3.34% increase in revenue from operations to Rs 4,813.95 crore in Q1 FY25 over Q1 FY24. During the quarter, domestic sales grew by 4.25% year on year (YoY) to Rs 4,608.5 crore, while export sales declined 7.18% YoY to Rs 184.47 crore

SBI Life Insurance Company gained 3.74% after the company reported 36.34% surge in net profit to Rs 519.52 crore in Q1 FY25 from Rs 381.04 crore posted in Q1 FY24. Total income was at Rs 34,392.05 crore in the quarter ended 30 June 2024, registering a growth of 24.2% year on year (YoY).

Tiger Logistics (India) hit an upper limit of 5% to settle at Rs 36.26 after North Star Opportunities Fund bought a 1.86% stake in the company through bulk deals on 24 July 2024.

As per the bulk deal data on the BSE, North Star Opportunities Fund acquired a 1.86% stake in the company by purchasing 19,69,033 shares at Rs 32.90 each. Simultaneously, Radiant Global Fund offloaded its entire 1.39% stake (14,69,033 shares) at the same price.

Jyothy Labs rallied 7.72% after the household products maker reported 5.65% rise in consolidated net profit to Rs 101.73 crore on 7.96% increase in revenue from operations to Rs 741.81 crore in Q1 FY25 over in Q1 FY24.

Ashok Leyland ended flat at Rs 232.45. The company reported 6.39% fall in consolidated net profit to Rs 509.15 crore in Q1 FY25 as compared with Rs 543.89 crore in Q1 FY24. Revenue from operations rose 10.66% year on year (YoY) to Rs 10,724.49 crore in the quarter ended June 2024.

Karnataka Bank added 1.67% after the private lender's net profit increased 7.99% to Rs 400.33 crore in Q1 FY25 as against Rs 370.70 crore recorded in Q1 FY24. Total income advanced 12.02% to Rs 2,557 crore in the quarter ended 30 June 2024.

Craftsman Automation slipped 2.11% after the company reported 28.6% fall in consolidated net profit to Rs 53.19 crore in Q1 FY25 from Rs 74.48 crore in Q1 FY24. Net sales increased by 10.9% year-over-year (YoY) to Rs 1,151.19 crore in the first quarter of 2024-25.

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