Market Commentary - End-Session
Nifty ends above 25K, NSE VIX slips below 13 mark As on : 01-Aug-24  17:48

Domestic equity benchmarks rose for fifth straight session today, with the Nifty50 breaching the 25,000 mark, driven by optimism over a potential Fed rate cut and a recovering US economy. While energy stocks led the charge, gains were tempered by rising crude prices due to Middle East tensions and profit-booking in sectors like realty and autos. Trading was volatile due to expiry of weekly index options today.

In the barometer index, the S&P BSE Sensex, was up 126.21 points or 0.15% to 81,867.55. The Nifty 50 index rose 59.75 points or 0.24% to 25,010.90. Both the indices attained record closing high levels. The 50-unit index is up 2.48% in five straight sessions.

The Sensex and Nifty clocked an all-time high of 82,129.49 and 25,078.30, respectively in early trade.

Adani Enterprises (up 1.57%), HDFC Bank (up 1.44%) and Reliance Industries (up 0.71%) boosted the indices.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index fell 0.80% and the S&P BSE Small-Cap index declined 0.70%.

The S&P BSE Mid-Cap index hit an all-time high of 48,840.75 today.

The market breadth was weak. On the BSE, 1,577 shares rose and 2,383 shares fell. A total of 88 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, declined 2.41% to 12.93.

Economy:

The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) stood at 58.1 in July, as against 58.3 in June. The latest reading was above the series long-run average and one of the highest seen in recent years.

Numbers to Track:

The yield on India's 10-year benchmark federal grew 1.62% to 7.036 as compared with previous close 7.047.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.7300, compared with its close of 83.6800 during the previous trading session.

MCX Gold futures for 5 August 2024 settlement rose 0.39% to Rs 69,282.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.25% to 104.36.

The United States 10-year bond yield fell 1.37% to 4.049.

In the commodities market, Brent crude for September 2024 settlement gained 54 cents or 0.64% to $81.36 a barrel.

Global Markets:

Most shares in Europe and Asia declined on Thursday, following a raft of corporate earnings, while prospects of upcoming policy easing in the United States boosted global bonds.

The Bank of Japan signaled further interest rate hikes. China's market rebound also faltered as disappointing business activity data dampened investor sentiment.

Caixin purchasing managers index data on Thursday showed an unexpected contraction in China's manufacturing sector. The reading came just a day after government PMI data showed a similar trend. The Caixin/S&P Global manufacturing purchasing managers' index (PMI) fell to 49.8 in July from 51.8 the previous month, the lowest reading since October.

The region largely ignored a strong rally on Wall Street, where optimism about a potential September interest rate cut from the Federal Reserve and robust tech earnings boosted investor confidence.

The Dow Jones Industrial Average rose 0.24%, the S&P 500 gained 1.58% and the Nasdaq Composite advanced 2.64%. The Federal Reserve held interest rates steady in the 5.25%-5.50% range on Wednesday but hinted at a possible rate cut in September if inflation cools down.

July Auto Sales Impact:

Mahindra & Mahindra slipped 2.68%. The auto major announced that its overall auto sales rose marginally to 66,444 vehicles sold in July 2024 as against 66,124 vehicles sold in July 2023.

Further, the company's Farm Equipment Sector (FES) announced that its total tractor sales (domestic + exports) during July 2024 was at 27,209 units, registering a growth of 8.08% as against 25,175 units reported in the same period last fiscal.

Ashok Leyland fell 2.78% after the company said that its total vehicle sales declined 8% to 13,928 units in July 2024 from 15,068 units in July 2023.

Tata Motors shed 1.02%. The car major's total domestic sales for July 2024 stood at 70,161 vehicles, registering de-growth of 11% compared to 78,844 units in July 2023.

Bajaj Auto rose 0.73%. The company reported 11% increase in total auto sales to 3,54,169 units in July 2024 as against 3,19,747 units in July 2023.

Escorts Kubota lost 0.71%. The company's Agri Machinery Business Division recorded total tractor sales of 5,769 units in July 2024, which is higher by 3.6% as compared with the same period last year.

Meanwhile, Escorts' Construction Equipment Business Division has sold 450 machines in July 2024 as against 465 machines sold in July 2023, thereby recording a de-growth of 3.2%.

Stocks in Spotlight:

Coal India rallied 3.48% after the coal major reported 4.1% rise in consolidated net profit to Rs 10,959.47 crore in Q1 FY25 from Rs 10,528.03 crore in Q1 FY24. Revenue from operations rose 1.59% to Rs 36,464.61 crore in the first quarter of FY25 from Rs 35,893.21 crore recorded in the same period last year.

GE T&D India hit an upper circuit of 5% after the company's standalone net profit surged to Rs 134.54 crore during the quarter as compared with Rs 28.24 crore posted in corresponding quarter last year. Revenue from operations jumped 33.55% to Rs 958.34 crore in Q1 FY25 as compared with Rs 717.57 crore posted in Q1 FY24.

Aster DM Healthcare jumped 6.28% after the company's consolidated net profit jumped 81.29% to Rs 81 crore in Q1 FY25 as compared with Rs 44.68 crore in Q1 FY24. Revenue from operations jumped 19.1% YoY to Rs 1001.87 crore during the quarter.

Adani Ports and Special Economic Zone (APSEZ) rose 1.26% after the company's consolidated net profit surged 47.2% to Rs 3,112.83 crore on 11.34% in revenue from operations to Rs 6,956.32 crore in Q1 FY25 over Q1 FY24.

Dabur India advanced 1.05% after the company's consolidated net profit increased 8.27% to Rs 494.35 crore in Q1 FY25 as compared with Rs 456.61 crore in Q1 FY24. Revenue from operations jumped 6.98% YoY to Rs 3,349.11 crore in Q1 FY25.

Tata Steel declined 1.4%. The steel major's consolidated net profit surged 51.37% to Rs 959.61 crore in Q1 FY25 as against Rs 633.95 crore reported in Q1 FY24. Total revenue from operations fell 7.93% year on year (YoY) to Rs 54,771.39 crore in the quarter ended 30 June 2024.

Sun Pharmaceutical Industries shed 0.11%. The drug major's consolidated net profit jumped 40.20% to Rs 2,835.6 crore on 5.96% rise in revenue from operations to Rs 12,652.75 crore in Q1 FY25 over Q1 FY24.

Prestige Estates Projects dropped 3.42% after the company's consolidated net profit fell 12.85% to Rs 232.6 crore in Q1 FY25 as against Rs 266.9 crore recorded in Q1 FY24. However, revenue from operations grew 10.78% year on year (YoY) to Rs 1,862.1 crore in the quarter ended 30 June 2024.

Sonata Software tumbled 10.30% after the company's consolidated net profit declined 4.29% to Rs 105.63 crore in Q1 FY25 as against with Rs 110.36 crore posted in Q4 FY24. Revenue from operations grew by 15.32% quarter on quarter (QoQ) to Rs 2527.43 crore in Q1 FY25.

IPO Update:

The initial public offer (IPO) of Ceigall India received 1,28,54,429 bids for shares as against 2,23,13,663 shares on offer, according to stock exchange data at 17:00 IST on Thursday (01 August 2024). The issue was subscribed 0.58 times.

The issue opened for bidding on Thursday (1 August 2024) and it will close on Monday (5 August 2024). The price band of the IPO is fixed between Rs 380 to Rs 401 per share. An investor can bid for a minimum of 37 equity shares and in multiples thereof.

Akums Drugs and Pharmaceuticals' IPO received 96,18,57,204 bids for shares as against 1,51,62,239 shares on offer, according to stock exchange data at 17:00 IST on Thursday (1 August 2024). The issue was subscribed 63.44 times.

The issue opened for bidding on Tuesday (30 July 2024) and it will close on Thursday (1 August 2024). The price band of the IPO is fixed between Rs 646 to Rs 679 per share. An investor can bid for a minimum of 22 equity shares and in multiples thereof.

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