Market Commentary - End-Session
Benchmarks end almost flat, Nifty holds 24,570 As on : 19-Aug-24  16:54

Domestic equity benchmarks ended flat today, with Nifty50 settling above 24,570. Metals and energy stocks shined while autos and banks dragged. The market's resilience is evident as it continues to reward the buy on dips approach.

The barometer index, the S&P BSE Sensex, declined 12.16 points or 0.02% to 80,424.68. The Nifty 50 index added 31.50 points or 0.13% to 24,572.65.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index jumped 0.53% and the S&P BSE Small-Cap index rallied 1.33%.

The market breadth was strong. On the BSE, 2,710 shares rose and 1,316 shares fell. A total of 139 shares were unchanged.

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, fell 0.60% to 14.32.

Economy:

India's forex reserves declined $4.8 billion to $670.119 billion for the week ended August 9, according to the latest RBI data.

In the previous reporting week, the country's foreign exchange reserves had increased $7.533 billion to an all-time high of $674.919 billion.

For the week ended August 9, foreign currency assets, a major component of the reserves, decreased by $4.079 billion to $587.96 billion.

Gold reserves declined by $860 million to $59.239 billion during the week. The special drawing rights (SDRs) were up by $121 million to $18.282 billion.

India's reserve position with the IMF increased by $18 million to $4.638 billion in the reporting week, the central bank data showed.

Numbers to Track:

The yield on India's 10-year benchmark federal paper advanced 1.67% to 6.982 as compared with previous close 6.867.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.8750, compared with its close of 83.9500 during the previous trading session.

MCX Gold futures for 4 September 2024 settlement advanced 0.09% to Rs 71,000.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies shed 0.23% to 102.22.

The United States 10-year bond yield shed 0.46% to 3.877.

In the commodities market, Brent crude for October 2024 settlement lost 88 cents or 0.88% to $78.80 a barrel.

Global Markets:

Most European stocks advanced while Asian shares ended mixed on Monday as investors weighed optimism about a US economic soft landing against concerns over the global growth outlook.

Expectations of cooling inflation and a potential easing cycle by the Federal Reserve buoyed sentiment. However, investors remained cautious ahead of key US economic data this week and Federal Reserve Chair Jerome Powell's speech on Friday.

In Asia, market participants will closely monitor central bank meetings in Indonesia and South Korea for potential rate adjustments. Thailand's policy decision is particularly awaited given uncertainties surrounding the new government's economic plans.

US stocks rebounded from earlier losses to close higher on Friday, as a report showing improved consumer sentiment boosted investor confidence. The Dow Jones Industrial Average rose 0.24%, the S&P 500 climbed 0.20% and the Nasdaq Composite gained 0.21%.

The University of Michigan's gauge of consumer sentiment rose to 67.8 in a preliminary August reading, up from 66.4 in the prior month. It is the first gain after four months of declines.

Stocks in Spotlight:

Piramal Enterprises (PEL) rallied 3.89% after the NBFC informed that its promoter group entity purchased 6.16 lakh equity shares, representing 0.27% of the total paid-up share capital of the company.

Meanwhile, the board of PEL will meet on Wednesday, 21 August 2024 to consider issuing non-convertible debentures (NCDs) aggregating up to Rs 150 crore on private placement basis.

Glenmark Pharmaceuticals gained 4.31% after the company's subsidiary Glenmark Therapeutics Inc., USA, announced the launch of OTC product Olopatadine Hydrochloride Ophthalmic Solution.

DCX Systems hit an upper circuit of 5% after the company informed that it has received orders worth Rs 107.08 crore from domestic and overseas customers.

Veranda Learning Solutions advanced 5% after the company said that it has partnered with Jumeira University Connect, the training arm of Jumeira University, to introduce a Chartered Accountancy (CA) preparation course for students in the UAE.

Genus Power Infrastructures hit an upper circuit of 5% after the company announced that its wholly-owned subsidiary received three letters of awards (LoA) worth totaling to Rs 2,925.52 crore.

Caplin Point Laboratories surged 16.20% after the Brazilian Health Regulatory Agency (ANVISA) concluded its inspection at Gummidipoondi facility, in Chennai in Tamil Nadu with zero observations.

JNK India rallied 3.32% after the heating equipment maker on Friday announced that it has received a 'major' order from Hindustan Petroleum Corporation (HPCL).

Techno Electric & Engineering Company (Techno Electric) jumped 4.81% after the company partnered with IndiGrid to develop two IndiGrid's Greenfield interstate transmission Systems (ISTS) projects.

IPO Update:

The initial public offer (IPO) of Interarch Building Products received 1,47,03,632 bids for shares as against 46,91,585 shares on offer, according to stock exchange data at 17:00 IST on Monday (19 August 2024). The issue was subscribed 3.13 times.

The issue opened for bidding on 19 August 2024 and it will close on 21 August 2024. The price band of the IPO is fixed between Rs 850 to Rs 900 per share. An investor can bid for a minimum of 16 equity shares and in multiples thereof.

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