Market Commentary - End-Session
Benchmarks advance for 5th day, NSE VIX drops to 13.33 As on : 21-Aug-24  17:17

The headline equity benchmarks continued their winning streak for the fifth day in a row on Wednesday. The Nifty50 settled above the 24,750 mark after hitting the day's low of 24,654.50 in early trade. Consumer goods and fast-moving consumer goods stocks performed well, while real estate and public sector banks faced selling pressure. Investors are closely watching for clues about potential US interest rate cuts from the upcoming release of Federal Reserve meeting minutes and a speech by Fed Chair Jerome Powell.

The barometer index, the S&P BSE Sensex gained 102.44 points or 0.13% to 80,905.30. The Nifty 50 index added 71.35 points or 0.29% to 24,770.20. The 50-unit index has risen 2.61% in five sessions.

Titan Company (up 2.45%), Adani Enterprises (up 1.44%) and ITC (up 1.29%) boosted the indices.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index added 0.43% and the S&P BSE Small-Cap index rose 0.87%.

The market breadth was strong. On the BSE, 2,607 shares rose and 1,345 shares fell. A total of 86 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, declined 3.52% to 13.33.

Numbers to Track:

The yield on India's 10-year benchmark federal paper shed 0.04% to 6.967 as compared with previous close 6.970.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.9100, compared with its close of 83.77 during the previous trading session.

MCX Gold futures for 4 September 2024 settlement rose 0.06% to Rs 71,368.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.04% to 101.48.

The United States 10-year bond yield shed 0.05% to 3.817.

In the commodities market, Brent crude for October 2024 settlement rose 46 cents or 0.60% to $77.66 a barrel.

Global Markets:

European stocks advanced while Asian stocks ended mixed on Wednesday, as investors await key speech by Federal Reserve Chair Jerome Powell later this week.

The weakness in the U.S. market, where the Dow Jones Industrial Average closed down 0.15%, the S&P 500 fell 0.2%, and the Nasdaq Composite dropped 0.33%, spilled over into Asia.

Japan's Nikkei index likely mirrored this cautiousness, as data revealed a smaller-than-expected export growth and a surge in imports, resulting in a trade deficit for July.

Hong Kong's Hang Seng index was further pressured by a significant decline in e-commerce giant JD.com's stock price. News reports suggesting Walmart's planned sale of its stake in JD.com for $3.74 billion contributed to the 11% drop in JD stock.

Stocks in Spotlight:

FSN E-Commerce Ventures shares, Nykaa's parent company, surged 9.42% to Rs 210.75, ahead of the September 18 AGM. The stock hit a 52-week high of Rs 228.50 today.

JNK India rose 3.49% after the company received a significant order from Mundra Petrochem, a part of the Adani Group. The order involves the design, engineering, procurement, fabrication, supply, erection, testing, and commissioning of a flare package for the Green PVC Project in Mundra, Gujarat.

Kilburn Engineering surged 10.27% after the company announced its plans to acquire Monga Strayfield, a leading manufacturer of radio frequency dryers and heating solutions. The acquisition is valued at Rs 123 crore.

Shriram Properties (SPL) surged 14.54% on brand transformation initiative. SPLNxT, the company's new growth strategy, aims to reposition the brand and focus more on the mid-market and mid-premium segments of residential real estate in Bengaluru, Chennai, Kolkata, and Pune.

Larsen & Toubro rose 0.61%. The EPC major announced that it has secured a large order for its Transportation Infrastructure Business for the integrated infrastructure development project in Navi Mumbai.

Meanwhile, the company informed that the Bombay High Court has quashed and set aside the show-cause notice and Rs 2,237-crore demand issued by the GST authorities.

Hindustan Zinc shed 0.27%. The company announced that it has received a GST demand notice amounting to Rs 26.12 crore from the Office of the Commissioner of Central Excise & CGST Commissionerate.

Exide Industries advanced 2.13% after the company said that it has invested Rs 74.99 crore in its wholly owned subsidiary, Exide Energy Solutions (EESL) by way of subscription to share capital on right basis.

Servotech Power Systems rose 3.24% after the company has secured contract from the Agency for New and Renewable Energy Research and Technology (ANERT) for installing EV charging stations in Kerala. Under the said contract, the company will build 12 electric vehicle (EV) charging stations with 30KW Fast DC EV chargers at the various locations of Kerala Motor Vehicle Department. This contract involves Servotech supplying, commissioning and construction of EV charging stations.

Oriental Rail Infrastructure hit an upper circuit of 5% after the company reported consolidated net profit of Rs 4.37 crore in Q1 FY25 as compared with net loss of Rs 8.01 crore posted in Q1 FY24. Revenue from operations was at Rs 172.03 crore in first quarter of FY25, registering a growth of 42.91% as against Rs 120.37 crore posted a year ago.

Genus Power Infrastructures hit an upper circuit of 5% after the company's subsidiary secured three letters of award (LoAs) worth Rs 3,608.52 crore.

RMC Switchgears hit an upper circuit of 5% after the company's subsidiary, RMC Green Energy secured approval from the Rajasthan Renewable Energy Corporation to establish a 50 megawatt (MW) renewable energy park in Rajasthan.

Indoco Remedies gained 5.10% after the firm received final approval from the US Food and Drug administration (USFDA) for its abbreviated new drug application (ANDA) for Lofexidine Tablets. Lofexidine Tablets is indicated for mitigation of symptoms associated with acute withdrawal from opioids and for facilitation of the completion of opioid discontinuation treatment.

IPO Update:

The initial public offer (IPO) of Orient Technologies received 4,94,76,456 bids for shares as against 74,49,846 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (21 August 2024). The issue was subscribed 6.64 times.

The issue opened for bidding on Wednesday (21 August 2024) and it will close on Friday (23 August 2024). The price band of the IPO is fixed between Rs 195 to Rs 206 per share. An investor can bid for a minimum of 72 equity shares and in multiples thereof.

Interarch Building Products' IPO received 43,83,37,936 bids for shares as against 46,91,585 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (21 August 2024). The issue was subscribed 93.43 times.

The issue opened for bidding on Monday (19 August 2024) and it will close on Wednesday (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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