Market drifts higher in early trade, Nifty above 19,350.

The headline equity indices were trading with modest gains in early trade on buying demand in index pivotals. The Nifty scaled above the 19,350 mark. Media, financial services and IT stocks were in demand while oil & gas, metal and FMCG shares declined.

The barometer index, the S&P BSE Sensex, was up 240.36 points or 0.37% to 65,445.41. The Nifty 50 index added 59.10 points or 0.31% to 19,381.65.

The Nifty and the Sensex hit all-time highs in early trade at 19,413.50 and 65,586.60, respectively. Further, the Nifty Bank index also registered its fresh record high at 45,362.80.

In the broader market, the S&P BSE Mid-Cap index rose 0.18% while the S&P BSE Small-Cap index gained 0.36%.

The market breadth was strong. On the BSE, 1,700 shares rose and 1,004 shares fell. A total of 113 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 1,995.92 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 337.80 crore in the Indian equity market on 3 July, provisional data showed.

Stocks in Spotlight:

Reliance Industries (RIL) declined 0.74%. RIL said that its telecom arm Reliance Jio unveiled JioBharat with the objective of empowering every Indian with the power of digital services, especially those who cannot afford a smartphone. Beta trial for first 1 million Jio Bharat phones will begin from 7 July 2023.

Bajaj Finance jumped 7.36%. On a consolidated basis for the quarter ended 30 June 2023, customer franchise stood at 72.98 million as compared to 60.30 million as of 30 June 2022. New loans booked during Q1 FY24 grew by 34% to 9.94 million as compared to 7.42 million in Q1 FY23.

IDFC First Bank tumbled 4.39% and IDFC shed 0.05%. IDFC First Bank said its board has approved the composite Scheme of Amalgamation amongst IDFC Financial Holding Company and IDFC and the Bank. The Share Exchange Ratio for the amalgamation of IDFC into and with IDFC First Bank shall be 155 equity shares of IDFC First Bank for every 100 equity shares of IDFC.

Avenue Supermarts fell 0.25%. Standalone revenue from operations for the quarter ended 30 June 2023 stood at Rs 11,584.44 crore as compared to Rs 9,806.89 crore for the quarter ended 30 June 2022.

Lupin rose 0.74%. Global pharma major Lupin announced that it has received approval from the United States Food and Drug Administration (U.S. FDA) for its Abbreviated New Drug Application for Cyanocobalamin Nasal Spray, 500 mcg/spray (One Spray per Device), a generic equivalent of Nascobal Nasal Spray, 500 mcg/spray of Par Pharmaceutical, Inc.

Numbers to Watch:

The yield on India's 10-year benchmark federal paper shed 0.01% to 7.115 from previous close of 7.117.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 81.9050, compared with its close of 81.9175 during the previous trading session.

MCX Gold futures for 4 August 2023 settlement gained 0.09% to Rs 58,328.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.01% to 103.

The United States 10-year bond yield jumped 1.03% to 3.858.

In the commodities market, Brent crude for September 2023 settlement rose 45 cents or 0.60% to $75.10 a barrel.

Global Markets:

Asian stocks were trading mixed on Tuesday following marginal overnight gains in equities on Wall Street ahead of the Independence Day holiday.

US stocks ended higher on Monday in a holiday-shortened session led by a rally in Tesla and strength in bank shares. US markets will remain closed Tuesday in observance of Independence Day.

Benchmarks extend losses; IT shares fall for 2nd day.

The key equity benchmarks extended losses and hit fresh intraday low in morning trade. The Nifty traded tad below the 17,750 mark after hitting the day's high at 17,880.70 in early trade. IT shares witnessed some bit of selling pressure for second day in a row.

The barometer index, the S&P BSE Sensex, was down 363.62 points or 0.60% to 60,319.08. The Nifty 50 index lost 106.60 points or 0.6% to 17,749.90.

In the broader market, the S&P BSE Mid-Cap index fell 0.79% while the S&P BSE Small-Cap index declined 0.60%

City Union Bank (down 10.97%), Dhani Services (down 7.01%), Coforge (down 6.39%), Lupin (down 5.92%) and Indiabulls Real Estate (down 4.71%) were the top broader market losers.

Oil India (up 7.81%), Tata Teleservices (Maharashtra) (up 6.78%), Galaxy Surfactants (up 5.68%), Vaibhav Global (up 5.30%) and Natco Pharma (up 4.39%) outperformed in the broader market segment.

The market breadth was positive. On the BSE, 1319 shares rose and 1927 shares fell. A total of 171 shares were unchanged.

Investors awaited the release of India's retail inflation data, which will be announced later today.

Meanwhile, Fed Fear weighed on investor sentiment as the market focus shifted to the US CPI Report and US Retail sales figures that could force the Fed into more aggressive policy moves, thereby raising the possibility of interest rates rising above 5%.

Results Today:

New India Assurance Company (down 1.56%), Steel Authority Of India (down 0.77%), Allcargo Logistics (down 1.17%), Gujarat Gas (down 0.59%), Zee Entertainment Enterprises (down 2.03%), IRB Infrastructure Developers (down 0.26%), FSN E-Commerce Ventures (down 1.39%), Castrol India (up 0.17%), Grindwell Norton (down 1.84%), Campus Activewear (down 2.12%), Gujarat State Petronet (down 0.90%), Godrej Industries (down 0.02%), GR Infraprojects (up 2.75%), Housing & Urban Development Corporation (down 0.43%), Indian Railway Finance Corporation (up 0.33%), ITI (down 0.55%), Linde India (up 1.68%), Global Health (up 0.84%), NLC India (up 0.38%), Power Finance Corporation (down 2.54%), Ratnamani Metals & Tubes (down 0.29%), Shree Renuka Sugars (up 0.84%) and Rhi Magnesita India (down 0.69%) are some of the companies that will announce their quarterly earnings today.

Buzzing Index:

The Nifty IT index slipped 1.82% to 30,307.15. The index has declined 2.21% in two sessions.

Coforge (down 5.91%), Persistent Systems (down 3.5%), Infosys (down 2.05%), LTI Mindtree (down 1.94%) and Tata Consultancy Services (down 1.49%) were the top losers.

Among the other losers were Mphasis (down 1.33%), L&T Technology Services (down 1.14%), Wipro (down 0.97%), Tech Mahindra (down 0.97%) and HCL Technologies (down 0.43%).

Stocks in Spotlight:

Balkrishna Industries was locked in 10% lower circuit. The tyre maker's standalone net profit tumbled 69.7% to Rs 99.62 crore in Q3 FY23 as against Rs 328.58 crore posted in Q3 FY22. Revenue from operations rose 5.5% YoY to Rs 2142.32 crore in the quarter ended 31 December 2022.

BEML rose 0.49%. The company has received an order for supply of 118 units of Track Width Mine Plough (TWMP) for Arjun MBT MK-1A from HVF, Avadi. The consolidated value of the order is Rs 377.98 crore approximately, the supplies are expected to be completed by January 2026.

Thermax advanced 0.71%. The energy and environment solutions provider has received an order for Rs 251.7 crore from an Indian public sector power company. The contract is for the renovation and modernisation of the electrostatic precipitator (ESP) package of its 3x210 MW thermal power station in Bankura, West Bengal.

ABB India fell 1.67%. The company's net profit (from continuing operations) jumped 58.03% to Rs 305.91 crore on 15.48% rise in total revenue from operations to Rs 2,426.91 crore in Q4 CY2022 over Q4 CY2021.

Dilip Buildcon gained 0.23%. The civil construction company reported a standalone net profit of Rs 79.52 crore in Q3 FY23 as against a net loss of Rs 96.66 crore posted in Q3 FY22. Revenue from operations rose 8.2% year on year to Rs 2,378.78 crore in the quarter ended 31 December 2022.

Indices edge lower; market breadth remains in favour of buyers.

The domestic equity barometers edged lower in early trade, dragged down by the selling witnessed in index pivotals. The Nifty traded above the 17,850 mark. Barring metal and pharma, shares across sectors decline with IT, banks and financials leading the losses.

The barometer index, the S&P BSE Sensex, was up 10.91 points or 0.02% to 60,693.61. The Nifty 50 index gained 6.90 points or 0.04% to 17,863.40.

Infosys (down 2.11%), TCS (down 1.33%), Tech Mahindra (down 1.29%), Bajaj Finance (down 1.21%) and Wipro (down 0.90%) were the top Nifty losers.

However, Eicher Motors (up 1.65%), Tata Steel (up 1.38%), Titan (up 1.32%), Hindalco (up 1.14%) and JSW Steel (up 0.97%) managed to outperform.

In the broader market, the S&P BSE Mid-Cap index was trading flat while the S&P BSE Small-Cap index added 0.03%

The market breadth was positive. On the BSE, 1,456 shares rose and 1,245 shares fell. A total of 165 shares were unchanged.

Investors awaited the release of India's retail inflation data, which will be announced later today. Fed Fear weighed on investor sentiment as the market focus shifted to the US CPI Report and US Retail sales figures that could force the Fed into more aggressive policy moves, which could push interest rates above 5%.

Stocks in Spotlight:

Kotak Mahindra Bank rose 0.31%. The bank said that it has entered into share purchase agreements for acquiring 2,64,53,256 equity shares, representing 100% stake, with the current shareholders of Sonata Finance for a total consideration of approximately Rs. 537 crore.

Biocon added 0.76%. The U.S. Food and Drug Administration (FDA) has issued a Complete Response Letter (CRL) for the Biologics License Application (BLA) for Bevacizumab filed by partner Viatris (Mylan).

National Aluminium Company (Nalco) advanced 2.93%. Nalco reported 67% drop in standalone net profit to Rs 273.85 crore in Q3 FY23 from Rs 830.86 crore in Q3 FY22. Revenue from operations fell by 13% YoY to Rs 3,289.98 crore during the quarter.

Glenmark Pharmaceuticals jumped 4.75%. The company's consolidated net profit rose 21.13% to Rs 290.76 crore on 8% increase in net sales to Rs 3,392.24 crore in Q3 FY23 over Q3 FY22.

Numbers to track:

The yield on India's 10-year benchmark federal paper rose 0.16% to 7.375 from 7.363 previous trading session.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.7400, compared with its close of 82.5800 during the previous trading session

MCX Gold futures for 5 April 2023 settlement advanced 0.02% to Rs 56,750.

The United States 10-year bond yield declined 0.14% to 3.738.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.14% to 103.78.

In the commodities market, Brent crude for April 2023 settlement lost 73 cents or 0.85% to $85.66 a barrel.

Global markets:

Asian stocks traded mostly lower on Monday as investors look ahead to a week of crucial economic data releases, including the U.S. consumer price index that will determine the Federal Reserve's path forward.

Singapore reported 3.6% GDP growth for 2022, less than the 8.9% growth in 2021. In the fourth quarter, the city-state's economy grew 2.1% on an annualized basis, compared with 4% in the previous quarter.

US stocks fell on Friday after a slew of corporate earnings and Federal Reserve speakers reiterated their hawkish messages that there is more work to be done to tame inflation.

US consumer sentiment improved to a 13-month high in February, a survey showed on Friday. The sentiment index has rebounded from a low of 50 last June. The survey's measure of current economic conditions increased to a reading of 72.6 this month from 68.4 in January.