Nifty ends above 19,400 level; auto shares gears up; VIX slips nearly 4%.

The key equity benchmarks ended with moderate gains on Tuesday. The Nifty settled above the 19,400 level. Auto, consumer durables and FMCG shares advanced while financial services, bank and metal stocks declined.

As per provisional closing data, the barometer index, the S&P BSE Sensex, added 273.67 points or 0.42% to 65,617.84. The Nifty 50 index advanced 83.50 points or 0.43% to 19,439.40.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index gained 0.97% while the S&P BSE Small-Cap index rose 0.82%.

The market breadth was positive. On the BSE, 1,944 shares rose and 1,537 shares fell. A total of 121 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, declined 3.94% to 11.01.

Investor sentiment was positive amid expectations that the Federal Reserve was nearing the end of its rate hike cycle for the year. The PBOC's announcement that it will extend financial support for the sector until end-2024 also aided sentiment.

Buzzing Index:

The Nifty Auto index gained 1.39% to 15,617.45. The index fell 0.62% in the past trading session.

Tube Investments of India (up 2.89%), TVS Motor Company (up 2.84%), Balkrishna Industries (up 2.53%), Eicher Motors (up 2.44%), Ashok Leyland (up 2.18%) Samvardhana Motherson International (up 1.76%), Tata Motors (up 1.71%), Maruti Suzuki India (up 1.68%), MRF (up 1.53%) and Mahindra & Mahindra (up 1.23%) advanced.

Stocks in Spotlight:

Larsen and Toubro rose 1.37%. The company's Kattupalli Shipyard near Chennai has been undertaking voyage repairs of the Military Sealift Command vessels.

Tata Communications jumped 6.92%. The firm said that its Singapore-based subsidiary, Tata Communications International has entered into a share purchase agreement to acquire remaining equity ownership of Oasis Smart Sim Europe SAS.

State Bank of India (SBI) fell 0.63%. SBI proposes to participate in an initial public offering (IPO) of National Securities Depositories Limited (NSDL) by way of offer for sale of up to 2% equity stake held by the Bank in NSDL (being up to 40,00,000 equity shares).

SBI Cards and Payment Services declined 0.13%. The company announced that Rama Mohan Rao Amara has tendered his resignation from the position of managing director & chief executive officer (CEO) of the company with effect from the close of business hours on 11 August 2023.

Vedanta fell 1.68%. Foxconn Technology Group has reportedly pulled out of its joint venture with Vedanta which had planned to invest $20 billion in India for setting up a semiconductor fabrication unit, display unit and semiconductor assembly and testing unit.

Suzlon Energy advanced 2.94%. The company received order from The KP Group for the development of a 47.6 (megawatt) MW wind power project located at Vagra, Gujarat.

Minda Corporation surged 3.62%. The company secured a significant contract from a leading OEM to produce battery chargers for electric vehicles (EVs) worth Rs 750 crore.

Premier Explosives hit an upper circuit of 20% after the company announced that it has received orders worth Rs 552.26 crore from the Ministry of Defence for procurement of flares and chaffs. The chaffs order is valued at Rs 292.11 crore, and the flares order stood at Rs 260.15 crore.

Global Markets:

European and Asian stocks advanced on Tuesday, tracking moves on Wall Street as U.S. markets snapped a three-day losing streak.

Meanwhile, heavyweight Chinese technology stocks rose on Tuesday, extending a recent run of strong gains as traders bet on a clearer regulatory outlook for the sector, while expectations of more stimulus measures also aided sentiment.

The country's biggest technology stocks saw a three-day rally as recent government fines on Alibaba's Ant Group and Tencent spurred bets that the government had now ended its regulatory crusade against the sector.

Slowing growth also spurred bets that Beijing will roll out more stimulus measures to support the economy, which in turn triggered buying into local stocks.

Chinese property stocks rose on Tuesday after the PBOC extended recent emergency spending measures for the sector.

US stocks edged higher marginally on Monday as investors awaited inflation data, due to be released on Wednesday.

Investors are bracing for a slew of inflation data later in the week, including June inflation numbers from the U.S., which will give clues to the Federal Reserve's hiking path.

Nifty below 19,450 level; consumer durables shares advance.

 

The domestic equity indices further pared gains in mid-afternoon trade. The Nifty traded below the 19,450 mark after hitting day's high of 19,515.10 in afternoon trade. Consumer durable stocks witnessed some bit of bargain buying after declining for the past two trading sessions.

The barometer index, the S&P BSE Sensex, was up 295.88 points or 0.45% to 65,640.05. The Nifty 50 index advanced 90 points or 0.46% to 19,445.90.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index gained 0.87% while the S&P BSE Small-Cap index added 0.72%.

The market breadth was positive. On the BSE, 1,891 shares rose and 1,539 shares fell. A total of 134 shares were unchanged.

Investor sentiment was positive amid expectations that the Federal Reserve was nearing the end of its rate hike cycle for the year. The PBOC's announcement that it will extend financial support for the sector until end-2024 also aided sentiment.

Buzzing Index:

The Nifty Consumer Durables index gained 0.91% to 27,341.35. The index declined 0.99% in the past two trading sessions.

Dixon Technologies (India) (up 2.78%), Crompton Greaves Consumer Electricals (up 2.06%), Bata India (up 1.44%), Havells India (up 1.38%) Rajesh Exports (up 1.27%), Amber Enterprises India (up 1.26%), Whirlpool of India (up 1.02%), Kajaria Ceramics (up 0.72%), TTK Prestige (up 0.31%) and Voltas (up 0.26%) advanced.

On the other hand, V-Guard Industries (down 0.62%), Relaxo Footwears (down 0.39%) and Blue Star (down 0.05%) declined.

Numbers to Watch:

The yield on India's 10-year benchmark federal paper fell 0.71% to 7.098 from its previous close of 7.149.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 82.4125, compared with its close of 82.5975 during the previous trading session.

MCX Gold futures for 4 August 2023 settlement advanced 0.31% to Rs 58,891

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.18% to 101.79

The United States 10-year bond yield fell 1.07% to 3.963.

In the commodities market, Brent crude for September 2023 settlement advanced 43 cents or 0.55% to $78.12 a barrel.

Stocks in Spotlight:

Elecon Engineering Company soared 14.02%. The company's consolidated net profit surged 72.44% to Rs 72.96 crore in Q1 FY24 from Rs 42.31 crore in Q1 FY23. Revenue from operations increased 26.43% year on year to Rs 414.34 crore in the quarter ended 30 June 2023.

Zen Technologies surged 11.70%. The company announced that it has bagged an export order valued at approximately Rs 340 crore (approximately $41.5 million).

Gainers & Losers:

Eicher Motors (up 2.49%), Sun Pharmaceutical Industries (up 1.90%), Apollo Hospitals Enterprise (up 1.85%), Maruti Suzuki (up 1.81%) and Larsen & Toubro (up 1.50%) were major Nifty gainers.

UPL (down 2.41%), HCL Techologies (down 0.98%), Hero MotoCorp (down 0.78%), JSW Steel (down 0.64%) and Bajaj Finance (down 0.61%) were top Nifty losers.

Larsen & Toubro rose 1.50%. The company's Kattupalli Shipyard near Chennai has been undertaking voyage repairs of the Military Sealift Command vessels.

Global Markets:

European and Asian stocks advanced on Tuesday, tracking moves on Wall Street as U.S. markets snapped a three-day losing streak.

Meanwhile, heavyweight Chinese technology stocks rose on Tuesday, extending a recent run of strong gains as traders bet on a clearer regulatory outlook for the sector, while expectations of more stimulus measures also aided sentiment.

The country's biggest technology stocks saw a three-day rally as recent government fines on Alibaba's Ant Group and Tencent spurred bets that the government had now ended its regulatory crusade against the sector.

Slowing growth also spurred bets that Beijing will roll out more stimulus measures to support the economy, which in turn triggered buying into local stocks.

Chinese property stocks rose on Tuesday after the PBOC extended recent emergency spending measures for the sector.

US stocks edged higher marginally on Monday as investors awaited inflation data, due to be released on Wednesday.

Investors are bracing for a slew of inflation data later in the week, including June inflation numbers from the U.S., which will give clues to the Federal Reserve's hiking path.

Nifty ends above 19,350 mark; broader market under performs.

 

The key equity barometers ended with minor gains after a volatile session on Monday. The Nifty settled a tad above the 19,350 mark. Metal and oil & gas stocks advanced while IT, media and realty stocks corrected.

As per provisional closing data, the barometer index, the S&P BSE Sensex, gained 63.72 points or 0.10% to 65,344.17. The Nifty 50 index added 24.10 points or 0.12% to 19,355.90.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index slipped 0.45% while the S&P BSE Small-Cap index declined 0.26%.

The market breadth was negative. On the BSE, 1,480 shares rose and 2,196 shares fell. A total of 154 shares were unchanged.

New Listing:

Shares of Cyient DLM closed at Rs 422.05 on the BSE, representing a premium of 59.26% compared with the issue price of Rs 265.

The scrip was listed at a price of Rs 401, at a premium of 51.32% as compared to the issue price.

So far, the stock has hit a high of 426.45 and a low of 401. On the BSE, over 14.19 lakh shares of the company were traded in the counter so far.

Buzzing Index:

The Nifty IT index declined 1.24% to 29,194.70. The index tumbled 2.17% in three trading sessions.

HCL Technologies (down 2.81%), LTIMindtree (down 2.22%), Persistent Systems (down 1.73%), Coforge (down 1.7%), Tata Consultancy Services (down 1.69%), Wipro (down 1.52%), Tech Mahindra (down 0.87%), L&T Technology Services (down 0.59%), Infosys (down 0.16%) declined.

Stocks in Spotlight:

Reliance Industries (RIL) jumped 3.85%. RIL said its subsidiary Reliance Retail's board of directors has approved a proposal to reduce the equity share capital to the extent held by shareholders other than its Promoter and holding company, namely, Reliance Retail Ventures. A consideration of Rs 1,362 per share, determined on the basis of valuation obtained from two independent registered valuers, shall be paid towards the capital reduction.

Separately, RIL has fixed 20 July 2023 as the record date for the purpose of determining the equity shareholders who are entitled to receive shares of Reliance Strategic Investments (RSIL). Under the scheme of arrangement, RSIL will allot one fully paid-up equity share of RSIL for every share of RIL as of the record date. RSIL will then be renamed as Jio Financial Services (JFSL). The counter hit 52-week high at Rs 2,755 in intraday today.

HDFC Bank fell 0.09%. The country's largest private sector lender has said that it will participate in the initial public offering (IPO) of National Securities Depository Limited (NSDL), by way of an offer for sale of up to 2% equity stake held by the bank in NSDL (being up to 40,00,000 equity shares), as stated in the draft red herring prospectus, filed with Securities and Exchange Board of India on 8 July 2023.

Tata Motors gained 0.17%. The Tata Motors Group's global wholesales in Q1 FY24, including Jaguar Land Rover, amounted to 322,159 units, up by 5% as compared to Q1 FY23.

Larsen & Toubro rose 0.10% after the company and Navantia, Spain signed a teaming agreement (TA) for the purpose of submission of a techno-commercial bid for the Indian Navy's prestigious P75 (India) submarine program. P75 is expected to be valued at over Euro 4.8 billion, the project is the India's largest defence acquisition project. This would also be followed by a 30-year lifecycle sustenance contract of similar value.

Separately, the EPC major announced that it has completed the transition of $150 million term loan with Bank of America into a sustainability linked loan (SLL) on 30 June 2023. This SLL reiterates Larsen & Toubro's continued commitment to its environmental, social and governance (ESG) goals.

Vedanta rose 0.61%. The miner on Friday announced the addition of semiconductors and display glass manufacturing ventures to its diversified portfolio. Vedanta said that its board has approved the acquisition of 100% of Vedanta Foxconn Semiconductors (VFSPL) and Vedanta Displays (VDL), wholly owned subsidiaries of Twin Star Technologies (TSTL) via share transfer at face value.

Indian Oil Corporation (IOCL) shed 1.87%. IOCL said that its board approved raising of capital by way of issue of equity shares on right basis upto an amount not exceeding Rs 22,000 crore.

Adani Enterprises rose 1.31%. The company informed that its wholly owned subsidiary, Adani Digital Labs (ADL) has acquired 29.81% stake of Stark Enterprises (SEPL) for Rs 3.56 crore on 7 July 2023.

Global Markets:

Markets in Europe advanced while Asian stocks ended mixed on Monday ahead of key inflation reports this week, including the U.S. consumer price index report due Wednesday and the producer price index on Thursday.

U.S. Treasury Secretary Janet Yellen concluded her visit to Beijing and said that the talks were ?direct? and ?productive,? putting bilateral ties on ?surer footing.?

Wall Street's main indices ended lower on Friday in a seesaw session, as investors digested a US jobs report that showed weaker-than-expected growth and awaited more economic data and corporate earnings in the weeks ahead.

The Labor Department's June jobs report showed payrolls increased less than expected, cooling down from May. Nonfarm payrolls rose by 209,000, while the unemployment rate came in at 3.6%.

Equity barometers extend gains; PSU banks rise for 9th day.

The key equity barometers extended gains and edged higher in morning trade. The Nifty traded marched towards the 19,400 level. PSU banks witnessed buying demand for ninth day in a row.

The barometer index, the S&P BSE Sensex, was up 285.99 points or 0.44% to 65,566.44. The Nifty 50 index added 54.15 points or 0.28% to 19,385.95.

In the broader market, the S&P BSE Mid-Cap index shed 0.15% while the S&P BSE Small-Cap index rose 0.04%.

The market breadth was negative. On the BSE, 1,547 shares rose and 1,731 shares fell. A total of 182 shares were unchanged.

New Listing:

Shares of Cyient DLM were currently trading at Rs 404.55 on the BSE, representing a premium of 52.66% compared with the issue price of Rs 265.

The scrip was listed at a price of Rs 401, at a premium of 51.32% as compared to the issue price.

So far, the stock has hit a high of 424.40 and a low of 401. On the BSE, over 7.35 lakh shares of the company were traded in the counter so far.

The initial public offer (IPO) of Cyient DLM was subscribed 67.31 times. The issue opened for bidding on 27 June 2023 and it closed on 30 June 2023. The price band of the IPO was fixed at Rs 250 -265 per share.

Buzzing Index:

The Nifty PSU Bank index rose 0.55% to 4,483.45. The index has added 12.5% in nine sessions.

Union Bank of India (up 1.88%), Punjab National Bank (up 1.82%), Punjab & Sind Bank (up 1.82%), Central Bank of India (up 1.78%) and Indian Overseas Bank (up 1.52%) were the top gainers.

Among the other gainers were Bank of Maharashtra (up 1.09%), Canara Bank (up 0.93%), State Bank of India (up 0.86%), Indian Bank (up 0.6%).

On the other hand, Bank of India (down 0.5%) and Bank of Baroda (down 0.24%), moved lower.

Stocks in Spotlight:

Vedanta rose 0.69%. The miner on Friday announced the addition of semiconductors and display glass manufacturing ventures to its diversified portfolio. Vedanta said that its board has approved the acquisition of 100% of Vedanta Foxconn Semiconductors (VFSPL) and Vedanta Displays (VDL), wholly owned subsidiaries of Twin Star Technologies (TSTL) via share transfer at face value.

Hindustan Zinc fell 3.95%. The miner's board approved an interim dividend of Rs 7 per equity share for the financial year 2023-24.

Indian Oil Corporation (IOCL) shed 0.35%. IOCL said that its board approved raising of capital by way of issue of equity shares on right basis upto an amount not exceeding Rs 22,000 crore.

Adani Enterprises shed 0.78%. The company informed that its wholly owned subsidiary, Adani Digital Labs (ADL) has acquired 29.81% stake of Stark Enterprises (SEPL) for Rs 3.56 crore on 7 July 2023.

Global Markets:

Asian stocks traded mixed on Monday ahead of key inflation reports this week, including the U.S. consumer price index report due Wednesday and the producer price index on Thursday.

U.S. Treasury Secretary Janet Yellen concluded her visit to Beijing, and said that the talks were ?direct? and ?productive,? putting bilateral ties on ?surer footing.?

Wall Street's main indices ended lower on Friday in a seesaw session, as investors digested a US jobs report that showed weaker-than-expected growth and awaited more economic data and corporate earnings in the weeks ahead.

The Labor Department's June jobs report showed payrolls increased less than expected, cooling down from May. Nonfarm payrolls rose by 209,000, while the unemployment rate came in at 3.6%.