The domestic equities surged today, with the Nifty50 closing near 24,500, driven by a strong showing from IT stocks. Positive sentiment was fueled by TCS’s robust earnings and easing US inflation, boosting hopes of a September rate cut. However, with the earnings season in full swing and the union budget looming, expect more stock-specific action in the coming days.
The barometer index, the S&P BSE Sensex, was up 622 points or 0.78% to 80,519.34. The Nifty 50 index gained 186.20 points or 0.77% to 24,502.15.
The Sensex and Nifty clocked an all-time high of 80,893.51 and 24,592.20 respectively in mid-morning trade.
In the broader market, the S&P BSE Mid-Cap index shed 0.10% and the S&P BSE Small-Cap index declined 0.22%. The S&P BSE Mid-Cap index hit an all-time high at 47,858.24 today.
The market breadth was negative. On the BSE, 1687 shares rose and 2248 shares fell. A total of 101 shares were unchanged.
The NSE’s India VIX, a gauge of the market’s expectation of volatility over the near term, declined 1.92% to 13.73.
Numbers to Track:
The yield on India’s 10-year benchmark federal rose 0.07% to 6.987 as compared with previous close 6.982.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.5225, compared with its close of 83.5300 during the previous trading session.
MCX Gold futures for 5 August 2024 settlement shed 0.27% to Rs 73,007.
The US Dollar index (DXY), which tracks the greenback’s value against a basket of currencies, was down 0.09% to 104.35.
The United States 10-year bond yield gained 0.84% to 4.225.
In the commodities market, Brent crude for September 2024 settlement added 70 cents or 0.82% to $86.10 a barrel.
Global Markets:
European stocks advanced on Friday, as global investors await the U.S. producer price index.
Asian stocks ended mixed, with technology-heavy indexes plunging as investors cashed in on recent gains.
Regional markets largely mirrored the previous day’s sell-off on Wall Street, where heavyweight technology stocks, especially chipmakers and AI-related companies, faced significant profit-taking pressure. The Nasdaq Composite index plummeted nearly 2%.
The decline in equities coincided with softer-than-expected US consumer price index data for June, which fueled expectations of potential Federal Reserve interest rate cuts as early as September. Investors shifted their focus to economically sensitive sectors poised to benefit from lower borrowing costs.
While the Dow Jones Industrial Average edged up 0.1%, the broad-based S&P 500 fell 0.9%. The tech-heavy Nasdaq Composite Index ended a seven-day winning streak with a 2% drop.
US Consumer Price Index (CPI) rose 3% year-over-year, down from 3.3% in May. The annual core CPI, excluding volatile food and energy prices, increased by 3.3%, slowing from the previous month’s 3.4%. On a monthly basis, overall CPI dipped 0.1%, while core CPI edged up 0.1%.
Stocks in Spotlight:
The Nifty IT index jumped 4.53% to 39,023.00, following TCS’s favourable Q1FY25 results. The index hit a 52-week high of 39,237.70 today.
Tata Consultancy Services jumped 6.59%. The IT major’s consolidated net profit declined 3.17% to Rs 12,040 crore in Q1 FY25 as against Rs 12,434 crore reported in Q4 FY24. However, revenue from operations grew by 2.25% quarter on quarter (QoQ) to Rs 62,613 crore in Q1 FY25. On a year on year (YoY) basis, the IT firm’s net profit increased 8.72% and net sales grew by 5.44% in the quarter ended 30 June 2024. Constant currency revenue grew 4.4% YoY in the June quarter. Operating margin stood at 24.7% while net margin was at 19.2% in Q1 FY25. Profit before tax was at Rs 16,231 crore in the second quarter of FY24, down 3.67% QoQ and up 8.29% YoY.
Coforge (up7.29%), Mphasis (up 5.06%), Wipro (up 4.66%), Persistent Systems (up 3.87%), HCL Technologies (up 3.30%), Infosys (up 3.25%), Tech Mahindra (up 3.04%), LTIMindtree (up 2.93%) and L&T Technology Services (up 1.91%) surged.
Cyient jumped 3.89% after the company announced the formation of a fully-owned subsidiary for semiconductor business.
Zee Entertainment Enterprises (ZEEL) climbed 5.71% after the company said its board will consider fund raising on Tuesday, 16 July 2024.
Anand Rathi Wealth slipped 4.12%. The company reported 38% increase in consolidated net profit to Rs 73.4 crore in Q1 FY25 as compared with Rs 53.2 crore in Q1 FY24. Total Income jumped 38% to Rs 245.4 crore in the quarter ended 31 June 2024 as compared with Rs 178.4 crore posted in the corresponding quarter last year.
Jio Financial Services (JFSL) rose 0.66% after the company received an approval from Reserve Bank of India to convert into core investment company (CIC) from non-banking financial company (NBFC).
Mahindra & Mahindra rose 0.22%. The company said that its total production rose 7.73% to 69,045 units in the month of June 2024 as compared with 64,092 units produced in the same period last year.
LT Foods added 2.07% after the company announced that its step-down subsidiary LT Foods UK has commenced operations of its new facility in the United Kingdom (U.K.).
Oriental Rail Infrastructure hit an upper circuit of 5% after the companys wholly-owned subsidiary, Oriental Foundry bagged an order worth Rs 432.15 crore from the Indian Railways.
AVG Logistics jumped 4.03% after the company announced that it has been awarded the tender as the authorized partner for express parcel services by Uttar Pradesh State Road Transport Corporation (UPSRTC).
Prestige Estates Projects shed 0.43%. The real estate developer informed that its sales stood at Rs 3,029.5 crore in Q1 FY25, registering a de-growth of 22.61% on YoY basis.
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