SENSEX JUMPS 340 PTS, NIFTY ENDS NEAR 19,500; M&M CLIMBS 5%

Published on Jul 06, 2023 17:23

The domestic equity benchmarks advanced on Thursday, bolstered by foreign fund inflows. The trading was volatile due to the expiry of weekly index options on the NSE, with the Nifty closing near the 19,500 mark. The mid- and small-cap sectors outshone the benchmark indices, with real estate, oil & gas, power, and consumption stocks taking the lead.

Global markets showed a weak trend, swayed by the hawkish FOMC minutes and US-China conflicts. Attention now turns to forthcoming data releases, such as the ADP nonfarm employment and initial jobless claims data, which will offer more understanding of the Federal Reserve`s strategy.

The barometer index, the S&P BSE Sensex advanced 339.60 points or 0.52% to 65,785.64. The Nifty 50 index added 98.80 points or 0.51% to 19,497.30. Both the indices attained record closing high levels.

M&M (up 4.97%), Tata Motors (up 2.12%) and Reliance Industries (up 2.07%) boosted the indices.

The Nifty 50 and the Sensex hit all-time highs in late trade at 19,512.20 and 65,832.98, respectively.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index rose 0.79% while the S&P BSE Small-Cap index gained 0.67%. Both the indices hit record high levels today.

The market breadth was positive. On the BSE, 1,961 shares rose and 1,495 shares fell. A total of 140 shares were unchanged.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, fell 0.35% to 11.84.

Automobile Sales Grow 10% YoY In June: FADA

Auto retail sales in June 2023 grew by 10% YoY, led by strong performances in 3W, PV, and Tractor segments. 2W sales declined by 14% YoY, but CV sales grew by 1.5% YoY, marking the first time CV sales have surpassed pre-COVID levels. June 2023 recorded multiple segment all-time highs, with 3W, PV, and Tractor sales all setting new records.

The two-wheeler market is facing continued economic pressures and supply challenges, while the reduction in FAME subsidies is casting a shadow over EV sales. The passenger vehicle segment is facing inventory pressures and demand-supply mismatches, impacting profitability. However, the anticipation of a boost from the upcoming festive season offers a hopeful outlook. Erratic monsoon in India is raising concerns about yield and potentially impacting automobile sales, especially in rural areas. However, evenly spread rains going forward may revive rural demand and positively influence retails.

Numbers to Watch:

The yield on India`s 10-year benchmark federal paper advanced 0.58% to 7.146 from previous close of 7.105.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.4475, compared with its close of 82.2575 during the previous trading session.

MCX Gold futures for 4 August 2023 settlement gained 0.25% to Rs 58,622.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.39% to 102.97.

The United States 10-year bond yield jumped 0.76% to 3.974.

In the commodities market, Brent crude for September 2023 settlement up 22 cents or 0.29% to $76.87 a barrel.

Global Markets:

The Dow Jones index futures were down 154 points, indicating a weak opening in the US stocks today.

Markets in Europe and Asia tumbled on Thursday following overnight losses in the US stocks after hawkish signals from the Federal Reserve`s latest meeting minutes.

US stocks dipped after the minutes from the Federal Reserve`s June monetary policy meeting showed officials intend to resume raising interest rates after a pause last month. The minutes come ahead of US payrolls data, due out on Friday.

"Almost all" officials who participated in the June Federal Open Market Committee meeting said that additional increases in interest rates would be appropriate, citing risks including the �tight� labour market, the minutes revealed on Wednesday.

Stocks in Spotlight:

DCB Bank rose 6.05% after the Reserve Bank of India approved Tata Asset Management Private Limited (TAMPL) to acquire up to 7.5% of the paid-up equity capital of the bank. As on March 2023, Tata Mutual Fund (Tata Small Cap Fund) held 4.95% in DCB Bank.

Tata Power Company advanced 3.56% after the company has received Letter of Award `LoA` to implement smart metering project in Chhattisgarh State Power Distribution Company Limited (CSPDCL). The value of project awarded to Tata Power is about Rs 1,744 crore and the project will be spanned over a period of 10 years.

Marico fell 2.07% after the FMCG major said that its India business reported low-single digit volume growth in Q1 FY24 due to significant trade destocking in Saffola edible oils and channel inventory adjustments in core portfolios. The company stated that the domestic volumes grew in low-single digits, with a minor volume drop in Parachute coconut oil, low double digit volume growth in saffola edible oils and flattish quarter for Value Added Hair Oils.

Hindustan Zinc jumped 7.97% after the company said its board will meet on Saturday, 8 July 2023, to consider interim dividend on equity shares, if any, for the Financial Year 2023-24. The record date for eligibility of interim dividend, if any so declared will be Saturday, 15 July 2023.

BSE jumped 3.68% after the company announced that its board has approved a share buyback of upto Rs 374.80 crore at a price not exceeding Rs 816 per equity share via tender offer route.

Puravankara gained 8.47% after its sales value zoomed 119% to Rs 1,126 crore in Q1 FY24 from Rs 513 crore recorded in Q1 FY23.

JSW Steel added 0.39%. The steel major said that its consolidated crude steel production in Q1 FY24 stood at 6.43 million tonnes, recording a growth of 11% from 5.77 million tones posted in Q1 FY23. Meanwhile, JSW Steel will replace Housing Development Finance Corporation (HDFC) in the 30-share benchmark S&P BSE Sensex, with effect from 13 July 2023. The rejig is a result of the completion of the biggest corporate merger of HDFC with HDFC Bank.

Adani Green Energy rose 1.41%. The power generation company announced that its board has approved a proposal to raise funds upto Rs 12,300 crore through qualified institutional placement (QIP).

G M Breweries declined 0.91%. The company reported 23.21% rise in net profit to Rs 19.91 crore on 5.09% increase in revenue from operations to Rs 579.39 crore in Q1 FY24 over Q1 FY23. Sequentially, the company`s net profit slumped 43.28% and revenue declined by 3.97% in Q1 FY24.

Biocon rose 0.76%. Biocon Biologics (BBL), a subsidiary of Biocon announced that the company has completed the integration of the acquired biosimilars business in over 70 countries in emerging markets effective 1 July 2023, increasing the scale and scope of its business.

IPO Updates:

The IPO of Senco Gold received bids for 69.08 crore shares as against 94.18 lakh shares on offer, according to stock exchange data at 17:00 IST on Thursday (6 July 2023). The issue was subscribed 73.35 times.

The issue opened for bidding on Tuesday (4 July 2023) and it will close on Thursday (6 July 2023). The price band of the IPO is fixed at Rs 301-317 per share. An investor can bid for a minimum of 47 equity shares and in multiples thereof.