SENSEX SNAPS 5-DAY STREAK, NIFTY SETTLES NEAR 19,400; HDFC TWINS DRAG

Published on Jul 05, 2023 17:26

The benchmark indices ended near the flat line after a volatile session on Wednesday. The Nifty closed near the 19,400 level after hitting the day`s low of 19,339.60 in late trade. Weak global cues along with moderation in Service PMI data restricted gains. Uncertainties about the forthcoming release of FOMC minutes undermined the risk tolerance of global investors. FMCG and auto shares rallied while banks and financial services stocks declined.

The barometer index, the S&P BSE Sensex declined 33.01 points or 0.05% to 65,446.04. The Nifty 50 index added 9.50 points or 0.05% to 19,398.50.

HDFC Bank (down 3.20%), HDFC (down 2.93%) and Eicher Motors (down 2.71%) were major drags.

The Nifty 50 has risen 3.93% in seven consecutive session. The Sensex, meanwhile, corrected today after rising 3.98% in the previous five sessions.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index rose 0.68% while the S&P BSE Small-Cap index gained 0.62%.

The market breadth was positive. On the BSE, 1966 shares rose and 1527 shares fell. A total of 133 shares were unchanged.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, rose 1.55% to 11.88.

Economy:

The business activity growth in India`s services sector moderated to a three-month low in the month of June while output charges saw the sharpest rise in close to six years, a private survey showed on Wednesday. The S&P Global India services Purchasing Managers` Index (PMI) fell to 58.5 last month from 61.2 in May. Data on Tuesday showed that India`s manufacturing PMI fell to 58.7 in June from 57.8 in May.

India`s composite PMI reading slipped to 59.4 in June from 61.6 in May. Demand for Indian services continued to surge higher in June, with all four monitored sub-sectors registering quicker increases in new business inflows.

Numbers to track:

The yield on India`s 10-year benchmark federal paper fell 0.20% to 7.105 from previous close of 7.119.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 82.2575, compared with its close of 82.0100 during the previous trading session.

MCX Gold futures for 4 August 2023 settlement gained 0.31% to Rs 58,591.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.12% to 103.16.

The United States 10-year bond yield declined 0.13% to 3.853.

In the commodities market, Brent crude for September 2023 settlement rose $1.34 or 1.80% to $75.99 a barrel.

Global Markets:

The Dow Jones index futures were down 153 points, indicating a weak opening in the US stocks today.

Markets in Europe and Asia declined on Wednesday as investors await the release of private surveys on services activity in China and Japan.

US stock markets remained closed on Tuesday as Wall Street observed a public holiday on the account of US Independence day.

Traders are now looking ahead to the release of the minutes of the Fed`s last policy meeting later on Wednesday and the non-farm payrolls report on Friday.

Stocks in Spotlight:

Godrej Consumer Products gained 3.23% after the FMCG company reported double-digit volume growth in its India business in the June quarter with double-digit volume growth recorded in home care segment and higher than mid-single digit volume growth in personal care. At a consolidated level (organic), the company expects to deliver high-single digit volume growth, teens growth in constant currency terms translating to close to double-digit sales growth in rupee terms. Sales growth (incl. inorganic) to be in double digits.

Genus Power Infrastructures hit an upper limit of 20% at Rs 168.90 after the company and Singapore`s sovereign wealth fund GIC agreed to set up a joint venture platform to fund smart metering projects.

Strides Pharma Science dropped 6.62% after the company said its biologics arm will sell its Unit 3 multi-modal facility to Syngene International for a gross consideration of Rs 702 crore.

State Bank of India (SBI) added 0.28%. The Executive Committee of the Central Board (ECCB) of the bank has accorded approval for acquiring the entire stake held by SBI Capital Markets (SBICAPS) in SBICAP Ventures Limited (SVL) by SBI. The estimated cost of capital for the acquisition will be Rs 708.07 crore.

HDFC Bank slipped 3.20%. The private lender`s advances aggregated to approximately Rs 16,15,500 crore as of 30 June 2023, recording a growth of around 15.8% as against Rs 13,95,100 crore as of 30 June 2022.

HDFC-HDFC Bank, the merged entity`s gross advances aggregated to approximately Rs 22,45,000 crore as of 30 June 2023, registering a growth of around 13.1% over Rs 19,859 billion as of 30 June 2022, and a growth of around 0.7% over Rs 22,30,200 crore as of 31 March 2023.

IndusInd Bank gained 0.38% after the private lender`s net advances improved to Rs 3,01,041 crore as of 30 June 2023, registering a growth of 21% as compared to Rs 2,47,960 crore as of 30 June 2022.

Angel One added 1.41%. The brokerage company said that its client base jumped 44.7% to 15.06 million in June 2023 as against 10.41 million recorded in June 2022. Gross client acquisition stood at 0.48 million in June 2023 as compared with 0.46 million in May 2023 (up 3.1%) and 0.34 million in June 2022 (up 40%).

Yes Bank rose 2.14% after the bank reported 13.5% rise in deposits to Rs 219,369 crore as on 30 June 2023 from Rs 193,241 crore as on 30 June 2022.

Larsen & Toubro (L&T) rose 0.48%. The company said that its Buildings & Factories (B&F) Business of L&T construction has secured an EPC order in Mumbai for an Office Space Development using Composite Steel Construction Technology. As per the classification the value of the order lies between Rs 1000 crore to Rs 2,500 crore.

Bandhan Bank slipped 2.75% after the bank announced that its chief financial officer (CFO), Sunil Samdani has resigned, with effect from 30 September 2023. Samdani cited his resignation to explore professional opportunities outside the bank. Separately, the bank`s total deposits grew by 16.6% to Rs 1,08,479 crore as on 30 June 2023 from Rs 93,057 crore as on 30 June 2022.

Indian Energy Exchange (IEX) rose 1.04% after the company achieved 8,946 MU overall volume in June 2023, registering the growth of 8% year on year basis.

IPO Updates:

The IPO of Senco Gold received bids for 2.52 crore shares as against 94.18 lakh shares on offer, according to stock exchange data at 17:00 IST on Wednesday (5 July 2023). The issue was subscribed 2.68 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.