INDICES TRADE NEAR FLAT LINE, NIFTY ABOVE 19,400 LEVEL

The frontline indices pared losses and traded near the flat line in afternoon trade. The Nifty traded above the 19,400 level after hitting the day`s low of 19,317.20 in morning trade. Realty, IT and healthcare stocks advanced while metal, consumer durables and private bank shares declined.

At 13:30 IST, the barometer index, the S&P BSE Sensex, was up 15.16 points or 0.02% to 65,417.08. The Nifty 50 index shed 11.15 points or 0.06% to 19,423.40.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index rose 0.21% while the S&P BSE Small-Cap index gained 0.53%.

The market breadth was positive. On the BSE, 1,853 shares rose and 1,721 shares fell. A total of 123 shares were unchanged.

Domestic investor sentiment took a hit after CPI inflation July came in at 7.44%, above the the RBI`s tolerance band of 6%. Consequently, the CPI inflation for FY`24 will reportedly have to be revised upwards to 5.6%. The takeaway from this is that a rate cut can be expected only in H2 of CY24, media reports stated.

Further, data released on Tuesday showed that U.S. retail sales grew more than expected in July, presenting more upside risks to consumer inflation and potentially giving the Fed more headroom to keep raising interest rates.

Economy:

India is open to more free trade agreements, and the focus of future agreements will go beyond trade, Sunil Barthwal, Secretary, Department of Commerce, has reportedly said.

India`s merchandise exports declined for the 6th straight month in July with outbound shipments down 15.9% YoY. The decline in imports was even steeper at 17% YoY.

India`s imports from Russia doubled to USD 20.45 billion during the April-July period of FY23 due to increasing inbound shipments of crude oil and fertiliser, data from the commerce ministry showed.

New Listing:

Shares of SBFC Finance were currently trading at Rs 91.99 at 13:26 IST on the BSE, representing a premium of 61.39% compared with the issue price of Rs 57.

The scrip was listed at a price of Rs 81.99, at a premium of 43.84% as compared to the issue price.

So far, the stock has hit a high of 94.65 and a low of 81.99. On the BSE, over 97.06 lakh shares of the company were traded in the counter so far.

Gainers & Losers:

Apollo Hospitals Enterprise (up 2%), Infosys (up 1.68%), NTPC (up 1.38%), UltraTech Cement (up 1.11%) and Larsen & Toubro (up 1.07%) were major Nifty gainers.

Tata Steel (down 1.82%), HDFC Life Insurance Company (down 1.49%), Hero MotoCorp (down 1.49%), Adani Ports and Special Economic Zone (down 1.44%) and Hindalco Industries (down 1.28%) were top Nifty losers.

Infosys rose 1.68%. Liberty Global plc (Liberty Global), one of the world`s leading converged video, broadband and communications companies, and Infosys announced that they have expanded their collaboration to evolve and scale Liberty Global`s cutting-edge digital entertainment and connectivity platforms.

The parties have entered into an initial 5-year agreement, with an option to extend to 8 years and beyond. Infosys will provide services to Liberty Global estimated at �1.5 billion over the initial 5-year term and at �2.3 billion if the contract is extended to 8 years.

Stocks in Spotlight:

ITC added 0.53%. The FMCG major`s standalone net profit jumped 17.59% to Rs 4,902.74 crore in Q1 FY24 as compared with Rs 4,169.38 crore recorded in same quarter last year. Revenue from operations declined 7.23% to Rs 16,995.49 crore during the quarter from Rs 18,320.16 crore posted in corresponding quarter last year.

Meanwhile, the board has approved the Scheme of Arrangement amongst ITC and ITC hotels, upon this Scheme becoming effective and in consideration of the transfer and vesting of the demerged undertaking from ITC to the resulting company in terms of the said Scheme, for every 10 Ordinary Shares of face and paid-up value of Re 1 each held in the demerged company, will get 1 equity share of face and paid-up value of Re 1 in the resulting company.

Vodafone Idea fell 2.61% after the teleco reported a net loss of Rs 7,840 crore in Q1 FY24, which is significantly higher as compared with a loss of Rs 7,296.7 crore recorded in Q1 FY23.

Garden Reach Shipbuilders and Engineers (GRSE) surged 18.25% after the media reported that the company expects the shipbuilding industry to get contracts worth Rs 1.2 lakh crore over the next two to four years.

Quint Digital Media (QDML) rallied 3.78%. The company reported consolidated net profit of Rs 2.54 crore in Q1 FY24, steeply higher than Rs 0.80 crore posted in Q1 FY23.

The company`s board has approved the binding memorandum of understanding (MOU) amongst Quintillion Media (QML), a wholly owned subsidiary of the company and AMG Media Networks (AMG media) a wholly owned subsidiary of Adani Enterprises, for the sale of remaining 51% stake held by QML in Quintillion Business Media to AMG Media.

Global Markets:

Most of European markets advanced while Asian stocks declined on Wednesday.

US stocks slid on Tuesday as investors fretted over the banking sector and took in data showing another weak month for China`s economy.

A Fitch Ratings analyst warned that the U.S. banking industry has inched closer to another source of turbulence � the risk of sweeping rating downgrades on dozens of U.S. banks that could even include the likes of JPMorgan Chase.

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