BAROMETERS EDGE LOWER; BREADTH NEGATIVE

The key domestic indices traded with moderate losses in early trade. The Nifty traded below 24,550 mark. Barring the Nifty IT index, all the other sectoral indices on the NSE traded in red. Trading could be volatile due to weekly F&O series expiry today.

At 09:30 IST, the barometer index, the S&P BSE Sensex, was down 226.37 points or 0.28% to 80,491.03. The Nifty 50 index rose 74.65 points or 0.30% to 24,538.35.

In the broader market, the S&P BSE Mid-Cap index fell 0.39% and the S&P BSE Small-Cap index shed 0.19%.

The market breadth was negative. On the BSE, 1,416 shares rose and 1,588 shares fell. A total of 138 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 1,271.45 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 529.48 crore in the Indian equity market on 16 July 2024, provisional data showed.

Economy:

The International Monetary Fund (IMF) upgraded India`s economic outlook, raising its growth forecast for the 2024-25 financial year to 7%. This revision is driven by an anticipated improvement in private consumption, especially in rural areas.

The IMF maintained its projection of 6.5% growth for the following year (2025-26). This information comes from their latest World Economic Outlook report.

In April, the IMF had already revised India`s growth forecast upwards, from 6.5% to 6.8%. This latest increase reflects continued optimism about the Indian economy.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper was up 0.01% to 6.967 as compared with previous close 6.966.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.5600, compared with its close of 83.5850 during the previous trading session.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.04% to 103.79.

The United States 10-year bond yield rose 0.73% to 4.173.

In the commodities market, Brent crude for September 2024 settlement gained 35 cents or 0.41% to $85.43 a barrel.

Stocks in Spotlight:

LTIMindtree rallied 3.38% after the company reported 3.1% increase in consolidated net profit to Rs 1,135.1 crore in Q1 FY25 as compared with Rs 1,100.7 crore in Q4 FY24. Revenue from operations increased 2.8% QoQ to Rs 9,142.6 crore in Q1 FY25.

TV18 Broadcast declined 2.89% after the company reported a consolidated net loss of Rs 50.09 crore in Q1 FY25 as against a net profit of Rs 44.33 crore reported in Q1 FY24. Revenue from operations was at Rs 3,069.32 crore in Q1 FY25, down 3.36% from Rs 3,176.03 crore posted in Q1 FY24.

Asian Paints slipped 1.92% after the company`s consolidated net profit tumbled 24.54% to Rs 1,169.98 crore in Q1 FY25 as against Rs 1,550.37 crore reported in Q1 FY24. Revenue from operations stood at Rs 8,943.24 crore in Q1 FY25, down 2.3% from Rs 9,153.79 crore recorded in the corresponding quarter previous year.

Global Market:

Asian stocks traded mixed on Thursday. Chip stocks dipped as investors worried about potential trade war escalation between the US and China. Meanwhile, the Japanese yen strengthened to a six-week high, likely due to recent interventions by the Japanese government.

News of stricter US export controls on advanced chip technology to China caused chip stocks and the Nasdaq to fall in the US overnight. This decline was led by tech giants Nvidia and Apple.

Later today, investors will focus on the European Central Bank`s policy decision. The bank is likely to maintain current interest rates, but their comments will be closely watched for hints about future rate adjustments.

US markets ended Wednesday with mixed results. The S&P 500 and Nasdaq took a significant hit due to a sell-off in tech stocks driven by trade war concerns. The S&P 500 dropped 1.4%, and the Nasdaq plunged 2.8%. However, the Dow Jones bucked the trend, rising 0.6% (243 points) after a surge of over 700 points on the previous day.

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