BAROMETERS SNAP 5-DAY LOSING STREAK, NIFTY ENDS ABOVE 24,800; METAL SHARES RALLY

Domestic stocks bounced back today, ending a five-day slump. The Nifty reclaimed the 24,800 level, led by gains in metals, healthcare, and auto sectors. While this is a relief, traders are wary. Holding onto the 24,000 level is key for a sustained rally. Upcoming earnings, sectoral performance, and global trends will dictate the market`s next move.

The barometer index, the S&P BSE Sensex jumped 1,292.92 points or 1.62% to 81,332.72. The Nifty 50 index soared 428.75 points or 1.76% to 24,834.85. The 50-unit index fell 1.59% in the past five sessions.

Adani Enterprises (up 3.56%), Infosys (up 2.93%) and Reliance Industries (up 1.18%) boosted the indices.

In the broader market, the S&P BSE Mid-Cap index rallied 2.12% and the S&P BSE Small-Cap index added 1%.

The market breadth was strong. On the BSE, 2,652 shares rose and 1,286 shares fell. A total of 102 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, declined 2.93% to 12.25.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper jumped 1.48% to 7.055 as compared with previous close 7.076.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.7225, compared with its close of 83.7800 during the previous trading session.

MCX Gold futures for 5 August 2024 settlement rose 0.64% to Rs 68,828.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.02% to 104.37.

The United States 10-year bond yield fell 0.38% to 4.243.

In the commodities market, Brent crude for September 2024 settlement lost 32 cents or 0.39% to $82.05 a barrel.

Global Markets:

The Dow Jones index futures were up 248 points, indicating a positive opening in the US stocks today.

European shares advanced on Friday as investors awaited key U.S. economic figures.

Most Asian stocks ended higher as traders digested Tokyo`s latest inflation data. Japan�s headline inflation eased slightly to 2.2% in July, while core inflation held steady at 2.2%.

The market`s focus now shifts to the U.S., where the release of the personal consumption expenditure (PCE) index � the Federal Reserve`s preferred inflation gauge � is expected to influence interest rate expectations.

Meanwhile, U.S. stocks experienced a rotation away from technology shares on Thursday, with the Nasdaq Composite and S&P 500 declining. The Dow Jones Industrial Average bucked the trend with a modest gain. This shift is a common occurrence during bull markets as market leadership evolves.

New Listing:

Shares of Sanstar were closed at Rs 115.09 on the BSE, representing a premium of 21.15% as compared with the issue price of Rs 95.

The scrip was listed at Rs 106.40, exhibiting a premium of 12% to the issue price.

The stock has hit a high of 127.68 and a low of 106.40. On the BSE, over 103.46 lakh shares of the company were traded in the counter.

Sanstar`s IPO was subscribed 82.99 times. The issue opened for bidding on 19 July 2024 and it closed on 23 July 2024. The price band of the IPO was fixed at Rs 90 to 95 per share.

Stocks in Spotlight:

The Nifty Metal index rallied 3.01% to 9,423.40. Vedanta (up 3.79%), Jindal Steel & Power (up 3.65%), NMDC (up 3.49%), SAIL (up 3.38%), Tata Steel (up 3.32%), Adani Enterprise (up 3.32%) and Hindalco Industries (up 3.17 %) surged.

Indus Towers surged 4.76% after the company said its board will consider a share buyback on Tuesday, 30 July 2024.

Tech Mahindra rose 0.68%. The IT major`s consolidated net profit jumped 28.82% to Rs 851.5 crore on 1.04% rise in revenue from operations to Rs 13,005.5 crore in Q1 FY25 over in Q1 FY24. On a year on year (YoY) basis, Tech Mahindra`s net profit grew 22.96% while revenue fell 1.17% in first quarter of FY25.

SJVN zoomed 5.04% after the company received a letter of intent (LoI) for allotment of Darzo Lui Pumped Storage Project from the Government of Mizoram. The estimated cost of project on completion is Rs 13,947.50 crore.

Cipla rallied 5.22% after the pharma major�s consolidated net profit jumped 18.27% to Rs 1177.64 crore in Q1 FY25 as against Rs 995.70 crore reported in Q1 FY24. Total revenue from operations grew by 5.77% year on year to Rs 6693.94 crore in the quarter ended 30 June 2024.

Mphasis jumped 6.02% after the company`s consolidated net profit grew 2.87% to Rs 404.51 crore in Q1 FY25 as compared with Rs 393.22 crore in Q4 FY24. Revenue from operations rose marginally to Rs 3,422.46 crore in Q1 FY25 as against Rs 3,412.05 crore posted in Q4 FY24.

Cyient dropped 5.56% after the IT major reported 23.94% fall in consolidated net profit to Rs 143.9 crore on 9.94% decline in revenue from operations to Rs 1,675.7 crore in Q1 FY25 over Q4 FY24.

DLF advanced 2.09% after the realty major�s consolidated net profit increased 22.51% to Rs 645.61 crore in Q1 FY25 as compared with Rs 527 crore recorded in Q1 FY24. Revenue from operations fell 4.28% year on year (YoY) to Rs 1,362.35 crore in the quarter ended 30 June 2024.

United Breweries fell 3.14% after the company`s consolidated net profit jumped 27.41% to Rs 173.55 crore in Q1 FY25 as compared to Rs 136.21 crore posted in corresponding quarter last year. Revenue from operations (excluding excise duty) rose 8.81% YoY to Rs 2,475.13 crore in June 2024 quarter, driven by 5% volume growth led by 44% growth in the premium segment, further fueled by pricing.

Sun Pharmaceutical Industries gained 2.91% after the pharma major said that it has received approval from the U.S. Food and Drug Administration (US FDA) for LEQSELVI (deuruxolitinib), an oral JAK Inhibitor for the treatment of severe alopecia areata.

Glenmark Life Sciences declined 2.56% after the company�s standalone net profit declined 17.69% to Rs 111.48 core in Q1 FY25 as compared with Rs 135.45 crore in Q1 FY24. Revenue from operations rose 1.75% YoY to Rs 588.62 crore in the first quarter of FY25.

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