Benchmarks decline for 2nd day, Nifty settles below 18,600

Key equity indices declined for a second straight session Friday, despite an uptick in other Asian indices. Investors continued booking profit as the outcome of RBI`s monetary policy came on expected lines. Attention will now turn to the upcoming US FOMC meeting, as concerns about a potential hawkish stance from the Fed cause local investors to remain cautious. After reaching an early trading high of 18,676.65, the Nifty closed below the 18,600 mark. Most sectors followed the benchmark trend and closed in the red, with IT, FMCG, and auto among the biggest losers.

The barometer index, the S&P BSE Sensex slipped 223.01 points or 0.35% to 62,625.63. The Nifty 50 index shed 71.15 points or 0.38% to 18,563.40.

SBI (down 1.68%), Infosys (down 1.33%), ITC (down 0.99%) and Reliance Industries (down 0.72%) were major drags.

In the broader market, the S&P BSE Mid-Cap index rose 0.03% while the S&P BSE Small-Cap index added 0.02%.

The market breadth was negative. On the BSE, 1,735 shares rose and 1,801 shares fell. A total of 112 shares were unchanged.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, fell 1.22% to 11.12.

Numbers to track:

The yield on India`s 10-year benchmark federal paper rose 0.28% to 7.041 from previous close of 7.021.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 82.47, compared with its close of 82.51 during the previous trading session.

MCX Gold futures for 4 August 2023 settlement shed 0.01% to Rs 59,885.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.21% to 103.56.

The United States 10-year bond yield advanced 1.17% to 3.756.

In the commodities market, Brent crude for August 2023 settlement fell 9 cents or 0.12% to $76.05 a barrel.

Global Markets:

European shares declined across the board while Asian stocks advanced on Friday.

Sentiment was mixed as weak U.S. labor data ramped up bets on a pause in the Federal Reserve`s rate hike cycle, although disappointing inflation readings from China capped broader gains.

Investors digested China`s consumer price index, which saw a 0.2% rise in May and its producer prices that fell 4.6% year on year, marking the steepest drop since June 2016.

US stocks climbed on Thursday, regaining some of their momentum, thanks to a rebound by technology stocks. Investors were sitting on the sidelines ahead of inflation data and a Federal Reserve policy meeting next week.

Stocks in Spotlight:

State Bank of India fell 1.68%.The central board of State Bank of India approved raising funds in INR and/or any other convertible currency by issue of debt instruments upto an amount of Rs 50,000 crore via private placement mode to Indian and/or Overseas investors during FY24, subject to Government of India (GOI) approval wherever required. Debt instruments includes but is not limited to long term bonds, Basel III compliant Additional Tier 1 bonds, Basel III compliant Tier 2 bonds.

Kotak Mahindra Bank shed 0.77%. On the BSE, 3.49 crore shares were traded in the counter compared with average daily volumes of 1.17 lakh shares in the past two weeks. As per media reports, Canadian-state-owned Canada Pension Fund was to sell a 1.66% stake in Kotak Mahindra Bank. The deal size could have been around $754 million.

Best Agrolife rallied 3.65%. The company announced that it has received the registration for the indigenous manufacturing of Trifloxystrobin-Difenoconazole-Sulphur combination product.

Urja Global hit an upper limit of 20% after the company said it will manufacture and supply batteries under the Tesla Power USA brand.

Greenlam Industries surged 18.02% after the company announced the commencement of commercial production of plywood and allied products at its Tindivanam facility.

Blue Dart Express gained 2.27%. The company announced that its board has approved the appointment of Sudha Pai as chief financial officer (CFO) and key managerial personnel (KMP) of the company effective from 1 September 2023.

Tata Power Company added 0.25%. Tata Power Renewable Energy Limited through its subsidiary TP Vardhaman Surya Limited received Letter of Award (LoA) to set up 966 MW RTC (round-the- clock) hybrid renewable power for Tata Steel. The project has the hybrid renewable capacity of 379 MW solar and 587 MW wind power. Tata Steel, will invest 26% equity in the project. The project will be commissioned by 1st June 2025 as per the arrangement.

Biocon skid 0.31%. The company`s Active Pharmaceutical Ingredient (API) manufacturing facility located in Bangalore has received a certificate of GMP compliance from the Competent Authority of Germany, following an EU GMP inspection that was conducted in February 2023.

Zydus Lifesciences fell 1.15%. The drug maker announced that it has strarted of phase IV real world data registry trial `Evidences- XI` for Saroglitazar Magnesium in non-alcoholic fatty liver disease (NAFLD) patients with comorbidities. The phase IV Evidences- XI trial will enrol approximately 1500 male and female NAFLD patients with comorbidities (either obesity, type 2 diabetes mellitus, dyslipidemia or metabolic syndrome- 200 patients each).

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