BENCHMARKS END FLAT, NIFTY HOLDS 24,300; NSE VIX DROPS 3%

The key equity benchmarks ended flat today after a volatile session marked by F&O expiry. The index opened positive, mirroring global gains, but quickly reversed course amid selling pressure. However, a late rally helped it recover lost ground. Realty, healthcare, and pharma dragged, while oil & gas and consumer durables led the gainers.

The barometer index, the S&P BSE Sensex, was down 27.43 points or 0.03% to 79,897.34. The Nifty 50 index lost 8.50 points or 0.03% to 24,315.95.

Bajaj Finance (down 1.48%), M&M (down 1.24%) and Larsen & Toubro (down 0.76%) were major drags.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index added 0.34% and the S&P BSE Small-Cap index gained 0.57%.

The market breadth was positive. On the BSE, 2,178 shares rose and 1,733 shares fell. A total of 112 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, slipped 3.03% to 14.43.

Economy:

Union Commerce Minister Piyush Goyal stated that India is on track to become the world`s third-largest economy within the next 3-4 years. Goyal believes the government`s focus on manufacturing, exports, and infrastructure development is driving this growth. The startup ecosystem and increasing investments are also contributing factors. To achieve the $2 trillion export target, the government is streamlining regulations, improving infrastructure, and integrating India into global value chains. While challenges remain, with continued policy support and industry collaboration, India is poised to realize its economic ambitions.

Numbers to Track:

The yield on India`s 10-year benchmark federal rose 0.07% to 6.981 as compared with previous close 6.977.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.5675, compared with its close of 83.5150 during the previous trading session.

MCX Gold futures for 5 August 2024 settlement rose 0.11% to Rs 72,707.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.20% to 104.84.

The United States 10-year bond yield added 0.14% to 4.284.

In the commodities market, Brent crude for September 2024 settlement added 23 cents or 0.27% to $85.31 a barrel.

Global Markets:

European stocks advanced on Thursday, as global markets look ahead to the next U.S. inflation reading.

Asian stocks ended higher, fueled by tech gains and record highs in Japan, after chipmaker TSMC`s strong revenue boosted optimism for AI. TSMC`s record revenue in June, driven by surging AI demand, pushed its share price up nearly 2% in Taiwan.

The rally followed a surge on Wall Street overnight, where the S&P 500 and NASDAQ hit records on hopes of a soft economic landing and potential Fed rate cuts later this year. All eyes are now on upcoming consumer inflation data, which will heavily influence the Fed`s decision on interest rates.

Stocks in Spotlight:

TCS rose 0.33%. The IT major`s consolidated net profit declined 3.17% to Rs 12,040 crore in Q1 FY25 as against Rs 12,434 crore reported in Q4 FY24. However, revenue from operations grew by 2.25% quarter on quarter (QoQ) to Rs 62,613 crore in Q1 FY25. On a year on year (YoY) basis, the IT firm`s net profit increased 8.72% and net sales grew by 5.44% in the quarter ended 30 June 2024. Constant currency revenue grew 4.4% YoY in the June quarter. Operating margin stood at 24.7% while net margin was at 19.2% in Q1 FY25. Profit before tax was at Rs 16,231 crore in the second quarter of FY24, down 3.67% QoQ and up 8.29% YoY.

Tata Elxsi slipped 2.27%. The company�s net profit declined 6.53% to 184.07 crore in Q1 FY25 as against Rs 196.93 crore in Q4 FY24. Revenue increased 2.26% to Rs 926.45 crore in quarter ended 30 June 2024 compared with Rs 905.94 crore in 31 March 2024. On year on year basis, the company�s net profit declined 2.53% from Rs 188.85 crore while revenue from operations increased 8.96% from Rs 850.27 crore in Q1 FY24. Profit before tax (PBT) stood at Rs 252.39 crore in Q1 FY25 (up 1.63% YoY and down 3.81% QoQ).

Power Grid Corporation of India shed 0.95%. The company said that its board approved to borrow funds upto Rs 16,000 crore through various sources during the financial year 2025-2026.

Shalby rose 3.54% after the company secured a 30-year lease to operate the Asha Parekh Hospital in Santacruz, Mumbai.

HPL Electric & Power hit an upper circuit of 20% after the company announced that it has received work orders of Rs 2,100.71 crore from its regular leading customers.

GE Power India jumped 6.32% after the company`s board approved to sell its hydro business undertaking to GE Power Electronics and its Gas business to GE Renewable Energy Technologies through slump sale basis.

Oriana Power hit an upper circuit of 5% after the construction engineering firm received a new order for a 40 MWp solar power plant under the captive segment.

Rail Vikas Nigam (RVNL) added 3.19% after the civil construction firm received letter of acceptance (LoA) from Central Railway worth Rs 138.45 crore.

JTL Industries gained 3% after the company reported a 21% increase in consolidated net profit to Rs 30.70 crore in Q1 FY25 as compared with Rs 25.37 crore in Q1 FY24.

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