BENCHMARKS SNAP 5-DAY STREAK, NIFTY SETTLES BELOW 24,750, VIX CLIMBS ABOVE 14

The domestic equity benchmarks took a breather today, snapping a five-day winning streak. Profit-booking kicked in after a recent rally, with global markets also turning bearish. The Nifty slipped below 24,750, dragged down by realty, auto, and metal stocks, while pharma and healthcare bucked the trend.

In the barometer index, the S&P BSE Sensex fell 885.60 points or 1.08% to 80,981.95. The Nifty 50 index dropped 293.20 points or 1.17% to 24,717.70. Both the indices had climbed over 2% in five consecutive trading sessions.

Tata Motors (down 4.17%), Larsen & Toubro (down 2.91%) and TCS (down 2.56%) were maor drags.

In the broader market, the S&P BSE Mid-Cap index declined 1.19% and the S&P BSE Small-Cap index fell 0.58%.

The market breadth was negative. On the BSE, 1705 shares rose and 2212 shares fell. A total of 116 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, jumped 11.40% to 14.41.

Numbers to Track:

The yield on India`s 10-year benchmark federal grew 1.56% to 7.024 as compared with previous close 7.036.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.7600, compared with its close of 83.7375 during the previous trading session.

MCX Gold futures for 5 August 2024 settlement rose 0.45% to Rs 69,325.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.30% to 104.11.

The United States 10-year bond yield fell 1.09% to 3.323.

In the commodities market, Brent crude for September 2024 settlement gained 6 cent or 0.08% to $79.58 a barrel.

Global Markets:

European and Asian stocks tumbled on Friday, pressured by a confluence of negative factors including a selloff in Japan, a global tech rout, and worries about the US economy.

Japanese stocks plunged for a second day on expectations of tighter monetary policy in the country.

U.S. stocks opened August significantly lower after economic data raised concerns about a slowing economy despite the Federal Reserve`s restrictive monetary stance.

Weekly unemployment claims reached a near-one-year high, and US manufacturing activity contracted to an eight-month low in July due to a decline in new orders (data from Aug 1).

The tech sector`s losses stemmed from underwhelming earnings reports or outlooks from industry leaders like Intel and Amazon. Investor focus now shifts to the crucial monthly jobs report, due later on Friday.

Geopolitical tensions added another layer of uncertainty. The recent Israeli airstrikes in Gaza, reportedly killing both Hamas` military and political leaders, further dampened market sentiment.

Stocks in Spotlight:

Maruti Suzuki India dropped 4.63% after the company informed that its total sales declined 3.63% to 1,75,041 units in July 2024 as against 1,81,630 units sold in July 2023.

Meanwhile, the car manufacturer announced that its total production fell marginally to 1,85,641 units sold in July 2024 as compared with 1,86,654 units sold in July 2023.

Hero MotoCorp declined 1.50% after the two-wheeler major sold 370,274 units of motorcycles and scooters in June 2024, which is lower by 5.38% as compared with sales of 391,310 units recorded in June 2023.

Eicher Motors slipped 4.90% after the company reported total motorcycle sales of 67,265 units in July 2024, which is lower by 8% as compared with the same period last year.

Saregama India declined 2.72% after the company�s consolidated net profit declined 14.38% to Rs 37.09 crore during the quarter as comapred with Rs 43.32 crore posted in corresponding quarter last year. However, revenue from operations increased 25.68% YoY to Rs 205.28 crore during the quarter.

TTK Healthcare added 1.08% after the company�s consolidated net profit surged to Rs 31.57 crore in Q1 FY25 as compared with Rs 15.66 crore posted in corresponding quarter last year. Revenue from operations increased 2.86% YoY to Rs 207.90 crore in Q1 FY25.

G R Infraprojects slipped 4.71% after the company`s consolidated net profit tumbled 49.83% to Rs 155.45 crore in Q1 FY25 as compared to Rs 309.84 crore recorded in corresponding quarter previous year. Revenue from operations fell 18.07% year on year (YoY) to Rs 2,030.30 crore in the quarter ended 30 June 2024.

Thermax lost 3.60%. The company reported consolidated net profit of Rs 115.81 crore in Q1 FY25, registering a growth of 96.68% as against with Rs 58.88 crore posted in Q1 FY24. Revenue from operations stood at Rs 2,184.41 crore during the quarter, grew by 13.01% year on year.

Prataap Snacks declined 3.11% after the company�s standalone net profit fell 29.73% to Rs 9.43 crore in Q1 FY25 as compared with Rs 13.42 crore posted in same quarter last year. Revenue from operations increased 8.61% YoY to Rs 419.12 crore in Q1 FY25.

IPO Update:

The initial public offer (IPO) of Ola Electric Mobility received 16,34,52,315 bids for shares as against 46,51,59,451 shares on offer, according to stock exchange data at 17:00 IST on Friday (02 August 2024). The issue was subscribed 0.35 times.

The issue opened for bidding on Friday (02 August 2024) and it will close on Tuesday (06 August 2024). The price band of the IPO is fixed between Rs 72 to Rs 76 per share. An investor can bid for a minimum of 195 equity shares and in multiples thereof.

Ceigall India`s IPO received 2,74,18,073 bids for shares as against 2,23,13,663 shares on offer, according to stock exchange data at 17:00 IST on Friday (02 August 2024). The issue was subscribed 1.23 times.

The issue opened for bidding on Friday (01 August 2024) and it will close on Monday (05 August 2024). The price band of the IPO is fixed between Rs 380 to Rs 401 per share. An investor can bid for a minimum of 37 equity shares and in multiples thereof.

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