BENCHMARKS TRADE NEAR FLATLINE; MEDIA SHARES EXTEND GAINS FOR 7TH DAY

The frontline indices continued to trade near the flat line with minor gains in the mid-morning trade. The Nifty traded above the 22,950 mark. Media shares witnessed buying demand for the seventh consecutive trading sessions.

At 11:30 IST, the barometer index, the S&P BSE Sensex, was up 22.81 points or 0.03% to 75,439.99. The Nifty 50 index added 8.25 points or 0.04% to 22,975.90.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index added 0.44% and the S&P BSE Small-Cap index rose 0.46%.

The market breadth was positive. On the BSE, 1,888 shares rose and 1,725 shares fell. A total of 152 shares were unchanged.

IPO Update:

The initial public offer (IPO) of Awfis Space Solutions received 4,84,61,205 bids for shares as against 86,29,670 shares on offer, according to stock exchange data at 11:30 IST on Friday (24 May 2024). The issue was subscribed 5.62 times.

The issue opened for bidding on Wednesday (22 May 2024) and it will close on Monday (27 May 2024). The price band of the IPO is fixed between Rs 364 to Rs 383 per share. An investor can bid for a minimum of 39 equity shares and in multiples thereof.

Buzzing Index:

The Nifty Media index gained 1.34% to 1,902.50. The index rallied 7.33% in seven consecutive trading sessions.

TV18 Broadcast (up 2.74%), Network 18 Media & Investments (up 2.21%), Zee Entertainment Enterprises (up 2.05%), Hathway Cable & Datacom (up 1.65%) and Tips Industries (up 1.36%), Dish TV India (up 1.19%) and Saregama India (up 1.08%) advanced.

On the other hand, Nazara Technologies (down 0.21%), PVR Inox (down 0.04%) and Sun TV Network (down 0.03%) edged lower.

Stocks in Spotlight:

Bayer CropScience dropped 5.27% after the company�s net profit declined 39.43% to Rs 96.00 crore in the quarter ended March 2024 as against Rs 158.50 crore during the previous quarter ended March 2023. Sales fell 19.44% to Rs 791.50 crore in the quarter ended March 2024 as against Rs 982.50 crore during the previous quarter ended March 2023.

Fortis Healthcare declined 1.34%. The compnay�s consolidated net profit jumped 34.84% to Rs 178.73 crore in the quarter ended March 2024 as against Rs 132.55 crore during the previous quarter ended March 2023. Sales rose 8.72% to Rs 1785.88 crore in the quarter ended March 2024 as against Rs 1642.70 crore during the previous quarter ended March 2023.

Barbeque-Nation Hospitality slipped 1.08% after the company reported consolidated net loss of Rs 1.07 crore in the quarter ended March 2024 as against net loss of Rs 11.82 crore during the previous quarter ended March 2023. Sales rose 6.36% to Rs 298.05 crore in the quarter ended March 2024 as against Rs 280.23 crore during the previous quarter ended March 2023.

Global Markets:

Most of the Asian stocks declined on Friday, positive U.S. economic data increased expectations of sustained higher interest rates and a delayed rate cut by the Federal Reserve, dampening investor appetite for riskier assets.

Data released Thursday showed a decline in U.S. jobless claims, and S&P Global`s Flash PMI survey indicated faster-than-anticipated business activity expansion in May. This robust economic data, coupled with hawkish minutes from the Fed`s most recent meeting earlier this week, has prompted traders to reduce their bets on rate cuts this year. Markets are now fully expecting a rate cut in December, with a September cut remaining uncertain, according to the CME FedWatch tool.

In Japan, inflation moderated for the second consecutive month, as investors continued to assess the Bank of Japan`s capacity for further interest rate hikes this year. Core CPI, which excludes volatile fresh food prices, rose 2.2% year-on-year in April, according to data released by the Statistics Bureau on Friday. This represents a decrease from the 2.6% increase observed in the previous month.

In the United States, the Dow Jones Industrial Average (DJIA) plunged on Thursday, dropping over 600 points and retreating back to the 39,000 level as investors reacted to diminishing hopes for a September interest rate cut by the Federal Reserve.

Initial jobless claims for the week ending May 18th came in at a higher-than-expected 2.15 lakh, while May�s S&P Global Services Purchasing Managers Index (PMI) rose to a 12-month high of 50.9 on Thursday.

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