BENCHMARKS TRADE WITH MINOR CUTS; BREADTH POSITIVE

The key equity indices traded with tiny losses in early trade. The Nifty traded below 24,450 mark. Realty, FMCG and consumer durables advanced while banking, auto and metal stocks declined.

At 09:30 IST, the barometer index, the S&P BSE Sensex was down 113.26 points or 0.14% to 80,238.38. The Nifty 50 index declined 23.70 points or 0.1% to 24,409.50.

In the broader market, the S&P BSE Mid-Cap index added 0.08% and the S&P BSE Small-Cap index advanced 0.25%.

The market breadth was positive. On the BSE, 1,740 shares rose and 1,194 shares fell. A total of 128 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 314.46 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,416.46 crore in the Indian equity market on 9 July 2024, provisional data showed.

Stocks in Spotlight:

Rail Vikas Nigam (RVNL) jumped 5.70% after the firm emerged as the lowest bidder for Rs 203 crore railway contract from Southeastern Railway and signed an MoU with Tatweer Middle East and Africa to execute rail-based work in the MENA Region and European countries. The company has also received a project worth Rs 187 crore from Maharashtra Metro Rail Corp. to construct six elevated metro stations in Nagpur.

Aadni Power rose 0.49%. The company`s unit, Mahan Energen, has entered into a 20-year power purchase agreement for 500 MW with Reliance Industries. Reliance Industries acquired a 26% stake in one of Mahan Energen`s 600 MW thermal power units for the agreement.

Adani Ports and Speical Economic Zone added 0.73%. The company received a letter of intent (LoI) for developing and operating berth No. 13 at Deendayal port in Gujarat with a concession period of 30 years.

Numbers to Track:

The yield on India`s 10-year benchmark federal rose 0.04% to 6.992 as compared with previous close 6.989.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.4900, compared with its close of 83.4925 during the previous trading session.

MCX Gold futures for 5 August 2024 settlement gained 0.23% to Rs 72,564.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.03% to 105.09.

The United States 10-year bond yield grew 0.13% to 4.306.

In the commodities market, Brent crude for September 2024 settlement lost 19 cents or 0.22% to $84.47 a barrel.

Global Markets:

Most Asian stocks declined on Wednesday after the comments made by Federal Reserve Chair Jerome Powell provided little indication about the timing of expected U.S. rate cuts later this year, despite signaling increased confidence in the moderation of inflation.

Japan`s wholesale inflation accelerated in June due to a weaker yen and rising import costs. This is likely to lead to an interest rate hike by the central bank in the near future. Wholesale inflation rose 2.9% year-on-year in June, the fastest pace since August 2023. The index hit a record high for the seventh consecutive month.

Chinese consumer inflation shrank in June amid persistent economic concerns, limiting spending, while producer inflation contracted for a 20th consecutive month, though at a slower pace. Consumer price index inflation grew 0.2% year-on-year in June, down from 0.3% in the prior month.

In US, the S&P 500 and Nasdaq closed at record highs on Tuesday, extending their winning streak to six days. This surge comes as investors remain optimistic about potential interest rate cuts by the Federal Reserve. However, the Dow Jones Industrial Average ended the day slightly down. The recent US economic slowdown has fueled expectations of the Fed easing monetary policy to boost the economy.

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