BULLS TAKE A BREATHER: INDICES COOL AFTER 4-DAY STREAK

Domestic equity benchmarks gave back some early gains today, ending with small losses after a four-day winning streak. Profit taking in private and financial stocks weighed on the market, while oil & gas, healthcare and PSU banks bucked the trend. High valuations remain a concern for some traders.

The barometer index, the S&P BSE Sensex, was down 210.45 points or 0.27% to 79,032.73. The Nifty 50 index shed 39.90 points or 0.14% to 24,010.60. The 50 unit index rose 2.31% in the past four sessions.

The Sensex and Nifty clocked an all-time high of 79,671.58 and 24,174, respectively in morning trade.

Bharti Airtel (down 1.8%), ICICI Bank (down 1.60%) and HDFC Bank (down 0.76%) were major drags.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index gained 0.41% and the S&P BSE Small-Cap index rallied 0.56%.

The market breadth was positive. On the BSE, 2,180 shares rose and 1,725 shares fell. A total of 107 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, slipped 3.28% to 13.69.

Economy:

India`s central government`s fiscal deficit narrowed to 3% of the full-year target in the first two months (April-May) of the fiscal year 2024-25, compared with 1.8% in the previous month. This is according to the latest government spending data released on June 28th.

Revenue receipts for the government improved, reaching 19% of the annual target compared to 15.7% previously. Tax revenue growth also saw a positive increase, reaching 12.3% compared to 11.9% in the prior month.

Capital expenditure by the government, however, lagged behind at 12.9% of the target, compared to 16.8% in the previous year.

Numbers to Track:

The yield on India`s 10-year benchmark federal rose 0.13% to 7.009 as compared with previous close 7.00.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.3900, compared with its close of 83.4500 during the previous trading session.

MCX Gold futures for 5 August 2024 settlement gained 0.26% to Rs 71,755.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.03% to 105.88.

The United States 10-year bond yield gained 0.59% to 4.314.

In the commodities market, Brent crude for August 2024 settlement added 57 cents or 0.67% to $85.83 a barrel.

Global Markets:

Markets in Europe and Asia advanced on Friday as investors look forward to U.S. core PCE data later today, which could solidify expectations of a Fed rate cut.

Tokyo consumer prices rose in June. While headline Consumer Price Index (CPI) inflation rose to 2.3% year-on-year in June, compared to 2.2% in May, core inflation print that excludes both fresh food and energy prices, grew to 1.8% in June from 1.7% in May.

US stock market ended with minor gains on Thursday as treasury yields eased ahead of the fresh inflation data. The Dow Jones Industrial Average gained 0.09%, while the S&P 500 rose 0.09%. The Nasdaq Composite ended 0.30%.

Alphabet shares rose 0.83% and Meta Platforms stock price gained 1.25%. Amazon shares rallied 2.19%, while Nvidia shares declined 1.90%.

Stocks in Spotlight:

Central Depository Services (India) (CDSL) zoomed 20% to Rs 2,407.40 after the company said its board will consider a bonus share issue on Tuesday, 2 July 2024.

Polycab India dropped 3.63% to Rs 6735.90, following large block deal took place in earlier today, 28 June 2024. The media reported that Polycab`s promoters will sell 30.70 lakh shares (2.04%) in the price range of Rs 6,535 to Rs 6,985.25 via block deal today. As on March 2024, promoters of Polycab held a 65.24% stake in the company.

KPI Green Energy hit an upper circuit of 5% after the company received a sanction letter for Rs 686 crore in credit facilities for a 200 MW solar project in Khavda. Rs 225 crore raised through a QIP earlier will be used to partially fund the project.

Navkar Corporation fell 0.25% while JSW Infrastructure gained 3%. JSW Infrastructure`s wholly owned subsidiary, JSW Port Logistics (JSW Port) has entered into a share purchase agreement with Navkar Corporation (NCL) to acquire 70.37% stake from the promoters of NCL.

Meanwhile, the company has received Letter of Acceptance (LoA) from Southern Railway, Chennai Division for construction & operation of Gati Shakti Multi-Modal Cargo Terminal (GCT) at Arakkonam, Chennai, Tamil Nadu.

AU Small Finance Bank rose 0.86%. The bank announced that its board has approved of raising funds aggregating upto Rs 11,000 crore through various modes.

RBL Bank rose 0.25%. The bank�s board approved of raising funds through qualified institutional placement (QIP) and issue of debt securities aggregating upto Rs 6,500 crore.

Inox Wind added 0.93% after the company announced that it has incorporated a wholly-owned subsidiary, Pokhran Wind Energy, as a special purpose vehicle (SPV) to develop wind farms in India.

Aether Industries rallied 3.23% after the company announced the signing of a strategic supply agreement with Baker Hughes for an initial term is 5 years, extendable by 3 additional one year terms and thereafter extendable on yearly basis.

Alembic Pharmaceuticals shed 0.49%. The pharma major announced that it has received final approval from the US Food & Drug Administration (USFDA) for its abbreviated new drug application (ANDA) for Doxycycline capsules.

NHPC added 2.13% after the firm signed the power purchase agreement (PPA) with Gujarat Urja Vikas Nigam (GUVNL) on 27 June 2024 for 200 MW capacity solar power project.

Alok Industries rose 0.43%. The company announced that its board has approved the appointment of Anil Kumar Mungad as chief financial officer (CFO) with effect from 01 July 2024.

New Listing:

Shares of Stanley Lifestyles closed at Rs 474 on the BSE, representing a premium of 28.46% as compared with the issue price of Rs 369.

The scrip was listed at Rs 499, exhibiting a 35.23% premium to the issue price.

The stock has hit a high of 510 and a low of 470.25. On the BSE, over 55.84 lakh shares of the company were traded in the counter.

IPO Update:

The initial public offer (IPO) of Vraj Iron and Steel received bids for 73,07,04,528 shares as against 61,38,462 shares on offer, according to stock exchange data at 17:00 IST on Friday (28 June 2024). The issue was subscribed 119.04 times.

The issue opened for bidding on Wednesday (26 June 2024) and it will close on Friday (28 June 2024). The price band of the IPO is fixed between Rs 195 to Rs 207 per share. An investor can bid for a minimum of 72 equity shares and in multiples thereof.

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