INDICES HIT RECORD HIGHS, NIFTY ENDS ABOVE 23,700; PRIVATE BANKS RALLY

Domestic equity benchmarks soared to new highs today, buoyed by strong performances from private banks. The Sensex and Nifty both notched record closing levels, with the Nifty breaching the 23,700 mark. Pre-budget optimism and positive monsoon expectations boosted sentiment. However, some profit-taking weighed on realty, metals, and power stocks, highlighting sector rotation as the market navigates its upward climb.

The barometer index, the S&P BSE Sensex, was gained 712.44 points or 0.92% to 78,053.52. The Nifty 50 index rallied 183.45 points or 0.78% to 23,721.30.

The Sensex and Nifty clocked an all-time high of 78,164.71 and 23,754.15, respectively in late trade. Further, the Nifty Bank hit an all-time high of 52,746.50 in late trade.

Axis Bank (up 3.40%), ICICI Bank (up 2.48%), HDFC Bank (up 2.32%) and Reliance Industries (up 0.88%) boosted the indices.

In the broader market, the S&P BSE Mid-Cap index fell 0.26% and the S&P BSE Small-Cap index shed 0.03% after hitting an all-time high of 52,542.41 early today.

The market breadth was negative. On the BSE, 1747 shares rose and 2149 shares fell. A total of 104 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, added 1.18% to 14.13.

Economy:

India commenced a major telecom spectrum auction today, 25 June 2024. This auction offers a total of 10,522.35 MHz of spectrum across various bands, valued at Rs 96,238.45 crore at reserve prices. The spectrum licenses will be valid for 20 years, with the option for successful bidders to surrender them after a minimum of 10 years. To ease the financial burden, payments can be made in 20 equal annual installments with an interest rate of 8.65% that protects the Net Present Value (NPV) of the auction. This initiative aligns with the government`s commitment to fostering affordable, cutting-edge, and high-quality telecommunication services for all Indian citizens.

Numbers to Track:

The yield on India`s 10-year benchmark federal rose 0.16% to 6.982 as compared with previous close 6.971.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.4350, compared with its close of 83.4775 during the previous trading session.

MCX Gold futures for 5 August 2024 settlement added 0.08% to Rs 71,860.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.05% to 105.52.

The United States 10-year bond yield fell 0.50% to 4.228.

In the commodities market, Brent crude for August 2024 settlement lost 49 cents or 0.57% to $85.52 a barrel.

Global Markets:

European shares declined while Asian shares ended mixed on Tuesday, with investor eyes set on Friday`s crucial U.S. inflation data. The upcoming U.S. presidential debate on Thursday and the first French election round this weekend are also adding to the cautious sentiment, as investors weigh potential political impacts on their holdings.

Wall Street closed with mixed results overnight. The Nasdaq suffered a significant drop of over 1%, led by a 7% plunge in AI leader Nvidia. This decline suggests investors are shifting out of technology stocks for now. However, the Dow Jones bucked the trend, climbing 0.7% to reach a one-month high. The S&P 500 ended slightly lower, down 0.31%.

Stocks in Spotlight:

Amara Raja Energy & Mobility soared 19.40% after its subsidiary signed a technical licensing agreement with GIB EnergyX Slovakia s.r.o., a subsidiary of Gotion High-Tech Co. As part of the agreement GIB EnergyX will license Gotion`s LFP technology for lithium-ion cells to the Indian company.

Craftsman Automation surged 13.38% after the company announced that it has has entered into a memorandum of understanding (MoU) with Sunbeam Lightweighting Solutions Private (Sunbeam) and Kedaara Capital Fund II LLP (Kedaara).

Alkem Laboratories added 1.61% after the pharma company said that it has received the establishment inspection report (EIR) from the US drug regulator for its manufacturing facility in Baddi, Himachal Pradesh.

Cipla fell 0.26%. The company said that US Food and Drug Administration (USFDA) classified the inspection conducted at Patalganga, Maharashtra facility as Voluntary Action Indicated (VAI).

Balaxi Pharmaceuticals jumped 3.11% after the company said it tied up with about 50 hospitals in Angola and is working towards having tie-ups with more than 150 hospitals across the country. Separately, company entered into Latin American tender business, won tender worth $800,000 in a key Latin America market.

JSW Steel shed 0.47%. JSW Steel USA, a subsidiary of JSW Steel has planned to invest $110 million in steel plate mill modernization projects with sustainable technology and equipments within its manufacturing facilities in Baytown, Texas.

Bandhan Bank declined 1.95%. The bank said that the Reserve Bank of India has appointed Arun Kumar Singh as an additional director on the board of the bank, for a period of one year from 24 June 2024 to 23 June 2025 or till further orders, whichever is earlier. This action is typically interpreted as a step towards enhancing oversight of the bank`s operations.

AU Small Finance Bank rose 0.29%. The bank announced that the meeting of its board of directors will be held on 27 June 2024, to consider the proposal of raising of funds by issue of equity shares.

RBL Bank shed 0.60%. The bank announced that its board will consider the proposal of raising of funds on 27 June 2024, through qualified institutional placement (QIP).

Shilpa Medicare declined 1.58%. The company announced that its facility in Nacharam, Hyderabad, Telangana was inspected by US Food & Drug Administration (US FDA) from 26 Feb 2024 to 1 March 2024.

Jubilant Pharmova fell 0.36%. The company announced that its subsidiary, Jubilant Pharma Holdings Inc., USA (JPHI) has completed the voluntary prepayment of $75 million term loan, equivalent to Rs 626 crore.

IPO Update:

The initial public offer (IPO) of Allied Blenders and Distillers received 2,01,69,680 for shares as against 3,93,71,669 shares on offer, according to stock exchange data at 17:00 IST on Tuesday (25 June 2024). The issue was subscribed 51%.

The issue opened for bidding on Tuesday (25 June 2024) and it will close on Thursday (27 June 2024). The price band of the IPO is fixed between Rs 267 to Rs 281 per share. An investor can bid for a minimum of 53 equity shares and in multiples thereof.

Stanley Lifestyles` IPO received 98,60,64,840 for shares as against 1,02,41,507 shares on offer, according to stock exchange data at 17:00 IST on Tuesday (25 June 2024). The issue was subscribed 96.28 times.

The issue opened for bidding on Friday (21 June 2024) and it will close on Tueday (25 June 2024). The price band of the IPO is fixed between Rs 351 to Rs 369 per share. An investor can bid for a minimum of 40 equity shares and in multiples thereof.

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