INDICES SMASH RECORDS, NIFTY SETTLES AT 24,286.50; PRIVATE BANKS RALLY

Domestic shares surged today, with the Sensex breaching the historic 80,000 mark and the Nifty settling above 24,250. Private banks, led by HDFC Bank, emerged as major gainers. Positive sentiment stemmed from multiple factors, including the revival of monsoon rains, strong GST collections in June, a rebound in manufacturing PMI, and expectations of healthy corporate earnings for Q1. The upcoming budget, with its potential for expanded PLI schemes in various sectors, further fueled optimism. Strong global cues also aided the positive sentiment.

In the barometer index, the S&P BSE Sensex was up 545.35 points or 0.69% to 79,986.80. The Nifty 50 index gained 162.65 points or 0.67% to 24,286.50. Both these indices settled at record closing high levels.

The Sensex and Nifty clocked an all-time high of 80,074.30 and 24,309.15, respectively in today�s trade. Further, the Nifty Bank also hit a record high of 53,256.70 in morning trade.

In the broader market, the S&P BSE Mid-Cap index rose 0.86% and the S&P BSE Small-Cap index jumped 0.86%. Both these indices hit all-time highs today.

The market breadth was strong. On the BSE, 2,355 shares rose and 1,566 shares fell. A total of 100 shares were unchanged.

Economy:

The media reported that India`s Goods and Services Tax (GST) collection in June reached Rs 1.74 lakh crore, reflecting an 8% increase compared to June of the previous fiscal year.

The seasonally adjusted HSBC India Services Business Activity Index rose from 60.2 in May to 60.5, indicating a sharp expansion in output. The broader HSBC India Composite Output Index also climbed in June, reaching 60.9 from 60.5 in the previous month.

Numbers to Track:

The yield on India`s 10-year benchmark federal shed 0.11% to 7.001 as compared with previous close 7.009.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.5225, compared with its close of 83.4800 during the previous trading session.

MCX Gold futures for 5 August 2024 settlement gained 0.86% to Rs 72,171.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.06% to 105.66.

The United States 10-year bond yield declined 0.19% to 4.428.

In the commodities market, Brent crude for September 2024 settlement added 7 cent or 0.08% to $86.31 a barrel.

Global Markets:

European stocks advanced on Wednesday, as sentiment remains on edge ahead of two national parliamentary elections, with the U.K. heading to the polls on Thursday followed by France on Sunday.

Most Asian stocks ended higher on Wednesday as investors weighed the possibility of interest rate cuts by the Federal Reserve. This follows comments from Jerome Powell, Chair of the Fed, suggesting recent economic data, including a slowdown in China`s service sector, points towards disinflation.

China`s Caixin Services PMI for June came in at 51.2, down from 54.0 in May. While still indicating expansion, the pace of growth has weakened.

US stocks continued their upward climb on Tuesday. Investors reacted positively to Powell`s comments regarding the "disinflationary path" of the economy, despite data showing a higher-than-expected number of job openings in May (8.14 million). The S&P 500 closed above 5,500 for the first time ever, the Nasdaq Composite achieved a record close, and the Dow Jones Industrial Average also advanced.

While encouraged by cooler inflation, Powell emphasized the need for further evidence before the Fed cuts rates. He noted that recent inflation readings "suggest" a path towards disinflation, but caution is warranted.

Stocks in Spotlight:

HDFC Bank advanced 2.18% on speculation of a potential increase in its weightage within the MSCI index.

Federal Bank rallied 3.60% after the bank reported 20% growth in gross advances to Rs 2,24,139 crore as on 30 June 2024 from Rs 1,86,593 crore as on 30 June 2023.

Among other banks, Kotak Mahindra Bank (up 2.37%), Axis Bank (up 2.07%), IndusInd Bank (up 1.82%), State Bank of India (up 1.66%) and ICICI Bank (up 0.91%) surged.

NTPC rose 0.62%. The company informed that it has recorded a power generation of 113.87 million units in Q1 FY25, a growth of 9.5% as compared to the corresponding period of previous year.

Mahindra & Mahindra Financial Services rose 0.07%. The company informed that its overall disbursement increased 3% YoY to approximately Rs 4,370 crore in June 2024.

MOIL jumped 6.41% after the company achieved its best ever quarterly sales in April-June 2024, with a growth of 14.5% YoY.

Hindustan Zinc rallied 3.18% after the company announced that its mined metal production stood at 263,000 tonnes in Q1 FY25, registering a growth of 2% year on year (YoY) with improved mined metal grades.

Force Motors slipped 2.38% after the company registered 2.85% decline in total sales to 2,553 units in June 2024 as against 2,628 units sold in June 2023.

Yes Bank added 0.29%. The private lender reported 14.84% increase in loans & advances to Rs 2,29,920 crore as against Rs 2,00,204 crore as on 30 June 2023.

Piramal Enterprises rallied 4.28% after the company announced that its board has approved the issuance of non-convertible debentures (NCDs) with a green shoe option aggregating to Rs 180 crores on private placement basis.

KEC International advanced 2.04% after the civil construction firm bagged new orders worth Rs 1,017 crore in transmission & distribution (T&D) and renewable businesses.

Sundaram-Clayton zoomed 9.98% after the company`s board approved raising upto Rs 400 crore in one or more tranhces.

JSW Infrastructure added 0.46%. The company said that its subsidiary JSW Tuticorin Multipurpose Terminal has entered into a concession agreement with V.O. Chidambaranar Port Authority, Tamil Nadu.

Indian Energy Exchange (IEX) rose 0.14%. The company informed that it has achieved electricity volume of 10,185 million units (MU) in June 2024, registering a growth of 24.7% YoY basis.

New Listing:

Shares of Vraj Iron and Steel closed at Rs 251.95 on the BSE, representing a premium of 21.71% as compared with the issue price of Rs 207.

The scrip was listed at Rs 240, exhibiting a 4.98% premium to the issue price.

The stock has hit a high of 251.95 and a low of 240 On the BSE, over 2.86 lakh shares of the company were traded in the counter.

IPO Updates:

The initial public offer (IPO) of Emcure Pharmaceuticals received 1,80,25,840 bids for shares as against 1,37,03,538 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (03 july 2024). The issue was subscribed 1.32 times.

The issue opened for bidding on Wednesday (03 July 2024) and it will close on Friday (05 July 2024). The price band of the IPO is fixed between Rs 960 to Rs 1,008 per share. An investor can bid for a minimum of 14 equity shares and in multiples thereof.

Bansal Wire Industries` IPO received 3,77,76,154 bids for shares as against 2,14,60,906 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (03 July 2024). The issue was subscribed 1.76 times.

The issue opened for bidding on Wednesday (03 July 2024) and it will close on Friday (05 July 2024). The price band of the IPO is fixed between Rs 243 to Rs 256 per share. An investor can bid for a minimum of 58 equity shares and in multiples thereof.

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