INDICES TRADE WITH MINOR LOSSES; PSU BANK SHARES DECLINE

The frontline indices traded with small losses in mid-morning trade. The Nifty traded below the 24,300 level after hitting the day`s high of 24,338.85 in early trade. PSU bank shares declined after advancing in the previous three consecutive trading sessions.

At 11:30 IST, the barometer index, the S&P BSE Sensex was down 110.33 points or 0.14% to 79,891.81. The Nifty 50 index lost 34.25 points or 0.14% to 24,289.60.

In the broader, the S&P BSE Mid-Cap index rose 0.01% and the S&P BSE Small-Cap index shed 0.05%.

The market breadth was negative. On the BSE, 1,749 shares rose and 2,117 shares fell. A total of 146 shares were unchanged.

Buzzing Index:

The Nifty PSU Bank index shed 0.92% to 7,289.10. The index added 2.49% in the past three consecutive trading sessions.

Bank of Baroda (down 2.85%), Indian Bank (down 1.09%), UCO Bank (down 0.92%), Punjab & Sind Bank (down 0.85%), Union Bank of India (down 0.84%), Canara Bank (down 0.82%), Bank of Maharashtra (down 0.72%), Indian Overseas Bank (down 0.65%), Central Bank of India (down 0.55%) and Punjab National Bank (down 0.25%) edged lower.

Stocks in Spotlight:

Titan Company slipped 3.95%. The Tata Group company on Friday announced that it has a revenue growth of 9% year on year (YoY) for the quarter ended 30 June 2024.

KPI Green Energy added 3.03% after the company signed a power purchase agreement (PPA) for a 50MW Solar-Wind Hybrid Power Project with Gujarat Urja Vikas Nigam (GUVNL).

AU Small Finance Bank fell 3.20%. The bank has recorded 4.9% rise in gross advances to Rs 90,700 crore as on 30 June 2024 as compared with Rs 86,478 crore as on 31 March 2024.

Global Markets:

Asian stocks declined on Monday, with China leading the decline. Investor concerns swirled around a potential trade war with the West, fueled by the EU`s tariffs on Chinese electric vehicles mirroring similar US actions. This escalation heightened fears of a wider conflict and retaliation from China. Additionally, disappointing economic data from Japan and Australia dampened overall sentiment.

In stark contrast, US stocks soared on Friday, reaching record highs. Investors interpreted a weaker-than-expected jobs report as a sign of potential future interest rate cuts from the Federal Reserve. The S&P 500 and Nasdaq both closed at all-time highs, while the Dow Jones also gained slightly.

The US economy added 206,000 new nonfarm jobs in June, exceeding economist expectations. However, the unemployment rate rose slightly to 4.1%, which was unexpected. All eyes are now on Fed Chair Jerome Powell`s comments and key inflation data this week for further clues on the direction of US monetary policy.

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