INDICES WITNESS A GAP-DOWN OPENING MIRRORING GLOBAL MKTS

The key benchmark indices traded with deep cuts in early trade, tracking major sell-off in global markets. The Nifty traded below the 24,250 mark. All the sectoral indices on the NSE traded in red.

At 09:30 IST, the barometer index, the S&P BSE Sensex, was down 1,656.56 points or 2.08% to 79,301.38. The Nifty 50 index tumbled 504.05 points or 2.05% to 24,210.65.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index fell 3.23% and the S&P BSE Small-Cap index slipped 3.90%.

The market breadth was weak. On the BSE, 450 shares rose and 2,591 shares fell. A total of 136 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 3,310.00 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,965.94 crore in the Indian equity market on 2 August 2024, provisional data showed.

Economy:

India`s forex reserves decline by $3.471 billion to $667.386 billion

India�s foreign exchange reserves registered a decline of $3.471 billion, reaching $667.386 billion during the week ended July 26, according to the latest data from the Reserve Bank of India (RBI).

Foreign currency assets saw a reduction of $1.171 billion, bringing the total to $586.877 billion.

Gold reserves fell by $2.297 billion to $57.695 billion during the week. Special drawing rights (SDRs) decreased by $5 million to $18.202 billion.

India�s reserve position with the International Monetary Fund (IMF) saw a modest increase of $2 million, reaching $4.612 billion in the reporting week.

Stocks in Spotlight:

State Bank of India declined 3.24%. The bank�s standalone net profit rose marginally to Rs 17,035.16 crore in Q1 FY25 as against Rs 16,884.29 crore posted in Q1 FY24. Total income increased 13.56% year on year (YoY) to Rs 1,22,687.85 crore in the quarter ended 30 June 2024.

Titan Company fell 3.22%. The company reported standalone net profit declined marginally to Rs 770 crore in Q1 FY25 as against Rs 777 crore posted in Q1 FY24. Revenue from operations jumped 9.92% year on year (YoY) to Rs 11,105 crore in the quarter ended 30 June 2024.

Glaxosmithkline Pharmaceuticals slipped 1.61%. The company�s standalone net profit jumped 39.11% to Rs 181.65 crore in Q1 FY25 as compared to Rs 130.58 crore posted in Q1 FY24. Revenue from operations grew by 9.89% year on year (YoY) to Rs 811 crore during the quarter ended June 2024.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper was up 1.09% to 6.975 as compared with previous close 6.900.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.7750, compared with its close of 83.7250 during the previous trading session.

MCX Gold futures for 4 October 2024 settlement declined 0.25% to Rs 70,082.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.25% to 102.95.

The United States 10-year bond yield fell 0.50% to 3.770.

In the commodities market, Brent crude for September 2024 settlement added 29 cents or 0.38% to $77.10 a barrel.

Global Markets:

Asian markets plunged on Monday as fears of a deepening US recession gripped investors worldwide. Concerns that the Federal Reserve may be lagging in cutting interest rates exacerbated the sell-off.

Japan bore the brunt of the decline, with the Nikkei 225 and Topix indices plummeting as much as 7% in volatile trading.

The Reserve Bank of Australia is set to announce its interest rate decision today.

A weaker-than-expected US jobs report for July fueled recession fears, sending US stocks tumbling on Friday. The S&P 500 dropped 1.84%, the Nasdaq Composite lost 2.43%, and the Dow Jones Industrial Average fell 1.51%.

The report revealed that US nonfarm payrolls increased by only 114,000 in July, one of the weakest figures since the pandemic. Job growth was revised downward for the previous two months. The unemployment rate unexpectedly rose to 4.3%, surpassing the Federal Reserve�s year-end forecast and triggering a recession warning.

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