MAKET TURNS RANGEBOUND; PRIVATE BANK SHARES ADVANCE

The benchmark indices traded with modest gains in mid-morning trade. The Nifty hovers above the 24,250 mark. Private bank shares advanced after declining in the past trading session.

At 11:30 IST, the barometer index, the S&P BSE Sensex was up 402.92 points or 0.50% to 79,844.35. The Nifty 50 index gained 132.85 points or 0.55% to 24,256.70.

The Sensex and Nifty clocked an all-time high of 80,074.3 and 24,307.25, respectively in early trade. Nifty Bank also hits record high at 53,256.70 in morning trade.

In the broader market, the S&P BSE Mid-Cap index rose 0.42% and the S&P BSE Small-Cap index jumped 0.79%.

The S&P BSE Small-Cap index hit an all-time high at 53,456.34.

The market breadth was strong. On the BSE, 2,371 shares rose and 1,370 shares fell. A total of 128 shares were unchanged.

Economy:

Rising from 60.2 in May to 60.5 in June, the seasonally adjusted HSBC India Services Business Activity Index pointed to a sharp expansion in output. Demand strength and rising intakes of new business were cited as the key determinants of growth.

Supporting the upturn in total new business was a record expansion in international orders. Asia, Australia, Europe, Latin America, the Middle East and the US were all cited as sources of new work from abroad.

Pranjul Bhandari, Chief India Economist at HSBC, said: �Activity growth in India�s service sector accelerated in June, with the index rising by 0.3ppt to 60.5, led by an increase in both domestic and international new orders. Overall, service providers remain confident about the yearahead business outlook, although the level of optimism moderated sharply during the month. The Composite PMI also accelerated in June, supported by greater inflows of new orders. Manufacturing firms contributed more to the expansion than services firms.�

The HSBC India Composite Output Index recovered from 60.5 in the previous month to 60.9, highlighting a sharp rate of expansion that was considerably above the long-run series average. Manufacturing led the rise for the fifth straight month.

Supporting the stronger increase in output were faster expansions in new business at both goods producers and service providers. Aggregate sales rose sharply, helped by a near-record upturn in exports.

IPO Update:

The initial public offer (IPO) of Bansal Wire Industries received 1,02,34,158 bids for shares as against 2,14,60,906 shares on offer, according to stock exchange data at 11:15 IST on Wednesday (03 July 2024). The issue was subscribed 0.48 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.

The initial public offer (IPO) of Emcure Pharmaceuticals received 47,96,792 bids for shares as against 1,37,03,538 shares on offer, according to stock exchange data at 11:15 IST on Wednesday (03 july 2024). The issue was subscribed 0.35 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.

Buzzing Index:

The Nifty Private Bank Index gained 1.85% to 26,459.90. The index declined 0.93% in the past trading session.

Federal Bank (up 3.5%), HDFC Bank (up 3.42%), RBL Bank (up 2.79%), Axis Bank (up 2.11%), City Union Bank (up 1.62%), Bandhan Bank (up 1.45%), ICICI Bank (up 1.26%), Kotak Mahindra Bank (up 1.22%), IDFC First Bank (up 0.99%) and IndusInd Bank (up 0.56%) advanced.

Stocks in Spotlight :

Avenue Supermarts (DMart) rose 0.12%. On Tuesday the company announced that the total number of DMart stores as of 30 June 2024 stood at 371.

KEC International rallied 4.89% after the civil construction firm bagged new orders worth Rs 1,017 crore in transmission & distribution (T&D) and renewable businesses.

Puravankara added 0.75%. The company announced the acquisition of a 7.26-acre land parcel in Hebbagodi, Bengaluru.

Global Markets:

Asian stocks advanced 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.

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