MARKET DRIFTS LOWER; SENSEX SLIDES 270 PTS; BREADTH NEGATIVE

The key equity indices traded with modest losses in early trade. The Nifty traded below 23,250 mark. FMCG and Consumer durables stocks advanced while PSU bank, metal and realty shares declined.

At 09:30 IST, the barometer index, the S&P BSE Sensex, was down 270.14 points or 0.35% to 76,939.76. The Nifty 50 index lost 91.80 points or 0.39% to 23,399.90.

In the broader market, the S&P BSE Mid-Cap index declined 0.58% and the S&P BSE Small-Cap index shed 0.03%.

The market breadth was negative. On the BSE, 1,440 shares rose and 1,655 shares fell. A total of 146 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,790.19 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,237.21 crore in the Indian equity market on 21 June 2024, provisional data showed.

Economy:

After hitting all-time high levels following continuous gains, India�s foreign exchange (forex) reserves fell $2.922 billion to $652.895 billion during the week ended June 14, according to the latest data from the Reserve Bank of India (RBI).

This decline follows a significant increase of $4.307 billion in the previous reporting week, which pushed the reserves to a record high of $655.817 billion after several consecutive weeks of gains.

The decrease in forex reserves was primarily driven by a reduction in foreign currency assets, which are a major component of the reserves. These assets fell by $2.097 billion, bringing the total to $574.24 billion.

Gold reserves also saw a decrease, dropping by $1.015 billion to $55.967 billion during the week. Meanwhile, the special drawing rights (SDRs) were down by $54 million, amounting to $18.107 billion. In contrast, India�s reserve position with the International Monetary Fund (IMF) increased by $245 million, reaching $4.581 billion.

Stocks in Spotlight:

Garden Reach Shipbuilders & Engineers jumped 6.74% to Rs 1,756 after the company said that it has signed an agreement with Carsten Rehder Schiffsmakler and Reederei GmbH & Co., KG Germany for the construction and delivery of 4 Multi purpouse vessels of 7,500 DWT each.

Prestige Estates Projects shed 0.72% to Rs 1,976.45. The company�s board approved raising up to Rs 5,000 crore via QIP.

TVS Motor Company rose 0.36% to Rs 2,442.95. The company signed a pact with CSC Grameen eSTORES for a commercial vehicle range.

Numbers to Track:

The yield on India`s 10-year benchmark federal shed 0.01% to 6.972 as compared with previous close 6.973.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.4900, compared with its close of 83.5700 during the previous trading session.

MCX Gold futures for 5 August 2024 settlement rose 0.11% to Rs 71,660.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.01% to 105.81.

The United States 10-year bond yield declined 0.14% to 4.252.

In the commodities market, Brent crude for August 2024 settlement lost 5 cents or 0.06% to $85.19 a barrel.

Global Markets:

Asian stocks traded lower on Monday, with Chinese markets leading the decline. This drop was fueled by concerns of a potential trade war with the European Union.

The European Union`s decision earlier in June to impose hefty tariffs on Chinese electric vehicles sparked tensions. Beijing reacted strongly, raising the possibility of a retaliatory trade war. Reports also suggested that China might impose tariffs on European automobiles in response.

In the US, the S&P 500 closed slightly lower on Friday, extending a two-day decline for tech giant Nvidia. The broad market index fell 0.16% to finish at 5,464.62, while the Nasdaq Composite dipped 0.18% to settle at 17,689.36. The Dow Jones Industrial Average edged up 15.57 points, or 0.04% to close at 39,150.33.

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