MARKET OPENS ON A FIRM NOTE; BREADTH STRONG

The domestic equity benchmarks traded with moderate gains in early trade. The Nifty traded above the 24,900 level. Oil & gas, metal and healthcare shares advanced while realty, PSU bank and IT shares declined.

At 09:28 IST, the barometer index, the S&P BSE Sensex, was up 174.22 points or 0.24% to 81,629.62. The Nifty 50 index rose 53.35 points or 0.21% to 24,910.65.

In the broader market, the S&P BSE Mid-Cap index added 0.34% and the S&P BSE Small-Cap index added 0.16%.

The S&P BSE Mid-Cap and S&P BSE Small-Cap index hit an all-time high at 48,485.82 and 55,685.07, respectively.

The market breadth was strong. On the BSE, 1,911 shares rose and 1,054 shares fell. A total of 143 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 5,598.64 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 5,565.10 crore in the Indian equity market on 30 July 2024, provisional data showed.

Sebi proposes stricter rules for index derivatives:

The market regulator is looking to curb speculation, protect investors, and stabilize the market by introducing measures like upfront option premiums, increased contract sizes, and restrictions on weekly index products.

Numbers to Track:

The yield on India`s 10-year benchmark federal advanced 1.63% to 7.044 as compared with previous close 7.050.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.7075, compared with its close of 83.7300 during the previous trading session.

MCX Gold futures for 5 August 2024 settlement rose 0.86% to Rs 68,203.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.17% to 104.38.

The United States 10-year bond yield added 0.05% to 4.143.

In the commodities market, Brent crude for September 2024 settlement gained $1.10 or 1.41% to $79.17 a barrel.

Stocks in Spotlight:

Tata Consumer Products slipped 1.64% after the company�s consolidated net profit declined 8.3% to Rs 290.32 crore in Q1 FY25 as against Rs 316.59 crore recorded in Q1 FY24. However, revenue from operations jumped 16.33% to Rs 4,352.07 crore in the quarter ended 30 June 2024. The net profit declined on account of higher exceptional items and lower share of profits from associates and joint ventures.

Torrent Power rallied 5.46% after the company�s consolidated net profit jumped 87.2% to Rs 996 crore in Q1 FY25 as compared with Rs 532 crore in Q1 FY24. Revenue increased 23.3% YoY to Rs 9,034 crore in Q1 FY25.

Macrotech Developers rose 0.90%. The company�s consolidated revenue jumped 76% to Rs 2,847 crore as compared with Rs 1,617 crore posted in Q1 FY24. Net profit spurted to Rs 476 crore in Q1 FY25 from Rs 179 crore posted in Q1 FY24.

Global Markets:

Most Asian stocks advanced on Wednesday ahead of key interest rate decisions. Investor focus remained on central banks, with the US Fed`s and Bank of Japan`s decision due later in the day. While a rate hike is unlikely, markets anticipate signals of potential future cuts.

China`s manufacturing sector contracted for a third straight month in July, as indicated by the Purchasing Managers` Index (PMI) data. Manufacturing PMI fell to 49.4 in July, data from the National Bureau of Statistics showed. This reflects persistent weakness in domestic demand despite government support measures.

Australia`s inflation rate rose as expected in the second quarter, but a softer-than-anticipated core inflation figure increased bets on a pause in interest rate hikes by the Reserve Bank of Australia. CPI inflation grew 3.8% year-on-year in the three months to June 30, up from the 3.6% seen in the prior quarter.

US stocks declined on Tuesday, primarily due to a drop in Nvidia, ahead of the Fed meeting. The S&P 500 fell by 0.5% while the tech-heavy Nasdaq Composite dropped roughly 1.3%. The Dow Jones Industrial Average rose 0.5%.

Market expectations are for the Fed to maintain interest rates on Wednesday but to signal a potential rate cut in September. This outlook is driven by encouraging inflation data.

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