MARKET TURNS RANGEBOUND; REALTY SHARES SLIDES

The headline equity indices traded in narrow range with moderate gains in mid-morning trade. The Nifty hovered above the 25,000 level. Realty shares extended losses for the second consecutive trading session. Trading could be volatile due to weekly F&O series expiry today.

At 11:28 IST, the barometer index, the S&P BSE Sensex, was up 140.64 points or 0.18% to 81,889.74. The Nifty 50 index rose 72.45 points or 0.29% to 25,023.60.

The Sensex and Nifty clocked an all-time high of 82,129.49 and 25,078.30, respectively in early trade.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index shed 0.08% and the S&P BSE Small-Cap index added 0.05%. The S&P BSE Mid-Cap index hit an all-time high at 48,840.75.

The market breadth was positive. On the BSE, 1,943 shares rose and 1,832 shares fell. A total of 131 shares were unchanged.

Economy:

India`s manufacturing sector continued to post impressive growth in July, despite slightly softer increases in new orders and output. Key positive developments seen in the latest results included one of the fastest expansions in international sales for over 13 years and another robust round of job creation. That said, buoyant demand also exerted pressure on prices.

Input costs rose at one of the quickest rates in nearly two years, which contributed to the steepest increase in selling prices since October 2013. At 58.1 in July, the seasonally adjusted HSBC India Manufacturing Purchasing Managers� Index (PMI) was little changed from 58.3 in June and indicated a substantial improvement in the health of the sector. The latest reading was above the series long-run average and one of the highest seen in recent years.

IPO Update:

The initial public offer (IPO) of Ceigall India received 35,80,675 bids for shares as against 2,23,13,663 shares on offer, according to stock exchange data at 11:15 IST on Thursday (01 August 2024). The issue was subscribed 0.16 times.

The issue opened for bidding on Thursday (01 August 2024) and it will close on Monday (05 August 2024). The price band of the IPO is fixed between Rs 380 to Rs 401 per share. An investor can bid for a minimum of 37 equity shares and in multiples thereof.

The initial public offer (IPO) of Akums Drugs and Pharmaceuticals received 10,85,53,478 bids for shares as against 1,51,62,239 shares on offer, according to stock exchange data at 11:15 IST on Thursday (01 August 2024). The issue was subscribed 7.16 times.

The issue opened for bidding on Tuesday (30 July 2024) and it will close on Thursday (01 August 2024). The price band of the IPO is fixed between Rs 646 to Rs 679 per share. An investor can bid for a minimum of 22 equity shares and in multiples thereof.

Buzzing Index:

The Nifty Realty index slipped 1.18% to 1,080.80. The index fell 1.54% in two consecutive trading sessions.

Prestige Estates Projects (down 2.07%), Macrotech Developers (down 2.05%), Phoenix Mills (down 2.01%), Godrej Properties (down 1.55%), Oberoi Realty (down 1.14%), Sobha (down 0.79%), Sunteck Realty (down 0.33%) and DLF (down 0.12%) declined.

On the other hand, Mahindra Lifespace Developers (up 0.91%) and Brigade Enterprises (up 0.48%) edged higher.

Stocks in Spotlight:

Tata Motors shed 0.90%. The car major�s total domestic sales for July 2024 stood at 70,161 vehicles, registering de-growth of 11% compared to 78,844 units in July 2023.

GE T&D India hit an upper circuit of 5% after the company�s standalone net profit surged to Rs 134.54 crore during the quarter as compared with Rs 28.24 crore posted in corresponding quarter last year. Revenue from operations jumped 33.55% to Rs 958.34 crore in Q1 FY25 as compared with Rs 717.57 crore posted in Q1 FY24.

Global Markets:

Most Asian stocks declined on Thursday, led by a sharp decline in Japan after the Bank of Japan signaled further interest rate hikes. China`s market rebound also faltered as disappointing business activity data dampened investor sentiment.

Caixin purchasing managers index data on Thursday showed an unexpected contraction in China�s manufacturing sector. The reading came just a day after government PMI data showed a similar trend. The Caixin/S&P Global manufacturing purchasing managers� index (PMI) fell to 49.8 in July from 51.8 the previous month, the lowest reading since October.

The region largely ignored a strong rally on Wall Street, where optimism about a potential September interest rate cut from the Federal Reserve and robust tech earnings boosted investor confidence.

The Dow Jones Industrial Average rose 0.24%, the S&P 500 gained 1.58% and the Nasdaq Composite advanced 2.64%. The Federal Reserve held interest rates steady in the 5.25%-5.50% range on Wednesday but hinted at a possible rate cut in September if inflation cools down.

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