NIFTY HITS RECORD HIGH, ENDS ABOVE 23,300, BANKS CLIMB

Domestic stocks rose on Wednesday, led by gains in banks and financial stocks. The Nifty 50 settled above the 23,300 mark. All eyes now turn to US inflation data and the Federal Reserve meeting outcome, both slated today, which could steer the direction of global markets.

The S&P BSE Sensex rose 149.98 points or 0.20% to 76,606.57. The Nifty 50 index climbed 58.10 points or 0.25% to 23,322.95.

The Nifty 50 index reaching a new all-time high of 23,441.95 in mid-morning trade. The Nifty Bank index tested the 50,000 level but failed to hold on to it, though it still ended positive.

Bajaj Finance (up 1.18%), HDFC Bank (up 0.58%) and Reliance Industries (up 0.43%) boosted the indices.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index rose 1.07% and the S&P BSE Small-Cap index gained 1.06%. Both the indices hit their all-time highs today.

The market breadth was strong. On the BSE, 2554 shares rose and 1336 shares fell. A total of 101 shares were unchanged.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, declined 2.55% to 14.39.

Economy:

The World Bank predicts India will remain the fastest-growing major economy despite a projected slowdown. After a strong 8.2% growth in FY2023/24, the economy is expected to average 6.7% growth annually over the next three years. This moderation is mainly due to a decrease in investment growth, although it will still be higher than previously anticipated. The Indian economy is fueled by strong performance in manufacturing, construction, and services, which offset a slowdown in agriculture. Consumer spending is expected to rise as agricultural production recovers and inflation dips.

Numbers to Track:

The yield on India`s 10-year benchmark federal shed 0.06% to 7.010 as compared with previous close 7.014.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.5650, compared with its close of 83.5950 during the previous trading session.

MCX Gold futures for 5 August 2024 settlement rose 0.05% to Rs 71,525.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.04% to 105.19.

The United States 10-year bond yield declined 0.05% to 4.401.

In the commodities market, Brent crude for August 2024 settlement gained 85 cents or 1.04% to $82.77 a barrel.

Global Markets:

European stocks advanced while Asian stocks ended mixed on Wednesday as jitters from US inflation data and the upcoming Federal Reserve decision weighed on markets. The Fed`s monetary policy remains a key concern for Asian investors, even with Southeast Asian currencies facing important support levels.

Despite US indices closing at record highs on Tuesday, fueled by Apple`s surge, investor focus shifted to today`s events. The release of May`s Consumer Price Index (CPI) and the Federal Reserve interest rate decision on Wednesday are crucial factors shaping market sentiment. The Fed is expected to maintain current interest rates, which are at a two-decade high.

The S&P 500 gained 0.3% and the Nasdaq jumped 0.9% on Tuesday, with Apple reaching an all-time high. The Dow Jones, however, shed 0.3%.

IPO Update:

The initial public offer (IPO) of Le Travenues Technology (Ixigo) received 4,29,36,19,162 bids for shares as against 4,37,69,494 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (12 June 2024). The issue was subscribed 98.10 times.

The issue opened for bidding on Monday (10 June 2024) and it will close on Wednesday (12 June 2024). The price band of the IPO is fixed at Rs 88 to 93 per share. An investor can bid for a minimum of 161 equity shares and in multiples thereof.

Stocks in Spotlight:

TVS Supply Chain Solutions rallied 4.87% after the company announced that it has secured a new 5-year strategic contract with Daimler Truck South East Asia for providing integrated supply chain solutions (ISCS) service in Singapore.

HCL Technologies rose 0.48%. The IT giant signed a $278 million deal with Germany�s largest cooperative primary bank, apoBank for 7.5 years.

Rites rose 1.06%. The firm signed a memorandum of understanding (MoU) with the Eastern Railway�s Andal Diesel Shed, Asansol division in West Bengal for Loco maintenance.

Gujarat Fluorochemicals (GFCL) rose 0.74%. The company`s wholly-owned subsidiary, GFCL EV Products has incorporated GFCL EV (FZC) SPC in Sultanate of Oman.

AGS Transact Technologies advanced 6.52% after the company commenced deployment of 1,350 ATMs, for order received from State Bank of India (SBI) under its banking automation solutions portfolio.

NLC India rose 0.8%. The company said that CRISIL Ratings reaffirmed its `CRISIL AAA` rating on the non-convertible debentures and long-term bank facilities of the company with `stable` outlook.

Bhandari Hosiery Exports soared 16.69% after the firm fixed Wednesday, 19 June 2024, as the record date for the purpose of determining names of the shareholders eligible to apply for the equity shares in the rights issue of the company.

Go Digit General Insurance rose 1% after the company�s consolidated net profit surged to 53 crore in Q4 FY24 as compared with Rs 26 crore in corresponding quarter last year. Revenue from operations jumped 71.98% YoY to Rs 2,692.50 crore in Q4 FY24.

Dollar Industries shed 0.34%. The company announced plan to open 50 exclusive brand outlets across South India by 2027 and aims 50% sales growth in South India in 2024-25.

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