NIFTY SCALES ABOVE 24,250 MARK; FINANCIAL SERVICES SHARES IN DEMAND

The domestic equity indices traded with significant gains in morning trade. The Nifty scaled above the 24,250 mark. Financial services shares advanced after declining in the past trading session.

At 10:30 IST, the barometer index, the S&P BSE Sensex was up 518.59 points or 0.66% to 79,960.29. The Nifty 50 index gained 154.50 points or 0.64% to 24,278.35.

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 0.63% and the S&P BSE Small-Cap index jumped 0.79%.

The S&P BSE Small-Cap index hit an all-time high at 53,419.37.

The market breadth was strong. On the BSE, 2,358 shares rose and 1,220 shares fell. A total of 168 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.

New Listing:

Shares of Vraj Iron and Steel were currently trading at Rs 251.95 at 10:15 IST on the BSE, representing a premium of 21.71% as compared with the issue price of Rs 207.

The scrip was listed at Rs 240, exhibiting a 4.98% premium to the issue price.

So far, the stock has hit a high of 251.95 and a low of 240 On the BSE, over 2.51 lakh shares of the company were traded in the counter so far.

Buzzing Index:

The Nifty Financial Services index gained 1.79% to 23,922.60. The index shed 0.60% in the past trading session.

Power Finance Corporation (up 4.69%), REC (up 3.43%), HDFC Bank (up 3.14%), Axis Bank (up 1.89%), HDFC Asset Management Company (up 1.54%), LIC Housing Finance (up 1.47%), ICICI Bank (up 1.36%), ICICI Lombard General Insurance Company (up 1.23%), Kotak Mahindra Bank (up 1.16%) and Cholamandalam Investment & Finance Company (up 1.01%) advanced.

On the other hand, IDFC (down 0.48%), Muthoot Finance (down 0.16%) and Shriram Finance (down 0.11%) edged lower.

Stocks in Spotlight:

NTPC rose 0.43%. The company reported power generation up 9.5% year-on-year at 113.87 BU, and coal stations recorded a plant load factor of 79.5% at the end of Q1 FY 25

Hindustan Zinc added 0.39%. The company reported a 2% year-on-year increase in Mined metal production at 263 kt, Saleable metal output up 1% at 262 kt YoY, and silver output down 7% at 167 tonnes YoY.

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