NIFTY SLIDES BELOW 24,800; EUROPEAN MKT OPENS LOWER

The key equity benchmarks traded with major cuts in afternoon trade. The Nifty traded below the 24,800 level. Pharma, healthcare and financial services stocks advanced while realty, auto and metal shares declined.

At 13:30 IST, the barometer index, the S&P BSE Sensex declined 736.61 points or 0.90% to 81,126.70. The Nifty 50 index slipped 232.55 points or 0.93% to 24,778.35.

In the broader market, the S&P BSE Mid-Cap index declined 0.83% and the S&P BSE Small-Cap index fell 0.32%.

The market breadth was negative. On the BSE, 1,665 shares rose and 2,165 shares fell. A total of 123 shares were unchanged.

Gainers & Losers:

HDFC Bank (up 1.56%), Divi`s Laboratories (up 1.17%), Nestle India (up 0.87%), Kotak Mahindra Bank (up 0.77%) and Shriram Finance (up 0.75%) were major Nifty gainers.

Eicher Motors (down 5.52%), Tata Motors (down 3.91%), Maruti Suzuki India (down 3.56%), Mahindra And Mahindra (down 3.14%) and Tata Steel (down 3.04%) were major Nifty losers.

Eicher Motors tumbled 5.52% the company reported total motorcycle sales of 67,265 units in July 2024, which is lower by 8% as compared with the same period last year.

Tata Motors fell 3.91%. The company`s consolidated net profit jumped 73.77% to Rs 5,566 crore on 5.68% rise in total revenue from operations to Rs 1,08,048 crore in Q1 FY25 over Q1 FY24.

Meanwhile, the car maker�s board has approved a composite scheme of arrangement amongst Tata Motors (TML), TML Commercial Vehicles (TMLCV), Tata Motors Passenger Vehicles (TMPV). As a part of the scheme, TML will demerge its CV undertaking involving the CV business and all its related investments into TMLCV. Further, the existing PV business in TMPV, will be merged into TML, the existing listed entity.

Upon the scheme becoming effective, both TMLCV and TML will be renamed, resulting in two separate listed entities: The Commercial Vehicle business and its related investments, under the name TML, and The Passenger Vehicle business, the Electric Vehicle (TPEM) business, JLR and their related investments, under the name TMPV.

Pursuant to the scheme, shareholders of TML will receive 1 share of TMLCV of face value Rs 2 for every 1 share of Rs 2 held in TML of the same class. The scheme is subject to all the necessary shareholder, creditor and regulatory approvals which can take around 12-15 months to complete stated TML.

Maruti Suzuki India slipped 3.56% after the company informed that its total sales declined 3.63% to 1,75,041 units in July 2024 as against 1,81,630 units sold in July 2023.

Meanwhile, the car manufacturer announced that its total production fell marginally to 1,85,641 units sold in July 2024 as compared with 1,86,654 units sold in July 2023.

IPO Update:

The initial public offer (IPO) of Ola Electric Mobility received 11,19,63,345 bids for shares as against 46,51,59,451 shares on offer, according to stock exchange data at 13:15 IST on Friday (02 August 2024). The issue was subscribed 0.24 times.

The issue opened for bidding on Friday (02 August 2024) and it will close on Tuesday (06 August 2024). The price band of the IPO is fixed between Rs 72 to Rs 76 per share. An investor can bid for a minimum of 195 equity shares and in multiples thereof.

The initial public offer (IPO) of Ceigall India received 2,08,72,588 bids for shares as against 2,23,13,663 shares on offer, according to stock exchange data at 13:15 IST on Friday (02 August 2024). The issue was subscribed 0.94 times.

The issue opened for bidding on Friday (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.

Stocks in Spotlight:

Hero MotoCorp fell 2.45% after the two-wheeler major sold 370,274 units of motorcycles and scooters in June 2024, which is lower by 5.38% as compared with sales of 391,310 units recorded in June 2023.

Kalyan Jewellers India declined 2.23%. The company�s consolidated net profit jumped 23.69% to Rs 1775.58 crore in Q1 FY25 as compared with Rs 1,435.52 crore posted in Q1 FY24. Revenue from operations increased 26.5% YoY to Rs 55,354.79 crore in Q1 FY25.

Godrej Agrovet rose 0.70%. The company�s consolidated net profit jumped 22.93% to Rs 131.63 crore in Q1 FY25 as against Rs 107.08 crore posted in Q1 FY24. Total revenue from operations declined 6.35% year on year to Rs 2,350.75 crore in the quarter ended 30 June 2024.

Alembic Pharmaceuticals added 1.40% after the company said that it has received final approval from the US Food & Drug Administration (US FDA) for its abbreviated new drug application (ANDA) for Nelarabine Injection.

Global Markets:

European and Asian stocks tumbled on Friday, pressured by a confluence of negative factors including a selloff in Japan, a global tech rout, and worries about the US economy.

Japanese stocks plunged for a second day on expectations of tighter monetary policy in the country.

U.S. stocks opened August significantly lower after economic data raised concerns about a slowing economy despite the Federal Reserve`s restrictive monetary stance.

Weekly unemployment claims reached a near-one-year high, and US manufacturing activity contracted to an eight-month low in July due to a decline in new orders (data from Aug 1).

The tech sector`s losses stemmed from underwhelming earnings reports or outlooks from industry leaders like Intel and Amazon. Investor focus now shifts to the crucial monthly jobs report, due later on Friday.

Geopolitical tensions added another layer of uncertainty. The recent Israeli airstrikes in Gaza, reportedly killing both Hamas` military and political leaders, further dampened market sentiment.

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