SENSEX, NIFTY HITS NEW RECORD HIGH IN EARLY TRADE; BREADTH STRONG

The equity benchmarks indices traded with substantial gains in early trade. The Nifty traded above the 24,200 level. Barring the Nifty IT index, all the other sectoral indices on the NSE were traded in green.

At 09:30 IST, the barometer index, the S&P BSE Sensex was up 366.17 points or 0.48% to 79,807.62. The Nifty 50 index gained 118.05 points or 0.49% to 24,241.90.

The Sensex and Nifty clocked an all-time high of 80,039.22 and 24,292.15, respectively in early trade.

In the broader market, the S&P BSE Mid-Cap index added 0.51% and the S&P BSE Small-Cap index rose 0.64%.

The S&P BSE Small-Cap index hit an all-time high at 53,398.75.

The market breadth was strong. On the BSE, 2,228 shares rose and 796 shares fell. A total of 107 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 2,000.12 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 648.25 crore in the Indian equity market on 2 July 2024, provisional data showed.

Stocks in Spotlight:

Piramal Enterprises rose 1.34% after the company announced that its board has approved the issuance of non-convertible debentures (NCDs) with a green shoe option aggregating to Rs 180 crores on private placement basis.

Yes Bank added 1.22% after the bank�s loans and advances up 14.8% year-on-year at Rs 2.29 lakh crore, deposits up 20.8% year-on-year at Rs 2.64 lakh crore in the Q1 FY25. CASA ratio at 30.7% as against 30.9% QoQ.

Federal Bank rallied 3.83% after the bank reported 20% growth in gross advances to Rs 2,24,139 crore as on 30 June 2024 from Rs 1,86,593 crore as on 30 June 2023.

Numbers to Track:

The yield on India`s 10-year benchmark federal shed 0.09% to 7.003 as compared with previous close 7.009.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.5275, compared with its close of 83.4800 during the previous trading session.

MCX Gold futures for 5 August 2024 settlement gained 0.32% to Rs 71,780.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.01% to 105.71.

The United States 10-year bond yield fell 0.09% to 4.430.

In the commodities market, Brent crude for September 2024 settlement gained 48 cents or 0.56% to $ 86.72 a barrel.

Global Markets:

Most Asian stocks advanced on Wednesday as investors weighed the possibility of interest rate cuts by the Federal Reserve. This follows comments from Jerome Powell, Chair of the Fed, suggesting recent economic data, including a slowdown in China`s service sector, points towards disinflation.

China`s Caixin Services PMI for June came in at 51.2, down from 54.0 in May. While still indicating expansion, the pace of growth has weakened.

US stocks continued their upward climb on Tuesday. Investors reacted positively to Powell`s comments regarding the "disinflationary path" of the economy, despite data showing a higher-than-expected number of job openings in May (8.14 million). The S&P 500 closed above 5,500 for the first time ever, the Nasdaq Composite achieved a record close, and the Dow Jones Industrial Average also advanced.

While encouraged by cooler inflation, Powell emphasized the need for further evidence before the Fed cuts rates. He noted that recent inflation readings "suggest" a path towards disinflation, but caution is warranted.

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