SENSEX, NIFTY OPEN AT NEW LIFE HIGHS; BREADTH STRONG

The key benchmark indices traded with decent gains in early trade. The Nifty traded above the 24,900 level. Metal, media, IT shares advanced while private bank, FMCG and bank shares declined.

At 09:28 IST, the barometer index, the S&P BSE Sensex, was up 366.87 points or 0.42% to 81,699.59. The Nifty 50 index advanced 96.05 points or 0.39% to 24,930.90.

The Sensex and Nifty clocked an all-time high of 81,749.34 and 24,980.45, respectively in early trade.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index added 0.66% and the S&P BSE Small-Cap index gained 1.24%.

The market breadth was strong. On the BSE, 2,455 shares rose and 726 shares fell. A total of 121 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 2,546.38 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,774.31 crore in the Indian equity market on 26 July 2024, provisional data showed.

Economy:

India�s forex reserves jumped by $4.00 billion to hit an all-time high of $670.86 billion as of July 19, data shared by the Reserve Bank of India (RBI) showed on Friday.

According to the Weekly Statistical Supplement released by the RBI, Foreign currency assets (FCAs) increased by $2.57 billion to $588.05 billion.

Gold reserves expanded by $1.32 billion to $59.99 billion, whereas SDRs were up by $95 million to $18.20 billion.

Reserve position in the IMF was remained unchanged at $4.60 billion.

Numbers to Track:

The yield on India`s 10-year benchmark federal advanced 1.59% to 7.050 as compared with previous close 6.940.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.7150, compared with its close of 83.7350 during the previous trading session.

MCX Gold futures for 5 August 2024 settlement rose 0.41% to Rs 68,465.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.08% to 104.23.

The United States 10-year bond yield fell 0.43% to 4.183.

In the commodities market, Brent crude for September 2024 settlement added 24 cents or 0.30% to $80.52 a barrel.

Stocks in Spotlight:

ICICI Bank advanced 1.95% after the bank�s standalone net profit jumped 14.62% to Rs 11,059.11 crore on 18.66% rise in total income to Rs 45,997.70 crore in Q1 FY25 over Q1 FY24.

Power Grid Corporation of India shed 0.74%. The company reported 3.52% increase in consolidated net profit to Rs 3,723.92 crore in Q1 FY25 as compared with Rs 3,597.16 crore posted in corresponding quarter last year. Revenue from operations fell marginally to Rs 11,006.18 crore during the quarter as compared with Rs 11,048.13 crore posted in corresponding quarter last year.

IndusInd Bank rose 1.41% after the private lender`s standalone net profit rose marginally to Rs 2,152.16 crore in Q1 FY25 as against Rs 2123.62 crore reported in Q1 FY24. Total income grew by 15.83% year on year to Rs 14,988.02 crore in the quarter ended 30 June 2024.

Global Markets:

Asian stocks advanced on Monday, buoyed by hopes of potential interest rate cuts from the Federal Reserve. The battered technology sector led the gains as investors eagerly awaited the upcoming Fed meeting for clues on monetary policy.

However, Chinese markets underperformed regional peers. Sentiment towards China remained subdued ahead of crucial economic data releases this week. Additionally, lingering uncertainty about the next U.S. administration`s stance on Beijing weighed on investor confidence.

The positive momentum in Asia was fueled by a strong finish on Wall Street on Friday. Easing inflation concerns boosted expectations for eventual interest rate reductions. The Dow Jones Industrial Average surged 1.64%, the S&P 500 climbed 1.11%, and the Nasdaq Composite gained 1.03%. This upward movement was attributed to a combination of oversold conditions, a better-than-expected GDP report, and growing optimism about the Fed`s potential rate cuts.

Investors also digested the latest inflation data. The June Personal Consumption Expenditures (PCE) price index, the Fed`s preferred inflation gauge, rose 0.1% month-over-month and 2.5% year-over-year.

While the Fed is expected to maintain interest rates unchanged at its meeting on Wednesday, investors will closely monitor any hints about the timing of potential rate cuts, especially given recent encouraging comments from Fed officials.

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