SENSEX DROPS 693 PTS, NIFTY ENDS BELOW 24,150; HDFC BANK DROPS 3.5%

Domestic stocks tanked today, dragged lower by banks and financials. Weak IIP data, continued FII selling, and overvalued equities exacerbated losses. HDFC Bank declined after a softer-than-expected inflow due to a staggered MSCI index adjustment. While defensive sectors like consumer goods and healthcare showed resilience, overall market sentiment remains fragile ahead of crucial U.S. inflation data.

The S&P BSE Sensex dropped 692.89 points or 0.87% to 78,956.03. The Nifty 50 index slipped 208 points or 0.85% to 24,139.

HDFC Bank (down 3.46%), Bajaj Finance (down 2.15%) and Tata Motors (down 2.10%) were major drags.

In the broader market, the S&P BSE Mid-Cap index shed 0.98% and the S&P BSE Small-Cap index fell 1.16%.

The market breadth was weak. On the BSE, 1266 shares rose and 2676 shares fell. A total of 84 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, added 1.89% to 16.17.

Economy:

India�s CPI inflation in July 2024 stood at 3.54%, which is the lowest since August 2019, according to official data released on Monday, August 12. In the previous month of June 2024, India�s retail inflation had stood at 5.08%.

Meanwhile, India�s IIP recorded a growth of 4.2% in June 2024. The factory output, measured in terms of the Index of Industrial Production (IIP) witnessed a growth of 4% in June 2023.

Numbers to Track:

The yield on India`s 10-year benchmark federal grew 1.83% to 7.005 as compared with previous close 6.996.

In the foreign exchange market, the rupee edged lower higher the dollar. The partially convertible rupee was hovering at 83.9700, compared with its close of 83.9725 during the previous trading session.

MCX Gold futures for 5 October 2024 settlement shed 0.24% to Rs 70,568.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.06% to 103.20.

The United States 10-year bond yield added 0.15% to 3.916.

In the commodities market, Brent crude for October 2024 settlement lost 4 cent or 0.05% to $82.26 a barrel.

Global Markets:

European market declined while Asian stocks ended higher on Tuesday. Investors are keenly watching for the release of U.S. inflation data, which will offer clues about the Federal Reserve`s next interest rate move.

Wall Street closed with a mixed performance on Monday as traders prepared for a week packed with crucial economic indicators. The benchmark S&P 500 hugged the flat line while the tech-heavy Nasdaq Composite rose about 0.2%. Meanwhile, the Dow Jones Industrial Average dropped roughly 0.4%.

Stocks in Spotlight:

HDFC Bank fell 3.46% after MSCI`s decision to increase the bank`s weightage in two stages disappoints investors.

The downturn was triggered by investor dissatisfaction over the MSCI Global Standard Index`s decision to increase the bank`s weightage in two phases rather than a single step, along with a lower-than-anticipated weight change.

MSCI has outlined a two-stage process for enhancing HDFC Bank`s foreign inclusion factor (FIF), a metric representing the proportion of shares accessible to international investors. The first phase, elevating the FIF from 0.37 to 0.56, is scheduled for September 2, coinciding with the current rebalancing. The second phase, aiming for a FIF of 1, is slated for November, contingent on HDFC Bank maintaining a foreign portfolio investment (FPI) headroom exceeding 20%.

Vodafone Idea slipped 3.31% after the telecom service provider�s consolidated net loss narrowed to Rs 6,432.1 crore in Q1 FY25 as compared with Rs 7,840 crore reported in Q1 FY24. Revenue from operations decline marginally to Rs 10,508.3 crore in Q1 FY25 as against Rs 10,655.5 crore recorded in the corresponding quarter previous year.

Inox Wind zoomed 3.50% after the company announced that it has bagged an order for 51 MW from Everrenew Energy, a leading player servicing commercial & industrial (C&I) customers. This is an equipment supply order for IWL�s latest 3 MW wind turbine generators (WTGs).

Hindustan Copper gained 3.11% after its consolidated net profit surged 139.85% to Rs 113.40 crore in Q1 FY25 as compared with Rs 47.28 crore posted in Q1 FY24. Revenue from operations rose 33.07% YoY to Rs 493.60 crore in the quarter ended 30 June 2024.

Doms Industries tumbled 6.04%. The company reported consolidated net profit of Rs 51.84 crore in Q1 FY25, marking a growth of 49.78% as against Rs 34.61 crore posted in Q1 FY24. Revenue from operations grew by 17.29% to Rs 445.01 crore in Q1 FY25 as compared with Rs 379.40 crore recorded in the corresponding quarter previous year.

Senco Gold surged 4.58% after the company�s consolidated net profit surged 85.29% to Rs 51.27 crore on 7.54% rise in revenue from operations to Rs 1403.89 crore in Q1 June 2024 over Q1 June 2023.

Indian Railway Finance Corporation (IRFC) declined 1.76%. The company�s net profit grew by 1.65% to Rs 1,576.83 crore in Q1 FY25 as against Rs 1,551.28 crore posted in Q1 FY24. Total revenue from operations rose by 1.37% year on year (YoY) to Rs 6,765.63 crore in the quarter ended 30 June 2024.

IPO Update:

The initial public offer (IPO) of Saraswati Saree Depot received 16,33,54,410 bids for shares as against 100,00,800 shares on offer, according to stock exchange data at 17:00 IST on Tuesday (13 August 2024). The issue was subscribed 16.33 times.

The issue opened for bidding on 12 August 2024 and it will close on 14 August 2024. The price band of the IPO was fixed at Rs 152 to 160 per share.

New Listing:

Shares of Brainbees Solutions (Firstcry) settled at Rs 678.25 on the BSE, a premium of 45.86% as compared with the issue price of Rs 465.

The scrip was listed at Rs 625, a premium of 34.41% to the issue price. The stock has hit a high of 707.05 and a low of 625. On the BSE, over 45.06 lakh shares of the company were traded in the counter so far.

The issue opened for bidding on 6 August 2024 and it closed on 8 August 2024. The price band of the IPO was fixed at Rs 440 to 465 per share. It was subscribed 2.31 times.

Shares of Unicommerce eSolutions settled at Rs 210.05 on the BSE, a premium of 94.49% as compared with the issue price of Rs 108.

The scrip was listed at Rs 230, a significant premium of 112.96% to the issue price.

The stock has hit a high of 256.15 and a low of 206. On the BSE, over 51.48 lakh shares of the company were traded in the counter so far.

The issue opened for bidding on 6 August 2024 and it closed on 8 August 2024. The price band of the IPO was fixed at Rs 102 to 108 per share. The issue was subscribed 168.39 times.

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