SENSEX JUMPS 495 PTS; NIFTY BANK HITS RECORD HIGH

The key equity benchmarks traded with significant gains in early afternoon trade. The Nifty traded above the 24,250 mark. Bank shares advanced after declining in the past consecutive trading session.

At 12:30 IST, the barometer index, the S&P BSE Sensex was up 494.97 points or 0.62% to 79,937.57. The Nifty 50 index gained 151.95 points or 0.63% to 24,275.80.

The Sensex and Nifty clocked an all-time high of 80,074.3 and 24,307.25, respectively in early trade. Further, 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 0.56% and the S&P BSE Small-Cap index jumped 0.89%.

The S&P BSE Small-Cap index hit an all-time high at 53,476.96

The market breadth was strong. On the BSE, 2,470 shares rose and 1,340 shares fell. A total of 110 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.

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.

Derivatives:

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, declined 1.55% to 13.43. The Nifty 25 July 2024 futures were trading at 24,319.80, at a premium of 44 points as compared with the spot at 24,275.80.

The Nifty option chain for the 25 July 2024 expiry showed maximum Call OI of 31.8 lakh contracts at the 24,000 strike price. Maximum Put OI of 39.8 lakh contracts were seen at 23,500 strike price.

Buzzing Index:

The Nifty Bank index added 1.75% to 53,082.70. The index shed 0.82% in the past consecutive trading session.

Federal Bank (up 3.62%), HDFC Bank (up 3.10%), IDFC First Bank (up 2.05%), Kotak Mahindra Bank (up 1.82%), Axis Bank (up 1.64%), Bandhan Bank (up 1.36%), ICICI Bank (up 1.06%), State Bank of India (up 0.57%), Bank of Baroda (up 0.51%) and IndusInd Bank (up 0.51%) edged higher.

Federal Bank rallied 3.62% 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.

HDFC Bank gained 3.10% after the bank informed speculation of a potential increase in its weightage within the MSCI index.

The media reported that this increase could trigger an influx of over $3 billion in passive investments into the stock.

Data reveals that foreign institutional investors (FIIs) held 54.8% of HDFC Bank as of June 2024. This falls below the 55% threshold set by MSCI for full inclusion in their index rebalancing, expected to take place in August.

Stocks in Spotlight :

Force Motors fell 1.23% after the company registered 2.85% decline in total sales to 2,553 units in June 2024 as against 2,628 units sold in June 2023.

MOIL soared 7.47% after the company achieved its best ever quarterly sales in April-June 2024, with a growth of 14.5% YoY.

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