SENSEX RISES 145 PTS, NIFTY ENDS ABOVE 24,550; ONGC SPURTS 5%

The domestic equity indices extended gains for a second day, with the Nifty50 closing above 24,550. Hopes of a US rate cut in September buoyed sentiment. Barring the Nifty IT index, all the sectoral indices on the NSE ended higher. PSU banks and oil & gas shares rallied.

The S&P BSE Sensex gained 145.52 points or 0.18% to 80,664.86. The Nifty 50 index added 84.55 points or 0.35% to 24,586.70. The 50-unit index hit a record high of Rs 24,635.05 today.

ONGC (up 5.08%), SBI Life Insurance Company (up 3.27%) and State Bank of India (up 2.55%) boosted the indices.

In the broader market, the S&P BSE Mid-Cap index gained 0.95% and the S&P BSE Small-Cap index added 0.21%. The BSE Mid-Cap index hit a record high of 47,981.01 today.

The market breadth was positive. On the BSE, 2,036 shares rose and 2,004 shares fell. A total of 128 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, rallied 3.36% to 14.19.

Economy:

India�s wholesale price index (WPI)-based inflation for the month of June accelerated to a 16-month high of 3.36% primarily due to increase in prices of food articles, manufacture of food products, crude petroleum & natural gas, mineral oils, other manufacturing etc. In May, WPI inflation was 2.61%. It was (-) 4.18% in June 2023.

Numbers to Track:

The yield on India`s 10-year benchmark federal shed 0.01% to 6.985 as compared with previous close 6.984.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.6200, compared with its close of 83.5100 during the previous trading session.

MCX Gold futures for 5 August 2024 settlement rose 0.04% to Rs 73,299.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.01% to 104.08.

The United States 10-year bond yield added 0.84% to 4.220.

In the commodities market, Brent crude for September 2024 settlement rose 6 cents or 0.07% to $85.09 a barrel.

Global Markets:

Dow Jones Futures were up 224 points, indicating a positive opening in the US stocks today.

European stocks declined across the board while Asian stocks ended mixed on Monday, as global markets assess the impact of an assassination attempt on former U.S. President Donald Trump.

China`s economic growth fell short of expectations in the second quarter, dampening sentiment. The country`s GDP expanded by 4.7% year-on-year, slowing from the previous quarter`s 5.3%. Additionally, uncertainty surrounding U.S. politics, following an assassination attempt on former President Donald Trump, added to market volatility.

However, losses were tempered by a positive close on Wall Street on Friday, where major indexes approached record highs amid growing expectations of interest rate cuts. Wall Street futures remained modestly positive in Asian trading hours, although the impact of the attempted assassination on the 2024 presidential race remains unclear. Trump is scheduled to be officially nominated as the Republican presidential candidate at this week`s party convention.

Stocks in Spotlight:

The Nifty PSU Bank index jumped 3.07% to 7,423.85. Indian Overseas Bank (up 7.29%), Punjab & Sind Bank (up 4.78%), Canara Bank (up 4.06%) soared.

Bank of Maharashtra soared 5.56% after the bank�s standalone net profit jumped 46.64% to Rs 1,293.49 crore on 24.93% increased in total income to Rs 6,768.76 crore in Q1 FY25 over Q1 FY24. The PSU bank`s operating profit stood at Rs 2,294.60 crore, registering a growth of 23.13% on YoY basis.

Aurobindo Pharma rose 3.53% after the company said its board will consider a share buyback on 18 July 2024.

Tanla Platforms climbs 4.74% after the company announced a commercial agreement with a global tech major to deploy its Wisely ATP solution to combat scams. While the company refrained from disclosing the name of the tech giant due to confidentiality reasons, media reports strongly suggest that the partner is WhatsApp.

Ashok Leyland gained 1.67% after the company announced that it has bagged single largest fully built bus order worth Rs 981.45 crore from MSRTC for 2,104 units of Viking passenger bus.

HCL Technologies (HCL Tech) added 0.56%. The company reported 6.8% rise in consolidated net profit to Rs 4,257 crore in Q1 FY25 from Rs 3,986 crore in Q4 FY24. Revenue from operations declined 1.6% to Rs 28,057 crore in the first quarter of FY25 from Rs 28,499 crore recorded in the last quarter of FY24. The coampny declared dividend of Rs 12 per share.

Indian Renewable Energy Development of India (IREDA) advanced 1.81% after the company reported a 30% increase in consolidated net profit to Rs 383.69 crore in Q1 FY25 as compared with Rs 294.58 crore in Q1 FY24. Revenue from operations increased 32% YoY to Rs 1510.28 crore in Q1 FY25.

Avenue Supermarts (DMart) rose 0.68%. The company reported a 17.46% increase in consolidated net profit to Rs 773.82 crore in Q1 FY25 as compared with Rs 658.75 crore in Q1 FY24. Revenue from operations increased 18.57% to Rs 14,069.14 crore in Q1 FY25 as compared to Rs 11,865.44 crore posted in Q1 FY24.

Sunteck Realty rallied 4.18%. The company recorded 29.71% increase in pre-sales to Rs 502 crore in Q1 FY25 from Rs 387 crore in Q1 FY24.

Ashok Leyland gained 1.67% after the company announced that it has bagged single largest fully built bus order from the Maharashtra State Road Transport Corporation (MSRTC) for 2,104 units of Viking passenger bus.

Varun Beverages advanced 2.78% after the company said that it has enetered into an exclusive snacks franchising appointment with PepsiCo Inc. to manufacture, distribute, and sell �Simba Munchiez� in the territory of Zimbabwe & Zambia.

Mahanagar Telephone Nigam (MTNL) jumped 5.83% after it announced that Ravi A Robert Jerard has been appointed as chief managing director (CMD) for a period of six months with effect from 15 July 2024.

5paisa Capital gained 0.53%. The company reported a 38.19% increase in consolidated net profit to Rs 20.08 crore in Q1 FY25 as compared with Rs 14.53 crore posted in Q1 FY24. However, total revenue from operations jumped 20.92% year on year (YoY) to Rs 102.23 crore in the quarter ended 30 June 2024.

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