SENSEX SLIDES 335 PTS; EUROPEAN MKT OPENS HIGHER

The domestic equity indices traded with moderate losses in afternoon trade. The Nifty traded below the 24,250 mark after hitting the day�s high of 24,359.95 in early trade. Consumer durables, pharma, and IT stocks advanced while financial services, bank and private bank shares declined.

At 13:30 IST, the barometer index, the S&P BSE Sensex, was down 335.86 points or 0.42% to 79,312.80. The Nifty 50 index slipped 100.95 points or 0.41% to 24,246.05.

In the broader market, the S&P BSE Mid-Cap index shed 0.32% and the S&P BSE Small-Cap index fell 0.31%.

The market breadth was weak. On the BSE, 1,509 shares rose and 2,320 shares fell. A total of 132 shares were unchanged.

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.

Gainers & Losers:

Titan Company (up 2.35%), Apollo Hospitals Enterprise (up 1.58%), Dr Reddy`s Laboratories (up 0.94%), Tata Consumer Products (up 0.81%) and Tata Consultancy Services (up 0.53%) were major Nifty gainers.

HDFC Bank (down 2.63%), HDFC Life Insurance Company (down 2.39%), Bharat Petroleum Corporation (down 2.34%), Shriram Finance (down 2.27%) and Grasim Industries (down 1.86%) were major Nifty losers.

Stocks in Spotlight:

HDFC Bank fell 2.63% 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 3.12% 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 6.35% 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 4.03% 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 5.48%. 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.

Indian Railway Finance Corporation (IRFC) shed 0.41%. 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.

Global Markets:

European and Asian stocks advanced on Tuesday, buoyed by strong performance in Japan amid a steady yen. 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%.

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