SENSEX TANKS 2222 PTS, NIFTY ENDS BELOW 24,100 AMID GLOBAL SELLOFF

Domestic shares tanked today, mirroring a global rout sparked by fears of a US recession. Worries over slowing economic growth, fueled by weak US jobs data, sent shockwaves through markets. The Nifty plunged below 24,100, with metal, media, and real estate stocks bearing the brunt. Geopolitical tensions in the Middle East and a unraveling yen carry trade added to the market`s woes.

The barometer index, the S&P BSE Sensex slumped 2,222.55 points or 2.74% to 78,759.40. The Nifty 50 index tanked 662.10 points or 2.68% to 24,055.60.

Tata Motors (down 7.32%), Reliance Industries (down 3.46%) and HDFC Bank (down 2.68%) dragged the indices lower.

The broader market tumbled. The S&P BSE Mid-Cap index dropped 3.60% and the S&P BSE Small-Cap index tumbled 4.21%.

The market breadth was skewed in favour of sellers. On the BSE, 664 shares rose and 3,414 shares fell. A total of 111 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, soared 42.23% to 20.37.

Economy:

The seasonally adjusted HSBC India Services Business Activity Index was at 60.3 in July, down only fractionally from 60.5 and above the neutral mark of 50.0 for the thirty-sixth straight month. The latest reading was more than six points higher than its long-run average and highlighted a substantial upturn in business activity.

The HSBC India Composite Output Index posted 60.7 in July, down only fractionally from 60.9 in June and above the crucial 50.0 no-change mark for the thirty-sixth month running. Hence, the latest reading signaled a continuation of the strong growth momentum seen recently. As has been the case since February, the manufacturing industry led the upturn.

India�s foreign exchange reserves registered a decline of $3.471 billion, reaching $667.386 billion during the week ended July 26, according to the latest data from the Reserve Bank of India (RBI). Gold reserves fell by $2.297 billion to $57.695 billion during the week. Special drawing rights (SDRs) decreased by $5 million to $18.202 billion. India�s reserve position with the International Monetary Fund (IMF) saw a modest increase of $2 million, reaching $4.612 billion in the reporting week.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper jumped 1.03% to 6.971 as compared with previous close 6.900.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 84.0325, compared with its close of 83.7250 during the previous trading session.

MCX Gold futures for 4 October 2024 settlement shed 0.13% to Rs 69,700.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.58% to 102.61.

The United States 10-year bond yield fell 1.57% to 3.729.

In the commodities market, Brent crude for October 2024 settlement lost $1.35 or 1.76% to $75.46 a barrel.

Global Markets:

Dow Jones Futures were down 761 points, indicating a weak opening in the US stocks today.

European and Asian markets plunged on Monday as fears of a deepening US recession gripped investors worldwide. Concerns that the Federal Reserve may be lagging in cutting interest rates exacerbated the sell-off.

Japan bore the brunt of the decline, with the Nikkei 225 and Topix indices plummeting in volatile trading. Analysts attributed the sell-off to de-risking move by global funds. The yen has been strengthening against the US dollar since the Bank of Japan raised interest rates last week, making stocks in Tokyo more expensive for foreign investors.

A weaker-than-expected US jobs report for July fueled recession fears, sending US stocks tumbling on Friday. The S&P 500 dropped 1.84%, the Nasdaq Composite lost 2.43%, and the Dow Jones Industrial Average fell 1.51%.

The report revealed that US nonfarm payrolls increased by only 114,000 in July, one of the weakest figures since the pandemic. Job growth was revised downward for the previous two months. The unemployment rate unexpectedly rose to 4.3%, surpassing the Federal Reserve�s year-end forecast and triggering a recession warning.

Stocks in Spotlight:

Marico rose 1.58% after the FMCG company�s consolidated net profit increased 8.66% to Rs 464 crore in Q1 FY25 compared with Rs 427 crore in Q1 FY24. Revenue from operations increased 6.10% YoY to Rs 2,643 crore in Q1 FY25, with underlying volume growth of 4% in the domestic business and constant currency growth of 10% in the international business.

Cera Sanitaryware surged 5.72% after the company said that its board approved a share buyback of upto Rs 130 crore at Rs 12,000 per share through tender route. The company will buyback upto 1,08,333 fully paid-up equity shares of face value Rs 5 each. The board has fixed 16th August 2024 as the record date.

Paras Defence and Space Technologies rallied 2.76% after the company reported a consolidated net profit of Rs 14.85 crore in Q1 FY25, steeply higher than Rs 6.01 crore posted in Q1 FY24. Revenue from operations soared 72.95% to Rs 83.57 crore in Q1 FY25 as against with Rs 48.32 crore recorded in corresponding quarter last year.

Devyani International gains 1.54%. The company has reported a consolidated net profit of Rs 22.4 crore in Q1 FY25 as against a net loss of Rs 1.6 crore in Q1 FY24. Revenue from operations increased by 44% year-over-year to Rs 1,221.9 crore in the June�24 quarter. While EBITDA improved by 29% to Rs 223.4 crore, EBITDA margin declined by 220 basis points to 18.3% in Q1 FY25 as compared with the same period last year.

Titan Company slipped 2.57% after the company reported marginal decline in standalone net profit to Rs 770 crore in Q1 FY25 as against Rs 777 crore posted in Q1 FY24. Revenue from operations jumped 9.92% year on year (YoY) to Rs 11,105 crore in the quarter ended 30 June 2024.

LIC Housing Finance tumbled 8.34% after the company`s standalone net profit shed 1.77% to Rs 1,300.21 crore in Q1 FY25 as against with Rs 1,323.66 crore in Q1 FY24. Total income rose marginally to Rs 6,783.69 crore in June 2024 quarter from Rs 6,746.55 crore posted in same quarter last year.

Delhivery declined 2.43%. The logistics solution provider reported a consolidated net profit of Rs 54.36 crore in Q1 FY25 as against a net loss of Rs 89.48 crore posted in Q1 FY24. Revenue from operations grew by 12.57% year on year to Rs 2,172.3 crore in the quarter ended 30 June 2024.

Utkarsh Small Finance bank fell 2.76%. The bank�s standalone net profit jumped 27.81% to Rs 137.39 crore in Q1 FY25 as against Rs 107.49 crore recorded in Q1 FY24. Total income stood at Rs 1,070.56 crore in Q1 FY25, registering a growth of 31.78% from Rs 812.39 crore reported in the corresponding quarter previous year.

Mahindra & Mahindra Financial Services (Mahindra Finance) slipped 4.34%. The company recorded an overall disbursement of approximately Rs 4,530 crore in July 2024, delivering 3% year on year (YoY) growth.

Adani Ports and Special Economic Zone tumbled 5.93%. The company said that the company�s total cargo volume for the month of July 2024 was 37.3 MMT, which is higher by 9.7% as compared with the same period last year.

Suven Life Sciences declined 5% after its consolidated net loss stood at Rs 28.04 crore in Q1 FY25 as compared with a net loss of Rs 24.09 crore in Q1 FY24. Net sales slipped 73.42% year on year (YoY) to Rs 1.01 crore in the quarter ended 30 June 2024.

Gland Pharma fell 0.62% after the company said that the United States Food and Drug Administration (US FDA) has conducted an un-announced inspection of the company�s Pashamylaram Facility at Hyderabad for good manufacturing practices (GMP). The said inspection was concluded with three 483 observations, which are procedural in nature.

Ashoka Buildcon declined 5.03%. The company said that it has emerged as the lowest bidder for two projects floated by Mumbai Metropolitan Region Development Authority (MMRDA) worth Rs 1,280.8 crore.

IPO Update:

The initial public offer (IPO) of Ola Electric Mobility received 49,43,63,610 bids for shares as against 46,51,59,451 shares on offer, according to stock exchange data at 17:00 IST on Monday (05 August 2024). The issue was subscribed 1.06 times.

The issue opened for bidding on Friday (02 August 2024) and it will close on Tuesday (06 August 2024). The price band of the IPO is fixed between Rs 72 to Rs 76 per share. An investor can bid for a minimum of 195 equity shares and in multiples thereof.

Ceigall India`s IPO received 30,67,00,770 bids for shares as against 2,23,13,663 shares on offer, according to stock exchange data at 17:00 IST on Monday (05 August 2024). The issue was subscribed 13.74 times.

The issue opened for bidding on Friday (01 August 2024) and it will close on Monday (05 August 2024). The price band of the IPO is fixed between Rs 380 to Rs 401 per share. An investor can bid for a minimum of 37 equity shares and in multiples thereof.

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