Stocks fizzle after early spark, Nifty settles below 23,300; VIX below 15 mark

Domestic stocks ended flat on Tuesday, with some early gains fizzling out. The Nifty 50 closed below the 23,300 level after hitting the day�s high of 23,389.45 in mid-afternoon trade. Media and oil & gas stocks got a lift, while healthcare and FMCG shares lagged. Investors are now focused on global cues, particularly interest rate decisions from the US Fed and Bank of Japan, for clues on the direction of the market. Healthy domestic flows from mutual funds and continued corporate profit growth suggest support for the market in the near term.

The S&P BSE Sensex fell 33.49 points or 0.04% to 76,456.59. The Nifty 50 index rose 5.65 points or 0.02% to 23,264.85.

ITC (down 0.95%), Reliance Industries (down 0.92%) and ICICI Bank (down 0.49%) were major drags.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index rose 0.74% and the S&P BSE Small-Cap index added 0.95%.

The S&P BSE Small-Cap index and S&P BSE Mid-Cap index hit an all time high at 49,874.99 and 44,866.41 respectively.

The market breadth was strong. On the BSE, 2,461 shares rose and 1,402 shares fell. A total of 106 shares were unchanged.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, slumped 9.95% to 14.77.

Numbers to Track:

The yield on India`s 10-year benchmark federal declined 0.26% to 7.014 as compared with previous close 7.032.

In the foreign exchange market, the rupee is edged lower against the dollar. The partially convertible rupee was hovering at 83.5525, compared with its close of 83.5000 during the previous trading session.

MCX Gold futures for 5 August 2024 settlement shed 0.10% to Rs 71,360.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.10% to 105.25.

The United States 10-year bond yield declined 0.97% to 4.428.

In the commodities market, Brent crude for August 2024 settlement lost 29 cents or 0.36% to $81.33 a barrel.

Global Markets:

The Dow Jones index futures were down 175 points, indicating a negative opening in the US stocks today.

European stocks declined across the board while most Asian stocks ended lower on Tuesday. Investors are cautious ahead of the Federal Reserve`s decision this week and key U.S. inflation data. This wait-and-see approach is also due to European political uncertainties.

The Fed is expected to announce its interest rate decision and release updated economic projections on Wednesday, June 12th, 2024.

Despite the wait for the Fed, Wall Street managed to notch slight gains on Monday. Both the S&P 500 and Nasdaq closed at record highs after a volatile session. The Dow Jones also finished positive, up 0.2% to 38,868.04. The S&P 500 climbed 0.3% to 5,360.79, and the Nasdaq rose 0.4% to 17,192.53, marking record closes for both indexes.

IPO Update:

The initial public offer (IPO) of Le Travenues Technology (Ixigo) received 40,74,46,403 bids for shares as against 4,37,69,494 shares on offer, according to stock exchange data at 17:00 IST on Tuesday (11 June 2024). The issue was subscribed 9.31 times.

The issue opened for bidding on Monday (10 June 2024) and it will close on Wednesday (12 June 2024). The price band of the IPO is fixed at Rs 88 to 93 per share. An investor can bid for a minimum of 161 equity shares and in multiples thereof.

Stocks in Spotlight:

State Bank of India (SBI) rose 0.37%. The bank`s executive committee of its board approved raising upto $3 billion through issuance of senior, unsecured notes via public offer and private placement methods.

Mahindra & Mahindra rose 0.93%. The company said that its total production jumped 17.48% to 69,886 units in the month of May 2024 as compared with 59,490 units produced in the same period last year.

Adani Enterprises rose 0.11%. The company announced that its defence subsidiary, Adani Defence & Aerospace has signed a milestone cooperation agreement with EDGE Group for combining their expertise in missiles, weapons, unmanned platforms, and cyber systems.

Rail Vikas Nigam (RVNL) rallied 4.19% after the company announced that Siemens-RVNL consortium has received letter of acceptance (LoA) from Bangalore Metro Rail Corporation for a project valued at Rs 394.23 crore.

Meanwhile, the company informed that it has been emerged as the lowest bidder from Central Railway for over head equipment (OHE) modification work of existing electric traction system in Nagpur division.

NBCC (India) surged 10% after the firm announced that it has received multiple orders worth Rs 878.17 crore in normal course of business from different entities.

RailTel Corporation of India surged 9.12% after the company announced that it has received a work order worth Rs 11.23 crore from the Ministry of Defence.

Transformers and Rectifiers (India) hit an upper circuit of 5% after its board approved the opening of qualified institutional placement (QIP) of equity shares with the floor price of Rs 699.95 per share.

Suzlon Energy added 1.92% after the company said that it has secured a 103.95 MW order from AMPIN Energy Transition to supply 33 wind turbines with a rated capacity of 3.15 MW each.

PTC Industries advanced 3.83% after the firm announced its partnership with leading entities under DTIS scheme in the Indian Defence and Aerospace sector to advance the `Make in India` initiative.

NLC India added 1.50% after its board approved raising foreign loan through external commercial borrowings (ECBs) in any foreign currency up to the extent of $600 million through direct route.

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