STOCKS RALLY AS US RECESSION FEARS FADE, NIFTY ENDS ABOVE 24500

Key equity indices surged today, driven by optimism over a potential soft landing in the US. Positive economic data and easing inflation concerns boosted global sentiment, lifting domestic markets. IT, realty, and auto sectors led the broad-based rally. Domestically, lower CPI inflation added to the cheer, though lukewarm Q1 earnings and persistent FII selling capped gains.

The S&P BSE Sensex surged 1,330.96 points or 1.68% to 80,436.84. The Nifty 50 index soared 397.40 points or 1.65% to 24,541.15.

TCS (down 2.91%), ICICI Bank (down 2.17%) and HDFC Bank (down 1.52%) boosted the indices.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index gained 1.80% and the S&P BSE Small-Cap index rallied 1.70%.

The market breadth was strong. On the BSE, 2,462 shares rose and 1,467 shares fell. A total of 107 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, dropped 6.68% to 14.40.

Numbers to Track:

The yield on India`s 10-year benchmark federal grew 1.82% to 6.983 compared with previous close 6.858.

In the foreign exchange market, the rupee edged lower the dollar. The partially convertible rupee was hovering at 83.9425, compared with its close of 83.9400 during the previous trading session.

MCX Gold futures for 4 October 2024 settlement rose 0.21% to Rs 69,850.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.17% to 102.80.

The United States 10-year bond yield gained 1.81% to 6.982.

In the commodities market, Brent crude for October 2024 settlement lost 1.26 cents or 1.55% to $79.78 a barrel.

Global Markets:

Most Europeans stocks advanced while Asian stocks ended higher on Friday, buoyed by upbeat US economic data that tempered recession fears.

Robust US retail sales and a decline in jobless claims fueled a rally in global equities and sent bond yields higher. These positive economic indicators, following the benign inflation report earlier in the week, have strengthened expectations for interest rate cuts by the Federal Reserve. However, market sentiment suggests these cuts will be gradual.

US stocks closed sharply higher on Thursday, with the Dow Jones Industrial Average gaining 1.4%, the S&P 500 rising 1.6%, and the Nasdaq Composite jumping 2.3%.

Retail sales increased 1.0% after a downwardly revised 0.2% drop in June, easing fears of a sharp economic slowdown fanned by a jump in the unemployment rate last week.

Initial claims for state unemployment benefits dropped 7,000 to a seasonally adjusted 227,000 for the week ended Aug. 10, the Labor Department said.

Stocks in Spotlight:

Ola Electric Mobility hit an upper limit of 20%. The company reported net loss of Rs 347 crore in Q1 FY25, higher than net loss of Rs 267 crore in Q1 FY24. Revenue from operations jumped 32.26% to Rs 1,644 crore in Q1 FY25 as against Rs 1,243 crore in Q1 FY24. Meanwhile, the company entered into electric motorcycle segment by launching Roadster, Roadster X and Roadster Pro.

Sunteck Realty rose 1% after the company reported a net profit of Rs 22.78 crore in Q1 FY25 as against a net loss of Rs 6.74 crore posted in Q1 FY24. Revenue from operations surged to Rs 316.28 crore in Q1 FY25 as compared to Rs 70.57 crore recorded in the corresponding quarter previous year.

Suprajit Engineering zoomed 15% after the company`s consolidated net profit jumped 15.16% to Rs 38.14 crore in Q1 FY25 as compared with Rs 33.12 crore in Q1 FY24. Revenue from operations grew by 8.12% to Rs 734.86 crore in Q1 FY25 as against Rs 679.68 crore posted in the corresponding quarter last year.

Genesys International Corporation jumped 6.78% after the company reported consolidated net profit of Rs 5.30 crore in Q1 FY25 as against net loss of Rs 5.46 crore posted in corresponding quarter last year. Revenue from operations surged 61.39% year on year (YoY) to Rs 55.76 crore in the quarter ended 30 June 2024.

Glenmark Pharmaceuticals rallied 5% after the drug maker reported consolidated net profit of Rs 340.27 crore in Q1 FY25, steeply higher than net profit of Rs 14.48 crore in Q1 FY24. Revenue from operations increased 6.85% year on year (YoY) to Rs 3,244.19 crore in the quarter ended 30 June 2024.

Spicejet added 1.02%. The low-cost air carrier`s standalone net profit declined 26.69% to Rs 149.96 crore on 15.3% fall in revenue from operations to Rs 1,695.52 crore in Q1 FY25 over Q1 FY24. On quarter on quarter (QoQ) basis, the firm`s net profit jumped 26.02% while revenue from operations shed 1.39% in Q1 FY25.

Brigade Enterprises rallied 2.12% after the company announced that it has collaborated with abCoffee to establish outlets across its commercial office spaces in Bengaluru.

Capacite Infraprojects advanced 1% after its consolidated net profit surged 180.07% to Rs 53.41 crore in Q1 FY25 compared with Rs 19.07 crore in Q1 FY24. Revenue from operations stood at Rs 569.75 crore in June 2024 quarter, up 32.36% from Rs 430.45 crore in same quarter previous year.

Strides Pharma Science surged 7% after the drug maker informed that its step down wholly owned subsidiary, Altima Innovation Inc US ceased operations effective from 13 August 2024. The company, as a part of group entities optimization exercises has liquidated its US unit, Altima Innovations Inc. by the relevant regulatory authorities of New Jersey.

JNK India gained 4.24% after the company announced that it has received a `large` order from Hindustan Petroleum Corporation. As per JNK India`s classification, the value of the said contract lies between Rs 50 crore and Rs 150 crore. The contract is for setting up a new Process Plant - HP TDAE (Treated Distillate Aromatic Extracts) unit on LSTK (Lump sum Turnkey) contract basis at HPCL Mumbai Refinery.

Power Mech Projects rallied 4.34% after the company said that it has received an order for providing operation and maintenance (O&M) from Coastal Energen worth Rs 114.30 crore.

Aurobindo Pharma slipped 1.43% after the company informed that the manufacturing facility of its wholly owned subsidiary Eugia Pharma has received a warning letter from the USFDA.

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