Market stalls at record highs: Nervous investors book profits, await US jobs data

The headline equity indices ended almost flat on Friday. Nervous investors cashed in profits at higher levels, with valuations remaining a concern. The Nifty held its ground around 24,300 after an early dip. Oil & gas, pharma, and PSU banks provided some pockets of strength. All eyes now shift to the US jobs data later today, which could influence the Fed`s rate cut decision and potentially impact our markets.

In the barometer index, the S&P BSE Sensex was down 53.07 points or 0.07% to 79,996.60. The Nifty 50 index added 21.70 points or 0.09% to 24,323.85.

State Bank of India (up 2.48%), Reliance Industries (up 2.32%) and Larsen & Toubro (up 1.52%) boosted the indices.

In the broader market, the S&P BSE Mid-Cap index added 0.75% and the S&P BSE Small-Cap index rose 0.70%.

The market breadth was positive. On the BSE, 2,243 shares rose and 1,683 shares fell. A total of 90 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, declined 1.24% to 12.70.

Numbers to Track:

The yield on India`s 10-year benchmark federal shed 0.10% to 6.991 as compared with previous close 6.990.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.4925, compared with its close of 83.5025 during the previous trading session.

MCX Gold futures for 5 August 2024 settlement added 0.18% to Rs 72,498.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.15% to 104.97.

The United States 10-year bond yield declined 0.21% to 4.335.

In the commodities market, Brent crude for September 2024 settlement lost 7 cent or 0.06% to $87.28 a barrel.

Global Markets:

Most European shares advanced on Friday lifted by expectations of the U.S. Federal Reserve cutting interest rates in September. This positive investor sentiment was further bolstered by the euro`s rise to a three-week high in anticipation of the French elections.

Asian stocks ended mixed on Friday. Japan`s household spending dropped to 1.8% in May, falling short of expectations for a 0.1% gain. This metric is closely watched by the Bank of Japan as an indicator of a healthy economic cycle where wages and prices rise together.

The United States stock market was closed on Thursday, July 4th, in observance of Independence Day.

Stocks in Spotlight:

HDFC Bank tumbled 4.55% after its June quarter update showed a 5% sequential decline in CASA deposits. The bank`s loan portfolio also contracted by 0.8% sequentially, driven by a Rs 26,600 crore decrease in corporate loans.

Titan Company fell 2% following a downgrade by a domestic brokerage firm. The brokerage downgraded the stock`s rating to `Reduce` from `Add` and lowered its price target to Rs 3,075 from Rs 3,600 earlier. The downgrade cited an unfavorable risk-reward ratio for the stock.

Raymond zoomed 9.68% after the company�s board approved the vertical demerger of its real estate business into its wholly owned subsidiary, Raymond Realty (RRL).

According to the scheme of arrangement, each Raymond (RL) shareholder will receive 1 share of RRL for every 1 share held in Raymond and the new entity will seek automatic listing on stock exchanges.

IRCON International gained 10.07% after the company announced that its joint venture IRCON-PARAS-PCM has been awarded a letter of award (LoA) from Rail Vikas Nigam for a project worth Rs 750.82 crore.

KDDL surged 6.70% after the company said that its board is scheduled to meet on 9 July 2024 to consider the proposal for buyback of equity shares.

Angel One rose 0.80%, The broker announced that its client base jumped 64.2% to 24.72 million in June 2024 as against 15.06 million recorded in June 2023.

IDBI Bank advanced 1.28% after the bank said that its total business jumped 15% to Rs 4,71,563 crore in Q1 FY25 as compared with Rs 4,10,339 crore in Q1 FY24.

IPO Updates:

The initial public offer (IPO) of Emcure Pharmaceuticals received 92,96,72,030 bids for shares as against 1,37,03,538 shares on offer, according to stock exchange data at 17:00 IST on Friday (05 July 2024). The issue was subscribed 67.84 times.

The issue opened for bidding on Wednesday (03 July 2024) and it will close on Friday (05 July 2024). The price band of the IPO is fixed between Rs 960 to Rs 1,008 per share. An investor can bid for a minimum of 14 equity shares and in multiples thereof.

Bansal Wire Industries` IPO received 1,27,85,24,508 bids for shares as against 2,14,60,906 shares on offer, according to stock exchange data at 17:00 IST on Friday (05 July 2024). The issue was subscribed 59.57 times.

The issue opened for bidding on Wednesday (03 July 2024) and it will close on Friday (05 July 2024). The price band of the IPO is fixed between Rs 243 to Rs 256 per share. An investor can bid for a minimum of 58 equity shares and in multiples thereof.

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