Sensex, Nifty extend gains, profit-booking caps rise

The domestic equity benchmarks ended slightly higher today, extending gains for the third day. The barometers hit fresh highs early on, boosted by FMCG and IT sectors, but profit-booking erased most of those gains. Investors are cautious about high valuations. US Fed Chair Powell`s dovish comments and a drop in US bond yields offered some support.

In the barometer index, the barometer index, the S&P BSE Sensex, rose 51.69 points or 0.06% to 80,716.55. The Nifty 50 index added 26.30 points or 0.11% to 24,613.00.

The Sensex and Nifty clocked an all-time high of 80,898.3 and 24,661.25, respectively, in early afternoon trade.

In the broader market, the S&P BSE Mid-Cap index shed 0.29% and the S&P BSE Small-Cap index gained 0.32%. The S&P BSE Mid-Cap index hit an all-time high at 48,175.21.

The market breadth was positive. On the BSE, 1943 shares rose and 1976 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, shed 0.24% to 14.15.

The stock exchanges will remain closed on Wednesday, 17 July 2024, on account of Muharram.

Numbers to Track:

The yield on India`s 10-year benchmark federal shed 0.14% to 6.971 as compared with previous close 6.981.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.5850, compared with its close of 83.6100 during the previous trading session.

MCX Gold futures for 5 August 2024 settlement rose 0.38% to Rs 73,752.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.07% to 104.26.

The United States 10-year bond yield sliiped 1.21% to 4.178.

In the commodities market, Brent crude for September 2024 settlement lost 62 cents or 0.73% to $ 85.85 a barrel.

Global Markets:

European markets declined across the board on Tuesday as investors digest Powell`s comments on cutting rates

Asian stocks ended mixed, dismissing gains on Wall Street due to concerns of a potential second term for Donald Trump, leading to worries about trade and geopolitical issues. China and Hong Kong shares fell amid fears of Trump`s proposed tariffs.

Investor concerns grew as China`s GDP growth unexpectedly slowed, primarily due to weakened consumer spending undermining export growth. The implications have raised pressure on policymakers to boost support measures at an upcoming economic meeting.

In the U.S., the Dow Jones Industrial Average surged to an all-time high after Trump announced JD Vance as his running mate, leading to a 31% increase in Trump Media & Technology Group Corp. Trump`s growing odds of victory have positively influenced various industries.

Meanwhile, Federal Reserve Chair Jerome Powell expressed confidence in the second-quarter economic data, hinting at possible near-term interest-rate cuts but refrained from specifying the timing.

On Monday, the Dow Jones Industrial Average moved up 0.53% and the S&P 500 gained 0.28%. The tech-heavy Nasdaq composite climbed 0.42%.

Stocks in Spotlight:

The Nifty Realty index advanced 1.66% to 1,126.25. The index rallied almost 3% in two trading sessions. Sobha (up 3.81%), Sunteck Realty (up 3.35%) and Prestige Estates Projects (up 2.77%) soared.

Pearl Global Industries surged 9.47% to Rs 832 after HDFC Mutual Fund acquired about 1.6% stake in the company through block deals on Monday, 15 July 2024.

Bharti Hexacom rose 7.09% to Rs 1141.10 after a global brokerage initiated coverage on the stock with an `overweight` rating and a price target of Rs 1,280.

Bajaj Auto added 0.33%. The auto major�s standalone net profit jumped 19.43% to Rs 1,988.34 crore on 15.69% rise in revenue from operations to Rs 11,928.02 crore in Q1 FY25 over Q1 FY24. The revenue growth underpinned by volume expansion across both domestic and exports business, and further bolstered by favourable mix to drive double digit revenue growth yet again.

Jio Financial Services slipped 3.10%. The company�s revenue was flat at Rs 417.8 crore in Q1 FY25 as compared with Rs 418.1 crore in Q1 FY24. Net profit increased marginally to Rs 312.6 crore in Q1 FY25 compared with Rs 310.6 crore posted inc corresponding quarter last year.

Angel One declined 2.52%. The company reported 32.56% increase in consolidated net profit (from continuing operations) to Rs 292.73 crore in Q1 FY25 as against Rs 220.82 crore in Q1 FY24. Revenue from operations jumped 74.05% YoY to Rs 1,405.45 crore in Q1 FY25.

Hatsun Agro Product rallied 4.09% after its net profit jumped 62.89% to Rs 130.54 crore in Q1 FY25 compared to Rs 80.14 crore in Q1 FY24. Revenue from operations rose 10.44% to Rs 2,375.06 crore during the quarter ended June 2024 quarter as compared with Rs 2,150.64 crore posted in corresponding quarter last year.

Vedanta shed 0.81% to Rs 455.70 after its board approved the opening of qualified institutional placement (QIP) of equity shares at the floor price of Rs 461.26 per share.

Hindustan Unilever (HUL) gained 2.70% after the company said that it has signed an agreement with A. O. Smith, a leading global water technology company, for the sale of its Indian water purification business, which was carried under the `Pureit� brand.

CRISIL fell 1.85%. The company reported a consolidated net profit of Rs 150.11 crore in Q2 2024, which is marginally lower compared with the PAT of Rs 150.58 crore posted in Q2 2023. Consolidated income from operations rose 3.4% to Rs 797.4 crore in Q2 2024, compared with Rs 771 crore in the corresponding quarter of the previous year.

Spicejet advanced 3.24% after the company reported standalone net profit of Rs 119 crore in Q4 FY24, steeply higher than Rs 16.85 crore posted in Q4 FY23. Revenue from operations fell 23.11% YoY to Rs 1571.2 crore during the quarter ended 31 March 2024.

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