Broader market underperforms; media shares slide

The headline equity benchmarks reversed all gains and traded with minor losses in mid-morning trade. The Nifty traded near 24,550 mark. Media shares witnessed selling pressure for the second consecutive trading session.

At 11:26 IST, the barometer index, the S&P BSE Sensex, was down 153.69 points or 0.19% to 80,565.30. The Nifty 50 index lost 61.20 points or 0.25% to 24,551.80.

The Sensex and Nifty clocked an all-time high of 80,910.45 and 24,678.90, respectively in morning trade.

The broader market underperformed the frontline indices, the S&P BSE Mid-Cap index declined 1.45% and the S&P BSE Small-Cap index fell 1.32%.

The market breadth was weak. On the BSE, 1,137 shares rose and 2,589 shares fell. A total of 142 shares were unchanged.

Economy:

The International Monetary Fund (IMF) upgraded India`s economic outlook, raising its growth forecast for the 2024-25 financial year to 7%. This revision is driven by an anticipated improvement in private consumption, especially in rural areas.

The IMF maintained its projection of 6.5% growth for the following year (2025-26). This information comes from their latest World Economic Outlook report.

In April, the IMF had already revised India`s growth forecast upwards, from 6.5% to 6.8%. This latest increase reflects continued optimism about the Indian economy.

Buzzing Index:

The Nifty Media index tumbles 3.87% to 2,003.50. The index slumped 5.10% in two consecutive trading sessions.

Zee Entertainment Enterprises (down 7.96%), Hathway Cable & Datacom (down 7.35%), Tips Industries (down 3.84%), TV18 Broadcast (down 2.85%), Network 18 Media & Investments (down 2.42%), Nazara Technologies (down 2.35%), PVR Inox (down 1.91%), Sun TV Network (down 1.85%) and Dish TV India (down 1.58%) declined.

Stocks in Spotlight:

E2E Networks hit an upper circuit of 5% after the company�s consolidated net profit jumped 45.48% to Rs 10.14 crore in Q1 FY25 as compared with Rs 6.97 crore in corresponding quarter last year. Revenue from operations surged to Rs 41.66 crore during the quarter as compared with Rs 19.81 crore in same quarter last year.

Just Dial soared 17.31% after the company reported 69.33% surge in net profit to Rs 141.22 crore in Q1 FY25 as compared with Rs 83.40 crore posted in Q1 FY24. Revenue from operations grew by 13.6% year on year to Rs 280.57 crore in the quarter ended 30 June 2024.

Global Market:

Asian stocks traded mixed on Thursday. Chip stocks dipped as investors worried about potential trade war escalation between the US and China. Meanwhile, the Japanese yen strengthened to a six-week high, likely due to recent interventions by the Japanese government.

News of stricter US export controls on advanced chip technology to China caused chip stocks and the Nasdaq to fall in the US overnight. This decline was led by tech giants Nvidia and Apple.

Later today, investors will focus on the European Central Bank`s policy decision. The bank is likely to maintain current interest rates, but their comments will be closely watched for hints about future rate adjustments.

US markets ended Wednesday with mixed results. The S&P 500 and Nasdaq took a significant hit due to a sell-off in tech stocks driven by trade war concerns. The S&P 500 dropped 1.4%, and the Nasdaq plunged 2.8%. However, the Dow Jones bucked the trend, rising 0.6% (243 points) after a surge of over 700 points on the previous day.

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