Nifty hovers near 24,150 mark; financial services shares advance

The headline equity indices traded with substantial gains in mid-afternoon trade. The Nifty traded near the 24,150 mark. Financial services shares advanced after declining in the past trading session.

At 14:30 IST, the barometer index, the S&P BSE Sensex was up 424.29 points or 0.55% to 79,457.02. The Nifty 50 index added 129.55 points or 0.54% to 24,140.15.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index gained 0.90% and the S&P BSE Small-Cap index advanced 1.47%.

The S&P BSE Mid-Cap and S&P BSE Small-Cap index hit an all-time high at 46,616.41 and 52,935.36, respectively.

The market breadth was strong. On the BSE, 2,656 shares rose and 1,309 shares fell. A total of 139 shares were unchanged.

Economy:

The seasonally adjusted HSBC India Manufacturing Purchasing Managers� Index (PMI) increased to 58.3 from 57.5 in May, thus indicating a sharper improvement in business conditions. June data showed that buoyant demand conditions spurred the expansions in new orders, output and buying levels. As a consequence of ongoing increases in new order intakes, firms stepped up recruitment.

Manufacturing output increased at a sharp pace that was faster than in May, as underlying demand remained favourable and new business continued to flow in. June saw a stronger expansion in sales at manufacturers in India. Buoyant underlying demand, higher export volumes and successful advertising all fuelled growth, anecdotal evidence showed.

Further, the combined Index of Eight Core Industries (ICI) increased by 6.3% (provisional) in May, 2024 as compared to the Index in May, 2023. The production of Electricity, Coal, Steel, Natural Gas and Refinery Products recorded positive growth in May 2024.

The ICI measures the combined and individual performance of production of eight core industries viz. Cement, Coal, Crude Oil, Electricity, Fertilizers, Natural Gas, Refinery Products and Steel. The Eight Core Industries comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP).

Furthermore, the India`s fiscal deficit between April-May stood at around 3% of the overall target for FY25, at Rs 50,615 crore, down from 11.8% of the budget estimate in the corresponding period last year, according to the data released by the Controller General of Accounts.

The fiscal deficit stood at Rs 16.54 trillion in FY24, against the budgetary target of Rs 17.86 trillion. Aided by higher-than-expected tax receipts, the Union government contained the fiscal deficit at 5.6% of the gross domestic product (GDP) in 2023-24 (FY24), compared with the Revised Estimates of 5.8%.

The Centre has set an FY25 fiscal deficit target of 5.1%, or Rs 16.85 trillion, in order to achieve a fiscal deficit of 4.5% of GDP by FY26.

Meanwhile, the India�s foreign exchange reserves (forex reserves) increased by $816 million to $653.711 billion during the week ended June 21, according to the latest RBI data. In the preceding week, the overall reserves had dropped by $2.922 billion to $652.895 billion.

According to the latest RBI data released on June 28, India�s gold reserves rose $988 million to $56.956 billion during the week ended June 21, while the special drawing rights (SDRs) fell $57 million to $18.049 billion.

Buzzing Index:

The Nifty Financial Services index rose 0.79% to 23,605.05. The index fell 0.87% in the past trading session.

REC (up 4.23%), Power Finance Corporation (up 2.93%), LIC Housing Finance (up 2.4%), ICICI Prudential Life Insurance Company (up 1.92%), HDFC Asset Management Company (up 1.91%), Bajaj Finance (up 1.78%), HDFC Bank (up 1.25%), ICICI Lombard General Insurance Company (up 1.16%), ICICI Bank (up 0.96%) and HDFC Life Insurance Company (up 0.86%) advanced.

On the other hand, IDFC (down 1.24%), State Bank of India (down 0.67%) and Bajaj Finserv (down 0.52%) edged lower.

REC jumped 4.23% after the loan sanctioned jumped 24.17% to Rs 1,12,747 in FY25 as compared with Rs 90,797 crore in Q1 FY24.

Numbers to Track:

The yield on India`s 10-year benchmark federal rose 0.16% to 7.019 as compared with previous close 7.018.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.4400, compared with its close of 83.3400 during the previous trading session.

MCX Gold futures for 5 August 2024 settlement shed 0.02% to Rs 71,570.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.36% to 105.49.

The United States 10-year bond yield grew 1.58% to 4.411.

In the commodities market, Brent crude for September 2024 settlement gained 05 cents or 0.06% to $ 85.05 a barrel.

Stocks in Spotlight:

SML Isuzu rallied 2.44% after the vehicle manufacturer said that it has sold 1,764 units in June 2024, registering a jump of 37.9% from 1,279 units sold in the same period last year.

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