India’s benchmark indexes achieved record closing highs on Thursday, driven by expectations of a U.S. interest rate cut in September, which analysts predict could attract foreign investments into domestic equities. The NSE Nifty 50 rose 0.24% to 25,010.9, and the S&P BSE Sensex increased by 0.15% to 81,867.55. Both indexes hit all-time highs, with the Nifty surpassing 25,000 points for the first time.
Following Federal Reserve Chair Jerome Powell’s remarks on the likelihood of rate cuts, Asian markets saw gains, with the MSCI Asia ex-Japan index up 0.4%. Analysts like Deven Choksey of DRChoksey FinServ believe steady foreign inflows could follow a gradual rate reduction over the next four to six quarters. However, near-term gains may be limited due to profit booking at record highs. Energy stocks surged, with ONGC and Oil India rising after a cut in windfall tax on petroleum crude. Conversely, small- and mid-cap stocks declined by about 1% each amid selling pressure from high valuations.
Key Corporate Announcements and Stock Movements
– Abhishek Jain has taken charge as CFO of Tanla Platforms effective August 1, 2024.
– Barbeque Nation Hospitality has appointed Abhay Chintaman Chaudhari as Chairman of the Board effective August 12, 2024.
– Bajaj Auto recorded total sales of 3,54,169 units in July 2024, compared to 3,19,747 units in July 2023. The stock traded flat at ₹9,729.50 on the NSE.
– Escorts Kubota Ltd Agri Machinery Business Division sold 5,769 tractors in July 2024, registering a growth of 3.6%, compared to 5,570 tractors sold in July 2023.
– PC Jeweller stock surged 5% after the company opted for a One Time Settlement (OTS) to settle outstanding dues with Indian Overseas Bank, trading at ₹98.56.
– Amara Raja stock rose 1.07% on the NSE, trading at ₹1,643.75. Subsidiary Amara Raja Advanced Cell Technologies Private Limited (ARACT) signed a Memorandum of Understanding (MoU) with Ather Energy for the development and supply of advanced chemistry cells.
– Infosys stock traded at ₹1,857.90 on the NSE, down by 0.55%.
– Tata Motors Limited sales in the domestic and international markets for July 2024 stood at 71,996 vehicles, compared to 80,633 units in July 2023. The stock traded flat at ₹1,161.70 on the NSE.
– Hero MotoCorp has commenced operations in the Philippines. The stock traded at ₹5,410 on the NSE, down by 0.71%.
– IndusInd Bank has launched ‘PIONEER Private,’ curated financial solutions for the HNI/UNHI segment. The stock traded flat at ₹1,434 on the NSE.
– Kalpataru Projects International’s subsidiary, Wainganga Expressway Private Limited, received an arbitration award for claims against the National Highways Authority of India (NHAI). The stock traded at ₹1,365.10 on the NSE, down by 0.43%.
– Hero FinCorp filed preliminary papers with SEBI to raise ₹3,668 crore through an initial public offering (IPO).
– NBCC (India) secured a new order worth ₹50 crore for the construction of a Regional Passport Office in Srinagar, J&K. The stock traded at ₹181.01 on the NSE, down by 0.11%.
– SRF commissioned a new facility to produce agrochemical intermediates at Dahej, Gujarat, at an aggregate cost of ₹190 crore. The stock traded at ₹2,626.90 on the NSE, down by 0.68%.
– Adani Energy Solutions stock climbed 8.05% on the NSE, trading at ₹1,229.70 after raising $1 billion through a share sale.
– Firstcry set its IPO price band at ₹440-465 per share, with the issue opening on August 6, 2024, and closing on August 8, 2024.
– Ashok Leyland sold 13,928 units of vehicles in July 2024, compared to 15,068 units in July 2023. The stock traded at ₹247.40 on the NSE, down by 3.77%.
– Uno Minda Limited entered into a technical license agreement with Aisin Corporation, Japan, to manufacture and sell sunroofs. The stock declined 1.49% on the NSE, trading at ₹1,025.45.
– Adani Ports and Special Economic Zone stock rose 1.35% on the NSE, trading at ₹1,591.05 after recording a consolidated net profit of ₹3,107.23 crore for the quarter ended June 2024.
– Arvind Fashions stock rose 1.31% on the NSE, trading at ₹518.50 after recording a consolidated net profit of ₹13.92 crore for the quarter ended June 2024.
– Emami recorded a consolidated net profit of ₹150.6 crore for the quarter ended June 2024. The stock rose 1.24% on the NSE, trading at ₹827.10.
– Dabur India recorded a consolidated net profit of ₹494.35 crore for the quarter ended June 2024. The stock traded at ₹641.80 on the NSE, up 0.96%.
Market Dynamics
The Bank Nifty index opened higher at 51,673 and advanced to 51,740, up 0.4%. The advance-decline ratio of Bank Nifty stood at 10:2, with State Bank of India and HDFC Bank being the top gainers, advancing 0.9% each. Nifty PSU Bank rose nearly 0.4%, while Nifty Private Bank climbed 0.25%, indicating public sector banks are outperforming private sector peers.
The manufacturing sector slowed marginally in July due to softness in new orders, but job creation remained unaffected. The HSBC Purchasing Managers’ Index (PMI) dropped slightly to 58.1 in July from 58.3 in June. However, the sector faces the strongest inflation in nearly 11 years.
Major Gainers and Losers
Top Gainers on NSE at 9:30 AM:
– Maruti: 3.21%
– Hindalco: 2.43%
– Coal India: 2.42%
– JSW Steel: 2.10%
– Power Grid: 1.94%
Top Losers on NSE at 9:30 AM:
– M&M: -1.65%
– BPCL: -1.29%
– Hero Motocorp: -1.09%
– Sun Pharma: -0.79%
– Eicher Motors: -0.69%
Top Gainers on BSE at 10:30 AM:
– FSL: 9.17%
– PCBL: 8.54%
– IIFL: 8%
– SIS: 7.74%
– Lloyds Metal: 7.28%
Top Losers on BSE at 10:30 AM:
– Sonata Software: -7.57%
– KRBL: -6.46%
– Redington: -3.42%
– CCL: -3.33%
– Godrej Agro: -3.27%
Major Stocks Hitting 52-Week Highs on NSE:
– Coal India: 3.06%
– ONGC: 2.35%
– Lupin: 2.03%
– SBI Life Insurance: 1.50%
– NTPC: 1.47%
– MCX: 1.05%
The Nifty’s rise to 25,000 points in just 24 sessions signifies a strong bullish trend despite initial setbacks from various economic and geopolitical factors. Analysts suggest that retail investors should consider rebalancing their asset allocation and taking profits from stocks that have significantly appreciated. While Indian markets remain highly valued, positive fund flows and domestic sentiments could propel the Nifty higher, albeit with some intermittent corrections.
