Sensex falls 2,223 pts; Nifty holds below 24,100; VIX rises 42.23% | Capital Market News

Market breadth was weak. On BSE, 670 stocks rose and 3,408 stocks fell. A total of 111 stocks remained unchanged.

The NSE’s India VIX, a gauge of market expectations for volatility in the near future, rose 42.23% to 20.37.

Economy:

The seasonally adjusted HSBC India Services Business Activity Index stood at 60.3 in July, down only slightly from 60.5 and surpassing the neutral level of 50.0 for the 36th consecutive month. The latest reading was more than six points above its long-term average and highlighted a significant increase in business activity.

The HSBC India Composite Output Index came in at 60.7 in July, down only slightly from 60.9 in June and crossing the key 50.0 level unchanged for the 36th consecutive month. The latest reading therefore signalled a continuation of the strong growth momentum seen recently. As has been the case since February, manufacturing led the growth.

Total new work rose sharply and at a pace well above the long-term average. Manufacturers reported stronger growth in new orders, despite a slowdown in the pace of expansion. Meanwhile, job creation remained solid in both segments.

Worryingly, inflation rose to a near 11-1/2-year high in July amid stronger gains at manufacturers of goods and service providers. Input-cost inflation also rose in July but remained below its long-term average. Manufacturing firms reported stronger cost pressures than their service-industry peers.

India’s foreign exchange reserves declined by $3.471 billion to $667.386 billion in the week ending July 26, according to the latest data from the Reserve Bank of India (RBI).

Gold reserves fell by $2.297 billion to $57.695 billion during the week. Special Drawing Rights (SDRs) fell by $5 million to $18.202 billion.

India’s reserve position with the International Monetary Fund (IMF) increased marginally by $2 million to $4.612 billion in the reporting week.

IPO Update:

Ola Electric Mobility’s initial public offering (IPO) received 36,44,32,575 bids for its shares as against 46,51,59,451 shares on offer, as per exchange data as of 15:30 IST on Monday (05 August 2024). The issue was subscribed 0.78 times.

The issue opened for bidding on Friday (02 August 2024) and will close on Tuesday (06 August 2024). The IPO price band is set at Rs 72-76 per share. An investor can bid for a minimum of 195 ordinary shares and multiples thereof.

Ceigall India’s initial public offer (IPO) received 28,31,79,500 bids for its shares as against 2,23,13,663 shares on offer, as per exchange data as of 15:30 IST on Monday (05 August 2024). The issue was subscribed 12.69 times.

The issue opened for bidding on Friday (01 August 2024) and will close on Monday (05 August 2024). The IPO price band is set at Rs 380-401 per share. An investor can bid for a minimum of 37 ordinary shares and multiples thereof.

Buzzer indicator:

The Nifty Metal Index fell 4.85% to 8,862.50. The index has fallen 8.07% in three consecutive trading sessions.

Shares of Jindal Stainless (down 7.98%), Hindustan Copper (down 7%), National Aluminium Company (down 6.83%), Steel Authority of India (down 6.76%), Tata Steel (down 5.66%), Hindustan Zinc (down 5.65%), Hindalco Industries (down 5.32%), NMDC (down 5.05%), Vedanta (down 4.97%) and Jindal Steel & Power (down 4.47%) fell.

Stocks in focus:

Shares of Titan Company fell 2.50 per cent after the company reported a marginal decline in standalone net profit at Rs 770 crore in the first quarter of fiscal 2025 as compared to Rs 777 crore reported in the first quarter of fiscal 2024. Revenue from operations rose 9.92 per cent year-on-year (YoY) to Rs 11,105 crore in the quarter ended June 30, 2024.

Shares of LIC Housing Finance fell 8.50 per cent after the company’s standalone net profit fell 1.77 per cent to Rs 1,300.21 crore in Q1FY25 as compared to Rs 1,323.66 crore in Q1FY24. Total income rose marginally to Rs 6,783.69 crore in the quarter ended June 2024 from Rs 6,746.55 crore reported in the same quarter last year.

Delhivery fell 2.34%. The logistics solutions provider reported a consolidated net profit of Rs 54.36 crore in Q1FY25 as against a net loss of Rs 89.48 crore reported in Q1FY24. Revenue from operations rose 12.57% year-on-year to Rs 2,172.3 crore in the quarter ended June 30, 2024.

Shares of Utkarsh Small Finance Bank fell 2.76%. The bank’s standalone net profit rose 27.81% to Rs 137.39 crore in Q1FY25 as compared to Rs 107.49 crore reported in Q1FY24. Total income stood at Rs 1,070.56 crore in Q1FY25, up 31.78% as compared to Rs 812.39 crore reported in the corresponding quarter of the previous year.

Mahindra & Mahindra Financial Services (Mahindra Finance) saw a decline of 4.34%. The company reported a total disbursement of around Rs 4,530 crore in July 2024, up 3% year-on-year (YoY).

Adani Ports and Special Economic Zone fell 5.38%. The company said the company’s total cargo volume in July 2024 stood at 37.3 million tonnes, up 9.7% compared to the same period last year.

Suven Life Sciences reported a decline of 4.99% after its consolidated net loss stood at Rs 28.04 crore in the first quarter of fiscal 2025 as compared to a net loss of Rs 24.09 crore in the first quarter of fiscal 2024. Net sales declined 73.42% year-on-year (YoY) to Rs 1.01 crore in the quarter ended June 30, 2024.

Shares of Gland Pharma fell 1.30% after the company said the US Food and Drug Administration (US FDA) conducted an unannounced inspection at Pashamylaram’s manufacturing facility in Hyderabad to check compliance with good manufacturing practices (GMP).

Ashoka Buildcon shares fell 4.89%. The company said it became the lowest bidder in two projects put up by the Mumbai Metropolitan Region Development Authority (MMRDA) worth a total of Rs 1,280.8 crore.

World markets:

Dow Jones Futures indices fell by 614 points, which indicates a weak opening of today’s session on the US stock exchange.

European and Asian markets fell sharply on Monday as worries about a deepening U.S. recession gripped investors around the world. Fears that the Federal Reserve might lag in cutting interest rates exacerbated the sell-off.

Japan suffered the biggest decline, with the Nikkei 225 and Topix indices falling by as much as 7% amid high turnover volatility.

The Reserve Bank of Australia is due to announce its interest rate decision today.

A weaker-than-expected U.S. jobs report for July fueled recession fears, sending U.S. stocks tumbling on Friday. The S&P 500 fell 1.84%, the Nasdaq Composite shed 2.43% and the Dow Jones Industrial Average fell 1.51%.

The report revealed that the number of nonfarm payroll workers in the U.S. rose by just 114,000 in July, one of the weakest showings since the pandemic. Job growth had been revised down in the previous two months. The unemployment rate unexpectedly rose to 4.3%, beating the Federal Reserve’s year-end forecast and prompting recession warnings.

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