The key equity benchmarks ended with deep cuts on Thursday. The Nifty settled below the 24,150 mark after hitting the day’s high of 24,340.50 in afternoon trade. Pharma, media and financial services shares advanced while IT, metal and oil & gas shares declined. Trading was volatile due to weekly F&O series expiry today.
As per provisional closing, the barometer index, the S&P BSE Sensex, was down 581.79 points or 0.73% to 78,886.22. The Nifty 50 index slipped 180.50 points or 0.74% to 24,117.
In the broader market, the S&P BSE Mid-Cap index fell 0.44% and the S&P BSE Small-Cap index shed 0.16%.
The market breadth was negative. On the BSE, 1,832 shares rose and 2,078 shares fell. A total of 104 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, gained 2.67% to 16.60.
Economy :
On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting today (August 8, 2024) decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.50%.
Consequently, the standing deposit facility (SDF) rate remains unchanged at 6.25% and the marginal standing facility (MSF) rate and the Bank Rate at 6.75%.
The MPC also decided to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns to the target, while supporting growth.
These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2%, while supporting growth.
The projected real GDP growth for 2024-25 is maintained at 7.2%. The quarterly breakdown is as follows: Q1 at 7.1%; Q2 at 7.2%; Q3 at 7.3%; and Q4 at 7.2%. Real GDP growth for Q1:2025-26 is projected at 7.2%.
The projected CPI inflation for 2024-25 remains unchanged at 4.5%. The quarterly breakdown is as follows: Q2 at 4.4%; Q3 at 4.7%; and Q4 at 4.3%. CPI inflation for Q1:2025-26 is projected at 4.4%.
During the recent policy meeting, Dr. Shashanka Bhide, Dr. Rajiv Ranjan, Dr. Michael Debabrata Patra and Shaktikanta Das voted to keep the policy repo rate unchanged at 6.50%. Dr. Ashima Goyal and Prof. Jayanth R. Varma voted to reduce the policy repo rate by 25 basis points.
The minutes of the MPC’s meeting will be published on August 22, 2024. The next meeting of the MPC is scheduled during October 7 to 9, 2024.
New Listing :
Shares of Ceigall India closed at Rs 388 on the BSE, representing a discount of 3.24% as compared with the issue price of Rs 401.
The scrip was listed at Rs 413, exhibiting a 2.99% premium to the issue price.
The stock has hit a high of 425 and a low of 380.10. On the BSE, over 11.89 lakh shares of the company were traded in the counter.
IPO Update :
The initial public offer (IPO) of Brainbees Solutions received 41,72,19,200 bids for shares as against 4,96,39,004 shares on offer, according to stock exchange data at 15:15 IST on Thursday (08 August 2024). The issue was subscribed 8.41 times.
The issue opened for bidding on Tuesday (06 August 2024) and it will close on Thursday (08 August 2024). The price band of the IPO is fixed between Rs 440 to Rs 465 per share. An investor can bid for a minimum of 32 equity shares and in multiples thereof.
The initial public offer (IPO) of Unicommerce eSolutions received 2,08,87,03,140 bids for shares as against 1,40,84,681 shares on offer, according to stock exchange data at 15:15 IST on Thursday (08 August 2024). The issue was subscribed 148.30 times.
The issue opened for bidding on Tuesday (06 August 2024) and it will close on Thursday (08 August 2024). The price band of the IPO is fixed between Rs 102 to Rs 108 per share. An investor can bid for a minimum of 138 equity shares and in multiples thereof.
Buzzing Index:
The Nifty IT index fell 1.910% to 38,448.30. The index gained 2.01% in past two trading sessions.
LTIMindtree (down 4.26%), Coforge (down 3.04%), Mphasis (down 2.94%), Infosys (down 2.88%) and HCL Technologies (down 2.48%), Wipro (down 2.14%), L&T Technology Services (down 1.45%), Persistent Systems (down 1.43%), Tata Consultancy Services (down 0.74%) and Tech Mahindra (down 0.71%) declined.
Stocks in Spotlight:
Godrej Consumer Products (GCPL) slipped 2.48%. The company reported 41.36% increase in consolidated net profit to Rs 450.69 crore in Q1 FY25 as comapred with Rs 318.82 crore in Q1 FY24. Revenue from operations fell 3.4% YoY to Rs 3,331.58 crore during the quarter.
MRF added 4.01%. The tyre major’s consolidated net profit fell 3.01% to Rs 571.02 crore in Q1 FY25 as compared with Rs 588.75 crore posted in Q1 FY24. Revenue from operations grew by 11.74% to Rs 7,196.45 crore in Q1 FY25 from Rs 6,440.29 crore recorded in Q1 FY24.
Lemon Tree Hotels tumbled 9.44% after the company reported a 15.55% fall in consolidated net profit to Rs 19.81 crore in Q1 FY25 as compared to Rs 23.46 crore posted in Q1 FY24. However, revenue from operations jumped 19.52% year on year (YoY) to Rs 268.02 crore in Q1 FY25.
BSE surged 7.94% after the exchange platform’s consolidated net profit surged 147.62% to 265.05 crore in Q1 FY25 as against Rs 107.04 crore posted in Q1 FY24. Revenue from operations increased 24.43% sequentially to Rs 607.70 crore in the qarter ended 30 June 2024.
Balaji Amines dropped 7.50% after the company’s consolidated net profit declined 17.90% to Rs 43.29 crore in Q1 FY25 as against Rs 52.73 crore posted in Q1 FY24. Revenue from operations was at Rs 384.75 crore in Q1 FY25, down 17.02% from Rs 463.67 crore recorded in the corresponding quarter previous year.
Apollo Tyres declined 1.53% after the company’s consolidated net profit slipped 23.91% to Rs 302 crore in Q1 FY25 as against Rs 396.91 crore recorded in Q1 FY24. Revenue from operations grew by 1.45% to Rs 6,334.85 crore in Q1 FY25 as compared to Rs 6,244.58 crore posted in the same period a year ago.
Sula Vineyards shed 0.64%. The company reported 6.94% increase in consolidated net profit to 14.63 crore in Q1 FY25 as compared to Rs 13.68 crore posted in Q1 FY24. Revenue from operations (excluding excise duty) grew 11.47% year on year (YoY) to Rs 120.93 crore in Q1 FY25.
KPI Green Energy hit an upper circuit of 5% after the company’s consolidated net profit surged 98.76% to Rs 66.11 crore in Q1 FY25 as compared to Rs 33.26 crore recorded in Q1 FY24. Revenue from operations climbed 83.78% year on year (YoY) to Rs 348.01 crore in Q1 FY25.
Global Markets:
European stocks tumbled while Asian stocks ended mixed on Thursday, following a decline on Wall Street. The continued volatility in global markets reflects investor concerns over the global economy.
Market participants are also closely monitoring corporate earnings reports being released worldwide.
US stocks closed lower on Wednesday, with the Nasdaq leading the decline amid a slump in technology shares. A weak demand for a 10-year Treasury auction further rattled investor sentiment. The Dow Jones Industrial Average fell 0.60%, the S&P 500 lost 0.77%, and the Nasdaq Composite dropped 1.05%.
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