Broader market underperforms; metal shares slide

The key equity indices traded in with small gains in mid-morning trade. The Nifty hovers above the 24,100 level. Metal shares extended losses for the second consecutive trading session.

At 11:27 IST, the barometer index, the S&P BSE Sensex, was up 89.63 points or 0.12% to 79,045.66. The Nifty 50 index added 7.15 points or 0.03% to 24,146.15.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index shed 0.71% and the S&P BSE Small-Cap declined 0.96%.

The market breadth was weak. On the BSE, 1,315 shares rose and 2,404 shares fell. A total of 129 shares were unchanged.

Due to the observance of Independence Day on Thursday, 15 August 2024, the domestic market will be closed. Consequently, the Nifty weekly options expiry has been shifted to today.

Economy :

The annual rate of inflation based on all India Wholesale Price Index (WPI) number is 2.04% (Provisional) for the month of July, 2024 (over July, 2023). Positive rate of inflation in July, 2024 is primarily due to increase in prices of food articles, manufacture of food products, mineral oils, crude petroleum & natural gas, other manufacturing etc. The month over month change in WPI index for the month of July, 2024 stood at 0.84% as compared to June, 2024.

IPO update:

The initial public offer (IPO) of Saraswati Saree Depot received 26,74,03,680 bids for shares as against 100,00,800 shares on offer, according to stock exchange data at 11:15 IST on Wednesday (14 August 2024). The issue was subscribed 26.74 times.

The issue opened for bidding on 12 August 2024 and it will close on 14 August 2024. The price band of the IPO was fixed at Rs 152 to 160 per share.

Buzzing Index:

The Nifty Metal index slipped 1.64% to 8,810.55. The index fell 3.24% for the second consecutive trading session.

NMDC (down 4.99%), Hindustan Copper (down 4.7%), Ratnamani Metals & Tubes (down 3.89%), Tata Steel (down 3.85%), Hindustan Zinc (down 3.28%), Welspun Corp (down 2.36%), JSW Steel (down 2.31%), Vedanta (down 2.15%), Steel Authority of India (down 1.72%) and Adani Enterprises (down 1.54%) declined.

Stocks in spotlight:

FSN E-commerce Ventures(Nykaa) advanced 2.04% after the company’s consolidated net profit jumped 49% to Rs 13.6 crore in Q1 FY25 as compared with Rs 9.1 crore in Q1 FY24. Revenue increased 4.7% YoY to Rs 1,746.11 crore during the quarter.

Texmaco Rail & Engineering slipped 3.46%. The company’s consolidated net profit surged to Rs 70.44 crore in Q1 FY25 as compared with Rs 20.15 crore in Q1 FY24. Revenue increased 36% YoY to Rs 891.71 crore in Q1 FY25.

Piramal Enterprises tumbled 10.29%. The company’s consolidated net profit jumped 64% to Rs 181 crore during the quarter as compared with Rs 509 crore posted in corresponding quarter last year. Total income declined 26% YoY to Rs 2,145 crore in Q1 FY25.

Global Markets:

Most Asian stocks advanced on Wednesday, buoyed by Wall Street's rally following upbeat US inflation data. This strengthened expectations that the Federal Reserve could initiate monetary easing as early as September.

New Zealand's dollar tumbled after the central bank unexpectedly cut interest rates by 25 basis points to 5.25%.

Chinese equities declined as data revealed a contraction in bank loans to the real economy for the first time in 19 years. Investors are eagerly awaiting earnings results from Tencent Holdings and details of its planned share buyback.

US stocks surged on Tuesday, nearing recent record highs, after a milder-than-expected producer price index (PPI) report. The Dow Jones Industrial Average gained 1.04%, the Nasdaq Composite jumped 2.43%, and the S&P 500 climbed 1.68%.

The PPI, a measure of wholesale inflation, rose 0.1% last month. This data buoyed investor sentiment ahead of Wednesday's more closely watched consumer price index (CPI) report, which is expected to show a modest increase of 0.2% month-over-month.