Barometers drop in early trade; breadth weak

The domestic equity benchmarks traded with significant losses in early trade. The Nifty traded below the 24,850 mark. FMCG and healthcare shares declined while metal, auto and realty shares advanced.

At 09:28 IST, the barometer index, the S&P BSE Sensex, was down 561.85 points or 0.66% to 81,305.70. The Nifty 50 index fell 168.55 points or 0.67% to 24,842.35.

In the broader market, the S&P BSE Mid-Cap index declined 0.64% and the S&P BSE Small-Cap index fell 0.42%.

The market breadth was weak. On the BSE, 836 shares rose and 1,980 shares fell. A total of 113 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 2,089.28 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 337.03 crore in the Indian equity market on 1 August 2024, provisional data showed.

Numbers to Track:

The yield on India's 10-year benchmark federal gained 1.58% to 7.025 as compared with previous close 7.036.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.7400, compared with its close of 83.7375 during the previous trading session.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.07% to 104.35.

The United States 10-year bond yield fell 0.35% to 3.961.

In the commodities market, Brent crude for September 2024 settlement gained 63 cents or 0.79% to $80.15 a barrel.

Stocks in Spotlight:

ITC rose 0.39%. The company’s net profit rose marginally to Rs 4,917.45 crore in Q1 FY25 as against Rs 4,902.74 crore posted in Q1 FY24. Net revenue (excluding excise duty) was at Rs 16,857.59 crore in the June quarter, up 7.54% from Rs 15,675.64 crore recorded in the corresponding quarter previous year.

Tata Motors slipped 3.82%. The company’s consolidated net profit jumped 73.77% to Rs 5,566 crore on 5.68% rise in total revenue from operations to Rs 1,08,048 crore in Q1 FY25 over Q1 FY24.

Kalyan Jewellers India rose 0.85%. The company’s consolidated net profit jumped 24% to Rs 178 crore in Q1 FY25 as compared with Rs 144 crore in Q1 FY24. Revenue stood at Rs 5,535 crore, up 26.5% YoY in Q1 FY25.

Global Markets:

Most Asian stocks declined on Friday, pressured by a confluence of negative factors including a selloff in Japan, a global tech rout, and worries about the US economy.

Japanese stocks plunged for a second day on expectations of tighter monetary policy in the country.

U.S. stocks opened August significantly lower after economic data raised concerns about a slowing economy despite the Federal Reserve's restrictive monetary stance.

Weekly unemployment claims reached a near-one-year high, and US manufacturing activity contracted to an eight-month low in July due to a decline in new orders (data from Aug 1).

The tech sector's losses stemmed from underwhelming earnings reports or outlooks from industry leaders like Intel and Amazon. Investor focus now shifts to the crucial monthly jobs report, due later on Friday.

Geopolitical tensions added another layer of uncertainty. The recent Israeli airstrikes in Gaza, reportedly killing both Hamas' military and political leaders, further dampened market sentiment.