Nifty below 24,200 level; oil & gas shares slide

The benchmark indices traded with moderate losses in mid-morning trade. The Nifty traded below the 24,200 level. Oil & gas shares declined after advancing in the past trading session. Trading was volatile due to weekly F&O series expiry today.

At 11:30 IST, the barometer index, the S&P BSE Sensex, was down 307.21 points or 0.39% to 79,139.19. The Nifty 50 index fell 102.55 points or 0.42% to 24,192.80.

In the broader market, the S&P BSE Mid-Cap index rose 0.04% and the S&P BSE Small-Cap index added 0.55%.

The market breadth was positive. On the BSE, 2,073 shares rose and 1,603 shares fell. A total of 139 shares were unchanged.

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 maintined 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.

IPO Update :

The initial public offer (IPO) of Brainbees Solutions received 2,16,96,608 bids for shares as against 4,96,39,004 shares on offer, according to stock exchange data at 11:15 IST on Thursday (08 August 2024). The issue was subscribed 0.44 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 34,74,46,326 bids for shares as against 1,40,84,681 shares on offer, according to stock exchange data at 11:15 IST on Thursday (08 August 2024). The issue was subscribed 24.67 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 Oil & Gas index fell 1.17% to 12,822.15. The index advanced 3.06% in the past consecutive trading session.

Bharat Petroleum Corporation (down 2.58%), Hindustan Petroleum Corporation (down 2.39%), GAIL (India) (down 1.98%), Oil India (down 1.97%), Oil & Natural Gas Corpn (down 1.61%), Indian Oil Corporation (down 1.24%), Gujarat Gas (down 1.09%), Indraprastha Gas (down 1.04%), Reliance Industries (down 0.84%) and Aegis Logistics (down 0.12%) slipped.

On the other hand, Gujarat State Petronet (up 0.74%) ,Mahanagar Gas (up 0.64%) and Petronet LNG (up 0.51%) edged higher.

Stocks in Spotlight :

Lemon Tree Hotels dropped 5.30% 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. Revenue from operations jumped 19.52% year on year (YoY) to Rs 268.02 crore in Q1 FY25.

Godrej Consumer Products fell 3.55%. The company’s consolidated net profit stood at Rs 451 crore, up 41% as compared with Rs 319 crore in Q1 FY24. Revenue fell 3% to Rs 3,332 crore during the quarter as compared with Rs 3,449 crore in Q1 FY24. The company’s board has declared interim dividend of Rs 5 per share.

Global Markets :

Asian stocks traded 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 0.6%, the S&P 500 lost 0.77%, and the Nasdaq Composite dropped 1.05%.