Market slides for 3rd day; Nifty settles below 24,000; VIX drops 7.97%

The key equity benchmarks ended with minor losses on Tuesday, declining for the third day in a row. The Nifty closed below the 24,000 level after hitting the day's high of 24,382.60 in early trade. Realty, IT and metal shares advanced while PSU bank, financial services and auto shares declined.

As per provisional closing, the barometer index, the S&P BSE Sensex, was down 166.33 points or 0.21% to 78,593.07. The Nifty 50 index lost 63.05 points or 0.26% to 23,992.55.

In the broader market, the S&P BSE Mid-Cap index fell 0.71% and the S&P BSE Small-Cap index lost 0.57%.

The market breadth was weak. On the BSE, 1,592 shares rose and 2,344 shares fell. A total of 92 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, tumbled 7.97% to 18.74.

IPO Update :

The initial public offer (IPO) of Ola Electric Mobility received 1,66,48,59,495 bids for shares as against 46,51,59,451 shares on offer, according to stock exchange data at 15:15 IST on Monday (05 August 2024). The issue was subscribed 3.58 times.

The issue opened for bidding on Friday (02 August 2024) and it will close on Tuesday (06 August 2024). The price band of the IPO is fixed between Rs 72 to Rs 76 per share. An investor can bid for a minimum of 195 equity shares and in multiples thereof.

The initial public offer (IPO) of Brainbees Solutions received 43,33,920 bids for shares as against 4,96,39,004 shares on offer, according to stock exchange data at 15:15 IST on Tuesday (06 August 2024). The issue was subscribed 0.09 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 2,55,84,786 bids for shares as against 1,40,84,681 shares on offer, according to stock exchange data at 15:15 IST on Tuesday (06 August 2024). The issue was subscribed 1.82 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 PSU Bank index fell 1.26% to 6,816.20. The index tanked 8.31% in sixth consecutive trading sessions.

Bank of India (down 2.91%), Punjab & Sind Bank (down 2.86%), Indian Bank (down 2.84%), Union Bank of India (down 2.45%), UCO Bank (down 2.23%), State Bank of India (down 1.69%), Indian Overseas Bank (down 1.42%), Bank of Maharashtra (down 1.08%), Canara Bank (down 0.26%) and Bank of Baroda (down 0.25%) declined.

Stocks in Spotlight:

Oil and Natural Gas Corporation (ONGC) shed 0.97%. The company reported 15.09% decline in standalone net profit to Rs 8,938.10 crore in Q1 FY25 as compared with Rs 10,526.78 crore in Q1 FY24. Revenue from operations increased 4.29% YoY to Rs 35,266.38 crore in Q1 FY25.

TVS Motor Company shed 0.90%. The company reported 23.45% increase in standalone net profit to Rs 577.32 crore in Q1 FY25 as compared to Rs 467.67 crore posted in Q1 FY24. Revenue from operations rose 16.04% YoY to Rs 8,375.59 crore in the June 2024 quarter.

BEML tumbled 7.18%. The company’s consolidated net loss narrowed to Rs 70.47 crore in Q1 FY25 as compared with Rs 75.01 crore reported in Q1 FY24. Revenue from operations grew by 9.91% to Rs 634.08 crore in Q1 FY25 as against Rs 576.91 crore posted in corresponding quarter last year.

Tata Chemicals fell 1.74%. The company’s consolidated net profit from continuing operations declined 69.72% to Rs 175 crore in Q1 FY25 as compared to Rs 578 crore posted in Q1 FY24. The company’s revenue from operations fell 10.17% year-on-year (YoY) to Rs 3,789 crore for the quarter ended 30 June 2024.

Brigade Enterprises gained 2.84% after the company’s consolidated net profit surged 117.29% of Rs 83.72 crore in Q1 FY25 as compared with Rs 38.53 crore reported in Q1 FY24. Revenue from operation jumped 64.8% year on year (YoY) to Rs 1,077.72 crore in the quarter ended 30 June 2024.

BLS International Services surged 10.16% after the company’s consolidated net profit jumped 70.16% to Rs 120.78 crore in Q1 FY25 as compared with Rs 70.98 crore in Q1 FY24. Revenue from operations jumped 28.47% YoY to Rs 492.66 crore during the quarter.

Symphony surged 19.60% after the company’s consolidated surged to Rs 88 crore during the quarter as compared with Rs 24 crore posted in corresponding quarter last year. Revenue from operations jumped 75.83% YoY to Rs 531 crore in Q1 FY25. Meanwhile, the board declared first interim dividend of Rs 1 per share having face value of Rs 2 each for FY25.

Further, the company’s board approved a share buyback upto Rs 71.40 crore at Rs 2,500 per share via tender offer route. The company will buyback 2,85,600 fully paid-up equity shares of face value Rs 2 each, representing 9.33% and 9.99% of the total paid-up equity share capital and free reserves. The buyback price is fixed at Rs 2,500, representing a 103.4% premium to Monday’s closing price of Rs 1229.10 on the BSE.

Schneider Electric Infrastructure jumped 5.31% after the company's net profit jumped 38.83% to Rs 48.48 crore in Q1 FY25 from Rs 34.92 crore in Q1 FY24. Rev0065nue from operations grew by 19.72% year on year (YoY) to Rs 592.91 crore in the quarter ended 30 June 2024.

Global Markets:

European stocks tumbled across the board while most Asian stocks advanced on Tuesday.

Japanese markets led the rally, bouncing back after plunging into bear market territory. Bargain hunting also fueled gains, as investors snapped up discounted stocks with solid fundamentals.

US stocks tumbled on Monday, triggered by recession fears. The Dow dropped 1,033.99 points, or 2.6%, to end at 38,703.27. The Nasdaq Composite lost 3.43% and closed at 16,200.08, while the S&P 500 slid 3% to end at 5,186.33.

Friday's disappointing US jobs report intensified concerns about a potential recession. Investors are growing increasingly frustrated with the Federal Reserve's reluctance to cut interest rates despite slowing economic growth. The central bank opted to maintain rates at a 22-year high during its last meeting.

Adding to market volatility, the unwinding of the yen carry trade is gaining momentum. After the Bank of Japan raised interest rates last week, narrowing the interest rate differential with the US, the yen strengthened against the dollar. This has forced investors to unwind positions that involved borrowing in yen to invest in higher-yielding assets.