Indices edge lower in early trade; breadth strong

The key equity barometers traded with tiny losses in early trade. The Nifty traded below the 24,350 level. Financial services, bank and private bank declined while consumer durables, pharma and Realty shares advanced.

At 09:25 IST, the barometer index, the S&P BSE Sensex, was down 48.32 points or 0.06% to79,611.48. The Nifty 50 index declined 12.60 points or 0.05% to 24,334.40.

In the broader market, the S&P BSE Mid-Cap index rose 0.25% and the S&P BSE Small-Cap index added 0.59%.

The market breadth was strong. On the BSE, 1,822 shares rose and 1,058 shares fell. A total of 123 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 4,680.51 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 4,477.73 crore in the Indian equity market on 12 August 2024, provisional data showed.

Economy

India’s CPI inflation in July 2024 stood at 3.54%, which is the lowest since August 2019, according to official data released on Monday, August 12. In the previous month of June 2024, India’s retail inflation had stood at 5.08%.

Meanwhile, India’s IIP recorded a growth of 4.2% in June 2024. The factory output, measured in terms of the Index of Industrial Production (IIP) witnessed a growth of 4% in June 2023.

Stocks in Spotlight:

Vodafone Idea rose 0.25%. The company reported consolidated net loss of Rs 6,432 crore in Q1 FY25 as compared with Rs 7,675 crore posted in fourth quarter of previous fiscal. Revenue fell 1% to Rs 10,508 crore in Q1 FY25 as against 10,607 crore posted in Q4 FY24.

Campus Activewear declined 2.91% after the company’s consolidated net profit declined 19.4% YoY to Rs 25.4 crore in Q1 FY25. Revenue from operations fell 4.1% to Rs 339 crore in Q1 FY25 as compared with Rs 354 crore in Q1 FY24.

Rashtriya Chemicals & Fertilizers (RCF) fell 2.02% after the company’s consolidated net profit declined 84% to Rs 10.8 crore in Q1 FY25 as compared with Rs 67.7 crore in Q1 FY24. Revenue increased 8.7% YoY to Rs 4,396 crore in Q1 FY25.

Numbers to Track:

The yield on India's 10-year benchmark federal paper was up 1.66% to 6.993 as compared with previous close 6.996.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.9575, compared with its close of 83.9725 during the previous trading session.

MCX Gold futures for 5 September 2024 settlement shed 0.01% to Rs 70,345.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.03% to 103.10.

The United States 10-year bond yield was flat at 3.910.

In the commodities market, Brent crude for October 2024 settlement declined 68 cents or 0.83% to $81.99 a barrel.

Global Markets:

Asian stocks climbed on Tuesday, buoyed by strong performance in Japan amid a steady yen. Investors are keenly watching for the release of U.S. inflation data, which will offer clues about the Federal Reserve's next interest rate move.

Wall Street closed with a mixed performance on Monday as traders prepared for a week packed with crucial economic indicators. The benchmark S&P 500 hugged the flat line while the tech-heavy Nasdaq Composite rose about 0.2%. Meanwhile, the Dow Jones Industrial Average dropped roughly 0.4%.