Closing Bell: Nifty around 24,150, Sensex gains 443 pts; IT, auto, FMCG shine

Indian benchmark indices erased previous session losses and ended higher on July 1 with Nifty above 24,100. At close, the Sensex was up 443.46 points or 0.56 percent at 79,476.19, and the Nifty was up 131.40 points or 0.55 percent at 24,142.

We wrap up today's edition of the Moneycontrol live market blog, and will be back tomorrow morning with all the latest updates and alerts. Please visit https://www.moneycontrol.com/markets/global-indices for all the global market action.

The markets began the week positively, gaining nearly half a percent, extending the ongoing uptrend. Starting flat, the Nifty gradually climbed and nearly reached Friday’s highs, closing at 24,123.35 levels. Sector-wise, there was a mixed trend with IT, financials, and metals showing decent gains, while energy and realty dipped about half a percent. The broader indices performed well, with both midcap and smallcap indices gaining approximately 1.5% each.

The consistent buying interest on dips suggests bullish control, likely continuing the current tone. The renewed strength in midcap and smallcap segments adds further positivity. Traders should focus on selecting sectors/themes with rotational participation and consider adding positions during pauses or dips.

After witnessing minor selling pressure from the all-time high of 24174 levels on Friday, Nifty continued to show upside momentum amidst a range bound action on Monday and closed the day higher by 131 points. After opening with a positive note, the market continued to surge higher with range bound action for better part of the session. Nifty closed the day higher by erasing most of the intraday loss of Friday.

A reasonable positive candle was formed on the daily chart, that has placed beside the small negative candle of previous session. This is positive indication and suggests that the minor negative sentiment created on Friday could be nullified in the short term.

Positive chart pattern like higher tops and bottoms is intact. Having formed a minor higher bottom in the last week, the market is on the uprun to form another higher top of the pattern at the new highs. Still there is no confirmation of any higher top reversal forming at the highs.

The underlying trend of Nifty remains positive. The market is racing towards the next upside target of 24400 levels in the near term. Immediate support is placed at 23980 levels.

The domestic market sustained its upward momentum, with a reduction in US PCE inflation raising hopes for a rate cut by the FED in September. This optimism contributed to the strong performance of IT stocks. We anticipate this trend will persist in the near term due to expectations of a rebound in discretionary spending. Investors are now focusing on upcoming US job data and the Fed Chair's speech for further indication on interest rates.

Nifty50 started the July month marginally lower but a sharp upmove in the IT counters pushed the Index higher to end the session at a record closing level of 24,141.95 with gains of 131.35 points. As far as sectors are concerned, Media was the top gainer while PSU Bank was the major laggard by ending the day with a loss of 0.76%.

During the day, buying traction was witnessed in the Cement stocks. By breaching its congestion, Mid and Smallcaps advanced over 0.90% and outperformed the Benchmark Index.

Bullish Engulfing on the daily chart indicates the presence of a strong momentum and we believe that the Index is heading toward the 24,250-24,400 zone while the support level is shifted higher at 23,940.

Indian rupee ended marginally lower at 83.44 per dollar on Monday against Friday's close of 83.38.

Indian benchmark indices erased previous session losses and ended higher on July 1 with Nifty around 24,150.

At close, the Sensex was up 443.46 points or 0.56 percent at 79,476.19, and the Nifty was up 131.40 points or 0.55 percent at 24,142. About 2403 shares advanced, 1112 shares declined, and 115 shares unchanged.

Top Nifty gainers included Tech Mahindra, Wipro, Bajaj Finance, UltraTech Cement and Grasim Industries, while losers were NTPC, Eicher Motors, Dr Reddy's Labs, SBI and Apollo Hospitals.

Among sectors, except power, PSU Bank and realty, all other indices ended in the green with IT index rose nearly 2 percent.

The broader indices hit a fresh record high with the BSE midcap and smallcap index adding more than 1 percent each.

#1 Passengers’ ability to pay & losses will drive gradual increase in air fares over time
#2 Willingness of air passengers to pay may get tested in the near term
#3 Can impact the near-term load factors and pricing strategies of airlines
#4 IndiGo is only airline making money, a good play on an uptick in air fares over time

Sensex Today | Cement stocks in focus

The Board of Directors of the company, has, at its meeting held today, approved an equity investment not exceeding Rs 4 crore for acquiring/maintaining upto ~26.33% equity share capital of Bhargavi Renewable Private Limited (“BRPL”), a Special Purpose Vehicle, for setting up of 18 MWp Ground Mounted Solar Power Plant for supply of power to Vapi facilities which would make the company’s Vapi facilities upto 60% RE by the financial year 2025 with a reduction in the cost of power.

Brokerage Call | Morgan Stanley On Steel

#1 Steel stocks continued to do well, with expectations of policy reforms continuity
#2 Supported by improved macro sentiment in China
#3 Steel stocks in our coverage are up 21 percent in past six months on a weighted average basis
#4 Steel stocks have outperformed the Sensex by 10 ppt
#5 Believe this outperformance is overdone
 

#1 Company now matches Exide on capability but lags on customer wins & ramp-up timeline
#2 Financial returns on li battery business are still not clear as EV battery deflation continues
#3 Thus, remain selectively overweight; prefer Exide over Amara

Indian Rupee depreciated by 0.08% on surge in US treasury yields and rising crude oil prices. Oil prices are trading near highest levels in two months while a surge in the bond yields pressurised Asian currencies. However, positive domestic markets and a rise in manufacturing PMI supported the Rupee. India’s manufacturing PMI expanded to 58.3 in June 2024 versus 57.5 in May 2024.

We expect Rupee to trade with a slight positive bias on positive domestic markets and expectations of fresh foreign inflows. However, strength in the US Dollar and surge in crude oil prices may cap sharp upside. Traders may take cues from ISM manufacturing PMI and construction spending data from the US. USDINR spot price is expected to trade in a range of Rs 83.10 to Rs 83.70.

Markets@3 | Sensex up 400 pts, Nifty above 24,100

The Sensex was up 397.86 points or 0.50 percent at 79,430.59, and the Nifty was up 119.60 points or 0.50 percent at 24,130.20. About 2388 shares advanced, 1120 shares declined, and 114 shares unchanged.

The company registered the highest ever sales volume of 7,21,064 Ton in Q1FY25 compared to 6,61,501 Ton in Q1FY24 and 6,78,556 Ton in Q4FY24.

Sensex Today | BSE Power index down 0.5%; NTPC, Tata Power among major losers

Sensex Today | BSE Consumer Durables index up nearly 1%; Dixon Technologies, Aditya Birla Fashion among major gainers

Fitch Ratings has affirmed Indian Oil Corporation's (IOC) Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BBB-'. The outlook is stable.

Fitch has also affirmed IOC's senior unsecured rating at 'BBB-'.

#1 Coal India June sales 64.1 mln tons, up 5.4% YoY

#1 Local sales 1.18 lakh units up 6.1 percent YoY

The cement major has announced the commissioning of an additional 3.35 mtpa clinker along with 1.8 mtpa grinding capacity at its existing unit in Tadipatri, Andhra Pradesh. Its total cement capacity has now reached 154.86 mtpa.

Garden Reach Shipbuilders & Engineers has signed contract for construction of an advanced ocean-going tug for Government of the People's Republic of Bangladesh.

NIIT announced the appointment of Pankaj Jathar as its new Chief ExecuƟve Officer, effecƟve July 1, 2024.

Pankaj takes over from Sapnesh Lalla, who will conƟnue as a non-execuƟve director at NIIT Ltd while remaining CEO of NIIT Learning Systems (NIIT MTS).

Stock Market LIVE Updates | Nifty PSU Bank index underperforms

The company has converted debt instruments worth $564.75 million (Rs 4,713.03 crore) in T Steel Holdings Pte. Ltd, into 3,59,71,33,758 fully paid-up equity shares of face value $0.157 each. Post this conversion, T Steel Holdings will continue to be a wholly owned subsidiary of Tata Steel.

Sensex Today | Nifty PSU Bank index down 0.7%; Union Bank of India, Bank of Baroda, Bank of Maharashtra among major losers

The real estate developer has achieved sales of over Rs 2,700 crore to date for the residential project Titanium SPR in Gurugram. The total sales figure is expected to increase significantly after the finalization of the allotment.

Sensex Today | BSE Midcap index hits fresh record high

The lender has received a demand order of Rs 1,067.82 crore, from the Income Tax Department, pertaining to Assessment Year 2017-18.

Further, the bank said the board of directors will be meeting on July 5 to consider the Capital Plan for FY 2024-25 via raising funds through additional Tier 1 and Tire 2 debt capital instrument with an interchangeability option.

Sensex Today | BSE Smallcap index hits fresh record high; Rane Holdings, Nahar Poly Films up 20% each

Sensex Today | BSE IT outperforms other sectoral indices

#1 Company raises tariff plans by 13-21 percent; entry level unlimited 5G plans unchanged for now
#2 Industry outlook remains robust as focus shifts to value creation & monetisation
#3 Company’s management indicated exit ARPUs of Rs 300 in FY26
#4 Company would require another tariff hike of 20 percent in FY26
#5 Tariff repair now appears to be on the horizon
#6 Tariff repair will drive robust earnings for the industry and improve industry health

The company has invested Rs 282.67 crore in TVS Credit Services by subscribing to an additional 68,94,335 equity shares. With this investment, the shareholding of the company in TVS Credit Services has increased from 80.53% to 80.69%.

The board members have appointed Rameshwar Prasad Agrawal as the Chief Financial Officer of the company effective July 1, following Naren Suggula's resignation as Chief Financial Officer.

The bank has entered into a distributorship agreement with Mirae Asset Investment Managers (India) to distribute Mirae's mutual fund products to its customers on a DIY model.

Sensex Today | BSE FMCG index rises 0.5%; S H Kelkar, Emami, Jyothy Labs among major gainers

The Board of Directors of Rane Holdings at their meeting held on July 01, 2024, approved the execution of share purchase agreement towards acquisition of the balance 51% equity stake in the joint venture company Rane NSK Steering Systems (RNSS) from the joint venture partner NSK Ltd., Japan (NSK).

#1 Company offers a healthy cocktail of a robust domestic franchise
#2 Company offers niche CMO presence & measured exports strategy, aided by peerless execution
#3 Expect strong 17 percent/19 percent EBITDA/PAT CAGRs over FY24-27
#4 Strong EBITDA/PAT CAGRs backed by improved MR productivity in India

Sensex Today | Nifty Media index up nearly 3%; DB Corp, Sun TV Network, PVR Inox up 3-6%

Godrej Properties announced the acquisition of ~7 acres of land in Thanisandra, North Bengaluru on an outright basis.

The development on this land will comprise high-end residential project featuring premium residential apartments of various configurations.

The proposed project is estimated to have a developable potential of ~ 9 lakh square feet with an estimated revenue potential of ~ Rs 1,200 crore.

Shares of Indian Renewable Energy Development Agency (IREDA) surged over 6 percent in on July 1 as the company reported a 382.62 percent year-on-year (YoY) increase in loan sanctions for the June 2024 quarter, totaling Rs 9,136 crore compared to Rs 1,893 crore a year earlier.

The company's loan disbursements also rose 67.61 percent YoY to Rs 5,320 crore from Rs 3,174 crore in the June 2023 quarter. The firm's outstanding loan book grew to Rs 63,150 crore in Q1FY25, up 33.77 percent from Rs 47,207 crore a year ago. Read More

Markets@12 | Sensex, Nifty at day's high

The Sensex was up 318.79 points or 0.40 percent at 79,351.52, and the Nifty was up 97.20 points or 0.40 percent at 24,107.80. About 2422 shares advanced, 1002 shares declined, and 122 shares unchanged.

Sumit Woods has been selected as the developer to redevelop the “Dattani Trade Center Co-operative Society Premises Limited” situated at Chandavarkar Road, Borivali West, Mumbai- 400 092.

This is the commercial redevelopment project at prime location of Chandavarkar Road 2 minutes Walkin distance from Borivali West Railway Station the construction area approximately 3,85,000 and it has potential revenue of 450 crore.

REC recorded loan sanctions of Rs 1,12,747 crore and loan disbursements of Rs 43 652 crore during the first quarter ended June 30, 2024 of financial year 2024-25, which translates into significant growth of 24.17% and 27.89%, respectively, over the corresponding quarter of financial year 2023-24.

#1 Company’s primary focus remains on small molecule CDMO projects in human health
#2 Health sector is where the opportunity remains large, with good visibility of growth
#3 Differentiated offerings include agile project management, expertise on regulatory affairs for NCE development
#4 Management continue to focus on SMID biotech where there is scope for value addition
#5 Accelerate filings in the specialty API segment

Sensex Today | Nifty Information Technology index up 2%; Persistent Systems, Wipro, MphasiS gain 2-4

The company has received a GST order, demanding a tax of Rs 132.7 crore and a penalty of Rs 132.7 crore, from the Joint Commissioner, CGST & Central Excise, Thane Commissionerate, Maharashtra.

With a focus on addressing growing consumer demand for high performance, reliable, and sustainable power solutions, Greaves Engineering, the engineering division of Greaves Cotton is offering CPCB IV+ compliant gensets across its diverse product portfolio.

The factory will begin production soon, as installation of machinery is in progress, the company stated in an exchange filing.

Markets@11 | Sensex up 180 pts, Nifty above 24,050

The Sensex was up 184.59 points or 0.23 percent at 79,217.32, and the Nifty was up 72.10 points or 0.30 percent at 24,082.70. About 2368 shares advanced, 1008 shares declined, and 124 shares unchanged.

Mahindra & Mahindra today announced that its overall auto sales for the month of June 2024 stood at 69,397 vehicles, a growth of 11%, including exports.

Steel Strips Wheels achieved Net turnover of Rs. 358.11 crores in June 2024 versus Rs 355.83 Crores in June 2023 recording a growth of 0.64 percent YoY and achieved Gross turnover of Rs 434.21 crores in June 2024 Vs Rs 429.26 crores in June 2023, there by recording a growth of 1.15% YoY.

#1 Valuation & consensus EPS momentum remain near-term tailwinds
#2 Big 4 private banks’ outperformance expected to continue through Q1FY25 results
#3 Big 4 private banks’ outperformance expected given stable outlook for growth & NIM
#4 Positioning & flows remain supportive
#5 Any revival in EM flow will benefit large cap banks
#6 Continue to like PSBs but do not expect Q1FY25 to be a major stock catalyst
#7 Consensus earnings upgrades are likely to resume only after Q2FY25

Shares of Mason Infratech made a stellar debut on NSE SME, listing at Rs 88 per share on July 1, up 37.5 percent from its issue price set at Rs 64 apiece on the upper end. The Rs 30.4 crore SME IPO of Mason Infratech was subscribed by 32.89 times (x), led by non-institutional investors (NIIs) and retail. Read More

Sensex Today | Nifty Midcap 100 index hits fresh record high, crosses 56,000

#1 Target is raised to Rs 607 from Rs 431

#2 expect no further cut to FY25 guidance

#3 Discretionary demand stabilising; turn positive on Wipro

#5 Surprised positively announcing a USD 500 million deal this quarter

#5 Expect Q2 CC revenue growth guidance of 0-2 percent

Shares of Visaman Global Sales made a strong debut on the NSE SME, opening at Rs 45.1 per share, up 2 percent from its issue price of Rs 43 per share. The Rs 16.15 crore public issue of Visaman Global was subscribed more than 40 times on the final day of bidding.

The company aimed to raise Rs 16.05 crore through this public issue, which consists entirely of a fresh issue of 37.32 lakh equity shares. The funds are intended for capital expenditure, establishing a manufacturing facility in Rajkot, Gujarat, working capital requirements, and general corporate purposes.

Shares of Sylvan Plyboard made a positive start on its stock market debut after it listed at Rs 66, commanding a premium of 20 percent over the issue price of Rs 55 on the NSE SME platform.

The Rs 28-crore public offer is a fresh issue of a fresh issue of 51 lakh equity shares. The offer received an impressive investor response over three days from June 24 to June 26. The issue was subscribed a massive 84 times, with retail investors subscribing 84.11 times followed by non-institutional investors who bought over 75 times their allotted quota. Qualified institutional buyers (QIBs) didn't purchase.

Markets@10 | Sensex, Nifty trade higher

The Sensex was up 206.51 points or 0.26 percent at 79,239.24, and the Nifty was up 68.90 points or 0.29 percent at 24,079.50. About 2378 shares advanced, 878 shares declined, and 113 shares unchanged.