Closing Bell: Sensex, Nifty end flat amid volatility; auto, banks drag, IT shines

Indian benchmark indices ended flat in the highly volatile session on July 2. At close, the Sensex was down 34.74 points or 0.04 percent at 79,441.45, and the Nifty was down 18.20 points or 0.08 percent at 24,123.80.

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 Nifty faced profit booking around 24,200, leading to a close 100 points off the high. The sentiment is likely to favor selling on rallies until it moves above 24,250. On the lower end, 24,000 is likely to act as immediate support for the Nifty. A fall below 24,000 might trigger a correction towards 23,850/23,700.

The domestic market took a breather, resonating with the mixed global trend, with the ECB showing caution regarding further rate cuts. In sectoral trends, IT stocks gained due to expected increases in discretionary spending, while auto stocks declined following lower-than-expected monthly volumes. The investors are closely monitoring the progress of the monsoon, the forthcoming Union budget, alongside the US election, which can have potential global economic implications. Recent spikes in US Treasury yields and a gradual rise in crude oil prices are affecting market trends.

The Bank Nifty index witnessed selling pressure from higher levels and faced rejection at the 52400-52500 levels. The index remains in a sell-on-rise mode with the next immediate support at the 52000-51800 zone. If the index fails to hold this support, it can witness further selling pressure towards the 51400-51300 level.

After showing a sustainable upside bounce from the lows on Monday, Nifty shifted into a choppy movement at the new highs on Tuesday and closed the day lower by 18 points. After opening at the new all-time high of 24236 levels, the market was not able to show follow-through upmove since opening. Narrow range movement with weak bias continued in the mid to later part and Nifty closed near the lows.

A small negative candle was formed on the daily chart at the new highs, which is indicating a lackluster type movement in the market. This pattern also signals tiredness in the market at the new highs.

The overall trend of Nifty remains positive. Further consolidation or minor dips from here could be a buying opportunity, as per the bullish pattern of higher tops and bottoms. Nifty as per long term chart remains strong and one may expect upside momentum to resume shortly after the consolidation movement. Immediate support is at 23980. The next upside resistance to be watched around 24400.

Markets had touched fresh highs in early trades on fresh optimism but failed to capitalise on it and slipped into the red to languish in negative territory thereafter. Weak European and Asian cues coupled with a negative sentiment in Dow Futures fuelled profit-taking in banking, telecom and auto shares.

The markets began the session at yet another record level of 24,230 but a fall in the Mid and Smallcap segments dragged the Index lower to remain rangebound for the rest of the day. With a loss of 18.10 points, Nifty50 settled the trade at 24,123.85.

Among the sectors, the IT sector was the top gainer followed by Media; and on the flip side, PSU Banks and FMCG were the major laggards. Mid and Smallcaps corrected by 0.78% and 0.45% and underperformed the Frontline Index.

Nothing has changed as the strong uptrend is intact and buying on dips will be an ideal strategy. The downside seems to be protected at a psychological support of 24,000 while 24,230 will be an immediate resistance.

Indian rupee ended marginally lower at 83.50 per dollar on Tuesday versus Monday's close of 83.44

Indian benchmark indices ended flat in the highly volatile session on July 2.

At close, the Sensex was down 34.74 points or 0.04 percent at 79,441.45, and the Nifty was down 18.20 points or 0.08 percent at 24,123.80. About 1740 shares advanced, 1686 shares declined, and 72 shares unchanged.

Top Nifty gainers were L&T, Wipro, Infosys, HDFC Bank and TCS, while losers were Shriram Finance, Bharti Airtel, Kotak Mahindra Bank, Tata Motors and IndusInd Bank.

On the sectoral front, capital goods, Information Technology, realty and oil & gas rose 0.3-1 percent, while bank, auto, FMCG, power down 0.3-0.9 percent.

The BSE midcap index shed 0.5 percent while smallcap index ended flat.

#1 Most OEMs reported encouraging volume trends in June
#2 Within segments, UVs, tractors & buses witnessed healthy volume growth
#3 Both Maruti & M&M saw decent uptick in UV volumes
#4 Among 2-W OEMs, Hero reported strong volume growth
#5 Bajaj & TVS saw steady momentum, Royal Enfield volumes were muted
#6 Disappointed by the continued weakness in truck volumes for TaMo & Ashok Leyland
#7 Our preference order is Maruti followed by M&M & Hero MotoCorp

Foreign Direct Investment in the tobacco sector could see some restrictions being imposed in the coming days, CNBC-Awaaz learns.

Sources have told Awaaz that the Centre is considering to widen the ambit of FDI curbs for cigarette manufacturing companies, and may restrict foreign investment in technology tie ups. If the proposal gets the go ahead, then FDI in any franchise of tobacco products, trademark and any branding of tobacco and similar substitutes such as cigars may soon see FDI restrictions being imposed. Right now, any FDI in the manufacturing of tobacco products is not permitted under government regulations. Read More

The government of India is considering selling five to seven percent of the Container Corp of India (CONCOR) after plans for a strategic sale to privatise the company met with lukewarm interest, government sources said.

The government is understood to be considering options like offer for sale or qualified institutional placement (QIP) for the stake sale.

Multiple government officials told Moneycontrol that the central government has decided to put the divestment of CONCOR on hold indefinitely after failing to find potential buyers. Read More

Brokerage Call | Expect 5-7% YoY CC revenue growth for HCL & TCS: Motilal Oswal

#1Expect revenues of IT services companies to recover following a tepid Q4
#2 Ramp-up of large cost-takeout deals could drive growth for large caps 
#3 Brutal winter of discretionary spend cuts in the industry is likely over
#4 There is little evidence of a recovery in the flow business
#5 We are on track for one of the weakest first quarters for at least 10 years
#6 Would be looking for signs of recovery in discretionary spending 
#7 Any disappointment in Q1 could again put pressure on Q2
#8 Expect 5-7 percent YoY FY25 CC revenue growth for HCL & TCS & lower for Infosys
#9 Expect revenue/EBIT/PAT to grow by 3.2/5.2/6.1 percent for our coverage

Som Distilleries and Breweries informed that the suspension of licence of the Private Limited Company has been stayed by the Honourable Madhya Pradesh High Court on last Friday, 28th June 2024 and normal operations at the plant have commenced.

#1 IGL target raises to Rs 610 from Rs 550
#1 Gujarat Gas target raised to Rs 500 from Rs 450
#2 Raise target on a reduction in our cost of capital assumptions
#3 Key underlying operating & financial assumptions remain unchanged

The company received a contract worth Rs 117.17 crore for the supply of seamless stainless steel boiler tubes for NTPC's Talcher 2 x 660 MW supercritical thermal power project. The contract is expected to be executed by December 2024.

Brokerage Call | Small cars unlikely to see significant revival: Nomura

#1 Volumes below our estimate for Ashok Leyland, TVS & Tata Motors
#2 M&M’s tractor volumes covered up for weaker SUV sales
#3 Bajaj Auto’s & Maruti’s wholesales ahead partly driven by higher exports
#4 Small cars unlikely to see significant revival & SUVs will continue to gain share

Markets@3 | Sensex, Nifty trade flat

The Sensex was down 20.88 points or 0.03 percent at 79,455.31, and the Nifty was down 15.60 points or 0.06 percent at 24,126.40. 

European stock markets were lower Tuesday, as market participants assessed the euro zone’s latest inflation data.

Sensex Today | BSE Oil & Gas index up 0.5%; Adani Total Gas, Oil India, Petronet LNG

The lender registered gross advances for the June FY25 quarter at Rs 82,510 crore, growing 11.35% over the same period last year. Total deposits during the same period increased by 8.41% to Rs 1.03 lakh crore. CASA rose by 5.88% to Rs 32,998 crore compared to the year-ago quarter.

Indian Rupee depreciated by 0.07% on weak domestic markets and a rise in the US Dollar index. Rising crude oil prices further put pressure on the Rupee. Crude oil prices are trading near two-month highs.

We expect Rupee to trade with a slight negative bias as strength in the US Dollar and surge in crude oil prices may keep Rupee under downside pressure. However, overall positive trend in the domestic markets and expectations of fresh foreign inflows may support Rupee at lower levels. Traders may take cues from Fed Chair Jerome Powell’s speech and JOLTS job openings data from the US. USDINR spot price is expected to trade in a range of Rs 83.20 to Rs 83.75.

#1 The potential gross development value for these projects is Rs 584 crore

Brokerage Call | M&M & Bajaj Auto remain preferred picks: Morgan Stabley

#1 Retail sales remained weak during the month 
#2 2-wheelers outperformed other segments
#3 Rising PV discount is a key to monitor
#4 Electric 2-wheeler penetration continued to improve while 
#5 Electric PV sales were hit by weak fleet demand
#6 M&M & Bajaj Auto remain our preferred picks

The board of directors has recommended the issuance of bonus shares to the Shareholders of the company in the ratio of 1:1 i.e. one new fully paid-up equity share of Rs 10 each for every one existing fully paid-up equity share of Rs 10 each to the eligible shareholders of the company.

#1 Open a 90-day positive catalyst watch
#2 Q1 should be the trigger for an improved growth trajectory & RoA sustenance
#3 Expect Q1 consolidated RoA trajectory of 2.6 percent in a seasonally weak quarter
#4 Retailisation to be well on track with retail disbursements/AUM growth of 30 percent
#5 Overall AUM growth trend to improve to 13 percent YoY

Sensex Today | Nifty Auto index slips 0.7%; Tata Motors, Tube Investment, Ashok Leyland among major losers

#1 Karnataka releases a draft bill on platform-based gig workers
#2 Multiple states talking about the welfare of platform-based gig workers
#3 State-specific policies/laws could add complexity to the operating environment
#4 Incremental cost burden could be shared by all the stakeholders
#5 Bigger medium-term implication would be increased regulatory scrutiny

Brokerage Morgan Stanley said Reliance Industries Ltd could boost its market capitalisation by as much as $100 billion in its fourth monetisation cycle, driven by new cash flow streams and improved valuation multiples.

Over the past three decades, RIL has delivered 2-3x returns for shareholders, with each decade adding over $60 billion in market value.

Based on these projections, Morgan Stanley, which has an 'overweight' rating on RIL, has raised its target price for the stock by over 16 percent to Rs 3,540, indicating a potential upside of around 13.5 percent from the previous closing price. Read More

The company has completed the transfer of its trade generics business in India to its subsidiary Lupin Life Sciences as a going concern, on a slump sale basis.

Singtel is planning to divest more of its stake in India’s second-largest carrier Bharti Airtel, having recently sold 0.8 percent stake to American investment firm GQG Partners for Rs 5,849 crore, sources familiar with the matter said.

The GQG deal in March this year brought down the Singaporean telecommunications company's stake through direct and indirect holdings from 29.8 percent to 29 percent, currently worth an estimated S$33 billion.

Sources said that Singtel has a plan to equalise its share in the carrier with the promoter Bharti Group over time. Bharti Group’s current effective stake stands at 24.57 percent. Read More

The lender decided to increase the marginal cost of funds-based lending rate (MCLR) by 5 basis points on one-month, six-month, and one-year tenures, effective July 3.

China’s drug regulatory authority, the National Medical Products Administration (NMPA), has approved the company's product Fenofibrate. This will enable the company to export its Fenofibrate API to the Chinese market. Fenofibrate is used to treat high cholesterol and triglyceride levels in the blood.

Sensex Today | Nifty Bank index falls 760 pts from day's high; Kotak Mahindra Bank, IDFC First Bank, Bank of Baroda among major losers

Sensex Today | BSE Smallcap index sheds 0.4%; Allcargo Gati, Prime Focus, Pearl Global Industries among major losers

Sensex Today | BSE Midcap index down 1%; Max Healthcare, PB Fintech, NMDC down 3% each

#1 Its new product ‘Elevate’ can help it leap forward in retail-health
#2 In retail-health it has only 3 percent share vs 9 percent overall
#3 It offers unlimited sum-insured, personalisation options
#4 Retail-health can do well with agents, ecomm partners & customers
#5 Underwriting is key & company’s track-record offers comfort
#6 Raise estimates a bit & company stays among top picks

Markets@1 | Sensex, Nifty at day's low

The Sensex was down 223.42 points or 0.28 percent at 79,252.77, and the Nifty was down 80.70 points or 0.33 percent at 24,061.30. About 1551 shares advanced, 1830 shares declined, and 76 shares unchanged.

Manish Agrawal has been appointed as Chief Executive Officer (CEO) - Conductor & Telecommunications Businesses in the category of Senior Management Personnel by the Board of Directors of the Company with effect from July 2, 2024.

Dolphin Offshore Shipping, a company undergoing insolvency resolution process under the Insolvency and Bankruptcy Code, has approved the resolution plan submitted by Deep Onshore Services, wholly owned subsidiary of Deep Industries.

Under the approved Resolution Plan, Deep Onshore will acquire the assets of Dolphin Shipping.

The company received a contract worth Rs 1,250 crore for the manufacturing and supply of electronic modules from Larsen & Toubro.

The company opened its qualified institutions placement (QIP) issue on July 1, with a floor price of Rs 837.89 per share.

Delhi HC issues contempt notice to SpiceJet for failing to return 2 Aircraft, 3 Engines

#1 Key factor driving negative view is rising competition in Urban India for its oil portfolio
#2 Retailers’ private/exclusive brands undercutting Marico brands
#3 Other national/niche brands taking up price points above Marico’s
#4 Believe company’s headroom for growth is narrower than before
#5 We also see increased competition in oats

The company received a contract worth Rs 117.17 crore for the supply of seamless stainless steel boiler tubes for NTPC's Talcher 2 x 660 MW supercritical thermal power project. The contract is expected to be executed by December 2024.

Zim Laboratories has invested Rs 68,24,756 which is AUD 1,23,525 (Australian Dollars) in the equity shares of ZIMTAS Pty Ltd. Post investment, the company holds 99.93% of the total share capital of ZIMTAS Pty Ltd.

Bansal Wires' IPO anchor book includes HDFC Mutual Fund, SBI Mutual Fund, East Spring Investments, HSBC Halbis Partners, SBI Life Insurance, Tata Mutual Fund, Bandhan Mutual Fund, Motilal Mutual Fund, and DSP Mutual Fund, said sources close to Moneycontrol.

The initial public offer (IPO) of Bansal Wires will open for subscription on July 3 and close on July 5. Through the public offer, the company plans to raise around Rs 745 crore through a complete fresh issue with no offer-for-sale (OFS) component. The bidding for anchor investors will open on July 2. Read More

A note by Nuvama Research has listed out expected inflows into possible inclusions to the MSCI Global Standard Index at the next rebalancing review in August.

The note mentions six stocks - Vodafone Idea, Prestige Estates, Oberoi Realty, Schaeffler India, Dixon Tech and Uno Minda - could cumulatively see inflows worth $1.18 billion once the index rejig takes place by end of August. Out of this, Dixon Tech and Voda Idea are seen as the two biggest recipients of inflows, projected to garner $274 million and $254 million respectively. Read More

Sensex Today | BSE Capital Goods index up 0.5%; Kalpataru Projects International, V-Guard Industries, Grindwell Norton among major gainers

ONGC board approved the appointment of Shri Vivek Chandrakant Tongaonkar as Director (Finance) of the company and also designated as Chief Financial Officer.

De Nora has received an order / contract from Nuclear Power Corporation of India Limited, for refurbishment of 4 Nos. Seawater Electrochlorination systems.

Patanajali Foods on July 1 said that its board has approved the proposal to buy its parent company Patanjali Ayurved's non-food business for Rs 1,100 crore in tranches.

The acquisition as a going concern on a slump sale basis will result in expansion of the product portfolio of the company, it said in a regulatory filing.

Patanjali Ayurved is co-founded by Ramdev, while Balakrishna is the Managing Director of the company. Read More

As the Street gears up for the June-ended quarter (Q1FY25) results, Motilal Oswal analysts in a recent note, said that they expect IT companies to witness a turnaround after a tepid Q4FY24. This can come on the back of ramp-up of large cost-takeout deals and end of discretionary spend cuts.

"We are looking for signs of recovery in discretionary spending through increased deal activities, which have recently focused on cost-takeout projects. However, any disappointment in Q1FY25 could again put pressure on Q2," analysts noted.

Godrej Properties has sold over 2,000 homes worth over INR 3,150 crores in its project, Godrej Woodscapes, located in Whitefield-Budigere Cross, Bengaluru.

With the success of Godrej Woodscapes, GPL has achieved over 500% QoQ growth in sales in Bengaluru and has surpassed its full year FY24 sales in South India within the first quarter.

Sensex Today | Nifty Media index rises 0.7%; TV18 Broadcast, Network 18, TV Today Network up 3-6%

The company received approval from the board for the issuance of 4 bonus shares for every 1 equity share held. The board also approved raising funds up to Rs 500 crore via qualified institutions placement, in one or more tranches, and to undertake investments up to Rs 600 crore in direct or step-down subsidiaries of the company.

Sensex Today | Nifty PSU Bank index down 0.7%; Bank of India, Indian Bank, Bank of Baroda

The iron ore company reduced lump ore prices by Rs 500 to Rs 5,950 per tonne, from Rs 6,450 per tonne, and prices of fines by Rs 500 to Rs 5,110, from Rs 5,610 per tonne. Further, the total production of iron ore fell by 3.16% YoY to 3.37 MT and sales declined by 9% to 3.73 MT in June 2024.

Markets@12 | Sensex, Nifty marginally higher

The Sensex was up 61.05 points or 0.08 percent at 79,537.24, and the Nifty was up 18.20 points or 0.08 percent at 24,160.20. About 1904 shares advanced, 1431 shares declined, and 94 shares unchanged.

Top Sectoral Gainers: Capital Goods, IT, Metal, Oil & Gas, Realty
Top Sectoral Losers: Auto, Bank, FMCG, Healthcare, Power

HCL Technologies and IBM today announced a new collaboration to establish a Generative AI Center of Excellence (GenAI CoE) based on the IBM watsonx AI and data platform.

The lender registered gross advances for the June FY25 quarter at Rs 82,510 crore, growing 11.35% over the same period last year. Total deposits during the same period increased by 8.41% to Rs 1.03 lakh crore. CASA rose by 5.88% to Rs 32,998 crore compared to the year-ago quarter.

The company has received work order for Operation and Maintenance of CM Helpline Outbound Call Centre in the State of Madhya Pradesh (CM Helpline, 181).

The Total value of the project for 5 years is Rs 13,39,20,000.

A note by Nuvama Research has listed out expected inflows into possible inclusions to the MSCI Global Standard Index at the next rebalancing review in August.

The note mentions six stocks - Vodafone Idea, Prestige Estates, Oberoi Realty, Schaeffler India, Dixon Tech and Uno Minda - could cumulatively see inflows worth $1.18 billion once the index rejig takes place by end of August. Out of this, Dixon Tech and Voda Idea are seen as the two biggest recipients of inflows, projected to garner $274 million and $254 million respectively. Read More

Stock Market LIVE Updates | Tech Mahindra, Grasim among stocks that hit 52-week high

US-based Hindenburg Research has made a scathing allegation against Securities and Exchange Board of India (Sebi), stating that the Indian capital market watchdog pressurised brokers to close their short positions in Adani Group stocks or face a regulatory probe. READ MORE

Stock Market LIVE Updates | Nifty Realty, IT indices top sectoral performers at this hour

The company received a contract worth Rs 117.17 crore for the supply of seamless stainless steel boiler tubes for NTPC's Talcher 2 x 660 MW supercritical thermal power project. The contract is expected to be executed by December 2024.

TD Power Systems has received an order with the value of USD 9.28 million for gas turbine generators from a major US Original Equipment Manufacturer. These generators will be used primarily in fracking wells in the US, for power supply and backup power for artificial intelligence server farms in the US, and other applications. Delivery of these generators is scheduled to commence from January 2025 to August 2025.

SEPC's 100% Subsidiary – Shriram EPC (FZE) has successfully concluded the execution of share purchase agreement for the acquisition of 75% of ALMOAYYED Electrical Equipment & Instrumentation Systems LLC (AEEIS) Head Quartered out of Bahrain, through promoter Mark AB Capital Investment LLC.

#1 Target raises to Rs 4,700
#2 Near-term cost pressures, but long-term story intact
#3 Cost pressures & flattish yields may limit profitability improvement
#4 Spreads to improve as international mix improves over next 3-5 years

Allied Blenders and Distillers, witnessed a listing with a 13.88% gain on its issue price. The stock debuted at Rs. 320 per share, exceeding the issue price of Rs. 281 but falling short of pre-listing expectations that likely anticipated a higher premium due to the good investor response (subscribed 24.85 times). The stock price has further declined since the listing, adding to the cautious investor sentiment.

The listing price fell short of pre-listing expectations, possibly due to the high IPO valuation or concerns about the company's financial health and competitive industry landscape. Allied Blenders' history of volatile financial performance with low margins and high debt levels remains a cause for concern.

Allied Blenders' listing, while positive, doesn't quite match the pre-listing hype. Investors who want to hold their position may keep a stop loss at the issue price.

Sensex Nifty | Nifty Information Technology index gains 1%; Infosys, Mphasis, Coforge among major gainers

#1 Target cut to Rs 1,800 from Rs 2,075
#2 ‘Kalki 2898 AD’ alone isn't enough, a difficult H1FY25 likely
#3 ‘Kalki’ not enough to help company deliver positive EBITDA in Q1
#4 2/3 of collections are made in regional language, PVR has low presence
#5 A lot of hopes now underpin on H2FY25
#6 See reluctance among consumers to watch movies in a theatre
#7 Expect stock to remain range bound in the near term