Indices edge lower in early trade; breadth strong

The key equity benchmarks traded with minor losses in early trade. The Nifty traded near the 23,500 level. Healthcare, FMCG and IT shares declined while realty, metal and media shares advanced.

At 09:30 IST, the barometer index, the S&P BSE Sensex was down 45.25 points or 0.05% to 77,292.34. The Nifty 50 index lost 14.60 points or 0.06% to 23,501.40.

The broader market outperformed the headline indices, the S&P BSE Mid-Cap index added 0.12% and the S&P BSE Small-Cap index rose 0.49%.

The market breadth was strong. On the BSE, 2,053 shares rose and 916 shares fell. A total of 118 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 7,908.36 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 7,107.80 crore in the Indian equity market on 19 June 2024, provisional data showed.

Economy:

The government announced an increase in Minimum Support Prices (MSP) for all 14 kharif crops for the 2024-25 season (July-June). This hike is expected to put an additional Rs 35,000 crore in the hands of farmers, bringing the total MSP payout to around Rs 2 lakh crore.

Meanwhile, the Reserve Bank of India (RBI) projects continued economic momentum in the April-June quarter, driven by rising private consumption and strengthening manufacturing and services sectors.

Stocks in Spotlight:

Chemplast Sanmar rose 1.71% after the company said that its board will meet in 24 June 2024 to consider raising funds by way of issuance of eligible securities through various modes.

Som Distilleries and Breweries slipped 3.67%. The company will be in focus as the Madhya Pradesh government suspended the license of Som Distilleries due to concerns about child labour. SDPL is part of the Som Group of companies, which also has Som Distilleries and Breweries., a listed firm, under its umbrella.

Numbers to Track:

The yield on India's 10-year benchmark federal shed 0.03% to 6.972 as compared with previous close 6.974.

In the foreign exchange market, the rupee is edged lower against the dollar. The partially convertible rupee was hovering at 83.4550, compared with its close of 83.4400 during the previous trading session.

MCX Gold futures for 5 August 2024 settlement gained 0.14% to Rs 71,834.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.02% to 105.28.

The United States 10-year bond yield grew 2.45% to 4.253.

In the commodities market, Brent crude for August 2024 settlement lost 27 cents or 0.32% to $85.06 a barrel.

Global Markets:

Asian stocks traded mixed on Thursday, awaiting further U.S. policy signals. Sterling held steady ahead of a Bank of England meeting, where interest rates are likely to remain unchanged.

Central bank decisions from Switzerland and Norway are also on investors' watchlist, shaping the global rate outlook. China, as expected, kept benchmark lending rates steady despite a sluggish economy.

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