Barometers end flat; broader mkt rallies; VIX spurts nearly 6%

The domestic equity benchmarks ended near the flat line with some positive bias on Monday, rising for the second day in a row. The Nifty settled below the 24,850 level after hitting the days high of 24,999.75 in early-afternoon trade. PSU bank, media and realty shares advanced while IT, FMCG and consumer durables shares declined.

As per provisional closing data, the barometer index, the S&P BSE Sensex, was up 23.12 points or 0.03% to 81,355.84. The Nifty 50 index rose 1.25 points or 0.01% to 24,836.10.

The Sensex and Nifty clocked an all-time high of 81,908.43 and 24,999.75, respectively in early-afternoon trade.

 

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index added 0.80% and the S&P BSE Small-Cap index gained 1.17%. The S&P BSE Small-Cap index hit an all-time high at 55,066.48.

The market breadth was positive. On the BSE, 2,352 shares rose and 1,700 shares fell. A total of 146 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rallied 5.96% to 12.95.

Economy:

Indias forex reserves jumped by $4.00 billion to hit an all-time high of $670.86 billion as of July 19, data shared by the Reserve Bank of India (RBI) showed on Friday.

According to the Weekly Statistical Supplement released by the RBI, Foreign currency assets (FCAs) increased by $2.57 billion to $588.05 billion.

Gold reserves expanded by $1.32 billion to $59.99 billion, whereas SDRs were up by $95 million to $18.20 billion.

Reserve position in the IMF was remained unchanged at $4.60 billion.

Buzzing Index:

The Nifty PSU Bank index jumped 2.25% to 7,434.50. The index rallied 3.95% in two consecutive trading sessions.

Punjab National Bank (up 5.77%), Bank of India (up 4.84%), Union Bank of India (up 3%), Bank of Baroda (up 2.62%), Canara Bank (up 1.86%), Indian Overseas Bank (up 1.74%), State Bank of India (up 1.02%), Indian Bank (up 0.94%), Bank of Maharashtra (up 0.63%) and Punjab & Sind Bank (up 0.31%) advanced.

Stocks in Spotlight:

ICICI Bank rose 0.30%. The banks standalone net profit jumped 14.62% to Rs 11,059.11 crore on 18.66% rise in total income to Rs 45,997.70 crore in Q1 FY25 over Q1 FY24.

IndusInd Bank added 0.73%. The private lender's standalone net profit rose marginally to Rs 2,152.16 crore in Q1 FY25 as against Rs 2,123.62 crore reported in Q1 FY24. Total income grew by 15.83% year on year to Rs 14,988.02 crore in the quarter ended 30 June 2024.

Adani Total Gas gained 0.32%. The companys standalone net profit increased 19.91% to Rs 177.09 crore in Q1 FY25 as comapred with Rs 147.69 crore in Q1 FY24. Revenue from operations rose 9.01% YoY to Rs 1237.10 crore in Q1 FY25.

Adani Wilmar zoomed 5.92% after the company reported a consolidated net profit of Rs 313.20 crore in Q1 FY25 as against a net loss of Rs 78.92 crore posted in Q1 FY24. The company achieved revenue of Rs 14,169 crore in Q1 FY25, driven by 12% YoY volume growth.

Bandhan Bank surged 13.48% after the banks net profit surged 47.48% to Rs 1,063.46 crore in Q1 FY25 as compared to Rs 721.05 crore recorded in Q1 FY24. Total income grew by 23.53% to Rs 6,063.35 crore in the first quarter of FY25 from Rs 4,908.02 crore posted in Q1 FY24.

Kaynes Technology India jumped 7.91% after the companys consolidated net profit surged to Rs 50.77 crore in Q1 FY25 as compared with Rs 24.64 crore posted in Q1 FY24. Revenue from operations jumped 69.59% YoY to Rs 503.97 crore in Q1 FY25.

Zen Technologies was locked in an upper circuit of 5% after the companys standalone net profit jumped 57.39% to Rs 74.18 crore in Q1 FY25 as compared to Rs 47.13 crore posted in Q1 FY24. Revenue from operations surged 91.74% year on year (YoY) to Rs 253.96 crore in the quarter ended June 2024.

Nuvama Wealth Management rallied 5.79% after the company reported 79.52% increase in net profit to Rs 220.77 crore in Q1 FY25 as compared with Rs 122.98 crore in Q1 FY24. Revenue from operations jumped 46.58% YoY to Rs 949.43 core in Q1 FY25.

City Union Bank gained 5.72% after the private sector bank's net profit rose 16.38% to Rs 264.49 crore on 8.45% increase in total income to Rs 1,580.77 crore in Q1 FY25 over Q1 FY24.

InterGlobe Aviations (IndiGo) slipped 1.36% after the companys consolidated net profit declined 11.71% to Rs 2,728.8 crore in Q1 FY25 from Rs 3,090.6 crore posted in Q1 FY24. However, revenue from operations jumped 17.31% year on year (YoY) to Rs 19,570.7 crore in the quarter ended 30 June 2024.

Global Markets:

Most European and Asian stocks advanced on Monday, buoyed by hopes of potential interest rate cuts from the Federal Reserve. The battered technology sector led the gains as investors eagerly awaited the upcoming Fed meeting for clues on monetary policy.

However, Chinese markets underperformed regional peers. Sentiment towards China remained subdued ahead of crucial economic data releases this week. Additionally, lingering uncertainty about the next U.S. administration's stance on Beijing weighed on investor confidence.

The positive momentum in Asia was fueled by a strong finish on Wall Street on Friday. Easing inflation concerns boosted expectations for eventual interest rate reductions. The Dow Jones Industrial Average surged 1.64%, the S&P 500 climbed 1.11%, and the Nasdaq Composite gained 1.03%. This upward movement was attributed to a combination of oversold conditions, a better-than-expected GDP report, and growing optimism about the Fed's potential rate cuts.

Investors also digested the latest inflation data. The June Personal Consumption Expenditures (PCE) price index, the Fed's preferred inflation gauge, rose 0.1% month-over-month and 2.5% year-over-year.

While the Fed is expected to maintain interest rates unchanged at its meeting on Wednesday, investors will closely monitor any hints about the timing of potential rate cuts, especially given recent encouraging comments from Fed officials.

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