Indices nudge higher; breadth strong

The key benchmark indices traded with minor gains in early trade. The Nifty traded near the 24,050 mark. Media, consumer durables and IT shares advanced while realty, PSU bank and healthcare shares declined.

At 09:30 IST, the barometer index, the S&P BSE Sensex was up 42.13 points or 0.04% to 79,074.86. The Nifty 50 index added 34.75 points or 0.14% to 23,045.35.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index added 0.20% and the S&P BSE Small-Cap index rose 0.72%.

The market breadth was strong. On the BSE, 2,155 shares rose and 977 shares fell. A total of 119 shares were unchanged.

 

Foreign portfolio investors (FPIs) sold shares worth Rs 23.09 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 6,658.31 crore in the Indian equity market on 28 June 2024, provisional data showed.

Economy:

Indias foreign exchange reserves (forex reserves) increased by $816 million to $653.711 billion during the week ended June 21, according to the latest RBI data. In the preceding week, the overall reserves had dropped by $2.922 billion to $652.895 billion.

For the week ended June 21, foreign currency assets, a major component of the reserves, decreased by $106 million to $574.134 billion.

According to the latest RBI data released on June 28, Indias gold reserves rose $988 million to $56.956 billion during the week ended June 21, while the special drawing rights (SDRs) fell $57 million to $18.049 billion.

Indias reserve position with the IMF was down by $9 million to $4.572 billion in the reporting week, according to the RBI data.

Stocks in Spotlight:

Bharat Electronics (BEL) rose 0.67%. The compnay has signed a contract valued at Rs 3,172 crore with Armoured Vehicles Nigam (AVNL) on 28 June 2024 at AVNL Headquarters in Chennai.

Bank of Baroda shed 0.25%. The company announced that a meeting of its board of directors is scheduled to be held on 5 July 2024 to consider & approve the capital plan for FY 2024-25 of raising funds.

Bajaj Auto added 1.24% after the companys total sales in the month of June 2024 added up to 3,58,477 units, higher by 5% as compared with the sales figure of 3,40,981 units recorded in June 2023

Numbers to Track:

The yield on India's 10-year benchmark federal rose 0.16% to 7.019 as compared with previous close 7.008.

MCX Gold futures for 5 August 2024 settlement shed 0.08% to Rs 71,525.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.24% to 105.61.

The United States 10-year bond yield grew 1.16% to 4.393.

In the commodities market, Brent crude for August 2024 settlement gained 05 cents or 0.06% to $ 85.05 a barrel.

Global Markets:

Asian stocks traded higher on Monday as traders pondered the US rates outlook.

Japan's economy contracted more than expected in the first quarter of 2024, shrinking 2.9% year-on-year. This decline was primarily driven by a decrease in consumer spending amid stagnant wages and persistent inflation.

Meanwhile, China presented a mixed picture. According to a private survey (Caixin PMI), China's manufacturing activity in June grew more than anticipated, reaching 51.8, compared to the prior months reading of 51.7. This is in contrast to an official government PMI survey released on Sunday, which indicated a contraction in the manufacturing sector for the second consecutive month in June. China's manufacturing PMI came in at 49.5 in June 2024, unchanged from May.

It's important to note that these surveys cover different segments of the Chinese economy. The Caixin survey focuses on smaller, private businesses in southern China, while the official survey leans towards larger, state-run businesses in the north. This difference in focus may contribute to the contrasting results.

In the Europe, the far-right secured a slightly smaller portion of the vote during the initial phase of France's unexpected snap election than anticipated by certain polls. According to exit polls, Marine Le Pen's eurosceptic National Rally was the leading party in the first round of the French election but received a lesser number of votes than predicted by several analysts. This surprising electoral outcome has caused disruptions in the markets, especially as both the far-right and the second-place left-wing coalition have promised significant increases in spending. This occurs amidst France facing a high budget deficit, leading the EU to suggest disciplinary actions.

US stocks closed slightly lower on Friday after initial gains, as investors weighed mixed economic signals. The S&P 500 dipped 0.41%, and the Nasdaq Composite fell 0.71%. Both indexes reached new intraday highs earlier but retreated later. The Dow Jones Industrial Average shed a modest 0.12%.

Positive economic data painted a conflicting picture. The Commerce Department reported that US inflation in May slowed to its lowest annual rate in over three years. The core personal consumption expenditures price index, excluding volatile food and energy prices, rose just 0.1% in June and 2.6% year-over-year. However, consumer sentiment remained strong. The University of Michigan consumer sentiment index for June exceeded expectations, rising to 68.2 from a preliminary reading of 65.6. Additionally, the one-year inflation outlook dropped to 3% from 3.3% expected in May.

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