Market at day's low; Broader mkt outperforms; media shares rally

The key equity indices extended losses and hit the day's low in early afternoon trade. The Nifty traded below the 24,350 mark after hitting the days high of 24,504.25 in early trade. Media shares extended gains for the second consecutive trading session.

At 12:30 IST, the barometer index, the S&P BSE Sensex, was down 537.28 points or 0.67% to 79,891.56. The Nifty 50 index declined 131.95 points or 0.54% to 24,347.10.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.39% and the S&P BSE Small-Cap index gained 1.44%.

The market breadth was strong. On the BSE, 2,640 shares rose and 1,103 shares fell. A total of 144 shares were unchanged.

 

Economy:

Seasonally adjusted index, HSBC Flash India Composite Output Index rose from 60.9 in June to 61.4 at the start of the second fiscal quarter. Growth strengthened at goods producers and service providers, with the former leading the upturn, the strongest rate of expansion for three months.

HSBC Flash India Manufacturing PMI stood at 58.5 in July as against 58.3 in June, signalling a historically strong improvement in the health of the sector. Anecdotal evidence suggested that favourable market conditions and new business gains underpinned the upturn in private sector activity.

HSBC Flash India Services PMI Business Activity Index stood at 61.1 in July as compared with 60.5 in June while HSBC Flash India Manufacturing PMI Output Index increased to 62.2 in July from 61.9 in June.

The latest results also revealed that rising material and labour costs added to inflationary pressures. In particular, selling prices rose to the greatest extent since February 2013.

Pranjul Bhandari, Chief India Economist at HSBC, said: The Flash Composite Output Index signalled continued robust growth in Indias private sector. The rise in output in July was led by a further increase in business activity in the manufacturing sector, while the pace of expansion in services output also accelerated and remained well above its long-run average. As a result, companies turned more optimistic in July, following a moderation in business confidence in June. We note that the rate of input cost inflation continued to trend higher in both sectors, which has driven firms to keep raising sales prices.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, shed 1% to 12.62. The Nifty 25 July 2024 futures were trading at 24,305.90, at a discount of 41.2 points as compared with the spot at 24,347.10.

The Nifty option chain for the 25 July 2024 expiry showed maximum Call OI of 132.4 lakh contracts at the 25,000 strike price. Maximum Put OI of 88.8 lakh contracts were seen at 24,000 strike price.

Buzzing Index:

The Nifty Media index jumped 2.09% to 2,017.70. The index rallied 3.27% in two consecutive trading sessions.

PVR Inox (up 3.16%), Nazara Technologies (up 3.04%), Dish TV India (up 2.48%), Zee Entertainment Enterprises (up 2.17%), Saregama India (up 2.01%), Hathway Cable & Datacom (up 1.47%), Sun TV Network (up 1.26%), Network 18 Media & Investments (up 1.04%) and Tips Industries (up 1.02%) advanced.

Stocks in Spotlight :

Parag Milk Foods shed 0.88%. The company has reported 27% rise in consolidated net profit to Rs 27 crore on a 1% increase in revenue to Rs 758 crore in Q1 FY25 as compared with Q1 FY24.

Torrent Pharmaceuticals slipped 2.92%. The pharmaceuticals company reported that its consolidated net profit increased 20.9% to Rs 457 crore in Q1 FY25 as compared with Rs 378 crore recorded in Q1 FY24. Revenue from operations rose 10.34% year on year (YoY) to Rs 2,859 crore in the quarter ended 30 June 2024.

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