Nifty breaches 25,000 level; Sensex jumps 612 pts; metal share shine

The domestic equity benchmarks ended with strong gains on Monday. The Nifty settled above the 25,000 level. Metal, realty and IT stocks were in demand while PSU bank and media shares declined.

As per provisional closing data, the barometer index, the S&P BSE Sensex jumped 611.90 points or 0.75% to 81,698.11. The Nifty 50 index surged 187.45 points or 0.76% to 25,010.60.

In the broader market, the S&P BSE Mid-Cap index gained 0.66% and the S&P BSE Small-Cap index rallied 0.20%.

The market breadth was positive. On the BSE, 2,192 shares rose and 1,856 shares fell. A total of 149 shares were unchanged.

 

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 1.78% to 13.80.

Economy:

Indias forex reserves jumped by $4.546 billion to $674.664 billion during the week ended August 16, according to the latest RBI data.

In the previous week, the forex kitty had dropped by $4.8 billion to $670.119 billion. On August 2, the overall reserves hit an all-time high of $674.919 billion.

The foreign currency assets, a major component of the reserves, increased by $3.609 billion to $591.569 billion, the RBI data showed.

Gold reserves increased by $865 million to $60.104 billion during the week ended August 16. The special drawing rights (SDRs) were up by $60 million to $18.341 billion.

Indias reserve position with the IMF was up by $12 million to $4.65 billion during the week, said the RBI.

New Listing:

Shares of Interarch Building Products closed at Rs 1,196.45 on the BSE, representing a premium of 32.94% as compared with the issue price of Rs 900.

The scrip was listed at Rs 1,291.20, exhibiting a premium of 43.47% to the issue price.

The stock has hit a high of 1,316 and a low of 1,178.55. On the BSE, over 6.47 lakh shares of the company were traded.

Buzzing Index:

The Nifty Metal index gained 2.16% to 9,490.75. The index shed 0.38% in the past trading session.

National Aluminium Company (up 4.94%), Steel Authority of India (up 4.47%), Hindalco Industries (up 3.98%), Hindustan Copper (up 3.7%), NMDC (up 3.35%), Vedanta (up 3%), Hindustan Zinc (up 2.75%), Jindal Steel & Power (up 2.64%), JSW Steel (up 2.32%) and Jindal Stainless (up 1.5%) advanced.

Stocks in Spotlight:

Bharat Heavy Electricals (BHEL) rose 0.30%. The company announced that it has received orders worth over Rs 11,000 crore from Adani Power and its subsidiary Mahan Energen, to set up three supercritical thermal power projects.

Akums Drugs and Pharmaceuticals hit a lower circuit of 5%. The company reported consolidated net profit of Rs 60.17 crore in Q1 FY25 as compared with net loss of Rs 188.23 crore reported in Q1 FY24. Revenue from operations increased 5% year on year to Rs 1,019 crore in the quarter ended 30 June 2024.

JSW Energy added 1.66% after the company said that that its wholly owned subsidiary, JSW Neo Energy has received letter of award (LoA) for setting up 250 MW grid-connected wind power project from Adani Electricity Mumbai.

KEC International rose 1.21% after the company said that it has secured new orders of Rs 1,079 crore in transmission & distribution (T&D) and cables businesses.

Shyam Metalics & Energy advanced 2.52% after the companys wholly-owned subsidiary, Shyam Sel and Power (SSPL) has acquired a 100% stake in SMEL Steel Structural, a promoter group company, for total consideration of Rs 1 lakh.

SSPL purchased 10,000 equity shares in SMEL Steel Structural, which were previously held by Sheetij Agarwal and Shubham Agarwal (5000 shares each).

Symphony declined 1.10%. The household appliances company announced that its wholly owned subsidiary (WOS) in China, Guangdong Symphony Keruilai Air Cooling Co, has incorporated a China-based unit, Dongguan GSK Appliances.

Transport Corporation of India slipped 3.74%. The company informed that its board approved share buyback of up to Rs 160 crore at a price of Rs 1,200 per equity share.

Shilpa Medicare jumped 5.68% after the company informed that it has successfully completed phase-3 clinical studies of its product SMLNUD07 - Nor Ursodeoxycholic Acid (NorUDCA) tablets.

NorUDCA is expected to revolutionise the treatment of patients suffering from Nonalcoholic Fatty Liver Disease (NAFLD). Nor UDCA is likely to be a first-in-class treatment option for NAFLD in India and has significant advantages over UDCA like enhanced choleretic effect, resistance to amidation, anti-inflammatory properties and reduction in fibrosis.

Global Markets:

Most shares in Europe and Asia advanced on Monday, finding support from the anticipation of lower U.S. interest rates.

Japanese markets retreated due to pressure from the yen and speculation about potential rate hikes by the Bank of Japan. The upcoming Tokyo inflation data is expected to provide more clarity on the future trajectory of Japanese interest rates.

Sentiment was also influenced by the People's Bank of China's withdrawal of approximately 101 billion yuan ($14.2 billion) from the open market. While this move aimed to strengthen the yuan, it also raised concerns about the extent of Beijing's support for the Chinese economy.

Regional markets drew initial strength from the positive performance of Wall Street, where the S&P 500 and Dow Jones Industrial Average approached record highs on Friday. Federal Reserve Chair Jerome Powell's comments reinforced expectations for a rate cut in September, with Powell stating that "the time has come" for a monetary policy adjustment.

In his speech at the Jackson Hole Economic Symposium on Friday, Powell highlighted the factors contributing to recent inflation, including increased demand for goods, supply chain disruptions, tight labor markets, and rising commodity prices. He also clarified that the recent rise in the unemployment rate is primarily due to increased labor supply and slower hiring, rather than widespread layoffs.

The S&P 500 gained 1.2%, the Dow Jones Industrial Average rose 1.1%, and the NASDAQ Composite surged 1.5%.

However, caution prevailed ahead of a series of crucial events this week. The most anticipated is the earnings report from NVIDIA Corporation, a market darling, which is due after the market closes on Wednesday. Additionally, the PCE price index data, the Fed's preferred inflation gauge, is scheduled for later in the week.

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