Nifty scales new high, auto stocks lead rally

The domestic stock market advanced today, with the Nifty50 decisively breaching the 24,400 level. Sectors like autos, consumer durables, and pharma fueled the rally. This positive sentiment was bolstered by strength in other Asian markets. All eyes are now on the upcoming Q1 earnings season, kicking off this week, and the budget on July 23rd, which could provide further direction for the market.

The S&P BSE Sensex rose 391.26 points or 0.49% to 80,351.64. The Nifty 50 index added 112.65 points or 0.46% to 24,433.20. Both the indices attained record closing high levels.

The Nifty50 clocked an all-time high of 24,443.60 in late trade.

 

Maruti Suzuki India (up 6.60%), Mahindra & Mahindra (up 2.51%) and ICICI Bank (up 0.89) boosted the indices.

In the broader market, the S&P BSE Mid-Cap index added 0.36% and the S&P BSE Small-Cap index rose 0.22%. The S&P BSE Mid-Cap index hit an all-time high of 47,659.70 today.

The market breadth was positive. On the BSE, 2011 shares rose and 1922 shares fell. A total of 93 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, gained 3.18% to 14.06.

Numbers to Track:

The yield on India's 10-year benchmark federal shed 0.06% to 6.985 as compared with previous close 6.990.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.4875, compared with its close of 83.5000 during the previous trading session.

MCX Gold futures for 5 August 2024 settlement rose 0.12% to Rs 72,417.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.04% to 105.04.

The United States 10-year bond yield gained 0.49% to 4.287.

In the commodities market, Brent crude for September 2024 settlement lost 37 cents or 0.43% to $85.75 a barrel.

Global Markets:

European markets declined on Tuesday as investors in the region weigh up political uncertainty in France after election result.

Asian stocks advanced as investors awaited Federal Reserve Chair Jerome Powell's testimony before Congress and the kick-off of the U.S. earnings season.

Powell's testimony, starting Tuesday, will be scrutinized for clues about the Fed's monetary policy direction. He faces conflicting pressures from lawmakers: some urging interest rate cuts and others critical of the Fed's recent plans to tighten regulations on Wall Street banks.

In the U.S., both the S&P 500 and Nasdaq indexes extended their gains on Monday, reaching new all-time highs. Investors are looking ahead to key inflation data due later this week.

Stocks in Spotlight:

Maruti Suzuki India jumped 6.60% after the Uttar Pradesh state government announced a complete waiver of registration tax on strong hybrid and plug-in hybrid electric vehicles, effective immediately. This move directly benefits two of Maruti Suzuki's popular models: the Grand Vitara SUV and the Invicto MPV, both equipped with strong hybrid technology.

Swan Energy hit an upper limit of 5% after BlackRock, the world's largest asset manager, acquired a stake in the company on Monday through block deals. As per the stock exchange data, the BlackRock Emerging Frontiers Master Fund and BlackRock Global Funds India Fund acquired 0.78% and 0.58% stake in Swan Energy, respectively. Another fund, the BlackRock Strategic Funds - BlackRock Asia Pacific Absolute Return Fund also acquired 0.09% equity. These shares were purchased at Rs 668.27 per share. BlackRock did not hold any shares in the company during the March quarter.

Larsen & Toubro (L&T) rose 0.93% after the company's precision engineering systems business vertical of L&T secured significant order for construction of two fleet support ships from Hindustan Shipyard.

Godrej Consumer Products shed 1.32%. The company said that despite the operating conditions in India continuing to remain soft in the quarter its India business performed well with high-single digit organic volume and mid-single digit value growth.

H G Infra Engineering rose 0.8%. The company entered into an Memorandum of Understanding (MoU) with Ultra Vibrant Solar Energy for the execution of a solar power plant project.

Kalpataru Projects International added 1.66% after the company said that it has increased fund raising limit via non-convertible debentures (NCDs) by upto Rs 1,600 crore.

Century Textiles and Industries rose 0.62%. The company's board is scheduled to meet on 16 July 2024, to consider the proposal of raising of funds up to Rs 1,000 crore through issuance of non-convertible debentures (NCDs) in one or more tranches.

Keystone Realtors advanced 2.09% after the company reported pre-sales of Rs 611 crore in Q1 FY25, showing a growth of 22% YoY basis as compared to the pre-sales of Rs 502 crore recorded in Q1 FY24.

Metropolis Healthcare shed 0.02%. The healthcare service provider said that its revenue grew around 13% year on year (YoY) in the quarter ended 30 June 2024.

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