Global Equity Optimism Boosts Local Market Sentiment

At the close, the Nifty 50 was at 18,593.85 up by 0.32%

National Stock Exchange’s benchmark index, Nifty 50, commenced on a bullish note, soaring to great heights. With an impressive ascent of 0.32 percent, it continued its upward trajectory and ultimately concluded the trading session on a positive note. The Nifty index achieved a remarkable milestone, closing near the significant level of 18600.

Amidst a consistent flow of positive domestic economic indicators, the equity market remains steadfast in its stability. Notably, the unexpected strength in domestic PMI figures, consecutive growth in auto sales, and the impressive expansion in bank credit are all playing vital roles in bolstering investor confidence regarding India’s growth prospects.

Sector performance, the Auto sector emerged as the top gainer, with a notable increase of 1.26%. Within this sector, MAHINDRA & MAHINDRA LIMITED gained by 3.99%, while ASHOK LEYLAND LIMITED witnessed a gain of 2.22%. The Media sector followed closely as the next gainer, recording a rise of 0.88%. Noteworthy performers in this sector included ZEE ENTERTAINMENT ENTERPRISES LIMITED, which gained by 3.54%, and PVR INOX LIMITED, which experienced a gain of 2.08%.

On the other hand, the FMCG sector emerged as the top loser, declining by 0.45%. Within this sector, GODREJ CONSUMER PRODUCTS LIMITED experienced a loss of 0.90%, while NESTLE INDIA LIMITED witnessed a decline of 0.89%.

Bank Nifty: Up by 0.37%

Witnessing a positive start, the Bank Nifty commenced the trading session in the green, recording an impressive increase of 0.37 percent, and eventually closed at 44,101.65, maintaining its upward trajectory. Similarly, the BSE Sensex displayed a similar trend, as it surged by 0.38 percent and concluded the day on a positive note at a notable high of 62,787.47.

The optimistic outlook for global equities has greatly improved the sentiment in the domestic market. Additionally, the resolution of the US debt ceiling uncertainty and the expectation of a pause in interest rate hikes by the US Federal Reserve have provided a much-needed boost to the struggling markets. As a result of these developments, banking, financial, and other rate-sensitive stocks are expected to experience significant fluctuations leading up to the Reserve Bank of India’s credit policy announcement later this week.

The positive news from the global equities market has had a ripple effect on the domestic market, boosting investor confidence and improving market sentiment. The resolution of the US debt ceiling uncertainty and the anticipation of a pause in interest rate hikes by the US Federal Reserve have further contributed to this positive trend. However, this has also led to increased volatility in banking, financial, and other rate-sensitive stocks, as investors eagerly await the Reserve Bank of India’s credit policy announcement later this week.

Overall, these developments are a welcome relief for the struggling markets, and investors are eagerly watching to see how the Reserve Bank of India will respond to these changes. As always, it is important to remain vigilant and stay informed about the latest market trends and developments to make informed investment decisions.

Bank Nifty

The Nifty Banking sector had some gainers and some losers for the day.

The gainers included Axis Bank with a 2.69% increase, IDFC First Bank with a 1.10% increase, ICICI Bank with a 0.94% increase, IndusInd Bank with a 0.93% increase and Federal Bank with a 0.91% increase. On the other hand, the biggest losers in the sector included AU Bank with a 2.92% decline, Bandhan Bank with a 0.89% decline, Bank of Baroda with a 0.67% decline, Kotak Bank with a 0.65% decline, and Punjab National Bank with a 0.29% decline. These results suggest that some banking stocks performed better for the day.

Buzzing

Mahindra & Mahindra Ltd. witnessed a significant surge in its share price, climbing by 3.99% from its previous closing value of Rs 1,341.40. The stock’s latest traded price is now 1,394.95. Additionally, over the span of three years, the stock delivered an impressive return of 177.03%, surpassing the return of 80.99% achieved by the Nifty 100 index.

Demonstrating remarkable performance, Mahindra & Mahindra Ltd. showcased an annual revenue growth rate of 34.43%, outperforming its three-year compounded annual growth rate (CAGR) of 16.85%. Furthermore, in the fiscal year ending on March 31, 2023, the company achieved a return on equity (ROE) of 18.24%, surpassing its five-year average of 10.72%.

Divi’s Laboratories Ltd. experienced a decline in its share price, decreasing by -1.30% from its previous closing value of Rs 3,511.60. The stock’s latest traded price is now 3,466.00. Over a three-year period, the stock generated a return of 42.75%, outperforming the return of 28.01% achieved by the Nifty Pharma index.

In comparison to the Nifty 100 index, which yielded a return of 80.99%, Divi’s Laboratories Ltd. delivered a three-year return of 42.75%. However, the company faced a sales de-growth of 10.6%, experiencing a revenue contraction for the first time in the last three years.

Buzz

During Monday morning trading, crude oil futures exhibited an upward trend as a result of Saudi Arabia’s announcement to curtail production output by one million barrels per day starting from July. This decision influenced the positive movement in crude oil prices.

The August Brent oil futures have shown a promising increase of 1.13 percent, reaching a value of $76.99. Similarly, the July crude oil futures on WTI have experienced a rise of 1.28 percent, reaching a value of $72.66. These developments suggest a positive momentum in both Brent and WTI crude oil futures, which is a promising sign for the industry.

At the start of Monday morning’s trading session, the Multi Commodity Exchange (MCX) saw an uptick in June crude oil futures, with prices reaching Rs. 6,004, a 1.49 percent increase from the previous close of Rs. 5,916. Additionally, July futures were trading at Rs. 6,027, marking a 1.45 percent rise compared to the previous close of Rs. 5,941. These figures suggest a positive trend in crude oil futures on the MCX.

Foreign Institutional Investors (FII)/Foreign Portfolio Investors (FPI) engaged in trading activities, with a buy value of 7,740.87 Rs. Cr. and a sale value of 8,441.85 Rs. Cr. This resulted in a net value of -700.98 Rs. Cr.

Similarly, Domestic Institutional Investors (DII) also participated in trading on the same date, with a buy value of 7,460.68 Rs. Cr. and a sale value of 6,264.70 Rs. Cr. As a result, the net value for DIIs amounted to 1,195.98 Rs. Cr.

Advance Decline Ratio

Today, the advance-decline ratio was 1.37, and the market breadth was positive. The volatility index India Vix increased by 0.11 percent to settle at 11.14 and the FIIs were net sellers today.

DAILY MARKET ACTION
Advancers – 1350
Decliners – 984
52Wk High –  153
52Wk Low – 17
High Band Hitters – 125
Low Band Hitters – 49
200d SMA – 17855
50d SMA – 17922
20d SMA – 18377

Top Gainers and Losers Stocks

The top gainers were M&M (+3.99%), Axis Bank (+2.69%), Tata Motors (+1.79%), LT (+1.56%), and Grasim (+1.52%).

The top losers were Divi’s Laboratories (-1.30%), Asian Paint (-1.10%), Tech Mahindra (-1.08%), Hero MotoCorp (-0.96%), and Nestle India (-0.89%).

Top Gainers and Losers Sector

The top gainers sectors were Auto (+1.26%), Media (+0.88%), Consumer Durables (+0.63%), Financial Services (+0.36%), and Realty (+0.35%).

The top losers sectors were FMCG (-0.45%), and IT (-0.30%).

The Nifty Midcap 50 was up by 0.09 percent, while the Nifty Small Cap 50 was up by 0.62 percent on the day.

The Nifty Midcap 50 index currently closed at 9,638.15, while the Nifty Small Cap 50 index currently closed at 4,727.45.

SECTORS – NOTABLE ACTION
AUTO +1.26%
MEDIA +0.88%
CONSUMER DURABLES +0.63%
FMCG -0.45%
IT -0.30%

Stocks Ban List

Today, the Securities and Exchange Board of India (SEBI) has not included any stock in the ban list for Futures and Options (F&O) trading.

A stock enters the Ban List if its MWPL is above 95%. Implying that, Ban List shows the Futures and Options (FnO ) stocks whose combined open interest in all FnO contracts for a given period crosses 95% of Market-Wide Position Limit.
IBULHSGFIN, INDIACEM, BHEL, MANAPPURAM, ZEEL, and HINDCOPPER Face Possible Entry in Ban List.

Daily Pivots

As per the above pivots data, 18560 to 18640 is the Nifty 50 trading range.

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This article is only for educational purposes and is not an investment advice.