Market Commentary     12-Jun-24
Quick Review
Market ends with small gains; media shares in demand
The Indian equity indices ended with minor gains on Wednesday. The Nifty closed above the 23,300 level after hitting day’s high of 23,411.90 in mid-morning trade. Media, PSU Bank and Mid-small healthcare stocks advanced while FMCG, Realty and Auto shares declined.

As per provisional closing data, the barometer index, the S&P BSE Sensex was up 149.98 points or 0.20% to 76,606.57. The Nifty 50 index rose 58.10 points or 0.25% to 23,322.95.

The Nifty 50 hit an all-time high at 23,441.95 in mid-morning trade.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index rose 1.07% and the S&P BSE Small-Cap index gained 1.06%.

The S&P BSE Mid-Cap and S&P BSE Small-Cap index hits record high at 45,233.40 and 50,264.34

The market breadth was strong. On the BSE, 2,552 shares rose and 1,338 shares fell. A total of 101 shares were unchanged.

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, declined 2.55% to 14.39.

Economy:

India will remain the fastest-growing of the world’s largest economies, although its pace of expansion is expected to moderate, the World Bank said in its latest biannual Global Economic Prospects. After a high growth rate in FY2023/24, steady growth of 6.7% per year, on average, is projected for the three fiscal years beginning in FY2024/25. Growth is estimated to have picked up to 8.2% in fiscal year (FY) 2023/24 (April 2023 to March 2024)—1.9% points higher than estimated in January.

Growth in industrial activity, including manufacturing and construction, was stronger than expected, alongside resilient services activity, which helped offset a slowdown in agricultural production partly caused by monsoons. Growth of domestic demand remained robust, with a surge in investment, including in infrastructure, offsetting a moderation of consumption growth as postpandemic pent-up demand eased.

Meanwhile, the moderation is mainly due to a slowdown in investment from a high base, the Bank stated. However, investment growth is still expected to be stronger than previously envisaged and remain robust over the forecast period, with strong public investment accompanied by private investment. Private consumption growth is expected to benefit from a recovery of agricultural production and declining inflation. Government consumption is projected to grow only slowly, in line with the government’s aim of reducing current expenditure relative to GDP.

IPO Update:

The initial public offer (IPO) of Le Travenues Technology (Ixigo) received 4,25,64,15,443 bids for shares as against 4,37,69,494 shares on offer, according to stock exchange data at 15.45 IST on Wednesday (12 June 2024). The issue was subscribed 97.25 times.

The issue opened for bidding on Monday (10 June 2024) and it will close on Wednesday (12 June 2024). The price band of the IPO is fixed at Rs 88 to 93 per share. An investor can bid for a minimum of 161 equity shares and in multiples thereof.

Buzzing Index:

The Nifty Media index added 1.89% to 2,081.20. The index soared 15.49% in the six consecutive trading sessions.

Dish TV India (up 12.23%), Network 18 Media & Investments (up 3.82%), TV18 Broadcast (up 3.7%), Sun TV Network (up 3.44%), Hathway Cable & Datacom (up 2.81%), Nazara Technologies (up 1.71%), Tips Industries (up 1.17%), PVR Inox (up 1.09%), Zee Entertainment Enterprises (up 0.79%) edged higher.

On the other hand, Saregama India (down 2.3%) slipped.

Stocks in Spotlight:

HCL Technologies rose 0.48%. The IT firm said that it has expanded its strategic partnership with Olympus Corporation to enable advanced and affordable healthcare for patients through new engineering technologies.

Meanwhile, the IT giant has signed a deal worth $278 million with Germany's largest cooperative primary bank — Deutsche Apotheker-und Ärztebank eG (apoBank).

TVS Supply Chain Solutions rallied 4.87% after the company announced that it has secured a new 5-year strategic contract with Daimler Truck South East Asia for providing integrated supply chain solutions (ISCS) service in Singapore.

Rites rose 0.83%. The firm signed a memorandum of understanding (MoU) with the Eastern Railway’s Andal Diesel Shed, Asansol division in West Bengal for Loco maintenance.

Glenmark Pharmaceuticals (Glenmark) added 0.46%. The company announced that it has received a final approval from the United States Food and Drug Administration (USFDA) for Esomeprazole Magnesium delayed-release capsules.

B L Kashyap and Sons declined 2.11%. The firm received letter of intent (LoI) for two orders aggregating up to Rs 1,021 crore.

Gujarat Fluorochemicals (GFCL) rose 0.74%. The company's wholly-owned subsidiary, GFCL EV Products has incorporated GFCL EV (FZC) SPC in Sultanate of Oman.

AGS Transact Technologies advanced 6.52% after the company commenced deployment of 1,350 ATMs, for order received from State Bank of India (SBI) under its banking automation solutions portfolio.

NLC India rose 1.07%. The company said that CRISIL Ratings reaffirmed its 'CRISIL AAA' rating on the non-convertible debentures and long-term bank facilities of the company with 'stable' outlook.

Bhandari Hosiery Exports soared 16.69% after the firm fixed Wednesday, 19 June 2024, as the record date for the purpose of determining names of the shareholders eligible to apply for the equity shares in the rights issue of the company.

Go Digit General Insurance rose 1% after the company’s consolidated net profit surged to 53 crore in Q4 FY24 as compared with Rs 26 crore in corresponding quarter last year. Revenue from operations jumped 71.98% YoY to Rs 2,692.50 crore in Q4 FY24.

Dollar Industries shed 0.34%. The company announced plan to open 50 exclusive brand outlets across South India by 2027.

Global Markets:

European stocks advanced while Asian stocks ended mixed on Wednesday as jitters from US inflation data and the upcoming Federal Reserve decision weighed on markets. The Fed's monetary policy remains a key concern for Asian investors, even with Southeast Asian currencies facing important support levels.

Despite US indices closing at record highs on Tuesday, fueled by Apple's surge, investor focus shifted to today's events. The release of May's Consumer Price Index (CPI) and the Federal Reserve interest rate decision are crucial factors shaping market sentiment. The two-day Fed meeting is expected to maintain current interest rates, which are at a two-decade high.

The S&P 500 gained 0.3% and the Nasdaq jumped 0.9% on Tuesday, with Apple reaching an all-time high. The Dow Jones, however, shed 0.3%.

Previous News
  HCL Technologies
 ( Results - Analysis 13-Jul-24   06:27 )
  HCL Tech records PAT of Rs 4,257 crore in Q1; EBIT margin at 17.1%
 ( Hot Pursuit - 13-Jul-24   11:59 )
  HCL Technologies consolidated net profit rises 20.46% in the June 2024 quarter
 ( Results - Announcements 13-Jul-24   07:47 )
  HCL Technologies
 ( Analyst Meet / AGM - Conference Call 13-Jul-24   06:12 )
  Board of HCL Technologies recommends Interim Dividend
 ( Corporate News - 12-Jul-24   17:52 )
  Glenmark Pharmaceuticals Ltd spurts 3.8%, rises for third straight session
 ( Hot Pursuit - 05-Jul-24   13:05 )
  HCL Technologies Ltd spurts 0.29%, up for five straight sessions
 ( Hot Pursuit - 03-Jul-24   13:00 )
  HCL Technologies launches new global delivery center in Patna
 ( Corporate News - 02-Jul-24   17:44 )
  HCL Technologies collaborates with IBM to establish Gen AI Center of Excellence
 ( Corporate News - 02-Jul-24   11:53 )
  HCL Technologies Ltd soars 1.2%
 ( Hot Pursuit - 01-Jul-24   13:05 )
  Glenmark Pharmaceuticals Ltd spurts 0.7%, gains for five straight sessions
 ( Hot Pursuit - 19-Jun-24   13:00 )
Other Stories
  Benchmarks hit fresh record highs; Nifty tops 24,500
  12-Jul-24   15:42
  Indices end flat; realty shares under pressure; VIX slides 3%
  11-Jul-24   15:49
  Sensex slides 427 pts; Nifty ends below 24,350; M&M drops 6.62%
  10-Jul-24   15:57
  Sensex gains 391 pts; Nifty tops 24,400; VIX gains 3.18%
  09-Jul-24   15:48
  Nifty ends below 24,350; PSU banks slide; VIX surges 7.12%
  08-Jul-24   15:50
  Benchmarks end sideways; Pharma shares rally for 6th day
  05-Jul-24   15:56
  Market extends record rally for 2nd day; VIX slides 2.65%
  04-Jul-24   15:58
  Sensex, Nifty hit fresh record highs; banking shares rally
  03-Jul-24   16:02
  Nifty settles below 24,150; PSU bank shares slides
  02-Jul-24   15:52
  Nifty settles above 24,100; Sensex gains 443 pts; media shares rally
  01-Jul-24   16:13
Back Top