The domestic stocks closed slightly lower on Wednesday after setting new record highs earlier in the day. The Nifty ended below 24,350, despite early gains. Sectors like pharma, healthcare and FMCG saw buying interest, while autos and metals sold off. Analysts see this pullback as a natural pause ahead of crucial Q1 earnings reports and the upcoming union budget, potentially setting the stage for future growth.
The barometer index, the S&P BSE Sensex, fell 426.87 points or 0.53% to 79,924.77. The Nifty 50 index declined 108.75 points or 0.45% to 24,324.45.
The Sensex and Nifty clocked an all-time high of 80,481.36 and 24,461.05, respectively in morning trade.
Mahindra & Mahindra (down 6.62%), TCS (down 2.05%) and HDFC Bank (down 0.63%) were major drags.
In the broader market, the S&P BSE Mid-Cap index slipped 0.19% and the S&P BSE Small-Cap index tumbled 0.69%.
The market breadth was weak. On the BSE, 1326 shares rose and 2612 shares fell. A total of 83 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 0.66% to 14.38.
Numbers to Track:
The yield on India's 10-year benchmark federal shed 0.17% to 6.977 as compared with previous close 6.989.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.5150, compared with its close of 83.4925 during the previous trading session.
MCX Gold futures for 5 August 2024 settlement gained 0.44% to Rs 72,702.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.04% to 105.09.
The United States 10-year bond yield slipped 0.54% to 4.275.
In the commodities market, Brent crude for September 2024 settlement declined 2 cents or 0.02% to $84.66 a barrel.
Global Markets:
European markets advanced on Wednesday after the comments made by Federal Reserve Chair Jerome Powell signalled increased confidence in the moderation of inflation.
Asian stocks ended mixed as investors assessed Japan's wholesale inflation accelerated in June due to a weaker yen and rising import costs. This is likely to lead to an interest rate hike by the central bank in the near future. Wholesale inflation rose 2.9% year-on-year in June, the fastest pace since August 2023. The index hit a record high for the seventh consecutive month.
Chinese consumer inflation shrank in June amid persistent economic concerns, limiting spending, while producer inflation contracted for a 20th consecutive month, though at a slower pace. Consumer price index inflation grew 0.2% year-on-year in June, down from 0.3% in the prior month.
In US, the S&P 500 and Nasdaq closed at record highs on Tuesday, extending their winning streak to six days. This surge comes as investors remain optimistic about potential interest rate cuts by the Federal Reserve. However, the Dow Jones Industrial Average ended the day slightly down. The recent US economic slowdown has fueled expectations of the Fed easing monetary policy to boost the economy.
New Listings:
Shares of Emcure Pharmaceuticals settled at Rs 1,358.85 on the BSE, a premium of 34.81% as compared with the issue price of Rs 1,008.
The scrip was listed at Rs 1,325.05, a 31.45% premium to the issue price. The stock hit a high of 1,384 and a low of 1,325.05. On the BSE, over 12.62 lakh shares of the company were traded in the counter.
Shares of Bansal Wire Industries closed at Rs 350.30 on the BSE, a premium of 36.84% as compared with the issue price of Rs 256.
The scrip was listed at Rs 352.05, a 37.52% premium to the issue price. The stock hit a high of 368.70 and a low of 335.85. On the BSE, over 25.42 lakh shares of the company were traded in the counter.
Stocks in Spotlight:
Mahindra & Mahindra slumped 6.62% after the company announced a price reduction for the AX7 range of its popular XUV700 SUV. The revised ex-showroom prices start at Rs 19.49 lakh for the AX7 variant, down from its original price of Rs 21.54 lakh. This pricing will be valid for four months starting 10 July 2024.
JSW Steel declined 1.07%. The steel major has reported consolidated crude steel production of 6.35 million tonnes for the first quarter of FY 2024-25, which is lower by 1% as compared with production volume of 6.43 million tonnes posted in Q1 of FY 2023-24.
Delta Corp added 2.49%. The company's consolidated net profit tumbled 68.2% to Rs 21.68 crore in Q1 FY25 as compared with Rs 68.18 crore in Q1 FY24. Revenue from operations dropped 30.32% YoY to Rs 180.65 crore in Q1 FY25.
Rail Vikas Nigam (RVNL) surged 12.41% after the firm emerged as the lowest bidder for Rs 203 crore railway contract from Southeastern Railway and signed an MoU with Tatweer Middle East and Africa to execute rail-based work in the MENA Region and European countries. The company has also received a project worth Rs 187 crore from Maharashtra Metro Rail Corp. to construct six elevated metro stations in Nagpur.
Shilpa Medicare shed 1.07%. The company said that ANVISA-Brazil successfully completed good manufacturing practice (GMP) inspection at its subsidiary, Shilpa Pharma Lifesciences' Active Pharmaceutical Ingredient (API) manufacturing facility, Unit II situated in Karnataka.
Krishna Institute of Medical Sciences rose 3.04% after announcing acquisition of a 200-bed multi-specialty hospital in Vizag.
Sportking India gained 3.56% after the company announced that its board will consider a stock split on Saturday, 20 July 2024.
Zee Media Corporation declined 3.50% after CARE Ratings downgraded the company's long-term rating to CARE BB; Negative' from CARE BB+; Stable'.
Marathon Nextgen Realty tumbled 5.50% after the company's pre-sales area declined by 45% to 79,239 square feet in Q1 FY25 from 1,43,429 square feet in Q1 FY24.
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