At 12:30 IST, the barometer index, the S&P BSE Sensex slumped 2,247.16 points or 2.77% to 78,734.79. The Nifty 50 index tanked 747.75 points or 3.03% to 23,969.95.
The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index dropped 3.58% and the S&P BSE Small-Cap index tumbled 3.94%.
The market breadth was weak. On the BSE, 555 shares rose and 3,430 shares fell. A total of 110 shares were unchanged.
Economy:
The seasonally adjusted HSBC India Services Business Activity Index was at 60.3 in July, down only fractionally from 60.5 and above the neutral mark of 50.0 for the thirty-sixth straight month. The latest reading was more than six points higher than its long-run average and highlighted a substantial upturn in business activity.
The HSBC India Composite Output Index posted 60.7 in July, down only fractionally from 60.9 in June and above the crucial 50.0 no-change mark for the thirty-sixth month running. Hence, the latest reading signaled a continuation of the strong growth momentum seen recently. As has been the case since February, the manufacturing industry led the upturn.
Total new work rose sharply and at a pace that was considerably above its long-run average. Manufacturers experienced the stronger increase in new orders, despite a slowdown in its rate of expansion. Meanwhile, job creation remained solid across the two segments.
Worryingly, charged inflation climbed to a near 11-and-a-halfyear high in July amid stronger increases at goods producers and service providers. Input cost inflation also ticked higher in July, but remained below its long-run average. Manufacturing firms reported stronger cost pressures than their services counterparts.
Indias foreign exchange reserves registered a decline of $3.471 billion, reaching $667.386 billion during the week ended July 26, according to the latest data from the Reserve Bank of India (RBI).
Gold reserves fell by $2.297 billion to $57.695 billion during the week. Special drawing rights (SDRs) decreased by $5 million to $18.202 billion.
Indias reserve position with the International Monetary Fund (IMF) saw a modest increase of $2 million, reaching $4.612 billion in the reporting week.
Derivatives:
The NSE’s India VIX, a gauge of the market’s expectation of volatility over the near term, soared 45.54% to 20.84. The Nifty 29 August 2024 futures were trading at 24,048.60, at a premium of 78.65 points as compared with the spot at 23,969.95
The Nifty option chain for the 29 August 2024 expiry showed maximum Call OI of 33.3 lakh contracts at the 25,000 strike price. Maximum Put OI of 42.9 lakh contracts were seen at 24,000 strike price.
Buzzing Index:
The Nifty PSU Bank index tumbled 4.24% to 6,892.50. The index fell 7.29% in five consecutive trading sessions.
Punjab & Sind Bank (down 5.94%), Punjab National Bank (down 4.83%), Union Bank of India (down 4.68%), Canara Bank (down 4.56%), Bank of India (down 4.5%), State Bank of India (down 4.46%), Central Bank of India (down 4.26%), UCO Bank (down 4.24%), Indian Overseas Bank (down 4.23%) and Indian Bank (down 4.14%) slipped.
Stocks in Spotlight :
Indian Energy Exchange (IEX) slipped 3.07%. The company informed that it has achieved electricity volume of 10,093 million units (MU) in July 2024, registering a growth of 29% YoY basis.
Computer Age Management Services (CAMS) dropped 7.28%. The company reported 41.77% increase in consolidated net profit to Rs 108.21 crore in Q1 FY25 as compared with Rs 261.29 crore posted in corresponding quarter last year. Revenue from operations jumped 26.83% YoY to Rs 331.40 crore during the quarter.
Gland Pharma declined 2.25%. The Pharmaceuticals company said that the United States Food and Drug Administration (US FDA) has conducted an un-announced inspection of the companys Pashamylaram Facility at Hyderabad for good manufacturing practices (GMP).
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First Published: Aug 05 2024 | 12:48 PM IST
