NIFTY50: 19,753 ▲ 107 (+0.5%)
SENSEX: 66,160 ▲ 7.6 (+0.5%)
Namaste, friends!
Why did the grizzly bear take a dip in a backyard swimming pool? Because the heat was un-bear-able! It may sound unbelievable, but that’s exactly what happened recently in a suburban California home. And while the bears are busy cooling off, the markets closed in the green today. More on that later.
- Benchmark indices opened the week on a strong note, amid positive global clues
- In all, 35 of the NIFTY50 stocks closed in the green
- Eurozone inflation slowed for a third consecutive month to 5.3% in July
Among the NIFTY sectoral indices, Metal (+1.7%) and IT (+1.4%) were the top gainers, while FMCG (-0.6%) was the sole loser today.
| Top gainers | Today's change |
| NTPC | 219 ▲ 7.6 (+3.6%) |
| Power Grid | 266 ▲ 7.8 (+3.0%) |
| ONGC | 177 ▲ 5.2 (+3.0%) |
| Top losers | Today's change |
| Apollo Hospitals | 5,185 ▼ 161 (-3.0%) |
| Britannia | 4,810 ▼ 93 (-1.9%) |
| HDFC Life | 647 ▼ 12 (-1.8%) |
What’s trending
⭐ Maruti Suzuki posts robust Q1
India’s largest automaker has reported robust June quarter numbers. Its net profit zoomed over 145% YoY to ₹2,485 crore on account of higher sales, improved realisation and cost-reduction efforts. Meanwhile, its revenue from operations was at ₹32,326 crore, up 22% YoY. Further, to further boost its production capacity, the company plans to acquire Suzuki Motor Gujarat Pvt Ltd from its Japanese parent Suzuki Motor Corporation.
⭐ Siemens India up after shareholders reject proposed sale
Siemens India shares rose by 3.1%, hitting their 52-week high, after its shareholders voted against the sale of its low-voltage motors and geared motors business to Siemens Large Drives India, a subsidiary of Siemens AG. In May 2023, the company's board of directors authorised this sale for a cash consideration of ₹2,200 crore, which was expected to take effect on 1 October 2023.
⭐ Adani Green reports strong Q1 results
Adani Green Energy reported a 51% year-on-year (YoY) growth in net profit at ₹323 crore in Q1FY24 up from ₹214 crore in the same quarter last year. Revenue from operations was up by 33% YoY to ₹2,176 crore compared to ₹1,635 crore in the year-ago quarter, driven by higher power sales. However, the company’s shares were down by 0.2% today.
⭐ Mid-tier banking stocks outperform
Shares of midcap banking stocks IDFC First and Bank of India witnessed strong traction rising 5.2% and 3.3%, respectively, intraday following robust quarterly results. Bank of India reported a 176% YoY jump in net profit to ₹1,551 crore supported by a 45% YoY rise in net interest income (NII) to ₹5,915 crore. IDFC First’s consolidated profit was at ₹765 crore, up 61% YoY, while its NII grew 36% YoY to ₹3,745 crore.
In Focus
Factors that will drive the markets in August
Early in July 2023, the witnessed a blistering rally on the back of upbeat Q1 results and consistent FIIs inflows. The benchmark NIFTY50 index touched its lifetime high of 19,991. However, the rally hit a speed breaker just when investors expected the NIFTY to scale Mt 20k. Now, the question on everyone’s mind is whether the NIFTY will cross the 20,000 mark in August. Let’s explore the key factors that are likely to drive market sentiments in the month ahead.
RBI monetary policy
Firstly, RBI’s Monetary Policy Committee will commence its bi-monthly policy review meeting this month, followed by policy announcement on 10 August. While most experts believe that the RBI will maintain status quo on key interest rates, inflation numbers will play a major role. Inflation has been on a consistent uptrend in recent months and rose to a five-month high of 4.81% in June 2023.
Besides inflation, the RBI will also take into consideration global factors before deciding its policy rates. Last week, central banks in major economies, including the US and Eurozone, raised their policy rates by 0.25%.
Key economic data
Investors will also look forward to key economic data in August. The Purchasing Managers’ Index (PMI) for the manufacturing sector, which denotes factory activity in the economy, will be released tomorrow. PMI numbers are lead indicators that track business activity and help predict the economic health of a country.
Next up are retail and wholesale inflation numbers for July. Skyrocketing vegetable prices during the ongoing monsoon season could have a seasonal impact on inflation. Inflation numbers will be out in the second week of August.
July auto sales
Major automakers, including Maruti Suzuki, Tata Motors and Hero MotoCorp, are expected to announce their monthly sales numbers in the next couple days. Experts believe sales volumes in the passenger and two-wheeler segment could show a modest growth this time owing to the high base in the corresponding month of last year.
Monthly auto sales numbers hold significance as they indicate sales trends and the inventory position of major automakers.
Q1 earnings
The earnings season will continue in August, with several prominent companies reporting their Q1FY24 results in the coming week. This includes Adani Group, SBI, Bharti Airtel, Eicher Motors and Dabur. It would be interesting to see how stocks react following these earnings announcements.
The above events could trigger significant traction in the markets in August. But, will the NIFTY50 surpass the 20,000 mark? We’ll need to wait and watch.
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