SENSEX and NIFTY50 open higher, Nifty Bank struggles amid RBI’s new LCR guidelines

Today, Indian equity benchmark indices began the last trading session of the week positively, with the NIFTY50 and SENSEX trading in the green. Similarly, the broader markets also traded higher. Positive opening in the Indian markets can be attributed to improving sentiment in the US as Dow Jones Futures were seen trading in green this Friday. In the sectoral indices, Nifty Metal was the top gainer, while Nifty FMCG was the top loser in the early trading session. The India VIX has slightly declined by 2.42%, trading around the 12 mark.

The Nifty Bank index opened significantly lower on Friday on the back of RBI’s new Liquidity Coverage Ratio (LCR) guidelines that came yesterday.

On Thursday, July 25, 2024, foreign institutional investors (FII) offloaded shares worth ₹2,605.49 crore, while domestic institutional investors (DII) bought shares worth ₹2,431.69 crore. Since the budget day, FIIs have offloaded shares worth over ₹10,000 crore.

At 09:25 am, the SENSEX was trading higher by 0.22% above the 80,200 level, while the NIFTY50 was also trading up by 0.3%, above the 24,400 level. Furthermore, Nifty Bank declined by 0.18%, trading below the 50,900 level.

Broader indices

Looking at the broader indices, the Nifty Midcap 100 index was trading in the green, up by 1.09% above the 57,300 level, while the Nifty Smallcap 100 gained by 0.32% and is trading around the level of 18,700. Market breadth is skewed in favour of advances.

Sectoral Performance

Within the sectoral landscape, Nifty Metal (+1.6%), Nifty Realty (+1.3%), and Nifty Media (+1.2%) are the major sectors that are trading positively, while Nifty FMCG (-0.4%), Nifty Bank (-0.27%) and Nifty Financial Services (-0.09%) are the sectors trading negatively.

Top Gainers and Losers

In the NIFTY50 space, Bharti Airtel (+2.1%), Shriram Finance (+2.4%) and LTIMindtree (+2.28%) are among the top gainers. On the other hand, Tech Mahindra (-2.25%), Tata Consumer Product (-1.39%) and HDFC Bank (-1.09%) are among the top losers.

U.S. Markets

The S&P 500 and Nasdaq Composite closed lower on Thursday after a volatile session, unable to recover from the previous day's tech-driven sell-off as investors weighed the outlook for mega cap stocks. In contrast, the Dow Jones Industrial Average maintained early gains to finish higher, buoyed by stronger-than-expected U.S. GDP data.

The U.S. 10-year Treasury yield rose by 9 basis points to 4.29%, while the 2-year bond yield increased by 14 basis points to 4.43%.

Commodities

Oil prices edged up slightly on Friday, supported by stronger-than-expected U.S. economic data that boosted investor expectations for increased crude demand from the world's largest energy consumer. However, concerns over weak economic conditions in China and Japan, Asia's largest economies, limited the gains.

Brent crude futures for September had risen 7 cents to $82.44 a barrel, while U.S. West Texas Intermediate crude for September had increased 4 cents to $78.32 per barrel.

Stocks in F&O Ban

No stocks are banned for trading in the F&O segment on July 26, 2024.