SENSEX and NIFTY50 open in green; TCS and Infosys lead the gains

On Friday, Indian equity benchmark indices began the week's final trading session positively, with the NIFTY50 and SENSEX trading in green. Similarly, the Nifty Midcap 100 and Smallcap 100 index outperformed in the broader markets. Additionally, Nifty IT emerged as the top gainer, while Nifty Realty was the top loser in the early trading session. The India VIX declined by 1.18%, trading below the 14-mark.

On Thursday, July 11, 2024, foreign institutional investors (FII) offloaded shares worth ₹1,137.01 crore, while domestic institutional investors (DII) bought shares worth ₹1,676.47 crore.

Key triggers for positive opening

US Inflation cooled further for the third straight month to 3% in June, the lowest in one year and below market expectations of 3.1%. The lower inflation numbers increased the probability of a rate cut by September 2024.

TCS reported above-expected Q1 numbers, with net profit rising 8.7% YoY to ₹12,040 crore in the April-June quarter of FY25, as against ₹11,074 crore in the corresponding period last year.

Furthermore, India’s CPI and IIP data are expected to be released on July 12. Market participants will closely watch for changes in food inflation, as high food prices would be cause for concern.

At 09:25 am, the SENSEX was trading slightly higher, 0.33% above the 80,100 level, while the NIFTY50 was also up by 0.42%, trading above the 24,400 level. Furthermore, Nifty Bank gained by 0.3%, trading above 52,400.

Broader indices

Looking at the broader indices, the Nifty Midcap 100 index was trading higher by 0.17% above the 57,200 level, while the Nifty Smallcap 100 gained by 0.57% and is trading above the 19,000 mark.

Sectoral Performance

Within the sectoral landscape, Nifty I.T. (+1.65%), Nifty Media (+0.95%) and Nifty Metal (+0.23%) are among the top gainers, while Nifty Realty (-0.64%) and Nifty FMCG (-0.09%) are the sectors trading negatively.

Top Gainers and Losers

U.S. Markets

The Nasdaq closed sharply lower on Thursday, impacted by losses in Nvidia, Apple, and Tesla as investors shifted to smaller companies after softer-than-expected inflation data increased bets on a Federal Reserve rate cut in September.

In early Friday trade, the US 10-year yield increased by nine basis points to 4.21%, and the 2-year Treasury yield rose by five basis points to 4.51%.

Commodities

Oil prices increased in early Asian trading on Friday, supported by signs of strong summer demand and easing inflationary pressures in the U.S., the world's largest oil market, which boosted investor confidence.

Brent crude futures rose 37 cents, or 0.4%, to $85.77 a barrel, while U.S. West Texas Intermediate crude futures climbed 50 cents, or 0.6%, to $83.12 a barrel.

Stocks in F&O Ban

Stocks that are banned for trading in the F&O segment on July 12, 2024, are Aditya Birla Fashion and Retail, Balrampur Chini Mills, Bandhan Bank, Chambal Fertilizers & Chemicals, Gujarat Narmada Valley Fertilizers & Chemicals, Indian Energy Exchange, India Cements, Indus Towers, Piramal Enterprises and RBL Bank.