Indian Stocks Flat in Choppy Trade; US Inflation Data Looms Large

Ira Singh
Khabar Khabaron Ki,11 July’24

Indian benchmark indices closed marginally lower on Thursday, following a volatile trading session as investors exercised caution ahead of the release of US inflation data later in the day.At close, the Sensex was down 27.43 points or 0.03 percent at 79,897.34, and the Nifty was down 8.50 points or 0.03 percent at 24,315.95.

Amid positive global cues, the benchmarks started the session on a positive note but pared all gains to slip into the red as investors opted to book profit, with the market consolidating ahead of the Q1FY25 results of Tata Consultancy Services and the eagerly anticipated 2024 Union Budget on 23 July.The midcap and smallcap indices continued to outpace headline indices after gaining 0.2 and 0.4 percent, respectively. The midcap index has rallied over 10 percent since the start of June while the smallcap index has surged nearly 13 percent during the same period.

BPCL, Coal India, ONGC, ITC and Tata Motors were the top gainers on the Nifty, while losers included Tata Consumer Products, Bajaj Finance, Divis Labs, M&M and NTPC.

On the sectoral front,realty index was down 1.5 percent, and pharma index fell 0.6 percent, while media and oil & gas index were 1 percent each.The BSE midcap index rose 0.3 percent while the smallcap index added 0.6 percent.

Budget 2024:Pre-Budget Meet
Ahead of Budget 2024, Prime Minister Narendra Modi on Thursday held an important meeting with economists. Finance Minister Nirmala Sitharaman was also present at the pre-budget meet.The incumbent Modi government will present their first full budget of the third term on 23 July,2024.Sitharaman received suggestions for sustained capital expenditure, fiscal prudence, lowering tax rates,and increasing social and rural spending, according to information.

Rupee Close:
On 11 July’24,the Indian rupee ended slightly weaker,5 paise lower at 83.56 against the US dollar on Thursday, pressured by dollar demand from state-run banks and importers, although most of its Asian peers gained ahead of a key U.S. inflation report.Forex traders said rupee traded with a slight negative bias on profit-booking in the domestic market, which may result in foreign fund outflows.

Trading Guide:
Vinod Nair, Head of Research, Geojit Financial Services reportedly stated ,the main indices are trading in a narrow range, struggling to justify its premium valuation ahead of the Q1 earnings season, which is forecast to be subdued. However, the broader market is exhibiting marginal momentum, led by a shift in FIIs inflow and budget expectations. Attention is now focused on the US inflation data, which is estimated to moderate and positively influence Fed’s interest rate decisions.

Market experts have recommended buying these five buy-or-sell stocks: Marico, Sun Pharma, MFSL, ATGL, and BPCL.