D-St extends record run to 3rd day! Sensex climbs 52 pts, Nifty above 24,600

Ira Singh
Khabar Khabaron Ki,16 July’24

The domestic share market extended the winning streak for the third consecutive session on Tuesday with benchmarks hitting fresh record highs amid buying seen in the IT, realty and FMCG stocks,ahead of the Union Budget due on 23 July.At close, the Sensex was up 51.69 points or 0.06 percent at 80,716.55, and the Nifty was up 26.30 points or 0.11 percent at 24,613.

After a positive start, the Indian equity indices extended the gains as the session progressed and hit new milestones in the first half. Benchmark index Nifty crossed 24,650 mark and scaled to a fresh record high on July 16, extending gains for the third session in a row. The Sensex also inched closer to a new high buoyed by hopes of a positive budget, due on 23 July. The Nifty 50 opened positively at 24,616 and reached an intraday all-time high of 24,661 amid consolidation. Overall, it remained in positive territory throughout the session and closed at 24,613, up 26 points.However, selling pressure in the second half erased most of the day’s gain to end with marginal gains.First-quarter earnings and budget are key determinants that investors are eyeing.

Experts believe as long as the index sustains above 24,500, it is likely to move towards its next target of 24,900 in the coming sessions, with crucial support at 24,300.

Coal India, BPCL, HUL, Tata Consumer Products and Bharti Airtel were the top gainers on the Nifty, while losers included Shriram Finance, Dr Reddy’s Labs, Kotak Mahindra Bank, UltraTech Cement and Reliance Industries.

On the sectoral front, the Realty index surged 1.6 percent and FMCG, IT, Metal and Telecom up 0.3-0.9 percent. On the other hand, the Media index shed 1 percent, and Power and Capital Goods indices were down 0.5 percent each.The BSE midcap index was down 0.3 percent while the smallcap index was up 0.3 percent.

Rupee Close
On 16 July’24, the Indian rupee appreciated 3 paise to close at 83.58 against U.S. dollar on Tuesday, amid firm domestic markets and sustained inflow of foreign capital.Forex traders said a decline in crude oil prices favoured the rupee, while a strong U.S. dollar capped sharp gains

Trading Guide
Vinod Nair, Head of Research, Geojit Financial Services reportedly stated, the domestic market failed to uphold the opening gains as investor concerns about current valuations and subdued expectations for Q1FY25 earnings. With the earnings season set to fully commence this week, investors are likely to gain a broader sectoral perspective. Globally, the dovish comment from the FED chief on inflation trajectory and a drop in US 10-year yield ahead of US retail sales data increased the likelihood of a rate cut in September.

In the next few days in the run up to the Budget, the market is likely to anticipate the Budget proposals and respond. Even though Budget anticipations are speculative, this Budget will be growth oriented and at the same time fiscally prudent. Growth is top priority which the Government cannot and will not compromise. Tax buoyancy and the RBI dividend bonanza give the finance minister ample room for fiscal consolidation. Therefore, the market will be optimistic on this ground, stated experts.

Market experts have recommended buying these five shares — UTI AMC, OFSS, Max Financial Services, KFin Tech, and Bajaj Auto.

The market will remain shut on July 17 (Wednesday) on account of Muharram.