Realty and Metal Stock Woes Lead to Nifty and Sensex Decline Ahead of Budget Week

Ira Singh
Khabar khabaron Ki,19 July’24

The Nifty and Sensex nosedived, snapping the four-day rise on Friday, following a sharp decline in realty and metal stocks and investors opted to book profits ahead of the budget due on Tuesday next week.At close, the Sensex was down 0.91 percent at 80,604.65 and the Nifty was down 1.09 percent at 24,530.90. About 727 shares advanced, 2,656 shares declined, and 65 shares were unchanged.

The broader markets also extended losses for the second consecutive day as midcap and smallcap indices fell 2.3 and 2.2 percent, respectively. The two have risen 14 percent each in the last three months, outpacing the NIfty’s gain of 11.2 percent.

Infosys, ITC, Asian Paints, LTIMindtree and Britannia Industries were the top gainers on the Nifty while losers included Tata Steel, JSW Steel, BPCL, Hindalco and ONGC. On the sectoral front,all sectors witnessed selling and ended with losses.

Reliance Industries is projected to announce a consolidated profit after tax (PAT) ranging between Rs 14,999 crore and Rs 19,084 crore for the quarter ending June 30, 2024.

Indian shares traded lower on Friday due to weak global market cues and fears of new U.S.-China trade tensions. Despite opening at record highs, the Nifty 50 and Sensex quickly slipped into the red and fell sharply later in the session. India’s benchmark stock indices ended their rally by hitting downward trends after a fresh record high for the fourth consecutive session on Friday. Sectors like Metal, Auto, Financial Services, and Energy saw significant declines. Brokerages’ Stocks Fall As Microsoft Outage Impacts Operation. On the stock-specific front, Infosys shares rose after posting better-than- expected Q1 FY25 results and raising its FY25 revenue growth forecast to 3-4%. Other top gainers included Asian Paints, LTIMindtree, and Titan Company. In contrast, Persistent Systems fell nearly 7% after its Q1 profit missed estimates.

On the other hand, oil prices have continued to decline, influenced by weak demand from China and pressure from a stronger dollar. China’s economy grew at a much slower pace than expected in the second quarter, countering the narrative of tight supply. However, the significant drawdown in U.S. stockpiles and improved compliance with production cuts by OPEC members are expected to keep the market undersupplied by more than a million barrels, thereby providing support for crude oil prices. West Texas Intermediate (WTI) prices are expected to find support around $78 to $80 per barrel, according to information.

Meanwhile, the USD/INR is trading at an all-time low due to a stronger dollar and widespread weakness across Asian currencies. According to the latest bulletin released by the Reserve Bank of India (RBI), the central bank purchased $4.2 billion of forex. Additionally, the market is closely monitoring the Union budget for FY 2024-25, to be held on July 23rd, for a clearer picture of economic growth. Earlier this week, the International Monetary Fund (IMF) raised India’s growth projection from 6.8% to 7%. The rupee is expected to respect the resistance of 83.75 – 83.85 levels, with a potential retracement to the 83.50 level,stated experts.

Market this Week:
BPCL Q1 net profit falls 29% to Rs 3,015 crore
●Net Profit down 28.6% At Rs 3,015 Cr Vs Rs 4,224 Cr (QoQ)
● Revenue down 2.6% At Rs 1.13 Lk Cr Vs Rs 1.16 Lk Cr (QoQ)
●EBITDA falls 38.7% At Rs 5,650 Cr Vs Rs 9,211 Cr (QoQ)

Rupee Close:
On 19 July’24, the Indian rupee consolidated in a narrow range and depreciated 3 paise to close at its all-time low of 83.66 against the U.S. dollar on Friday, weighed down by strong American currency and muted trend in domestic equities. Forex traders said weak domestic markets and elevated oil prices pressured the rupee, however, likely Reserve Bank of India (RBI) intervention prevented a sharp fall in the domestic unit

Trading Guide:
Markey experts have recommend buying these five shares today — Mphasis, Finolex Industries, M&M, Bharti Airtel, and Chola Finance.