Table of Contents
Stock Market Overview: August 6, 2024
Market Opening and Closing
The stock market opened higher than the previous day’s closing point. However, the optimism did not last throughout the day. The Nifty 50 experienced significant selling pressure after 10:00 AM and again after 1:29 PM, resulting in the index closing in the red.
Sector Performance
Different sectors showed varied performance. Realty stocks emerged as the best performers, witnessing substantial gains. In contrast, financial services and PSU bank stocks faced the brunt of selling, making them the biggest losers of the day.
Global Market Trends
Globally, the market trends were mixed. US and most other Asian markets recorded gains, reflecting positive investor sentiment. On the other hand, European markets ended the day with losses, indicating regional uncertainties.
Top Gainers on Nifty 50
Despite the overall downturn in the market, some stocks managed to perform well:
- Britannia: Closed at Rs 5,854.50, up by 2.75%.
- JSW Steel: Ended at Rs 884.00, marking a 2.34% increase.
- Tech Mahindra: Reached Rs 1,483.40, up by 1.86%.
- L&T: Closed at Rs 3,576.20, up by 1.37%.
- LTIMindtree: Finished at Rs 5,460.75, rising by 1.31%.
Top Losers on Nifty 50
Several stocks saw significant declines:
- HDFC Life: Dropped by 4.40%, closing at Rs 679.60.
- SBI Life: Fell by 2.77%, ending at Rs 1,674.50.
- BPCL: Declined by 2.05%, closing at Rs 334.70.
- Shriram Finance: Decreased by 1.89%, finishing at Rs 2,836.80.
- M&M: Dropped by 1.72%, closing at Rs 2,632.95.
News Highlights
RBI MPC Meeting
The Reserve Bank of India’s Monetary Policy Committee (MPC) has begun its three-day meeting to discuss potential changes in interest rates. The outcome of this meeting will be announced on August 8, 2024. This decision is highly anticipated by market participants as it could influence market movements.
IPO Updates
- Ola Electric: The IPO was subscribed 4.26 times on the third day. Retail subscription stood at 3.86 times, and the IPO is now closed for subscription.
- Brainbees Solutions (FirstCry): The IPO has been subscribed 0.11 times, with retail subscription at 0.46 times. It remains open for subscription until August 8, 2024.
- Unicommerce: This IPO has been subscribed 2.43 times, with an impressive retail subscription rate of 9.98 times. It will also remain open until August 8, 2024.
Stock Updates
- NTPC: The company has been penalized with a tax and interest penalty of Rs 1.19 crore by Andhra Pradesh. NTPC plans to appeal against this penalty order.
- Power Finance Corp: Reported a 20.06% year-on-year rise in net profit to Rs 7,182.06 crore for the April-June quarter. The company declared an interim dividend of Rs 3.25 per share, with a record date of August 30, 2024.
- Vedanta: Posted a 36.59% increase in quarterly net profit, reaching Rs 3,606 crore.
- Tata Power: Saw a slight decrease in quarterly net profit by 0.16% to Rs 970.91 crore. The company has partnered with Tata Passenger Electric Mobility to promote electric vehicles and rooftop solar panel installations.
- TVS Motor: Reported a 6.12% rise in quarterly net profit, amounting to Rs 460.88 crore.
- Cummins India: Recorded a 30.78% increase in quarterly net profit, reaching Rs 462.61 crore.
- Shree Cement: Experienced a significant decline in quarterly net profit by 51.32%, down to Rs 278.61 crore.
- Solar Industries: Reported a 45.11% rise in quarterly net profit, totaling Rs 286.46 crore.
Commodity and Currency Changes
- Gold: The price of 10g gold decreased by 0.37% to Rs 69,230.
- Silver: The price of 1kg silver fell by 2.25% to Rs 79,140.
- USD-INR: The exchange rate increased by 0.08%, with the USD now costing Rs 83.91.
US Market Performance
- Dow Jones: Declined by 2.60%, closing at 38,703.27.
- Nasdaq: Dropped by 3.43%, ending at 16,200.08.
Long Term Returns
Over the past 20 years, the long-term returns have been as follows:
- Sensex: Averaged a 14.55% annual increase.
- Nifty: Averaged a 14.38% annual increase.
- Dow Jones: Averaged a 7.02% annual increase.
- Nasdaq: Averaged an 11.55% annual increase.
Conclusion
The stock market’s performance on August 6, 2024, was mixed, with significant sectoral variances and global influences playing a crucial role. Investors are keenly watching the RBI MPC meeting’s outcome and the progress of various IPOs, which could shape market trends in the coming days.