Despite opening lower, benchmark indices settled on a positive note on Monday. The Nifty settled above the 23,500 level after the hitting day’s low of 23,350 in morning trade. Auto, consumer durables and FMCG stocks advanced while media, PSU bank and metal shares declined.

As per provisional closing, the barometer index, the S&P BSE Sensex, was up 131.18 points or 0.17% to 77,341.08. The Nifty 50 index rose 36.75 points or 0.16% to 23,537.85.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.37% and the S&P BSE Small-Cap index added 0.27%.

The market breadth was positive. On the BSE, 2,118 shares rose and 1,873 shares fell. A total of 165 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 6.65% to 14.06.

Economy:

After hitting all-time high levels following continuous gains, India’s foreign exchange (forex) reserves fell $2.922 billion to $652.895 billion during the week ended June 14, according to the latest data from the Reserve Bank of India (RBI).

This decline follows a significant increase of $4.307 billion in the previous reporting week, which pushed the reserves to a record high of $655.817 billion after several consecutive weeks of gains.

The decrease in forex reserves was primarily driven by a reduction in foreign currency assets, which are a major component of the reserves. These assets fell by $2.097 billion, bringing the total to $574.24 billion.

Gold reserves also saw a decrease, dropping by $1.015 billion to $55.967 billion during the week. Meanwhile, the special drawing rights (SDRs) were down by $54 million, amounting to $18.107 billion. In contrast, India’s reserve position with the International Monetary Fund (IMF) increased by $245 million, reaching $4.581 billion.

IPO Update:

The initial public offer (IPO) of Stanley Lifestyles received 4,54,68,240 for shares as against 1,02,41,507 shares on offer, according to stock exchange data at 15:35 IST on Monday (24 June 2024). The issue was subscribed 4.44 times.

The issue opened for bidding on Friday (21 June 2024) and it will close on Tueday (25 June 2024). The price band of the IPO is fixed between Rs 351 to Rs 369 per share. An investor can bid for a minimum of 40 equity shares and in multiples thereof.

Buzzing Index:

The Nifty Auto index rose 0.97% to 25,335.25. The index declined 1.80% in the past four trading sessions.

Mahindra & Mahindra (up 2.7%), Ashok Leyland (up 1.97%), Bajaj Auto (up 1.54%), Bosch (up 1.31%), Hero MotoCorp (up 1.31%), Exide Industries (up 0.76%), Eicher Motors (up 0.59%), Samvardhana Motherson International (up 0.43%), TVS Motor Company (up 0.23%) and Balkrishna Industries (up 0.18%) edged higher.

On the other hand, Apollo Tyres (down 0.69%), Tata Motors-DVR (down 0.58%) and Bharat Forge (down 0.51%) declined.

Hero MotoCorp added 1.31% to Rs 5,530 after the company announced increase in prices for select motorcycles and scooters with effect from 1 July 2024.

Stocks in Spotlight:

Welspun Specialty Solutions zoomed 12.08% after the firm has been selected as L1 bidder by Bharat Heavy Electricals (BHEL) for supply of stainless steel boiler tubes to National Thermal Power Corporation (NTPC)’s thermal power project.

Larsen & Toubro (L&T) rose 0.34%. The company announced that its power transmission & distribution (PT&D) business has secured a significant domestic order to build Solar PV Plant along with a Battery Energy Storage System (BESS).

Lupin rose 0.42% after the company announced that it has received an Establishment Inspection Report (EIR) from the United States Food and Drug Administration (USFDA) for its manufacturing facility in Somerset at New Jersey.

Ujjivan Small Finance Bank dropped 4.98% after the bank revised its loan book growth guidance for FY2024-25 downwards to 20% from nearly 25% announced earlier.

Rail Vikas Nigam (RVNL) gained 1.76% after the company emerged as lowest bidder (L-1) for an EPC project from South Eastern Railway worth Rs 191.53 crore.

Route Mobile jumped 13.59% after announcing a partnership with Billeasy E Solutions to extend Whatsapp-based ticket booking feature for Nagpur, Pune and Hyderabad metros in addition to Delhi.

Biocon shed 0.80%. The company said that its subsidiary Biocon Biologics has received approval from the European Medicines Agency (EMA) to manufacture biosimilar Bevacizumab at its new multi-product monoclonal antibodies (mAbs) drug substance facility at Bengaluru.

Tide Water Oil (India) zoomed 7.04% after the company’s committee of directors approved a proposal from joint promoter Standard Greases & Specialities to acquire an additional 351,000 shares (representing 2.01% equity) of the company.

Zee Media Corporation rose 0.21% to Rs 14.2. The company said that its board will meet on 26 June 2024 to consider raising funds by way of issuance of equity shares or any other eligible securities through various modes.

Global Markets:

European stocks advanced on Monday, as investors look ahead to fresh economic data and interest rate decisions from the region.

Asian stocks ended lower with Chinese markets leading the decline. This drop was fueled by concerns of a potential trade war with the European Union.

The European Union's decision earlier in June to impose hefty tariffs on Chinese electric vehicles sparked tensions. Beijing reacted strongly, raising the possibility of a retaliatory trade war. Reports also suggested that China might impose tariffs on European automobiles in response.

In the US, the S&P 500 closed slightly lower on Friday, extending a two-day decline for tech giant Nvidia. The broad market index fell 0.16% to finish at 5,464.62, while the Nasdaq Composite dipped 0.18% to settle at 17,689.36. The Dow Jones Industrial Average edged up 15.57 points, or 0.04% to close at 39,150.33.