Indices trade flat; PSU bank shares snap 4-day streak

Domestic equity barometers traded near the flat line in mid-afternoon trade. The Nifty traded tad above the 19,750 mark. PSU bank shares declined after snapping its four days gaining streak.

At 14:28 IST, the barometer index, the S&P BSE Sensex, was up 12.18 points or 0.02% to 66,539.85. The Nifty 50 index added 1.85 points or 0.01% to 19,755.65.

In the broader market, the S&P BSE Mid-Cap index declined 0.07% while the S&P BSE Small-Cap index gained 0.56%.

The market breadth was positive. On the BSE, 2,054 shares rose and 1,478 shares fell. A total of 168 shares were unchanged.

Economy:

Backed by new orders, the manufacturing sector continued expanding at almost the same pace in July as in June, a survey-based index prepared by S&P Global released on Tuesday showed. The Purchasing Managers' Index (PMI) dropped a tad to 57.7 in July, as against 57.8 of June.

The Indian manufacturing sector showed little sign of losing growth momentum in July, as production lines continued to motor on the back of strong new order growth,? Andrew Harker, Economics Director at S&P Global Market Intelligence, said. Further, pressure continued to be exerted on capacity, prompting a solid expansion in employment, again, a trend that is likely to continue in the months ahead should demand remain strong.

All in all, the Indian manufacturing sector has maintained its position as one of the star performers globally, bucking the trend of demand weakness seen in other parts of the world,? Harker concluded.

Meanwhile, the combined Index of Eight Core Industries jumped by 8.2% during June 2023 which was the highest in five months. The growth in the core sector however declined from 13.1% during June 2022.

The government's fiscal deficit increased to Rs 4.51 lakh crore in the April-June quarter of fiscal 2023-24, which comes in at 25.3% of the annual target of Rs 17.87 lakh crore.

India Meteorological Department has informed that India is likely to experience normal rainfall during the second half of monsoon in August and September 2023.

Buzzing Index:

The Nifty PSU Bank index fell 0.56% to 4,594.50. The index advanced 2.63% in four trading sessions.

Canara Bank (down 1.26%), State Bank of India (down 1.24%), Punjab National Bank (down 0.97%), Bank of Baroda (down 0.45%) and UCO Bank (down 0.18%) declined.

On the other hand, Indian Overseas Bank (up 1.9%),Punjab & Sind Bank (up 1.68%) and Bank of Maharashtra (up 1.04%) advanced.

Numbers to track:

The yield on India's 10-year benchmark federal paper fell 0.14% to 7.162 from its previous close of 7.172.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 82.2750, compared with its close of 82.2900 during the previous trading session.

MCX Gold futures for 4 August 2023 settlement lost 0.52% to Rs 59,259.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.30% to 102.16.

The United States 10-year bond yield advanced 0.17% to 3.975.

In the commodities market, Brent crude for October 2023 settlement lost 25 cents or 0.29% to $85.18 a barrel.

Stocks in Spotlight:

Engineers India declined 1.80%. The company said that it has bagged a contract from Oil and Natural Gas Corporation (ONGC) worth Rs 837.34 crore.

VST Tillers fell 0.58%.The tractor manufacturer's total sales jumped 29.58% to 5,506 units in July 2023 from 4,249 units sold in July 2022.

Som Distilleries & Breweries gained 1.62% after the company's consolidated net profit rose 31.2% to Rs 33.67 crore in Q1 FY24 from Rs 25.66 crore recorded in Q1 FY23. Revenue from operations (excluding excise duty) stood at Rs 385.02 crore in Q1 FY24, registering a growth of 51.4% as against Rs 254.30 crore posted in Q1 FY23.

Dynamic Cables surged 12.34% after the company's net profit rose 58.72% to Rs 11.38 crore on 14.74% increase in net sales to Rs 181.27 crore in Q1 June 2023 over Q1 June 2022.

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