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Flat Trading in Gift Nifty, ICICI Bank's Infra Bond Issue, ITC's FMCG Growth, and Today's Top Buzzing Stocks
Synopsis: Today's Indian share market saw a reversal from earlier gains, closing negatively despite record highs. Key indices and sectors showed mixed performance, with notable movements in midcap and smallcap stocks. This update also covers insights from Equitymaster on strategic investment approaches, and highlights top buzzing stocks like CDSL, Godrej Properties, ICICI Bank, ITC, and Bharat Electronics Limited (BEL). Stay informed on market trends and strategic investment tips.
MARKETSINDIA
By Monika Agarwal
7/1/20242 min read
The Indian share market experienced a shift in momentum today, with the initial positive trend reversing as the session progressed, leading to a negative close for the major indices.
Market Overview
Benchmarks Performance
Despite reaching new record highs earlier in the day, the benchmark indices closed lower:
BSE Sensex: Down by 210 points (0.3%) to 64,720.
NSE Nifty: Down by 34 points (0.1%) to 19,189.
Sectoral Performance
Sectoral indices showed mixed results:
Gainers: Energy, Oil & Gas, and Metal sectors saw significant buying interest.
Losers: Power, Banking, and Capital Goods sectors faced selling pressure.
Notable Gainers and Losers
Top Gainers: ONGC, Reliance Industries, and Tata Motors.
Top Losers: Axis Bank, ICICI Bank, and Bharti Airtel.
MidCap and SmallCap Indices
BSE MidCap Index: Increased by 0.4%.
BSE SmallCap Index: Increased by 0.6%.
Gold Prices
At market close, gold prices on the MCX were slightly higher at ₹71,619.
Gift Nifty and Market Outlook
At 7:35 AM today, the Gift Nifty was trading up by 6 points at 24,126, indicating a muted start for the Indian markets.
Insights from FinBrook
In a recent discussion, Rahul Shah, Co-Head of Research at Equitymaster, highlighted the essential qualities for investors aiming to outperform the market index by at least 5% annually. Drawing inspiration from legendary investors like Warren Buffett, Shah emphasized the importance of a strategic investment approach, switching between aggressive and defensive styles based on market conditions.
Shah recommends using the Sensex PE ratio as a guide:
Aggressive Stance: When PE is below 20.
Defensive Stance: When PE is above 22.
Top Buzzing Stocks
Central Depository Services Limited (CDSL)
CDSL shares surged by 15.9% to a new 52-week high of ₹2,324.8 following the announcement of a board meeting on July 2 to consider issuing bonus shares. The record date for this purpose will be announced later.
Godrej Properties
Shares of Godrej Properties hit an all-time high of ₹3,170 after reporting highest-ever pre-sales of ₹225 billion in FY24, making it the largest developer in terms of bookings. The pre-sales showed an 84% year-on-year increase, surpassing its guidance by 61%.
ICICI Bank’s Infrastructure Bond
ICICI Bank successfully raised ₹30 billion through a 10-year bond sale with a coupon rate of 7.53%. These funds, aimed at infrastructure financing, come at a time when bank credit growth (15.6% YoY) significantly outpaces deposit growth (12.1% YoY).
ITC’s FMCG Growth
ITC reported a 12% increase in consumer spending on its FMCG products, reaching nearly ₹325 billion in FY24. The company’s FMCG portfolio, which includes brands like Aashirvaad, Bingo, and Sunfeast, saw significant growth despite a challenging macroeconomic environment. ITC’s strategic focus on deep consumer insights, purposeful innovation, and portfolio premiumisation contributed to its success.
Bharat Electronics Limited (BEL)
BEL signed a contract worth ₹3,172 crore with Armoured Vehicles Nigam Limited (AVNL) to supply and install an indigenous Sighting and Fire Control System for BMP 2/2K tanks of the Indian Army. Additionally, BEL secured orders worth ₹481 crore for various projects, bringing its total orders for the financial year to ₹4,803 crore.