HCL Technologies, ICICI Bank, Tata Motors, Sun Pharmaceuticals, and Infosys were the top gainers in the Nifty 50. HDFC Bank, Bajaj Finance, Adani Enterprises, Wipro, and Tech Mahindra were the major losers in the Nifty 50 on July 04.

The stock of Cochin Shipyard hit a fresh 52-week high of Rs 2,679.95. Shares of the company were freezed after reaching the upper band of Rs 2,679.95.

“We expect Tier-I IT services companies to report an average 0.8% qoq constant currency (CC) revenue growth in 1QFY25F, as ramp-up of deals won earlier outweigh the quantum of discretionary project roll-offs. Reported growth in US$ terms could be lower as the US$ appreciated average 0.5% vs. the GBP () and 0.9% vs. the Euro (), respectively. Deal ramp-up and absence of one-offs could aid Infosys’ revenue (up 2% qoq cc) while HCL Technologies’ revenue could decline by 1.2% qoq in CC terms, largely due to seasonal pass-back of productivity benefits. The growth of Tata Consultancy Services or TCS could be 1% qoq while Wipro & Tech Mahindra’s sequential growth could be muted. Tier-II companies’ US$ revenue growth could be slightly higher at an average 0.9% qoq led by Persistent Systems (PSYS) while weak seasonality in the SWC business could impact L&T Technology Services (LTTS),” said InCred Equities.

“We expect Rupee to trade with a slight positive bias on softness in the US Dollar amid weak economic data and a rise in risk appetite in global markets. However, However, elevated crude oil prices may limit the gains. Investors may remain cautious ahead of the US non-farm payrolls report tomorrow. USDINR spot price is expected to trade in a range of Rs 83.20 to Rs 83.80,” said Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas.

“Thursday’s US data underwhelmed as the ISM services unexpectedly contracted for the second time in three months and continuing claims rose for the ninth straight month. The US yields fell and gold surged to close with a gain of 1.15% at $2356. 

The US ADP employment change came in at 150K Vs the forecast of 165K and wage growth cooled, which portends a weak nonfarm payroll report. The US ISM services sector contracted at the fastest pace in four years as the gauge of services slumped to 48.80 versus the forecast of 52.70, though the S&P Global US Services Index (June) rose to 55.30, the highest since April 2022. Factory orders (May) at -0.50% fell short of the forecast of 0.20%. FOMC minutes (June 12 meeting) showed that the Fed officials sought more evidence on inflation cooling and were divided on how long to keep interest rates elevated. 

Today, as the US observes the July 4 holiday, the metal is expected to consolidate its gains ahead of tomorrow’s US nonfarm payroll report. Traders are expected to buy dips as dismal US data boosted rate cut possibility, though robust S&P services data warrants caution on aggressive buying,” said Praveen Singh, Associate Vice President of Fundamental Currencies and Commodities at Sharekhan by BNP Paribas.

Vedanta on Wednesday reported a rise in production of aluminium, zinc, iron ore and steel in the June quarter. However, mined metal production overseas and oil and gas dropped during the quarter. The company said that the aluminium output grew 3% to 5,96,000 tonnes in the first quarter over the year-ago period, Vedanta said in a filing. At Zinc India, the saleable metal output grew to 2,62,000 tonnes over 2,60,000 tonnes. While at Zinc International the mined metal output dropped to 38,000 tonnes, over 68,000 tonnes in the first quarter of FY24.

We expect FSN E-Commerce (NYKAA) to report an overall revenue of Rs 1,770 crore in Q1 of FY25, up 24.7% YoY. Gross merchandise value (GMV) of beauty & personal care (BPC) and fashion segments may grow 22.5% YoY and 35.0% YoY, respectively, and revenue may rise 20.4% YoY and 31.8% YoY, respectively, in Q1 FY25. We expect GMV growth and margin in the BPC segment to moderate, due to increased competition from quick commerce (qCommerce) companies and competition in the online BPC space. The online fashion business may see better growth rates than the historical average (GMV growth of 27.3% YoY in FY24). Overall EBITDA margin may be stable at 5.8%, up 63 basis points YoY/21 basis points QoQ, due to higher marketing expenses, lower advertising revenue and other levers, such as fulfillment cost largely peaking. A higher share of private labels and premiumization too would bolster overall margin,” said Elara Securities on FSN E-Commerce.

“International and domestic crude oil futures settled higher on Wednesday after a report showed U.S. oil inventories last week fell by the most in a year. Data from EIA showed that U.S. oil inventories fell by 12.2-milion barrels last week vs an expectation of a drop of 0.7-million barrels. Additionally, gasoline inventories fell by 2.2-million barrels last week and supported prices. Looking ahead from an intraday perspective, Brent crude oil prices have started marginally weaker this early Thursday morning in Asian trading in a possible technical correction. However, geopolitics and weather appear to be keeping oil prices downside limited. Volumes could be low today on account of a U.S. Holiday. Prices remained under pressure as weather forecasts have been trending cooler in the US, which will curb gas demand. Looking ahead from an intraday perspective, U.S. is shut on account of an Independence Day holiday. Intraday, the MCX July crude futures could trade in the band of 200 to 207,” said Sriram Iyer, Senior Research Analyst at Reliance Securities.

Courtesy: BSE

Courtesy: NSE

“Nifty weekly contract has highest open interest at 25000 for Calls and 24000 for Puts while monthly contracts have highest open interest at 24000 for Calls and 24000 for Puts. Highest new OI addition was seen at 24300 for Calls and 24200 for Puts in weekly and at 24300 for Calls and 24200 for Puts in monthly contracts. FIIs increased their future index long position holdings by 6.18%, decreased future index shorts by 4.57% and in index options by 12.68% decrease in Call longs, 5.54% decrease in Call short, 26.55% decrease in Put longs and 14.03% decrease in Put shorts,” said Anand James, Chief Market Strategist at Geojit Financial Services.

Tata Motors, ICICI Bank, Infosys, Hindalco, and HCLTech were the major gainers in the Nifty 50. While, HDFC Bank, Cipla, Dr Reddy’s Laboratories, Adani Enterprises, and IndusInd Bank were the major losers in the Nifty 50.

The NSE Nifty 50 opened 0.20% higher at 24,334.15, while the BSE Sensex opened 0.21% higher at 80,151.30.

“In the near term, the bullish undercurrent of the market has the potential to outweigh the high valuations. The rally is now being led by the private largecap banking stocks whose valuations are fair even after the recent run-up. The big FII buying of Rs 5484 crores yesterday is largely due to the massive delivery-based buying in banking stocks led by HDFC Bank. This delivery-based buying may sustain for a few more days imparting resilience to the market. The FIIs with 3.78 lakh long contracts have taken a ‘u’ turn in their market approach from the big short contracts in early June. the decline in the US 10-year bond yield to 4.35 % and the dollar index declining to 105.29 are positives for fund inflows. Markets will start responding to the Q1 results which will start flowing in from next week. Financials are set to post good numbers. Credit growth of Bajaj Finance is excellent and this augurs well for the stock,” said V K Vijayakumar, Chief Investment Strategist of Geojit Financial Services.

“On the intraday charts, it (Nifty) is holding higher high and higher low formation, which supports further uptrend from the current levels. We are of the view that, as long as the index is trading above 24200/79600 the bullish structure is likely to continue. Above the same, the market could rally up to 24400/80200. Further upside may also continue which could lift the index up to 24500/80500. However, below 24200/79600 the texture could change. Below the same, traders may prefer to exit from the trading long positions,” said Shrikant Chouhan, Head of Equity Research at Kotak Securities.

Foreign institutional investors (FII) bought shares net worth Rs 5,483.63 crore. However, domestic institutional investors (DII) sold shares net worth Rs 924.43 crore on July 04, 2024, according to the provisional data available on the NSE.

WTI crude prices were trading at $83.56 up by 0.43%, while Brent crude prices were trading at $87.03 up by 0.45%, on Thursday morning.

The US Dollar Index (DXY), which measures the dollar’s value against a basket of six foreign currencies, was trading up 0.01% at 105.30 on Thursday morning.

The Wall Street or US markets closed at a record high. The broader market index, the S&P 500, advanced 0.51% to close at 5,537.02. Similarly, the tech-heavy Nasdaq Composite rose 0.88% to settle at 18,188.30, as largecap technology stocks such as Tesla and Nvidia rallied. Both the indices hit a fresh record high during the session. However, the Dow Jones Industrial Average lost 23.85 points, or 0.06%, to end at 39,308.