The headline equity indices ended with strong gains on Monday, rising for the third consecutive session. The Nifty settled above the 19,700 level for the very first time. Media, banking and financial services shares rallied while auto and realty stocks declined.

As per provisional closing data, the barometer index, the S&P BSE Sensex, jumped 529.03 points or 0.80% to 66,589.93. The Nifty 50 index gained 146.95 points or 0.75% to 19,711.45. In three consecutive sessions, the Sensex climbed 1.83% while the Nifty advanced 1.69%.

The Nifty and the Sensex hit all-time highs in late trade at 19,731.85 and 66,656.21, respectively.

In the broader market, the S&P BSE Mid-Cap index gained 0.29% while the S&P BSE Small-Cap index advanced 0.85%.

The market breadth was positive. On the BSE, 2,073 shares rose and 1,600 shares fell. A total of 183 shares were unchanged.

Economy:

Among the Group of 20 nations, headline inflation seems to have peaked, according to the International Monetary Fund. However, in most of the G20 countries, particularly the advanced economies, core inflation remains well above central banks' targets.

In the fight against inflation there are some early signs of monetary policy transmitting to activity, with bank lending standards tightening in the euro area and the United States. That said, policymakers should avoid 'premature celebrations': lessons from previous inflationary episodes show that easing policy too early can undo progress on inflation,? IMF managing director Kristalina Georgieva reportedly wrote in a Friday note.

The IMF forecasts global growth over the medium-term to fall around 3%, lower than the historical average of 3.8% over 2000 to 2019.

IPO Update:

The IPO of Netweb Technologies India received bids for 1.49 crore shares as against 88.58 lakh shares on offer, according to stock exchange data at 15:45 IST on Monday (17 July 2023). The issue was subscribed 1.69 times.

The issue opened for bidding on Monday (17 July 2023) and it will close on Wednesday (19 July 2023). The price band of the IPO is fixed at Rs 475-500 per share. An investor can bid for a minimum of 30 equity shares and in multiples thereof.

Buzzing Index:

The Nifty Media index rallied 3.15% to 1,988.15. The index jumped 7.22% in two trading sessions.

Zee Entertainment Enterprises (up 6.2%), Hathway Cable & Datacom (up 3.92%), TV18 Broadcast (up 3.63%), Navneet Education (up 3.32%), New Delhi Television (up 2.53%), Network 18 Media & Investments (up 2.52%), Sun TV Network (up 1.66%), Dish TV India (up 1.54%), PVR Inox (up 0.94%) and Nazara Technologies (up 0.04%).

Earnings Impact:

HDFC Bank gained 2.05%. The private lender's net profit rose 29.97% to Rs 11,951.77 crore on 39.12% jump in total income to Rs 57,816.67 crore in Q1 FY24 over Q1 FY23.

Separately, the bank has allotted 3,11,03,96,492 new equity shares of Rs. 1 each of HDFC Bank according to the share exchange ratio of 42 shares of HDFC Bank for every 25 shares of HDFC Ltd. The bank's paid-up share capital will increase from Rs. 559.17 crore to Rs. 753.75 crore post cancellation of promoter holding of 116.46 crore equity shares. HDFC Bank is a now publicly held company following the merger with no clear promoter.

Avenue Supermarts (Dmart) slipped 3.60%. The company reported 2.46% increase in consolidated net profit to Rs 658.75 in Q1 FY24 as compared with Rs 642.93 crore in Q1 FY23. Revenue from operations jumped 18.2% to Rs 11,865.44 crore in Q1 FY24 as against Rs10,038.07 crore posted in same quarter last year.

JSW Energy dropped 3.96%. The power generation company announced that its consolidated net profit declined 48.3% to Rs 289.88 crore in Q1 FY24 as compared with Rs 560.43 in Q1 FY23. Revenue from operations fell 3.3% to Rs 2,927.85 crore in Q1 FY24 as compared with Rs 3,026.27 crore posted in corresponding quarter last year, as the incremental revenue from Mytrah and renewable capacity additions was offset by lower realization in thermal assets on account of decline in coal prices.

Just Dial tumbled 4.05%. The company reported standalone net profit of Rs 83.40 crore in Q1 FY24 as compared with net loss of Rs 48.35 crore posted in corresponding quarter last year. Net sales jumped 33.1% to Rs 246.98 crore in Q1 FY24 as compared with Rs 185.60 crore in Q1 FY23.

GTPL Hathway hit an upper circuit 20%. The company reported 16.97% fall in consolidated net profit to Rs 35.91 crore in Q1 FY24 from Rs 43.25 crore posted in corresponding quarter last year. Revenue from operations jumped 22.75% to Rs 774.44 crore in Q1 FY24 as compared with Rs 630.89 crore in Q1 FY23. Subscription revenue increased by 8% QoQ and 9% YoY to Rs 298.1 crore in Q1 FY24. The broadband average revenue per user (ARPU) stood at Rs 460 per month per subscriber.

Stocks in Spotlight:

Larsen & Toubro shed 0.16%. The EPC company said that its Water & Effluent Treatment Business of L&T Construction has secured orders from State Water & Sanitation Mission, Uttar Pradesh to construct water supply scheme in Ballia and Firozabad. As per the classification the value of the order lies between Rs 2,500 crore to Rs 5,000 crore.

Ashok Leyland rose 0.64%. The company received significant orders worth Rs 800 crore in defence sector. The contracts awarded also include the procurement of the Field Artillery Tractor (FAT 4x4) and the Gun Towing Vehicle (GTV 6x6). The FAT 4x4 and GTV 6x6 are specialized vehicles employed by the Artillery for towing light and medium guns, respectively. Both these platforms were prominently featured in the initial positive indigenization list announced by the Government of India.

IndiaMART InterMESH gained 2.12% after the firm said that its board will meet on Thursday, 20 July 2023, to consider the proposal for buyback of fully paid up equity shares of the company.

Route Mobile lost 7.99%. The company said that the Proximus Group has signed a definitive agreement to acquire through Proximus Opal, approximately 58% interest in Route Mobile, a global company specialized in CPaaS services.

Global Markets:

European and Asian stocks declined on Monday as investors digested key economic data from China. The Japanese stock market is closed today on account of Marine Day national holiday.

China's economy grew slightly more than expected in the second quarter of 2023, but growth still slowed substantially from the prior quarter as a post-COVID economic recovery ran out of steam.

China's second quarter gross domestic product (GDP) grew 0.8% from the prior quarter, data from the National Bureau of Statistics showed on Monday. The reading was slightly above expectations for growth of 0.5%, but slowed substantially from the 2.2% seen in the prior quarter.

Hong Kong markets will likely be closed all Monday due to a warning issued for Typhoon Talim. The Hong Kong Observatory expects storm signal No. 8 to remain in force until at least 4pm.

The Hong Kong Exchange usually cancels the morning trading sessions if the typhoon signal is No. 8 or above, and all trading sessions for the day will be cancelled if signal No. 8 or above remains in force by noon.

Singapore's non-oil domestic exports fell 15.5% year on year in June, marking the ninth straight month that such exports have remained in contraction territory.

This was a deeper fall than the 14.8% drop recorded in May, but slightly less than market expectations of a 15.8% decline. The fall in non-oil domestic exports were due to weaker exports to Malaysia, Indonesia and South Korea, although exports to Hong Kong and China rose.

Meanwhile, the U.S. markets were mixed on Friday, with the Dow Jones Industrial Average reaching its highest level since March as strong earnings results from some of the biggest banks and companies kicked off earnings season.

However, the S&P 500 dropped 0.10%, and the Nasdaq Composite declined 0.18%, but both indexes touched their highest intraday levels since April 2022.

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