The key equity indices ended with significant gains on Monday. The Nifty settled tad above the 19,750 level after hitting day's low of 19,597.60 in early trade. Metal, IT, auto shares advanced while FMCG and healthcare shares declined.

As per provisional closing data, the barometer index, the S&P BSE Sensex, gained 367.47 points or 0.56% to 66,527.67. The Nifty 50 index added 107.75 points or 0.55% to 19,753.80.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index advanced 0.86% while the S&P BSE Small-Cap index rose 1.31%.

The market breadth was strong. On the BSE, 2,215 shares rose and 1,466 shares fell. A total of 197 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, jumped 2.73% to 10.41.

Economy:

Indian companies can list their shares directly on foreign exchanges at the IFSC in GIFT City, said finance minister, a move that will give domestic firms access to foreign funds.

Summer crop coverage in India experienced a slight decline, reaching 830.31 lakh hectares as of 28 July. This represents a decrease from the corresponding period last year when the cultivated area stood at 831.65 million hectares.

The government has notified a scheme to set up a Rs 30,000 crore Corporate Debt Market Development Fund with a view to stabilising the markets.

Earnings Impact:

Marico fell 1.93%. The company reported 15% increase in consolidated net profit to Rs 427 crore in Q1 FY24 as compared with Rs 371 crore in Q1 FY23. Revenue from operations fell 3.2% in Q1 FY24 as against Rs 2477 crore posted in corresponding quarter last year.

SBI Cards and Payment Services declined 0.26%. The company reported 5% fall in net profit to Rs 593 crore despite a 24% increase in total revenue to Rs 4,046 crore in Q1 FY24 as compared with Q1 FY23.

GAIL (India) rose 1.74%. A foreign broker double-upgraded the stock to buy from sell, citing revenue gains due to revision in tariffs.

Shree Cement rose 0.11%. The company's wholly owned subsidiary Shree Cement East Pvt. Ltd has started commercial production at its clinker grinding unit at village Digha & Parbatpur in Purulia district of West Bengal with cement capacity of 3.0 MTPA.

United Breweries declined 1.96%. The company reported 16% decline in consolidated net profit to Rs 136.21 crore as compared with Rs 162.09 crore in corresponding quarter last year. Net sales fell 6.7% to Rs 2,274.79 crore during the quarter of FY24 as against Rs 2,438.71 crore in Q1 FY23.

NTPC rallied 3.71%. The company's consolidated net profit rose to Rs 4907.13 crore in Q1 FY24 as against Rs 3977.77 crore posted in Q1 FY23. Total income fell to Rs 43075.09 crore in Q1 FY24 from Rs 43177.14 crore recorded in Q1 FY23.

Bank of India gained 1.79%. The state-run bank reported 176.2% surge in net profit of Rs 1,551.07 crore in Q1 FY24 as compared with Rs 561.49 crore in Q1 FY23. Total income jumped 42.2% to Rs 15,821.08 crore in the quarter ended 30 June 2023 as compared with Rs 11,124.36 crore posted in corresponding quarter last year.

IDFC First Bank rallied 3.76% after the private sector bank's net profit surged 61.3% to Rs 765.16 crore in Q1 FY24 as compared with Rs 474.33 crore in Q1 FY23. Total income stood at Rs 8,281.54 crore in quarter ended 30 June 2023, up 43.3% from Rs 5,777.35 crore recorded in quarter ended 30 June 2022.

Global Market:

Shares in Europe and Asia advanced on Monday, extending last week's rally as optimism over more Chinese stimulus measures largely offset data showing business activity in the country deteriorated further in July.

According to preliminary data released on Monday, Headline inflation in the euro area was 5.3% in July, lower than the 5.5% registered in June.

Hopes of fewer U.S. interest rate hikes also aided regional markets, after data on Friday showed that the Federal Reserve's preferred inflation gauge eased in June.

China's factory activity for July remained in contraction territory for the fourth straight month. The official manufacturing purchasing managers index came in at 49.3, higher than June's figure of 49.0, according to the national bureau of statistics. The PMI for non-manufacturing activity came in at 51.5, a slower rate of expansion compared to the 53.2 in June.

Chinese markets firmed on Monday as the State Council outlined more measures to boost domestic consumption and economic growth.

The Council unveiled measures aimed chiefly at increasing retail discretionary spending, as well as supporting the real estate and automobile markets.

US stocks rose Friday as a measure of inflation closely watched by the Federal Reserve came in at its lowest in nearly two years.

June data for the personal consumption expenditures price index continued to show easing inflation. The gauge showed core PCE gained 0.2% month-over-month. Core PCE rose 4.1% from the year-ago period.

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