The domestic equity benchmarks ended a volatile session with modest losses on Thursday. Trading was volatile due to expiry of weekly index options on the NSE. The Nifty settled a tad below the 19,550 mark. Media, metal and oil & gas stocks advanced while banking, FMCG and financial services shares declined.

As per provisional closing data, the barometer index, the S&P BSE Sensex slipped 307.63 points or 0.47% to 65,688.18. The Nifty 50 index lost 89.45 points or 0.46% to 19,543.10.

In the broader market, the S&P BSE Mid-Cap index shed 0.09% while the S&P BSE Small-Cap index declined 0.15%.

The market breadth was negative. On the BSE, 1,684 shares rose and 1,912 shares fell. A total of 146 shares were unchanged.

The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rallied 2.33% to 11.40.

RBI Monetary Policy:

The Reserve Bank of India (RBI) monetary policy committee has voted unanimously to keep the repo rate unchanged at 6.5%.

The standing deposit facility (SDF) rate remains at 6.25% and the marginal standing facility (MSF) rate and the bank rate at 6.75%.

The MPC also decided to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns with the target, while supporting growth.

The latest CPI inflation projections for 2023-24, assuming a normal monsoon, is revised to 5.4%, with Q2 at 6.2%, Q3 at 5.7% and Q4 at 5.2%. CPI inflation for Q1:2024-25 is projected at 5.2%.

Meanwhile, the RBI Governor Shaktikanta Das said real GDP growth for 2023-24 is projected at 6.5% with Q1 at 8%; Q2 at 6.5%; Q3 at 6%; and Q4 at 5.7%. Real GDP growth for Q1:2024-25 is projected at 6.6%.

In a surprise move, the RBI put in place an additional cash reserve ratio (CRR) of 10% on banks starting 12 August 2023.

Indian banks have been asked to maintain a 10% incremental cash reserve ratio (ICRR) with effect from August 12, due to an increase in their Net Demand and Time Liabilities (NDTL) between May 19 and July 28, 2023, stated RBI Governor Shaktikanta Das during his monetary policy statement on Thursday.

The RBI Monetary Policy Committee has left the CRR unchanged at 4.5%.

The incremental CRR was considered necessary in the background of the liquidity overhang. We considered it desirable in the interest of financial and price stability. It will have an impact on inflation also. It is a purely temporary measure,? the RBI Governor has reportedly said.

Internal calculations show that the incremental CRR for scheduled banks will affect liquidity by a little above Rs 1 lakh crore, RBI Governor reportedly noted.

IPO Update:

The initial public offer (IPO) of TVS Supply Chain Solutions received bids for 33.22 lakh shares as against 2.51 crore shares on offer, according to stock exchange data at 15:36 IST on Thursday (10 August 2023). The issue was subscribed 0.35 times.

The issue opened for bidding on Thursday (10 August 2023) and it will close on Monday (14 August 2023). The price band of the IPO is fixed at Rs 187-197 per share. An investor can bid for a minimum of 76 equity shares and in multiples thereof.

Buzzing Index:

The Nifty Media index surged 6.63% to 2,241.05. The index soared 9.68% in three trading sessions.

Zee Entertainment Enterprises (up 15.62%), TV18 Broadcast (up 7.08%), Dish TV India (up 3.86%), Network 18 Media & Investments (up 3.33%), Sun TV Network (up 2.86%), Hathway Cable & Datacom (up 2.73%), New Delhi Television (up 0.86%) jumped.

On the other hand, Nazara Technologies (down 1.53%), PVR Inox (down 0.75%) and Navneet Education (down 0.65%) edged lower.

Stocks in Spotlight:

Axis Bank fell 1.03%. The board of directors of the bank has approved the proposal for the Axis Bank to infuse Rs. 1,612 crore in Max Life through preferential allotment, resulting in Axis Bank's direct stake in Max Life increasing to 16.22% and the collective stake of Axis Entities increasing to 19.02%.

Tata Power Company rose 1.06% after the company's consolidated net profit jumped 29% to Rs 1,141 crore in Q1 FY24 as compared with Rs 884 crore in Q1 FY23. Consolidated revenue rose 2% to Rs 15,003 crore in Q1 FY24 as compared with Rs 14,776 crore recorded in corresponding quarter last year, due to higher sales across distribution companies and capacity addition in renewables.

Grasim Industries declined 0.68%. The Aditya Birla Group company's consolidated net profit declined 18.46% to Rs 1,576.47 crore in Q1 FY24 as against Rs 1,933.39 crore recorded in Q1 FY23. The company said that softening of realisations in standalone businesses and UltraTech Cement impacted profitability. Revenue from operations grew by 10.78% year on year to Rs 31,065.19 crore in the quarter ended 30 June 2023. The rise in the revenue was mainly driven by the strong performance of key subsidiaries.

Zee Entertainment Enterprises (ZEEL) surged 17.95%. ZEEL reported a net loss of Rs 53.4 crore in Q1 FY24 as against a net profit of Rs 106.6 crore in Q1 FY23. Operating revenue rose by 7.6% to Rs 1,983.8 crore during the period under review from Rs 1,843.2 crore recorded in the same period last yea

Indian Railway Catering and Tourism Corporation (IRCTC) shed 0.35% after the company's net profit fell 5.4% to Rs 232.22 crore in Q1 FY24 as compared with Rs 245.52 crore in Q1 FY23. Revenue from operations increased 17.5% year on year (YoY) to Rs 1,001.79 crore in the quarter ended 30 June 2023.

BSE slipped 3.67%. BSE reported consolidated net profit of 442.66 crore in Q1 FY24, steeply higher than Rs 44.04 crore posted in Q1 FY23. The zoom in net profit was due to exceptional item. The company has divested its 5% stake in its associate company Central Depository Services (India) (CDSL) to meet the requirement of SEBI directives. The profit on divestment amounted to 406.62 crore.

Excluding the exceptional item, net profit attributable to shareholders for the quarter stood at Rs 75.1 crore, up 71% on YoY basis.

Revenue from operations rose 15.4% year on year (YoY) to Rs 215.62 crore in the quarter ended 30 June 2023.

Berger Paints India skid 0.82%. The company reported a net profit of Rs 354.91 crore in the quarter ended 30 June 2023 as against Rs 253.71 crore in the corresponding quarter of the last year, registering an increase of 39.9% on YoY basis. Revenue from operations in the first quarter of FY24 rose by 9.8% YoY to Rs 3,029.51 crore.

FDC spurted jumped 5.62% after the company's net profit surged 55.4% to Rs 110 crore on 8.4% increase in net sales to Rs 536.38 crore in Q1 June 2023 over Q1 June 2022.

Furthermore, FDC's board approved a proposal to buyback 31,00,000 fully paid-up equity shares having face value of Re 1 each at a price of Rs 500 per equity share for an aggregate amount not exceeding Rs 155 crore. The buyback will be on proportionate basis through the tender offer route. The buyback is expected to be completed by the end of 2023.

Granules India tumbled 6.41% after the pharma company's consolidated net profit tumbled 62.5% to Rs 47.90 crore in Q1 FY24 as against Rs 127.57 crore recorded in Q1 FY23. Revenue from operations in Q1 FY24 was at Rs 985.52 crore, down 3.3% from Rs 1,019.56 crore reported in the same period a year ago.

Force Motors was locked in an upper circuit of 10% after the company reported consolidated net profit of Rs 68.59 crore in Q1 FY24 as compared with net loss of Rs 16.59 crore in Q1 FY23. Revenue from operations jumped 53.23% to Rs 1,487.55 crore in Q1 FY24 from Rs 970.80 crore posted in the corresponding quarter last year.

Suzlon Energy hit an upper circuit of 5%. Renewable energy solutions provider, on Wednesday announced that its board has given approval for a qualified institutions placement (QIP) of equity shares worth upto Rs 2,000 crore. The company will undertake QIP of equity shares to an extent of up to Rs 1,500 crore, with an option to retain oversubscription of up to Rs 500 crore.

Global Markets:

The Dow Jones futures were up 177 points, indicating a positive opening in the US stock market today.

Most of markets in Europe and Asia advanced on Thursday as investors looked ahead to a key U.S. inflation print that could provide hints about the Federal Reserve's next monetary policy move.

Japan's wholesale inflation rate slowed for a seventh straight month to 3.6%, down from June's revised figure of 4.3%. Wholesale inflation is measured by the corporate goods price index, which tracks the price companies charge each other for goods and services.

Wall Street stocks fell on Wednesday, with investors turning their attention to data on Thursday that is expected to show an acceleration in US inflation in July.

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