Indices trade with modest gains; auto shares in demand

The domestic equity benchmarks traded with modest gains in mid-morning trade, supported by buying in blue-chip banking stocks, lower crude oil prices, and fresh foreign fund inflows. The Nifty traded above the 24,400 level, while auto shares advanced after declining in the previous trading session.

At 11:30 IST, the barometer index, the S&P BSE Sensex, jumped 491.21 points or 0.63% to 78,267.01. The Nifty 50 index rose 149.10 points or 0.62% to 24,418.75.

The broader market underperformed the frontline indices. The BSE 150 MidCap Index gained 0.42% and the BSE 250 SmallCap Index added 0.24%.

The market breadth was negative. On the BSE, 1,972 shares rose and 2,052 shares fell. A total of 216 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 0.48% to 11.86.

Buzzing Index:

The Nifty Auto index rose 1.37% to 27,356.55. The index declined 0.44% in the past trading session.

TVS Motor Company (up 2.74%), Bajaj Auto (up 2.25%), Eicher Motors (up 1.95%), Mahindra & Mahindra (up 1.6%), Ashok Leyland (up 1.4%), Hero MotoCorp (up 1.27%), Bharat Forge (up 1.07%), Uno Minda (up 1.06%), Tube Investments of India (up 0.93%) and Maruti Suzuki India (up 0.82%) jumped.

Stocks in Spotlight:

Sobha advanced 1.54% after the company?s total sales value jumped 75.88% YoY to Rs 3,656.1 crore in Q1 FY27, led by a strong response to its new project launches, SOBHA OneWorld and Sacred Grove in Bangalore and SOBHA Crescent in Gurgaon.

Senco Gold rose 4.78% after the company reported a strong business performance in the first quarter of FY27, with total revenue rising about 60% year-on-year and 53% quarter-on-quarter.

Global Markets:

Asian markets traded mixed on Monday as easing oil prices promised relief from inflationary pressures.

While there were no new developments in the fractious U.S.-Iran peace talks, ships are passing through the Strait of Hormuz, with 160 vessels reported from Monday to Saturday last week.

OPEC+ also agreed to a further increase in output targets by 188,000 barrels per day from August, on top of similar increases for June and July. As a result, Brent slipped 0.6% to near four-month lows at $71.70 a barrel, and U.S. crude lost 0.5% to $68.38.

The cooling in energy costs combined with a softer U.S. payrolls report led markets to scale back the risk of a Federal Reserve rate hike in the near term, with futures implying a 78% chance of a steady outcome at the July 29 meeting.

Minutes of the ⁠Fed's last meeting are due on Wednesday and should offer colour on the hawkish turn by some board members, though that preceded the recent slide in oil.

The US equity markets remained shut on Friday (July 03) in observance of Independence Day.

The Dow Jones Industrial Average scaled to record highs on Thursday as investors reacted to a weaker-than-expected nonfarm payrolls report for June, while the Nasdaq Composite languished as semiconductors struggled once again.

The 30-stock average added 594.83 points, or 1.14%, for a record close of 52,900.07. The index hit a new all-time intraday high of 52,903.85. The S&P 500 rose less than 1 point to end at 7,483.24, while the Nasdaq dropped 0.8% to 25,832.67.

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