Barometers make marginal moves, Nifty ends below 21,750

The domestic stock market closed with marginal gains on Monday, with the Nifty 50 settling just below the 21,750 mark. While auto and private bank shares declined, and energy and media shares saw increased demand. Expectations of rate cuts, ease in global inflation, and softer bond yields contributed to market positivity. However, concerns about disruptions in the Red Sea impacting global supply chains and freight costs led to profit-taking at higher levels. The upcoming FOMC minutes will provide insight into potential 2024 rate cuts, setting the focus for the week ahead.

The barometer index, the S&P BSE Sensex, rose 31.68 points or 0.04% to 72,271.94. The Nifty 50 index added 10.50 points or 0.05% to 21,741.90.

Bharti Airtel (down 1.92%), M&M (down 1.31%) and HDFC Bank (down 0.53%) were major drags.

The Nifty 50 index and Sensex 30 index hit record high of 21,834.35 and 72,561.91, respectively today.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index rose 0.54% and the S&P BSE Small-Cap index gained 0.73%.

The market breadth was strong. On the BSE, 2,509 shares rose and 1,385 shares fell. A total of 153 shares were unchanged.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, rose 1.22% to 14.68.

Economy:

The government`s Goods and Services Tax (GST) collections increased by 10% year-on-year to Rs 1.65 lakh crore in December 2023, marking the tenth consecutive month with collections above the Rs 1.5-lakh-crore mark. However, this figure represents a 2% decrease from the previous month`s collection of Rs 1.68 lakh crore. The average monthly collection in 2023-24 stands at Rs 1.66 lakh crore, showcasing a steady increase from previous years, as collections have risen from under Rs 1 lakh crore per month in 2017-18 to averaging Rs 1.51 lakh crore in 2022-23.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper rose 0.26% to 7.195 as compared with previous close 7.176.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.2300, compared with its close of 83.1650 during the previous trading session.

MCX Gold futures for 5 February 2024 settlement added 0.14% to Rs 63,291.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was up 0.05% to 101.38.

The United States 10-year bond yield advanced 0.16% to 3.866.

In the commodities market, Brent crude for March 2024 settlement lost 25 cents or 0.32% to $76.90 a barrel.

Global Markets:

Markets of Europe and Asia were closed on New Year`s Day, and the US stock market will also be closed today for New Year`s Day.

US stocks closed modestly lower on Friday, the last trading day of 2023, capping a robust year-end rally as investors eyed easier monetary policy in the year ahead.

Stocks in Spotlight:

PTC Industries soared 10%. The company`s board meeting is set for 3 January 2024, to discuss capital raise through various methods like private placement, preferential issue, rights issue, and more, subject to necessary approvals.

Yes Bank jumped 5.50% after the bank informed that it has received Rs 150 crore in security receipts portfolio from the sale of NPA portfolio to JC Flowers ARC on 17 December 2022.

Grasim Industries shed 0.38% after the company announced that its chemical division has successfully commissioned additional 123,000 tons� annual capacity of advanced materials (Epoxy Resins and Formulation) manufacturing capacity at Vilayat, Gujarat.

Dr. Reddy`s Laboratories added 0.36%. The company, through its wholly-owned step-down subsidiary Dr. Reddy�s Laboratories, Inc., has acquired 1,014,442 preferred A-1 shares (equivalent to 6.46% stake) of Edity Therapeutics. Edity Therapeuticsis is an Israel based development stage biotechnology company.

Bajaj Auto declined 1.48%. The company said that it has sold 3,26,806 units in the month of December 2023, which is higher by 16.08% as compared with 2,81,514 units sold in the same period last year.

Mahindra & Mahindra (M&M) fell 1.31%. The auto maker announced that its overall auto sales for the month of December 2023 stood at 60,188 vehicles, registering a growth of 6.19% as against 56,677 vehicles sold in December 2022.

Further, the company`s Farm Equipment Sector (FES) announced that its total tractor sales (domestic + exports) during December 2023 were at 19,138 units, registergin a decline of 18% as against 23,243 units for the same period last year.

Eicher Motors fell 2.60%. The auto maker`s unlisted subsidiary, VE Commercial Vehicles (VECV) reported 11.1% year on year increase in commercial vehicles (CV) sales to 8,026 units in December 2023.

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