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Benchmarks end with minor gains, broader mkt advance; VIX slumps 5%

Published on Dec 13, 2023 15:56

Indian equity indices ended with small gains on Wednesday. Realty, healthcare and pharma stocks witnessed buying demand while IT, oil & gas and private bank shares declined.

After opening higher at 20,929.75, the Nifty 50 index slipped into the negative terrain to hit the day�s low of 20,769.50 in early afternoon trade. However, as the session progressed the index pared losses and paved its way back into the positive zone to settle above the 20,900 level.

As per provisional closing data, the barometer index, the S&P BSE Sensex added 33.57 points or 0.05% to 69,584.60. The Nifty 50 index rose 19.95 points or 0.10% to 20,926.35.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index gained 1.06% and the S&P BSE Small-Cap index added 0.73%.

The market breadth was positive. On the BSE, 2,182 shares rose and 1,590 shares fell. A total of 118 shares were unchanged.

The NSE`s India VIX, a gauge of the market`s expectation of volatility over the near term, tumbled 5.09% to 12.07.

Despite the recent run-up in domestic equities, the underlying investor sentiment remains bullish buoyed by the growth momentum in the economy, the sustained buying by DIIs and retail investors, reversal of the FPI strategy from selling to buying and favourable global cues will keep the market resilient.

From the global perspective, message from the US Federal Reserve, which is slated for release late on Wednesday, remains important in setting the global market trend. Investors will look out for the Fed chief�s message before deciding on future course of action.

IPO Updates:

The initial public offer (IPO) of DOMS Industries received bids for 3,85,23,870 shares as against 88,37,407 shares on offer, according to stock exchange data at 15:30 IST on Wednesday (13 December 2023). The issue was subscribed 4.36 times.

The issue opened for bidding on Wednesday (13 December 2023) and it will close on Friday (15 December 2023). The price band of the IPO is fixed at Rs 750-790 per share. An investor can bid for a minimum of 18 equity shares and in multiples thereof.

The IPO of India Shelter Finance Corporation received bids for 1,87,01,280 shares as against 1,79,10,449 shares on offer, according to stock exchange data at 15:30 IST on Wednesday (13 December 2023). The issue was subscribed 1.04 times.

The issue opened for bidding on Wednesday (13 December 2023) and it will close on Friday (15 December 2023). The price band of the IPO is fixed at Rs 469-493 per share. An investor can bid for a minimum of 30 equity shares and in multiples thereof.

Stocks in Spotlight:

Laurus Labs declined 1.69% after the company�s wholly owned subsidiary, Laurus Synthesis (LSPL) underwent US FDA inspection for the manufacturing facility in Parawada, Anakapalli, near Visakhapatnam, Andhra Pradesh. The inspection was conducted from 4th December 2023 to 12th December 2023. The company has been issued a Form 483 with five observations and it will address the observations within stipulated timelines.

Life Insurance Corporation of India (LIC) rose 1.57%. The life insurer informed that it increased its stake in Atul to 15,09,793 equity shares from 14,74,172 shares increasing its shareholding to 5.117% from 4.997% of the paid up capital of the company.

CIE Automotive shed 0.80%. The company announced that its board has approved the appointment of Sunil Narke as chief executive officer (CEO) with effect from 1 April 2024.

Granules India fell 0.90%. The drug major announced that it has received approval from the US Food and Drug Administration (USFDA) for its abbreviated new drug application (ANDA) for Pantoprazole Sodium Delayed-Release tablets.

Shilpa Medicare gained 1.28%. The company announced that its Unit VI, Dabaspet, Karnataka has received approval from Therapeutic Goods Administration (TGA), Australia for manufacturing, labeling, packaging and testing of medicinal Oral Mouth Dissolving Films (Wafers).

Indian Bank added 1.04%. The bank said that its board Tuesday (December 12) has approved the opening of qualified institutional placement (QIP) of equity shares with the floor price of Rs 414.44 per share. The floor price is at a discount of 5.24% to the scrip�s previous day closing price of Rs 437.35 on the BSE.

KIOCL slipped 2.45%. The operations of Pellet Plant Unit of the company at Mangalore have been temporarily suspended with effect from 12 December 2023 due to non-availability of iron ore fines.

Niraj Cement Structurals jumped 6.38% after the company announced that it has received work order from Jawaharlal Nehru Port Trust (JNPT) worth Rs worth Rs 210.98 crore. The value of the contract from JNPT is more than the present market capitalization of the company, which currently stands at Rs 188.09 crore.

HPL Electric & Power was locked in 10% upper circuit. The company has won smart meter orders worth Rs 545 crore from various prestigious customers in the normal course of business.

Global Markets:

Markets in Europe advanced while Asian stocks ended mixed on Wednesday, as investors awaited the U.S. Federal Reserve�s last monetary policy decision of the year.

The Fed is expected to hold its benchmark overnight borrowing rate in a range of 5.25% to 5.5%, but investors will be analyzing Fed Chair Jerome Powell�s commentary for clues on how soon rate cuts can be expected.

Meanwhile, the U.K. economy contracted 0.3% in October, with the country�s services, production and construction sectors all shrinking, new data from the Office for National Statistics showed Wednesday. The monthly dip follows growth of 0.2% in September and is worse than the 0% change economists had reportedly predicted.

US stocks closed at fresh highs of the year on Tuesday, after inflation data did little to alter views for the timing of a rate cut by the Federal Reserve, as investors awaited the central bank`s last policy decision of the year on Wednesday.

The consumer price index gained 0.1% in November from the prior month. On a year-over-year basis, the print came in at 3.1%. Excluding energy and food, CPI rose 0.3% month over month and 4% year over year.

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