Benchmarks hit new highs amidst bullish momentum; NSE VIX at 13.74

The domestic equity indices achieved a seventh consecutive day of gains, with the Sensex and Nifty reaching new highs. This rally was propelled by increased buying in the IT and power sectors. Investors` optimism is buoyed by expectations of a strong BJP mandate in the 2024 Lok Sabha polls. Additionally, declining crude oil prices and anticipated rate cuts by the US Federal Reserve have further boosted investor confidence. Moreover, the Indian market has gained appeal following a China credit rating downgrade.

The barometer index, the S&P BSE Sensex jumped 357.59 points or 0.52% to 69,653.73. The Nifty 50 index added 82.60 points or 0.40% to 20,937.70. Both the indices attained record closing high levels. In seven consecutive sessions, the Sensex jumped 5.58% while the Nifty climbed 5.77%.

The Sensex and Nifty clocked an all-time high of 69,744.62 and 20,961.95 respectively in late trade. Further, the Nifty Bank index also registered its fresh record high of 47,259.85.

ITC (up 2.51%), Larsen & Toubro (up 2.31%) and Reliance Industries (up 0.95%) boosted the indices.

In the broader market, the S&P BSE Mid-Cap index rose 0.19% while the S&P BSE Small-Cap index gained 0.18%.

The market breadth was almost neutral. On the BSE, 1,877 shares rose, and 1,887 shares fell. A total of 131 shares were unchanged.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, jumped 2.09% to 13.74.

The six-member Monetary Policy Committee of the Reserve Bank of India (RBI) began its two-day meeting on December 6, 2023. RBI Governor Shaktikanta Das is scheduled to announce the MPC decision on the final day of the meeting, Friday, December 8, 2023.

Numbers to Track:

The yield on India`s 10-year benchmark federal paper fell 0.22% to 7.246 as compared with previous close 7.262.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 83.3225, compared with its close of 83.3700 during the previous trading session.

MCX Gold futures for 5 February 2023 settlement rose 0.12% to Rs 62,260.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.06% to 103.99.

The United States 10-year bond yield advanced 0.72% to 4.195.

In the commodities market, Brent crude for February 2024 settlement rose 56 cents or 0.73% to $76.64 a barrel.

Global markets:

Markets in Europe and Asia advanced on Wednesday, bolstered by the uptick in US high-tech shares amidst evaluations of US labour market data indicating a slowdown.

Meanwhile, Moody�s Investors Service downgraded its outlook for Chinese sovereign bonds to �negative,� highlighting global worries over the country�s soaring debt. While maintaining an A1 long-term rating, Moody�s expressed concerns about China�s heavy reliance on fiscal stimulus for local entities and state-owned firms, posing economic risks.

Wall Street finished mixed on Tuesday after fresh employment data bolstered bets that the U.S. Federal Reserve will cut interest rates as soon as March.

Stocks in Spotlight:

Angel One surged 6.79% after the brokerage company`s client base jumped 51.3% to 18.45 million in November 2023 as against 12.19 million in November 2022.

Bank of India rallied 6.04%. The public sector bank announced that its board has approved the opening of qualified institutional placement (QIP) of equity shares with the floor price of Rs 105.42 per share.

Himadri Speciality Chemical jumped 3.58% after the company�s board approved to set up manufacturing facility for the production of Lithium-ion Battery (LiB) components with annual capacity of 200,000 MT through subsidiaries.

State Bank of India (SBI) fell 0.05%. The executive committee of the central board (ECCB) of the bank has accorded final approval for acquiring 20% stake held by SBI Capital Markets (SBICAPS) in SBI Pension Funds (SBIPFPL) by SBI. The cost of acquisition is Rs 229.52 crore.

Power Grid Corporation of India added 0.90%. The company has been declared as successful bidder under Tariff Based Competitive Bidding to establish Inter-State Transmission System Project for �Transmission system for evacuation of additional 7 GW of RE power from Khavda RE park under Phase III Part B� on Build, Own Operate and Transfer (BOOT) basis.

Lupin fell 1.20%. The pharma major announced that it has received approval from US Food & Drug Administration (USFDA) for its abbreviated new drug application (ANDA) of Varenicline tablets. The approved durg is generic equivalent of Chantix tablets of PF Prism C.V. It is indicated for use as an aid to smoking cessation treatment.

Zydus Lifesciences rose 0.28%. The drug major announced that it has received final approval from the United States Food and Drug Administration (USFDA) to manufacture and market Methylene Blue injection.

Greenpanel Industries declined 0.63% after the company informed that operations at MDF plant located at Chittor, Andhra Pradesh, has been disrupted due to Cyclone Michaung.

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