Benchmarks snap 7-day streak, Nifty holds 20,900; NSE VIX drops almost 8%

The benchmark indices took a breather on Thursday, after a seven-day winning streak. Metals, FMCG and IT stocks were major drags. Weak global cues and profit booking ahead of the RBI monetary policy outcome on Friday (8th December) influenced sentiment. Despite this, mid and smallcaps outperformed the frontline indices. Trading was volatile due to expiry of weekly index options on the NSE.

The barometer index, the S&P BSE Sensex declined 132.04 points or 0.19% to 69,521.69. The Nifty 50 index lost 36.55 points or 0.17% to 20,901.15.

Bharti Airtel (down 2.46), ITC (down 1.06%) and Larsen & Toubro (down 0.91%) were major drags.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index rose 0.66% while the S&P BSE Small-Cap index added 0.28%. The S&P BSE Mid-Cap index and S&P BSE Small-Cap index hit an all time high of 35,371.44 and 41,369.78 today.

The market breadth was positive. On the BSE, 2,144 shares rose, and 1,619 shares fell. A total of 122 shares were unchanged.

The NSE`s India VIX, a gauge of market`s expectation of volatility over the near term, slumped 7.76% to 12.67.

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

Numbers to track:

The yield on India`s 10-year benchmark federal paper fell 0.14% to 7.238 as compared with previous close 7.248.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 83.3600, compared with its close of 83.3225 during the previous trading session.

MCX Gold futures for 5 February 2024 settlement rose 0.18% to Rs 62,550.

The US Dollar index (DXY), which tracks the greenback`s value against a basket of currencies, was down 0.25% to 103.89.

The United States 10-year bond yield advanced 0.64% to 4.145.

In the commodities market, Brent crude for February 2024 settlement gained 82 cents or 1.10% to $75.12 a barrel.

Global Markets:

Markets in Europe and Asian declined on Thursday, mirroring moves on Wall Street as investors assessed trade data from China and Australia.

US stocks ended lower on Wednesday as investors assessed data indicating falling inflation while awaiting jobs report.

Stocks in Spotlight:

One 97 Communications (Paytm) tumbled 18.69% after the company announced its strategic decision to gradually reduce unsecured loans below Rs 50,000.

Spicejet hit an upper circuit of 20% after the company�s board said that it will meet on Monday, 11 December 2023 to consider fund raising on preferential basis.

Shares of Network18 Media & Investments declined 8% and TV18 Broadcast fell 7%. Network18 Media & Investments said that its board has approved the amalgamation of e-Eighteen.com and TV18 Broadcast with itself. Shareholders of TV18 Broadcast will get 100 shares of Network18 for every 172 shares held by TV18 and shareholders of E18 will get 19 shares of Network 18 for every 1 share held by E18.

Adani Ports and Special Economic Zone advanced 2.05%. The meeting of the board of directors of the company will be held on 12 December 2023 to consider the proposal for issuance of Non-Convertible Debentures and issuance/ renewal of Non-cumulative redeemable preference shares, on private placement basis/ preferential basis, in one or more tranches.

Dr. Reddy�s Laboratories rose 0.91%. The company`s wholly-owned subsidiary Dr. Reddy`s Laboratories SA and Coya Therapeutics, Inc., announced that they have entered into a development and license agreement for the development and commercialization of COYA 302, an investigational combination therapy for the treatment of Amyotrophic Lateral Sclerosis (ALS).

IRCON International dropped 6.54%. The Government of India will sell 8% stake, or 7.52 crore equity shares, in the company through an offer-for-sale (OFS) on December 7-8, with a floor price of Rs 154 per share. The total OFS size (base size + green shoe) stands at 7,52,41,258 shares, representing 8% of outstanding equity shares of the company, the value of which (at floor price) aggregates to Rs 1,158.71 crore.

As of 15:30 IST, the OFS received subscription for 15,66,21,977 shares. It was subscribed 4.63 times on the base non-retail offer size of 3,38,58,566 shares.

Bharat Electronics (BEL) added 2.62% after the company received an order of Rs 580 crore from Indian Army for AMC of Radars. The company has also received additional orders worth Rs 3,335 crore for AMC for AEW&C system (Airborne Early Warning & control), Uncooled TI sights, Software Defined Radios, SWIR pay load, AMC for IACCS, Passive Night Vision Binoculars etc.

Gravita India rose 1.08% after the company informed that its step down subsidiary has started commercial production of recycled polypropylene granules from its new plastic recycling plant in Tanzania, East Africa.

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