Broader market outperforms; European indices open higher

The domestic equity benchmarks continued to trade with limited losses in afternoon trade. The Nifty traded below the 20,850 mark. European markets edged higher while their Asian counterparts traded in a mixed manner today.

At 13:25 IST, the barometer index, the S&P BSE Sensex, was down 242.96 points or 0.35% to 69,308.07. The Nifty 50 index lost 72.50 points or 0.35% to 20,833.90.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.44% and the S&P BSE Small-Cap index added 0.42%.

The market breadth was positive. On the BSE, 2056 shares rose and 1636 shares fell. A total of 132 shares were unchanged.

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.

Stocks in Spotlight:

Granules India fell 1.48%. 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. According to IQVIA/IMS Health, MAT Oct 2023, the current annual U.S. market for Pantoprazole Tablets is approximately $233 million.

Indian Bank declined 1.41%. 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.

In its draft placement document filed with the bourses, Indian Bank stated: �Subject to compliance with applicable laws, our bank intends to utilize the net proceeds towards augmenting our bank�s Tier-I capital to meet additional requirement on account of capital conservation buffer and to support growth plans and to enhance the business of our bank.�

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.

Spandana Sphoorty Financial rose 0.49%. The board of the MFI has approved the issuance of 20,000 secured, senior, redeemable, transferable, listed, rated non-convertible debentures having face value of Rs 1 lakh each at par aggregating up-to Rs 200 crore including a green shoe option of issuing similar bonds adding up-to Rs 100 crore on private placement basis. The date of allotment is 18 December 2023.

Global Markets:

Markets in Europe opened higher while their Asian peers traded 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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